Modine’s Global Expansion Play: Why Hyperscalers & Colocation Giants Are All In!

Modine Manufacturing Company reported a solid financial performance for the third quarter of fiscal 2025. The company experienced an overall year-over-year increase in revenue and enhanced profit margins, driven primarily by its Climate Solutions segment, offsetting some challenges faced by its Performance Technologies sector. The Climate Solutions segment presented outstanding results, with a notable 42% increase in sales and a 57% improvement in adjusted EBITDA, pushing the segment’s adjusted EBITDA margin to 21%. This growth was largely attributed to the data center business, which soared by an impressive 176% thanks to organic growth and contributions from the Scott Springfield acquisition, which alone added $63 million to data center revenues. The acquisition proved beneficial in expanding capabilities for liquid cooling systems, strengthening Modine’s position in this rapidly evolving market. The company has also made strategic investments to increase manufacturing capacity, including setting up a new production facility in India to support both data center cooling products and power generation modules, with expectations of continued growth in these areas.