Modine transforms into climate‑solutions specialist as data‑center cooling production and sales surge

Modine shifts to capitalize on booming data‑center cooling demand

Modine Manufacturing is accelerating its transformation into a pure‑play climate solutions company as a production ramp for data‑center cooling products drives a surge in its Climate Solutions business. The company combines operational expansion with a strategic carve‑out of its Performance Technologies unit to sharpen focus on high‑growth cooling and refrigeration markets.

Data‑center production ramp and spin‑off shape new company profile

Modine is expanding manufacturing capacity for data‑center thermal management and is commissioning additional production lines that management says are underpinning strong sequential revenue growth. The ramp delivers a sharp increase in data‑center sales, supports improving Climate Solutions margins and positions Modine to serve rising demand from hyperscale and enterprise customers for more efficient, compact cooling systems.

The company is pairing that operational build‑out with a strategic restructuring that separates Performance Technologies and combines it with Gentherm, leaving Modine as a specialist in data‑center, commercial HVAC and refrigeration solutions. Management frames the move as a way to concentrate R&D and capital investment on technologies and products tied to electrification, efficiency and high‑density cooling requirements.

CEO Neil D. Brinker emphasizes that newly commissioned lines and a focused commercial strategy should sustain momentum into the fourth quarter, with the company prioritizing scale‑up of production, supply‑chain continuity and margin improvement across its Climate Solutions portfolio.

Quarterly financials and raised guidance

For the third quarter ended Dec. 31, 2025, Modine reports net sales of $805.0 million, a 31% year‑over‑year increase driven by a 51% rise in Climate Solutions revenue and a 78% jump in data‑center sales. Adjusted EBITDA rises to $119.6 million and adjusted earnings per share increase to $1.19. Reflecting ongoing strength, Modine raises fiscal 2026 guidance to expected net‑sales growth of 20–25% and forecasts adjusted EBITDA of $455 million to $475 million.

Pension charge and Performance Technologies update

The company records a $116.1 million non‑cash charge to terminate its U.S. pension plan, producing a reported net loss of $46.8 million for the quarter. Performance Technologies revenue holds roughly flat, up 1%, as lower volumes are offset by favorable pricing and foreign‑exchange effects; that unit’s planned combination with Gentherm is expected to allow Modine to redeploy resources into its climate‑focused growth markets.