Modine Manufacturing Reports 7% Sales Increase to $2.6 Billion for Fiscal Year 2025

Modine Manufacturing Company reported a consolidated net sales increase of 7% for the fiscal year ending March 31, 2025, reaching $2.6 billion, compared to $2.4 billion in the previous fiscal year. The growth was primarily driven by a significant 30% increase in the Climate Solutions segment, which accounted for $1.4 billion in sales, bolstered by the acquisition of Scott Springfield Manufacturing and organic growth in data center cooling solutions. In contrast, the Performance Technologies segment experienced a 12% decline in sales, totaling $1.2 billion, largely due to the sale of three automotive businesses in Germany and lower sales volumes.

Operating income for the fiscal year rose to $283 million, up from $241 million in fiscal 2024, reflecting a $42 million increase attributed to higher gross profit margins, which improved by 310 basis points to 24.9%. However, selling, general, and administrative (SG&A) expenses also increased by 21% to $332 million, driven by higher compensation-related costs and expenses associated with the acquired businesses. The company reported net earnings of $186 million, or $3.50 per share, compared to $163 million, or $3.08 per share, in the prior year.

Strategically, Modine has focused on enhancing its product portfolio and expanding its market presence. The acquisition of Scott Springfield Manufacturing in March 2024, a manufacturer of air handling units, has strengthened Modine's position in the data center cooling market. Additionally, the company acquired Napps Technology Corporation in July 2023, further diversifying its offerings in air- and water-cooled chillers. In April 2025, Modine also acquired AbsolutAire, Inc., which will enhance its heating and indoor air quality product lines.

Operationally, Modine employed approximately 11,300 individuals as of March 31, 2025, and reported that its top ten customers accounted for 43% of net sales. The company is actively pursuing geographic expansion, particularly in the data center cooling market, and anticipates continued strong growth in this area due to rising demand for digital infrastructure. Looking ahead, Modine aims to leverage its expertise in thermal management to capitalize on emerging trends in energy efficiency and sustainability, while also focusing on optimizing its operations through the application of 80/20 principles to enhance profitability and shareholder value.