Track market-moving stories before they get noisy

Posted by Defense World Staff on Jul 23rd, 2026

California Public Employees Retirement System boosted its holdings in shares of Modine Manufacturing Company (NYSE:MOD – Free Report) by 2.9% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 92,788 shares of the auto parts company’s stock after purchasing an additional 2,642 shares during the quarter. California Public Employees Retirement System owned approximately 0.18% of Modine Manufacturing worth $20,108,000 at the end of the most recent quarter.

Other institutional investors also recently made changes to their positions in the company. V Square Quantitative Management LLC bought a new position in Modine Manufacturing during the 1st quarter valued at $25,000. Kemnay Advisory Services Inc. acquired a new stake in shares of Modine Manufacturing in the 4th quarter valued at about $25,000. Spire Wealth Management acquired a new stake in shares of Modine Manufacturing in the 4th quarter valued at about $27,000. Sunbelt Securities Inc. bought a new position in shares of Modine Manufacturing during the third quarter worth about $39,000. Finally, Danske Bank A S bought a new position in shares of Modine Manufacturing during the third quarter worth about $43,000. 95.23% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes Several analysts have issued reports on the company. Glj Research restated a “buy” rating and set a $428.00 price objective on shares of Modine Manufacturing in a research note on Monday, June 1st. Oppenheimer lifted their target price on Modine Manufacturing from $271.00 to $325.00 and gave the stock an “outperform” rating in a research report on Thursday, May 28th. UBS Group boosted their price target on Modine Manufacturing to $310.00 and gave the company a “buy” rating in a report on Wednesday, May 27th. KeyCorp upped their price target on Modine Manufacturing from $250.00 to $370.00 and gave the company an “overweight” rating in a research report on Wednesday, May 27th. Finally, DA Davidson restated a “buy” rating and set a $330.00 price objective on shares of Modine Manufacturing in a research note on Monday, June 22nd. Seven analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $327.14.

Check Out Our Latest Research Report on MOD

Modine Manufacturing Stock Performance Shares of MOD opened at $249.51 on Thursday. The firm has a fifty day moving average of $263.53 and a 200-day moving average of $226.75. The company has a market cap of $13.25 billion, a price-to-earnings ratio of 111.39, a price-to-earnings-growth ratio of 0.80 and a beta of 1.67. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.25 and a current ratio of 1.94. Modine Manufacturing Company has a 1 year low of $94.55 and a 1 year high of $323.25.

Modine Manufacturing (NYSE:MOD – Get Free Report) last issued its quarterly earnings data on Tuesday, May 26th. The auto parts company reported $1.71 earnings per share for the quarter, beating the consensus estimate of $1.51 by $0.20. Modine Manufacturing had a net margin of 3.82% and a return on equity of 24.39%. The firm had revenue of $954.40 million for the quarter, compared to the consensus estimate of $920.67 million. During the same period last year, the firm posted $1.12 EPS. Modine Manufacturing’s quarterly revenue was up 47.5% compared to the same quarter last year. As a group, equities analysts anticipate that Modine Manufacturing Company will post 7.72 earnings per share for the current year.

Insider Activity In other Modine Manufacturing news, insider Eric S. Mcginnis sold 1,020 shares of the business’s stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $295.06, for a total transaction of $300,961.20. Following the completion of the transaction, the insider owned 28,364 shares in the company, valued at approximately $8,369,081.84. The trade was a 3.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Eric D. Ashleman sold 15,000 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $288.54, for a total value of $4,328,100.00. Following the completion of the transaction, the director directly owned 42,350 shares of the company’s stock, valued at approximately $12,219,669. The trade was a 26.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 54,302 shares of company stock valued at $15,928,759. Insiders own 1.92% of the company’s stock.

Modine Manufacturing Profile (Free Report)

Modine Manufacturing Company (NYSE:MOD) is a global provider of thermal management solutions serving automotive, commercial transportation, heavy-duty off-highway, industrial, HVAC and refrigeration markets. The company designs, manufactures, tests and markets a broad array of heat-transfer products that manage temperature and energy efficiency for engines, power electronics and building climate control systems.

Its product portfolio includes heat exchangers, condensers, radiators, evaporators, charge air coolers, fan systems and associated controls.

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Modine (MOD - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis heating and cooling products maker is expected to post quarterly earnings of $1.38 per share in its upcoming report, which represents a year-over-year change of +30.2%.

Revenues are expected to be $895.51 million, up 31.2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Modine?For Modine, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -10.15%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that Modine will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Modine would post earnings of $1.51 per share when it actually produced earnings of $1.71, delivering a surprise of +13.25%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Modine doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAnother stock from the Zacks Automotive - Original Equipment industry, Gentex (GNTX - Free Report) , is soon expected to post earnings of $0.5 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +6.4%. Revenues for the quarter are expected to be $668.96 million, up 1.7% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Gentex has been revised 0.7% up to the current level. Nevertheless, the company now has an Earnings ESP of +0.67%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that Gentex will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Posted by Defense World Staff on Jul 18th, 2026

Allspring Global Investments Holdings LLC raised its stake in Modine Manufacturing Company (NYSE:MOD – Free Report) by 253.2% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 306,005 shares of the auto parts company’s stock after purchasing an additional 219,373 shares during the quarter. Allspring Global Investments Holdings LLC owned 0.58% of Modine Manufacturing worth $68,230,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the company. V Square Quantitative Management LLC purchased a new position in Modine Manufacturing during the first quarter worth about $25,000. Kemnay Advisory Services Inc. purchased a new stake in Modine Manufacturing in the 4th quarter valued at approximately $25,000. Spire Wealth Management acquired a new position in Modine Manufacturing during the 4th quarter worth approximately $27,000. Sunbelt Securities Inc. acquired a new position in Modine Manufacturing during the 3rd quarter worth approximately $39,000. Finally, Danske Bank A S purchased a new position in shares of Modine Manufacturing during the 3rd quarter worth approximately $43,000. 95.23% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Modine Manufacturing In related news, Director Eric D. Ashleman sold 15,000 shares of the firm’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $288.54, for a total value of $4,328,100.00. Following the sale, the director directly owned 42,350 shares of the company’s stock, valued at approximately $12,219,669. This trade represents a 26.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Eric S. Mcginnis sold 1,020 shares of the business’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $295.06, for a total transaction of $300,961.20. Following the completion of the sale, the insider owned 28,364 shares of the company’s stock, valued at approximately $8,369,081.84. The trade was a 3.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 54,302 shares of company stock worth $15,928,759. Insiders own 2.48% of the company’s stock.

Analysts Set New Price Targets MOD has been the topic of a number of recent analyst reports. Weiss Ratings raised Modine Manufacturing from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, May 28th. Zacks Research downgraded Modine Manufacturing from a “strong-buy” rating to a “hold” rating in a report on Monday, April 13th. Glj Research restated a “buy” rating and set a $428.00 target price on shares of Modine Manufacturing in a research report on Monday, June 1st. Wall Street Zen raised shares of Modine Manufacturing from a “hold” rating to a “buy” rating in a research note on Saturday, May 30th. Finally, DA Davidson reiterated a “buy” rating and issued a $330.00 price target on shares of Modine Manufacturing in a report on Monday, June 22nd. Seven investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $327.14.

Read Our Latest Research Report on Modine Manufacturing

Modine Manufacturing Trading Up 1.4% Modine Manufacturing stock opened at $229.31 on Friday. The stock has a 50-day moving average price of $265.89 and a 200 day moving average price of $223.86. Modine Manufacturing Company has a 52 week low of $90.41 and a 52 week high of $323.25. The stock has a market cap of $12.18 billion, a PE ratio of 102.37, a P/E/G ratio of 0.73 and a beta of 1.67. The company has a current ratio of 1.94, a quick ratio of 1.25 and a debt-to-equity ratio of 0.32.

Modine Manufacturing (NYSE:MOD – Get Free Report) last released its quarterly earnings results on Tuesday, May 26th. The auto parts company reported $1.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.51 by $0.20. The company had revenue of $954.40 million for the quarter, compared to analysts’ expectations of $920.67 million. Modine Manufacturing had a net margin of 3.82% and a return on equity of 24.39%. The firm’s revenue for the quarter was up 47.5% compared to the same quarter last year. During the same period last year, the company earned $1.12 EPS. Equities research analysts predict that Modine Manufacturing Company will post 7.72 earnings per share for the current fiscal year.

About Modine Manufacturing (Free Report)

Modine Manufacturing Company (NYSE:MOD) is a global provider of thermal management solutions serving automotive, commercial transportation, heavy-duty off-highway, industrial, HVAC and refrigeration markets. The company designs, manufactures, tests and markets a broad array of heat-transfer products that manage temperature and energy efficiency for engines, power electronics and building climate control systems.

Its product portfolio includes heat exchangers, condensers, radiators, evaporators, charge air coolers, fan systems and associated controls.

