Racine-based
Modine, a manufacturer of thermal management technology and solutions, has recorded it highest sales and profitability in company history for the third year in a row.
During the company’s earnings call for fiscal 2025, Modine reported net sales grew 7% to $2.6 billion compared to the prior year. Net earnings increased 14% to $185.5 million.
These “record results” were led by Modine’s data center business, said
Neil Brinker, president and CEO of the company.
Modine is seeing so much demand for its data center chillers, the company recently announced plans to
invest $38 million to expand production capacity at its plant in Grenada, Mississippi.
"We're going to have more than double the (production) capacity that we currently have, once we get Mississippi up and running," said Brinker during Wednesday’s call. "We would expect to have a 12-month cycle to get to that point. Some of these things can accelerate. We could potentially move a little bit faster based on hiring, based on equipment coming in early."
Right now, the company’s revenue capacity in North America for the data center business is “north of a billion dollars,” according to Brinker.
"The capacity that we had built out in North America (for data centers), that surge has exceeded (our) capacity," he said.
Modine’s Climate Solutions segment reported a 30% increase in revenues in the fourth quarter of fiscal 2025, along with 21% sales growth. Growth in this segment was also largely driven by data centers, which recorded sales growth of $69 million (80%) from the prior year.
"We remain quite optimistic in the full year (2026) outlook for data centers with anticipated revenue growth in excess of 30%," said
Mick Lucareli, executive vice president and chief financial officer at Modine.
Modine has continued working to develop relationships with all the well-known hyperscalers (large-scale cloud service providers like Microsoft, Amazon and Google).
"We've gone from one significant relationship with a single hyperscaler to five in a short period of time where we have the opportunity to do business," said Brinker.
Those companies are giving Modine insights into their data center plans for the next one to two years. In some instances, Modine has insight into customers’ plans for the next three to five years.
For fiscal 2026, Modine expects net sales growth of between 2% and 10%. The company did provide a wider range of guidance than usual, citing economic uncertainty.
"We expect another strong year in the Climate Solutions segment, supported by our current order book for data center products and significant funnel of future opportunities," said Brinker. "The expansions of our technology offerings and manufacturing capacity are contributing to our above-market organic growth rates."
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