In Q2 2025, Modine Manufacturing Company (MOD) reported revenues of $658 million, representing a 6% year-over-year increase. Driven primarily by robust growth in its Climate Solutions segment, particularly in the data center business, Modine's performance reflects its strategic investments and focus on high-growth customer segments. The company successfully navigated some headwinds in its Performance Technologies segment due to declining demand in vehicular markets. Despite facing challenges, management's commitment to its 80/20 strategy has led to improvements in gross profit margins and a healthy EBITDA growth of 23%.
CEO Neil Brinker highlighted the ongoing momentum in the data center market, with sales growing over 100% year-over-year, underscoring the strong demand from hyperscale customers. Looking forward, Modine maintains its three-year financial targets, aiming for compounded annual revenue growth of 10% to 13% and adjusted EBITDA margins of 16% to 18%.