Further Reading Five stocks we like better than Modine Manufacturing AST SpaceMobile Stock Sinks as SpaceX Fallout Rattles Space Sector Aehr Test Systems Stock Soars on Earnings, Eyes Over 150% Revenue Growth TSMC Just Gave AI Chip Bulls Another Reason to Stay Confident GE Aerospace Faces a Prove-It Moment in Q2 Earnings Want to see what other hedge funds are holding MOD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Modine Manufacturing Company (NYSE:MOD – Free Report).

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Modine (MOD - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this heating and cooling products maker have returned -19.4%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Automotive - Original Equipment industry, which Modine falls in, has lost 2.1%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Modine is expected to post earnings of $1.38 per share, indicating a change of +30.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -1% over the last 30 days.

The consensus earnings estimate of $7.72 for the current fiscal year indicates a year-over-year change of +53.8%. This estimate has changed -0.2% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $10.81 indicates a change of +40.1% from what Modine is expected to report a year ago. Over the past month, the estimate has changed -0.4%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Modine.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Modine, the consensus sales estimate for the current quarter of $895.51 million indicates a year-over-year change of +31.2%. For the current and next fiscal years, $4.04 billion and $4.76 billion estimates indicate +26.9% and +17.9% changes, respectively.

Last Reported Results and Surprise HistoryModine reported revenues of $954.4 million in the last reported quarter, representing a year-over-year change of +47.5%. EPS of $1.71 for the same period compares with $1.12 a year ago.

Compared to the Zacks Consensus Estimate of $907.34 million, the reported revenues represent a surprise of +5.19%. The EPS surprise was +13.25%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Modine is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Modine. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

, /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, announced today that Michael Mahan has joined the company as President of the Commercial HVAC (CHVAC) segment. In this role, Mr. Mahan will be responsible for leading the newly formed segment, which provides heating, ventilation, air conditioning, and heat transfer solutions for the commercial, industrial, and aerospace markets.

"I'm excited to welcome Michael to Modine as the leader of our CHVAC segment," said Modine President and Chief Executive Officer, Neil D. Brinker. "His extensive background positioning businesses as industrial technology leaders aligns with our strategic objectives for the CHVAC segment, making him exceptionally well-suited to lead the organization to new levels of performance and growth."

Mr. Mahan brings more than 20 years of experience to this role, most recently serving as President, Crane Payment Innovations, a publicly reported segment of CraneNXT. Prior to that, he held senior executive roles leading multi-billion-dollar global businesses at Schneider Electric. Before joining Schneider Electric, he held executive roles of increasing responsibility at former GE companies. Mr. Mahan holds a bachelor's degree in mechanical engineering from Worcester Polytechnic Institute and an MBA from the University of Connecticut.

About Modine
For more than 100 years, Modine has solved the toughest thermal management challenges for mission-critical applications. Our purpose of Engineering a Cleaner, Healthier World™ means we are always evolving our portfolio of technologies to provide the latest heating, cooling, and ventilation solutions. Through the hard work of more than 13,000 employees worldwide, our businesses advance our purpose with systems that improve air quality, reduce energy and water consumption, lower harmful emissions, enable cleaner running vehicles, and use environmentally friendly refrigerants. Modine is a global company headquartered in Racine, Wisconsin (U.S.), with operations in North America, South America, Europe, and Asia. For more information about Modine, visit modine.com.

Investor Contact:
Kathleen Powers
(262) 636-1687
[email protected]

SOURCE Modine

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Modine (MOD - Free Report) .

Modine currently has an average brokerage recommendation (ABR) of 1.20, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 10 brokerage firms. An ABR of 1.20 approximates between Strong Buy and Buy.

Of the 10 recommendations that derive the current ABR, nine are Strong Buy, representing 90% of all recommendations.

Brokerage Recommendation Trends for MOD

Check price target & stock forecast for Modine here>>>

While the ABR calls for buying Modine, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Should You Invest in MOD?In terms of earnings estimate revisions for Modine, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $7.73.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Modine. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Modine.

Modine (MOD - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this heating and cooling products maker have returned -13% over the past month versus the Zacks S&P 500 composite's -1.8% change. The Zacks Automotive - Original Equipment industry, to which Modine belongs, has gained 1.1% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Modine is expected to post earnings of $1.43 per share for the current quarter, representing a year-over-year change of +34.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.2%.

For the current fiscal year, the consensus earnings estimate of $7.73 points to a change of +54% from the prior year. Over the last 30 days, this estimate has changed +1.7%.

For the next fiscal year, the consensus earnings estimate of $10.86 indicates a change of +40.5% from what Modine is expected to report a year ago. Over the past month, the estimate has changed +0.3%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Modine is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Modine, the consensus sales estimate for the current quarter of $895.49 million indicates a year-over-year change of +31.2%. For the current and next fiscal years, $4.03 billion and $4.76 billion estimates indicate +26.8% and +18% changes, respectively.

Last Reported Results and Surprise HistoryModine reported revenues of $954.4 million in the last reported quarter, representing a year-over-year change of +47.5%. EPS of $1.71 for the same period compares with $1.12 a year ago.

Compared to the Zacks Consensus Estimate of $907.34 million, the reported revenues represent a surprise of +5.19%. The EPS surprise was +13.25%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Modine is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Modine. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

In the latest close session, Modine (MOD - Free Report) was up +2.52% at $283.67. The stock's performance was ahead of the S&P 500's daily loss of 0.01%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.46%.

The heating and cooling products maker's stock has dropped by 1.15% in the past month, exceeding the Auto-Tires-Trucks sector's loss of 8.9% and the S&P 500's loss of 1.4%.

The investment community will be paying close attention to the earnings performance of Modine in its upcoming release. It is anticipated that the company will report an EPS of $1.43, marking a 34.91% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $895.49 million, indicating a 31.15% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.73 per share and revenue of $4.03 billion. These totals would mark changes of +53.98% and +26.76%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Modine. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.99% higher. At present, Modine boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Modine is currently being traded at a Forward P/E ratio of 35.8. This expresses a premium compared to the average Forward P/E of 13.16 of its industry.

Meanwhile, MOD's PEG ratio is currently 0.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Original Equipment was holding an average PEG ratio of 0.87 at yesterday's closing price.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 162, placing it within the bottom 34% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Modine (MOD - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this heating and cooling products maker have returned +16.6% over the past month versus the Zacks S&P 500 composite's +1.6% change. The Zacks Automotive - Original Equipment industry, to which Modine belongs, has gained 7.4% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Modine is expected to post earnings of $1.43 per share, indicating a change of +34.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -13.6% over the last 30 days.

The consensus earnings estimate of $7.73 for the current fiscal year indicates a year-over-year change of +54%. This estimate has changed +7% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $10.86 indicates a change of +40.5% from what Modine is expected to report a year ago. Over the past month, the estimate has changed +11.2%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Modine is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Modine, the consensus sales estimate of $895.49 million for the current quarter points to a year-over-year change of +31.2%. The $4.03 billion and $4.76 billion estimates for the current and next fiscal years indicate changes of +26.8% and +18%, respectively.

Last Reported Results and Surprise HistoryModine reported revenues of $954.4 million in the last reported quarter, representing a year-over-year change of +47.5%. EPS of $1.71 for the same period compares with $1.12 a year ago.

Compared to the Zacks Consensus Estimate of $907.34 million, the reported revenues represent a surprise of +5.19%. The EPS surprise was +13.25%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Modine is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Modine. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either China Yuchai (CYD - Free Report) or Modine (MOD - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, China Yuchai is sporting a Zacks Rank of #1 (Strong Buy), while Modine has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CYD has an improving earnings outlook. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

CYD currently has a forward P/E ratio of 15.81, while MOD has a forward P/E of 38.47. We also note that CYD has a PEG ratio of 0.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MOD currently has a PEG ratio of 0.96.

Another notable valuation metric for CYD is its P/B ratio of 0.98. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MOD has a P/B of 13.04.

Based on these metrics and many more, CYD holds a Value grade of A, while MOD has a Value grade of D.

CYD has seen stronger estimate revision activity and sports more attractive valuation metrics than MOD, so it seems like value investors will conclude that CYD is the superior option right now.

On June 23, 2026, Modine Manufacturing Co MOD shares fell 6.1% today, closing at $277.46. Over the past 52 weeks, the stock has fluctuated between a high of $323.25 and a low of $86.48, marking a significant yearly gain of 185.5%.

GF Value™ verdict: Current price of $277.46 is 103.0% overvalued compared to a GF Value™ of $136.69.GF Score™ is 73/100, indicating an above-average performance relative to peers.Notable signal: Insiders sold $27.1M worth of stock in the last three months, with no buying activity. Is MOD Overvalued or Undervalued? With the current price of $277.46 significantly above the estimated GF Value™ of $136.69, Modine Manufacturing Co appears to be overvalued by 103.0%. This substantial gap raises concerns regarding the stock's current price and reflects potential risks for investors. The GF Valuation label categorizes the stock as significantly overvalued, suggesting that market conditions may not support such a high valuation in the long term.

The margin of safety is critical in assessing investment risks, especially when a stock is trading at a premium relative to its intrinsic value. Investors must consider the implications of this overvaluation, as it may lead to price corrections if earnings do not meet market expectations. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

How Does MOD's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 123.9x 22.2x Forward P/E 35.7x N/A The current P/E ratio of 123.9x is 458% above its 5-year median P/E of 22.2x, indicating that the stock is trading at a much higher valuation than it has historically. This analysis aligns with the GF Value™ verdict, reinforcing the conclusion that Modine Manufacturing Co is overvalued and could be at risk for a price adjustment if earnings growth does not materialize as anticipated.

What Does MOD's GF Score™ Tell Us? Metric Rating GF Score™ 73 Financial Strength 7/10 Profitability 7/10 Growth 8/10 Valuation 1/10 Momentum 6/10 The GF Score™ of 73/100 suggests that Modine Manufacturing Co has a solid performance overall, particularly in the areas of Growth (8/10) and Financial Strength (7/10). However, its Valuation score of 1/10 indicates significant concerns regarding its current price compared to its historical performance and intrinsic value. This disparity suggests that while the company may exhibit strong growth and financial stability, the high valuation poses a risk for potential investors.

What Are Insiders Doing with MOD Stock? Insider activity reveals that executives at Modine Manufacturing Co have sold $27.1 million worth of shares in the last three months, with no recorded purchases. This pattern of selling without accompanying buying activity could suggest a lack of confidence among insiders regarding the company’s future performance at current price levels. Such actions are typically seen as a warning signal for potential investors, indicating that insiders may believe the stock is currently overvalued.

What This Means for Investors Based on the analysis of GF Value™, Modine Manufacturing Co is considered significantly overvalued at its current price of $277.46, which is more than double the estimated fair value of $136.69. Given the stock's high P/E ratio and recent insider selling, potential investors should exercise caution and closely monitor the company's performance moving forward.

For the complete analysis, visit the Modine Manufacturing Co MOD stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is MOD's GF Score™?

MOD's GF Score™ is 73/100, indicating an above-average performance relative to its peers, suggesting a balanced view of the company’s strengths and weaknesses.

Is MOD overvalued or undervalued?

MOD is considered overvalued, with a current price of $277.46 being 103.0% above its GF Value™ of $136.69.

What is MOD's P/E ratio?

MOD's P/E ratio is 123.9x, which is significantly above its 5-year median P/E of 22.2x, indicating that the stock is trading at a much higher historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Takeaways Modine's HVAC Technologies segment faced fiscal 2026 margin pressure from mix, costs and weather.Modine projects Commercial HVAC sales growth of 5-10% in fiscal 2027 amid demand gains.Modine's acquisitions added $119M in fiscal 2026 revenues and may aid results from Q2 fiscal 2027. Modine Manufacturing Company’s (MOD - Free Report) HVAC Technologies segment faced margin pressure in fiscal 2026 due to an unfavorable product mix, elevated costs associated with integrating recent acquisitions and weather-related disruptions. Severe weather on the East Coast and in the Southern U.S. resulted in significant production downtime during the fourth quarter.

Despite these near-term challenges, the company remains optimistic about the segment’s outlook. The commercial HVAC business acquired through Scott Springfield is expected to rebound strongly in fiscal 2027 after a difficult year affected by tariff-related headwinds. Modine projects Commercial HVAC sales growth of 5% to 10% in fiscal 2027, supported by accelerating demand for its heating and indoor air quality products, as well as continued mid-single-digit growth in its coils business.

Modine’s recent acquisitions, AbsolutAire, L.B. White and Climate by Design, contributed $119 million in additional revenues during fiscal 2026. Beyond boosting sales, these acquisitions expanded Modine’s product portfolio and provided access to new end markets and distribution channels. The company expects the HVAC segment’s performance to improve beginning in the second quarter of fiscal 2027, as the company benefits from a full year of ownership of these acquired businesses. MOD carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HVAC Growth Drivers for Modine’s CompetitorsIn the first quarter of 2026, Trane Technologies plc’s (TT - Free Report) Commercial HVAC business delivered strong results, with Americas bookings reaching a record level, up about 40% year over year. Trane’s growth was fueled by robust demand for applied solutions. Trane’s Americas and EMEA backlog increased approximately $2.7 billion from year-end 2025, supported in part by the acquisition of Stellar Energy and continued momentum in data center cooling projects.

Carrier Global Corporation (CARR - Free Report) is seeing robust momentum in its Commercial HVAC business. In the first quarter, Carrier Global's total orders increased 11% year over year, driven by a 35% rise in global HVAC orders. