Modine Manufacturing Company (Modine) provides innovative and environmentally responsible thermal management products and solutions to diversified global markets and customers in a wide array of commercial, industrial, and building heating, ventilating, air conditioning, and refrigeration (HVAC&R) markets.
The company sells customer-centric thermal management solutions in a wide array of commercial, industrial, and building heating, ventilating, air conditioning, and refrigeration (HVAC&R) mark...
Modine Manufacturing Company (Modine) provides innovative and environmentally responsible thermal management products and solutions to diversified global markets and customers in a wide array of commercial, industrial, and building heating, ventilating, air conditioning, and refrigeration (HVAC&R) markets.
The company sells customer-centric thermal management solutions in a wide array of commercial, industrial, and building heating, ventilating, air conditioning, and refrigeration (HVAC&R) markets. In addition, the company is a leading provider of engineered heat transfer systems and high-quality heat transfer components for use in on- and off-highway original equipment manufacturer (OEM) vehicular applications.
The company’s primary customers across the globe include developers and operators of data centers; healthcare facility operators and k-12 school systems; heating, ventilation and cooling oems; construction architects and contractors; wholesalers of heating equipment; agricultural, industrial and construction equipment oems; commercial and industrial equipment oems; and truck, bus, automobile and specialty vehicle oems.
The company partners with its customers to provide solutions, including systems, services, and components, to solve complex heat transfer challenges, and is committed to helping them reach their sustainability goals. The company focuses on product design, from raw materials to end-of-life recyclability, to optimize the total cost of ownership and reduce negative environmental impacts across the product life cycle.
Business Strategy
The company is committed to evolving its product portfolio in pursuit of highly engineered, mission-critical thermal solutions. Over the last four fiscal years, the company has simplified and re-segmented its organization and has aligned resources around specific strategies and market-based verticals. The company's leadership and teams have embraced 80/20 principles, which focus on the rule that 80 percent of outputs result from 20 percent of inputs. The company's teams have created a high-performance culture that focuses resources on products and markets with the highest sustainable growth opportunities and best return profiles, while simplifying and improving its processes.
As the company heads into fiscal 2026, it is committed to its strategic pillars to drive value creation, as follows:
Capitalizing on the company's deep expertise in thermal management, including world-class capabilities and proprietary technologies, to deliver differentiated solutions to its customers and sustain market leadership.
Leveraging the company's portfolio of highly engineered, mission-critical thermal solutions to accelerate growth.
Focusing on opportunities fueled by multiple secular mega-trends, directly tied to the company's mission. For example, the company is rapidly expanding its Data Center Cooling business in response to trends in high-performance computing, with significant data center growth fueled by artificial intelligence, resulting in a commensurate need for data center cooling solutions.
Elevating the company's 80/20 discipline, influencing its daily decision-making and strategic resource and capital allocation. The company will continue to foster an entrepreneurial spirit in its businesses and customer-centric innovation to build and sustain long-term customer relationships.
Evolving the company's portfolio to compound shareholder value, focusing on high-growth, high-margin businesses for sustainable growth and returns.
Product Groups
The company partners with its customers across multiple industries to provide sustainable solutions for a wide range of applications.
Business Segments
The company operates through Climate Solutions and Performance Technologies segments.
Climate Solutions Segment
The Climate Solutions segment provides energy-efficient, climate-controlled solutions and components. The Climate Solutions segment provides cooling solutions for data centers that help save water and energy through intelligent controls. The Climate Solutions segment also provides heat exchangers for HVAC&R applications and anti-corrosive coatings. In addition, the segment also provides HVAC&R systems and solutions for commercial, education, industrial, and residential applications.
The Climate Solutions segment has strategically aligned its teams around three primary market-based verticals: Data Center Cooling; Heat Transfer Products and HVAC&R.
