On this page of StockholderLetter.com we present the latest annual shareholder letter from MODINE MANUFACTURING CO — ticker symbol MOD. Reading current and past MOD letters to shareholders can bring important insights into the investment thesis.
2025 ANNUAL REPORT
PURPOSE Our Purpose We are driven by our purpose of Engineering a Cleaner, Healthier World . We achieve this through our Mission that meets demand for cleaner, more efficient thermal management. Throughout our journey, we re committed to the Values that have guided us since our founding. Our Mission MISSION VALUES Our Values Reduce Water and Energy Consumption Engineering solutions that conserve energy and water resources. Technology Driven We innovate and invest in technology to deliver high-quality solutions that help customers achieve their goals. Improve Indoor Air Quality Innovating HVAC solutions that clean indoor air and create healthier spaces. Integrity Committed We uphold the highest ethical standards, act honorably, and follow through on our commitments. Use Environmentally Friendly Refrigerants Advancing the use of natural refrigerants to reduce environmental impact. Results Oriented We pursue excellence, take risks, and act with urgency to meet commitments and drive success. Enable Cleaner-Running Vehicles Enabling the development of zero-emission vehicles and improving the efficiency of internal combustion engines. People Centric We encourage different views, reward performance, and strive to make a positive impact by treating everyone with dignity. Lower Harmful Emissions Designing technologies that lower harmful emissions and improve air quality. Team Focused We collaborate to deliver value, celebrate success, and build capabilities for our employees and company. Modine 2025 Annual Report
Dear Shareholders, SHAREHOLDERS This past year we launched a new vision statement: Always evolving our portfolio of products in pursuit of highly engineered, mission-critical thermal solutions. We purposefully chose a vision that re ects how we are transforming our company today and how we will continue to position Modine for enduring success well into the future. Always evolving means there is no end point. Rather, we are committed to always evaluating and changing our product portfolio by investing in our highest growth, highest margin businesses to expand in diverse markets that require mission-critical thermal solutions. Our vision supports our purpose of Engineering a Cleaner, Healthier World, along with our Mission and Values. Furthermore, we identi ed our ve strategic pillars to value creation, which we consider to be key contributors to our recent success and core to our transformation: 1 Deep Expertise in Thermal Management We have been proven leaders in thermal management for more than a century. Our talented engineers have developed strong relationships with our customers and provided the technology and expertise needed to solve complex thermal challenges. 2 Highly Engineered, Mission-Critical Thermal Solutions Segmentation is central to our strategy and helps us adjust our portfolio to ensure that we are properly aligned with our customers and markets. This allows us to rapidly invest in products and technologies to support growth in key markets and to exit product lines that are not aligned with our transformation. 3 Secular Mega-Trends Driving Long-Term Growth Many of the markets we serve are favorably impacted by secular mega-trends, including the growing need for advanced cooling to support high-performance computing. There has been a great deal of speculation about trends in data center construction, but demand for our energy-efficient data center cooling products remains strong and supports our positive outlook for this business. 4 Elevating the Tenets of Our 80/20 Discipline The practice of 80/20 is a continuous, repeatable cycle. Through this cycle our decentralized organizational structure drives customercentric innovation that fosters accountability and an entrepreneurial spirit, and helps attract, develop, and retain talent. 5 Evolving Our Portfolio of Products to Compound Shareholder Value Each of these pillars support our ability to continue evolving our product portfolio to compound shareholder value. This links directly to our vision statement and describes how we will continue to strive for higher returns for our shareholders. Modine 2025 Annual Report
