RestructuringMay 27, 2026, 02:22 PM
Modine to Spin-Off Performance Tech Segment; FY26 Sales $3.2B, +23%
AI Summary
Modine Manufacturing Company announced a strategic transformation, including a planned spin-off and simultaneous combination of its Performance Technologies segment with Gentherm Incorporated in a Reverse Morris Trust transaction, expected to close by calendar end 2026. This will reposition Modine as a pure-play climate solutions company. For fiscal 2026, consolidated net sales increased 23% to $3.2 billion, with operating income rising $59 million to $342 million. The company also acquired three businesses, contributing $119 million in sales, and expanded its Data Centers business, which saw exceptionally strong growth.
Key Highlights
- Planned spin-off and combination of Performance Technologies segment with Gentherm by end of calendar 2026.
- Fiscal 2026 consolidated net sales increased 23% to $3.2 billion from $2.6 billion in fiscal 2025.
- Fiscal 2026 operating income was $342 million, up $59 million from the prior year.
- Acquired AbsolutAire, L.B. White, and Climate by Design International, adding $119 million in sales.
- Data Centers sales grew to 35% of net sales in FY26, up from 25% in FY25.
- Reorganized Climate Solutions segment into Data Centers and Commercial HVAC, effective April 1, 2026.
- Experiencing supply shortages for data center cooling components in Q4 FY26.
Price Impact
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