Core Insights - Modine reported a strong fourth quarter and fiscal year 2025, achieving record revenue and adjusted EBITDA for the third consecutive year, driven by growth in the Climate Solutions segment and effective transformation strategies [2][10][12]. Fourth Quarter Highlights - Net sales increased by 7% to $647.2 million compared to $603.5 million in the prior year, primarily due to higher sales in the Climate Solutions segment [3][10]. - Gross profit rose by 23% to $166.0 million, with gross margin improving by 330 basis points to 25.7%, attributed to favorable sales volume and mix in the Climate Solutions segment [4][10]. - Operating income increased by 59% to $74.5 million, while net earnings surged by 92% to $50.1 million [6][10]. Full-Year Highlights - Fiscal 2025 net sales reached $2,583.5 million, a 7% increase from $2,407.8 million in the previous year, driven by strong performance in the Climate Solutions segment [9][10]. - Record net earnings of $185.5 million represented a 14% increase from the prior year, with adjusted EBITDA rising by 25% to $392.1 million [10][12]. - Earnings per share increased to $3.42, up from $3.03 in the previous year [10][12]. Fiscal 2026 Outlook - The company anticipates continued growth in fiscal 2026, projecting net sales growth between 2% to 10% and adjusted EBITDA in the range of $420 million to $450 million, reflecting a growth of 7% to 15% [10][15]. - The Climate Solutions segment is expected to maintain strong performance, supported by a robust order book for data center products [15]. - The Performance Technologies segment will focus on cost reduction measures due to ongoing challenges in vehicular end markets [15]. Segment Performance - The Climate Solutions segment reported sales of $356.3 million, a 28% increase year-over-year, driven by data center cooling and HVAC&R products [11][33]. - The Performance Technologies segment experienced an 11% decline in sales to $294.8 million, primarily due to market-related declines in automotive and commercial vehicle sectors [11][33]. Balance Sheet & Liquidity - As of March 31, 2025, total debt was $350.8 million, with cash and cash equivalents totaling $71.6 million, resulting in net debt of $279.2 million, a decrease of $92.3 million from the previous year [14][40]. - The company generated $213.3 million in net cash from operating activities, with free cash flow increasing to $129.3 million [13][41].