Data Center Cooling
The Data Center Cooling business provides sustainable cooling solutions for data center markets in North America, Europe, the Middle East and Africa (EMEA), and Asia, including complete system design, controls, maintenance, and monitoring. The company provides data center cooling solutions that feature low global warming potential refrigerants, free cooling technology, and lower water consumption, enabling its customers and end-users to meet their environmental and sustainability goals. Data center products consist of IT cooling solutions, including precision air conditioning units for data center applications; computer room air conditioning (CRAC) and computer room air handler (CRAH) units; hybrid fan coils; fan walls; chillers; condensers; condensing units; and liquid cooling solutions for high-density computing, including coolant distribution units (CDU) and immersion solutions. In addition, the Data Center Cooling business sells replacement parts, maintenance service, and control solutions for existing equipment and new building management controls and systems. This business serves data center management customers, including large colocation, cloud service providers, and hyperscale customers, as well as customers in the commercial and industrial sectors, such as telecommunications, healthcare, and commercial real estate.
In fiscal 2025, the data center cooling markets that the company serves experienced a year of exceptionally strong growth. The company expects strong growth in these markets in fiscal 2026, supported by an increasing reliance on digital technologies, specifically colocation and cloud usage. Market demand for data usage and storage continues to rise, driven by the increased use of IoT (Internet of Things) technology, which connects various devices through the internet, artificial intelligence, and machine learning, smartphones, and digital transformation trends. In addition, artificial intelligence, machine learning, and other trends are driving increased high-performance computing, which increases heat loads and the need for high-density cooling solutions, such as hybrid and liquid cooling. Digital transformation trends driving market demand include an increased focus on the digital customer experience, as more transactions and customer interactions are taking place virtually through websites and mobile applications, and the increasing use of 5G technology and its application across global enterprise opportunities, particularly in the healthcare, manufacturing, and energy sectors.
Heat Transfer Products
The Heat Transfer Products business provides heat exchanger coils, primarily of round tube plate fin construction, to the HVAC&R markets in North America, Europe, and Asia. In addition, the Heat Transfer Products business provides coatings products and application services to the HVAC&R markets in North America and Europe. The company's coatings products are designed to extend the life of equipment and components by protecting against corrosion and foreign matter. Customers for these products and services include manufacturers of commercial, industrial, and residential HVAC&R equipment and systems, and distributors, contractors, and end users in a variety of applications, including commercial and residential HVAC, mobile air conditioning, refrigeration, data center management, and precision and industrial cooling.
HVAC&R
The HVAC&R business provides a wide array of solutions to heating; indoor air quality; commercial and industrial refrigeration; and industrial power generation, conversion, and transmission; and industrial process markets in North America, EMEA, and China.
Heating products, primarily sold to the North American residential and commercial heating markets, include unit heaters (gas-fired, hydronic, electric, and oil-fired); roof-mounted direct- and indirect-fired makeup air units; duct furnaces (indoor and outdoor); infrared units (high- and low-intensity); and perimeter heating products (cabinet unit heaters and convectors). The primary customers for these heating products are HVAC wholesalers, installers, and end users in a variety of residential, commercial, and industrial applications, including residential garages, warehousing, manufacturing, and greenhouses. In fiscal 2025, the North American residential and commercial heating markets were relatively flat. While the heating market benefited from an extended winter season this year, the improvement was tempered by distributors reducing their elevated inventory stock levels. The company expects the North American heating markets will experience modest growth in fiscal 2026. Longer term, the company anticipates that increasing demands for energy efficiency, as well as decarbonization and lower emission initiatives and regulations, will impact the North American heating markets.
Indoor air quality products, primarily sold to the North American school and commercial HVAC markets, include single packaged unit ventilators, modular chillers, air handler units, condensing units, and ceiling cassettes. Customers for these indoor air quality products include mechanical contractors, HVAC wholesalers, installers, and end users in a variety of commercial and industrial applications. In fiscal 2025, the North American school and commercial HVAC markets experienced growth, with the strongest growth in the school and healthcare markets. The company expects the commercial HVAC market will continue to expand as businesses increasingly prioritize indoor air quality and energy-efficient HVAC solutions to ensure healthier environments for employees and customers.
