Modine Reports First Quarter Fiscal 2026 Results

Core Insights - Modine has raised its revenue and earnings outlook for fiscal 2026, driven by improved data center sales and recent acquisitions [13][2][1] Financial Performance - Net sales for the quarter ended June 30, 2025, increased by 3% to $682.8 million, compared to $661.5 million in the prior year [3][11] - Net earnings rose by 8% to $51.7 million, up from $47.8 million in the previous year [5][11] - Adjusted EBITDA increased slightly to $101.4 million, compared to $100.9 million in the prior year [5][11] - Earnings per share increased by 8% to $0.95, compared to $0.88 in the prior year [6][11] Segment Performance - The Climate Solutions segment reported sales of $397.4 million, an 11% increase from $357.3 million a year ago, driven by higher sales of data center and HVAC technologies products [12][11] - The Performance Technologies segment saw a decline in sales to $285.5 million, down 8% from $309.0 million, primarily due to market-related declines [12][11] Cost and Expenses - Gross profit increased by 2% to $165.4 million, while gross margin decreased by 40 basis points to 24.2% [4][11] - Selling, general, and administrative expenses rose by $2.1 million to $84.9 million, mainly due to increased spending for growth and acquisitions [4][11] Balance Sheet and Liquidity - As of June 30, 2025, total debt was $527.1 million, with cash and cash equivalents totaling $124.5 million, resulting in net debt of $402.6 million [9][11] - Net cash provided by operating activities decreased to $27.7 million, down $12.8 million from the prior year [8][11] Outlook - Modine anticipates net sales growth of 10% to 15% and adjusted EBITDA in the range of $440 million to $470 million for fiscal 2026 [13][11]