RECORD YEAR Third Consecutive Record Year In Fiscal 2025, we reported our third consecutive year of record revenues and adjusted EBITDA. Our net sales of $2.6 billion increased 7% from the prior year and adjusted EBITDA increased 25% to $392 million. Our Climate Solutions segment had another outstanding year. Revenue growth was driven by our Data Centers business, including the bene t from the Scott Spring eld Manufacturing ( SSM ) acquisition and signi cant organic growth. In total, Data Centers revenue grew 119% from the prior year. Net Sales ($ in Millions) $2.1B 2022 $2.3B $2.4B 2023 2024 $2.6B 2025 Adj. EBITDA The investments we ve made in the Climate Solutions segment are paying off. After completing the SSM acquisition in March 2024, we expanded capacity to meet growing demand from one of our key hyperscale customers. This drove considerable revenue growth as we were better positioned to service this customer and increase market share. We also launched operations at our new site in Bradford, U.K., and are close to completing the conversion of our Grenada, MS, plant to fully support Data Centers. Finally, we announced our India expansion to support our customers in Southeast Asia and the Middle East. We expect production at this site to be up and running later this year. ($ in Millions) $392M $314M $212M $159M 2022 2023 2024 2025 We also developed and launched our Coolant Distribution Unit, or CDU, allowing us to participate in the rapidly growing direct-to-chip liquid cooling market. This product was designed with direct feedback from our customers, including interconnectivity with other data center cooling products through our Cooling System Optimizer controls system. Operating as part of a complete system unlocks another level of efficiency and differentiates our CDU from others in the market. Another key element of the success of our Data Centers business this year has been building new customer relationships and strengthening existing ones. This cornerstone of 80/20 helps us identify our best customers and treat them differently. We have clearly de ned what makes a top customer and used those traits to identify other perfect prospects in the marketplace. We are carving a niche for ourselves by serving those customers who value our technology and engineering services. For example, we now have relationships with four of the top ve hyperscalers and a diverse group of colocation customers that provide a broad funnel of future opportunities. The strength of these relationships provide us with con dence in our strategic plans and favorable outlook for this business. Modine 2025 Annual Report
We are also making investments in our Heating business to promote growth. We introduced a new line of electric and hydronic products this year, including a residential Amp Dawg heater. We also completed the acquisition of AbsolutAire, gaining a broad product line that complements our existing heating products. Moreover, this acquisition provides a new channel that will create cross-selling opportunities with our current distribution channel. Looking forward, we expect our Data Centers, Commercial IAQ, and Heating businesses to drive growth in the Climate Solutions segment. We will continue to monitor capacity needs and make necessary adjustments to meet market demand. In addition, acquisitions will be central to our growth strategy. We remain focused on bolt-on targets that ll product and technology gaps in these attractive end markets. Our Performance Technologies segment had a successful year despite challenging end-market conditions. Adjusted EBITDA increased 3% and adjusted EBITDA margin improved 200 basis points to 13.5%, despite a 12% revenue decline. To put this in perspective, our adjusted EBITDA margin has improved by 800 basis points over the past three years on at revenue. This clearly demonstrates the power of 80/20 when applied with the requisite focus. Although we remain on target with our margin goals in this segment, our vehicular markets may remain weaker for longer than previously expected. We are actively reducing costs, which includes reaching an agreement to sell our headquarters building in Europe. In addition, we are moving forward with managing the segment under two product groups: Heavy Duty Equipment and On-Highway Applications. Heavy Duty Equipment includes off-highway and stationary power products, and On-Highway Applications includes products for automotive and commercial vehicles. We have made signi cant improvements to our Performance Technologies businesses, but there is still work ahead of us. In addition, we will continue to evaluate our manufacturing footprint to ensure that we are optimizing our production capabilities across the company. This is an uncertain time in each of our markets but we are well positioned to execute our plans and deliver on our commitments. Modine 2025 Annual Report
 • shareholder letter icon 7/1/2025 Letter Continued (Full PDF)
 • stockholder letter icon 7/7/2023 MOD Stockholder Letter
 • stockholder letter icon 7/1/2024 MOD Stockholder Letter
 • stockholder letter icon More "Auto Parts" Category Stockholder Letters
 • Benford's Law Stocks icon MOD Benford's Law Stock Score = 84


MOD Shareholder/Stockholder Letter Transcript:

2025 ANNUAL REPORT

PURPOSE
Our Purpose
We are driven by our purpose of Engineering a Cleaner, Healthier World   .
We achieve this through our Mission that meets demand for cleaner, more efficient thermal management.
Throughout our journey, we   re committed to the Values that have guided us since our founding.
Our Mission
MISSION
VALUES
Our Values
Reduce Water and
Energy Consumption
Engineering solutions that conserve
energy and water resources.
Technology Driven
We innovate and invest in technology to
deliver high-quality solutions that help
customers achieve their goals.
Improve Indoor Air Quality
Innovating HVAC solutions that clean
indoor air and create healthier spaces.
Integrity Committed
We uphold the highest ethical standards,
act honorably, and follow through on our
commitments.
Use Environmentally
Friendly Refrigerants
Advancing the use of natural refrigerants
to reduce environmental impact.
Results Oriented
We pursue excellence, take risks, and act
with urgency to meet commitments and
drive success.
Enable Cleaner-Running Vehicles
Enabling the development of
zero-emission vehicles and
improving the efficiency of
internal combustion engines.
People Centric
We encourage different views, reward
performance, and strive to make a positive
impact by treating everyone with dignity.
Lower Harmful Emissions
Designing technologies that lower
harmful emissions and improve
air quality.
Team Focused
We collaborate to deliver value, celebrate
success, and build capabilities for our
employees and company.
Modine 2025 Annual Report

Dear Shareholders,
SHAREHOLDERS
This past year we launched a new vision statement: Always evolving our portfolio of products in pursuit of
highly engineered, mission-critical thermal solutions. We purposefully chose a vision that re   ects how we are
transforming our company today and how we will continue to position Modine for enduring success well into
the future.    Always evolving    means there is no end point. Rather, we are committed to always evaluating and
changing our product portfolio by investing in our highest growth, highest margin businesses to expand in diverse
markets that require mission-critical thermal solutions. Our vision supports our purpose of Engineering a Cleaner,
Healthier World, along with our Mission and Values.
Furthermore, we identi   ed our    ve strategic pillars to value creation, which we consider to be key contributors to
our recent success and core to our transformation:
1
Deep Expertise in Thermal Management
We have been proven leaders in thermal management for more than a century. Our talented engineers
have developed strong relationships with our customers and provided the technology and expertise
needed to solve complex thermal challenges.
2
Highly Engineered, Mission-Critical Thermal Solutions
Segmentation is central to our strategy and helps us adjust our portfolio to ensure that we are properly
aligned with our customers and markets. This allows us to rapidly invest in products and technologies
to support growth in key markets and to exit product lines that are not aligned with our transformation.
3
Secular Mega-Trends Driving Long-Term Growth
Many of the markets we serve are favorably impacted by secular mega-trends,
including the growing need for advanced cooling to support high-performance
computing. There has been a great deal of speculation about trends in
data center construction, but demand for our energy-efficient data center
cooling products remains strong and supports our positive outlook for
this business.
4
Elevating the Tenets of Our 80/20 Discipline
The practice of 80/20 is a continuous, repeatable cycle. Through this
cycle our decentralized organizational structure drives customercentric innovation that fosters accountability and an entrepreneurial
spirit, and helps attract, develop, and retain talent.
5
Evolving Our Portfolio of Products to Compound Shareholder Value
Each of these pillars support our ability to continue evolving our
product portfolio to compound shareholder value. This links directly
to our vision statement and describes how we will continue to strive
for higher returns for our shareholders.
Modine 2025 Annual Report

RECORD YEAR
Third Consecutive Record Year
In Fiscal 2025, we reported our third consecutive year of record revenues and
adjusted EBITDA. Our net sales of $2.6 billion increased 7% from the prior year
and adjusted EBITDA increased 25% to $392 million.
Our Climate Solutions segment had another outstanding year. Revenue growth
was driven by our Data Centers business, including the bene   t from the Scott
Spring   eld Manufacturing (   SSM   ) acquisition and signi   cant organic growth. In
total, Data Centers revenue grew 119% from the prior year.
Net Sales
($ in Millions)
$2.1B
2022
$2.3B
$2.4B
2023
2024
$2.6B
2025
Adj. EBITDA
The investments we   ve made in the Climate Solutions segment are paying off.
After completing the SSM acquisition in March 2024, we expanded capacity
to meet growing demand from one of our key hyperscale customers. This
drove considerable revenue growth as we were better positioned to service
this customer and increase market share. We also launched operations at our
new site in Bradford, U.K., and are close to completing the conversion of our
Grenada, MS, plant to fully support Data Centers. Finally, we announced our India
expansion to support our customers in Southeast Asia and the Middle East. We
expect production at this site to be up and running later this year.
($ in Millions)
$392M
$314M
$212M
$159M
2022
2023
2024
2025
We also developed and launched our Coolant Distribution Unit, or CDU, allowing us to participate in the rapidly
growing direct-to-chip liquid cooling market. This product was designed with direct feedback from our customers,
including interconnectivity with other data center cooling products through our Cooling System Optimizer   
controls system. Operating as part of a complete system unlocks another level of efficiency and differentiates our
CDU from others in the market.
Another key element of the success of our Data Centers business this year has been building new customer
relationships and strengthening existing ones. This cornerstone of 80/20 helps us identify our best customers
and treat them differently. We have clearly de   ned what makes a top customer and used those traits to identify
other perfect prospects in the marketplace. We are carving a niche for ourselves by serving those customers
who value our technology and engineering services. For example, we now have relationships with four of
the top    ve hyperscalers and a diverse group of colocation customers that provide a broad funnel of future
opportunities. The strength of these relationships provide us with con   dence in our strategic plans
and favorable outlook for this business.
Modine 2025 Annual Report

We are also making investments in our Heating business to promote growth. We introduced a new line of electric
and hydronic products this year, including a residential Amp Dawg    heater. We also completed the acquisition
of AbsolutAire, gaining a broad product line that complements our existing heating products. Moreover, this
acquisition provides a new channel that will create cross-selling opportunities with our current distribution channel.
Looking forward, we expect our Data Centers, Commercial IAQ, and Heating businesses to drive growth in the
Climate Solutions segment. We will continue to monitor capacity needs and make necessary adjustments to meet
market demand. In addition, acquisitions will be central to our growth strategy. We remain focused on bolt-on
targets that    ll product and technology gaps in these attractive end markets.
Our Performance Technologies segment had a successful year despite challenging end-market conditions.
Adjusted EBITDA increased 3% and adjusted EBITDA margin improved 200 basis points to 13.5%, despite a 12%
revenue decline. To put this in perspective, our adjusted EBITDA margin has improved by 800 basis points over the
past three years on    at revenue. This clearly demonstrates the power of 80/20 when applied with the requisite focus.
Although we remain on target with our margin goals in this segment, our vehicular markets may remain weaker for
longer than previously expected. We are actively reducing costs, which includes reaching an agreement to sell our
headquarters building in Europe. In addition, we are moving forward with managing the segment under two product
groups: Heavy Duty Equipment and On-Highway Applications. Heavy Duty Equipment includes off-highway and
stationary power products, and On-Highway Applications includes products for automotive and commercial
vehicles.
We have made signi   cant improvements to our Performance Technologies businesses, but there is still work
ahead of us. In addition, we will continue to evaluate our manufacturing footprint to ensure that we are optimizing
our production capabilities across the company. This is an uncertain time in each of our markets but we are well
positioned to execute our plans and deliver on our commitments.
Modine 2025 Annual Report


shareholder letter icon 7/1/2025 Letter Continued (Full PDF)
 

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