Refrigeration products, primarily sold to the commercial and industrial refrigeration markets in EMEA, China, and North America, include evaporator unit coolers, remote condensers, fluid coolers, gas coolers, and dry and brine coolers. Customers for these coolers and refrigeration products primarily include wholesalers, distributors, and resellers, commercial and industrial OEMs, as well as contractors and end users in a variety of commercial and industrial applications, including supermarkets, refrigerated warehouses, logistic centers, cold rooms, precision and industrial cooling, hospitality, hotels, and restaurants. In fiscal 2025, the commercial and industrial refrigeration markets experienced modest growth.
In addition, the HVAC&R business sells motor and generator cooling coils, transformer oil coolers, radiators, dryers and industrial heat exchangers to the industrial power generation, conversion, and transmission and industrial process markets in EMEA, China, and North America. Customers for these products primarily include industrial OEMs as well as contractors and end users in industrial applications and for capital projects within the pulp and paper industry. In fiscal 2025, the pulp and paper sector experienced modest growth and demand for industrial power and process products also improved.
Performance Technologies segment
The Performance Technologies segment provides products and solutions that enhance the performance of customer applications and develops solutions that provide mission critical energy for a variety of end market applications. The segment also provides solutions that increase fuel economy, reduce harmful emissions and maximize range in zero emission applications. The Performance Technologies segment designs and manufactures products and solutions using air-cooled and liquid-cooled technology for vehicular, stationary power, and industrial applications. In addition, the Performance Technologies segment provides advanced thermal solutions to zero-emission and hybrid commercial vehicle and off-highway customers.
The Performance Technologies segment has strategically aligned its teams around three primary market-based verticals: Air-Cooled Applications; Liquid-Cooled Applications, and Advanced Solutions.
Air-Cooled Applications
The Air-Cooled Applications business provides air-cooled heat exchangers and modules for vehicular, mission critical stationary power, and industrial applications. This business primarily serves the commercial vehicle, off-highway and power generation markets in North America, Brazil, China, India, Europe and South Korea. It primarily sells powertrain cooling products, such as radiators, condensers, engine cooling modules, charge air coolers, fan shrouds, and surge tanks; and cooling module generator sets (Gensets). Its customers include commercial, medium- and heavy-duty truck and engine manufacturers; construction, agricultural, and mining equipment, and mission critical power generation manufacturers; and industrial manufacturers of material handling equipment, Gensets and compressors.
During fiscal 2025, the commercial vehicle markets in India and Brazil experienced moderate growth, yet the commercial vehicle market in North America experienced weakness. The agriculture markets in North America and Europe experienced significant declines and were negatively impacted by lower crop prices, higher interest rates and the continued military conflict in Ukraine. As these market conditions challenged the profitability of farming, farmers purchased less new equipment and agriculture OEMs reduced production and inventory levels throughout the year. The global construction and mining markets also experienced weakness, with the exception of the construction market in the U.S., which benefited from government programs incentivizing construction investments, such as the Inflation Reduction Act. The power generation markets in North America, Europe, and India saw strong growth during fiscal 2025, driven by new data center construction and demand for backup power Gensets for critical infrastructure, such as hospitals, mining and airports.
Liquid-Cooled Applications
The Liquid-Cooled Applications business provides heat exchangers for engine, stationary power, and industrial applications. This business primarily serves the commercial vehicle, automotive, and off-highway markets in North America, Europe, China, and India. Its products and solutions include aluminum and stainless steel engine oil coolers, exhaust gas recirculation (EGR) coolers, liquid charge air coolers, transmission and retarder oil coolers, chillers, and condensers. Its customers include commercial, medium- and heavy-duty truck engine manufacturers and automobile and light truck OEMs; and Tier-1 construction, agricultural equipment, and automotive module manufacturers.
During fiscal 2025, the global commercial vehicle markets served by the company's Liquid-Cooled Applications business experienced declines, with the largest declines in Europe and North America. While the company expects market softness will continue, it is optimistic that the medium- and heavy-duty truck markets will begin to stabilize in fiscal 2026 based upon recent OEM order trends. In North America, the company is monitoring the U.S. Environmental Protection Agency’s upcoming Greenhouse Gas Phase 3 regulations for commercial vehicles, which include stricter emission regulations for heavy-duty trucks starting with the 2027 model year. Regarding the automotive markets, the European and North American automotive markets experienced moderate declines during fiscal 2025, while the automotive market in China saw moderate growth compared with the prior year.
Advanced Solutions
The company’s Advanced Solutions business provides products and solutions for zero-emission and hybrid vehicles These products and solutions, which are primarily sold to the commercial vehicle, bus and specialty vehicle, off-highway machine and automotive markets in North America and Europe, include complete battery thermal management systems, electronics cooling packages, battery chillers, battery cooling plates, coolers and casings for electronics cooling, and coolers for electric axles (e-axles). Customers for these products include commercial vehicle, bus and specialty vehicle, off-highway machine, and automotive OEMs, e-axle producers, and power electronics providers. The primary markets served by the Advanced Solutions business experienced strong growth during the first half of fiscal 2025, but subsequently slowed during the second half of the year.
Acquisitions and dispositions
During fiscal 2024, the company acquired Scott Springfield Mfg. Inc., a Canadian-based manufacturer of air handling units, and substantially all of the net operating assets of Napps Technology Corporation, a Texas-based manufacturer of air- and water-cooled chillers, condensing units and heat pumps. In addition, the company purchased intellectual property related to liquid immersion cooling technology from TMGcore, Inc.
Also, during fiscal 2024, the company sold three automotive businesses based in Germany and two coatings facilities in the United States.
Geographic Areas
The company maintains administrative organizations in all key geographic regions to facilitate customer support, development and testing, and other administrative functions. The company operates in four continents and within the following countries:
North America: Canada, Mexico, and The United States.
South America: Brazil.
Europe: Germany, Hungary, Italy, Netherlands, Serbia, Spain, Sweden, and the United Kingdom.
Asia: China, India, South Korea, and the United Arab Emirates.
The company’s non-U.S. subsidiaries and affiliates manufacture and sell a number of data center cooling, heat transfer, HVAC&R and vehicular products, similar to those the company produce in the U.S.
Exports
Export sales from the U.S. to foreign countries, as a percentage of consolidated net sales, were 7 percent in fiscal 2025.
Customer Dependence
The company’s ten largest customers, some of which are conglomerates or otherwise affiliated with one another, accounted for 43 percent of its consolidated net sales in fiscal 2025.
The company’s top customers operate primarily in the data center cooling, commercial air conditioning and refrigeration, commercial vehicle, off-highway, and automotive and light vehicle markets. the company’s top customers across both of its segments, listed alphabetically, include Ascent; Carrier; Caterpillar; Deere; Stellantis (including Chrysler, Fiat, PSA-Peugeot-Citroen, and VM Motori); Trane; Volkswagen (including Audi, MAN, Porsche, Scania, and International); and Volvo (including Mack Trucks and Renault Trucks). In addition, the company’s Climate Solutions segment includes significant sales to two global technology customers with which it is party to confidentiality agreements. Generally, the company supplies products to its customers on the basis of individual purchase orders received from them.
Research and Development
The company’s R&D expenditures, including certain application engineering costs for specific customer solutions, totaled $35 million in fiscal 2025.
Environmental Matters
The majority of the company’s facilities maintain Environmental Management System (EMS) certification to the international ISO14001 standard through independent third-party audits.
Seasonal Nature of Business
The Climate Solutions segment experiences some seasonality. Sales volume for the company’s Climate Solutions heating products is generally stronger in the company’s second and third fiscal quarters (year ended March 2024), corresponding with demand for these products. Sales to Performance Technologies vehicular OEM customers are dependent upon market demand for new vehicles. However, the company’s second fiscal quarter production schedules are typically impacted by customer summer shutdowns and the company’s third fiscal quarter is affected by customer holiday shutdowns.
History
Modine Manufacturing Company was founded in 1916. The company was incorporated in 1916.
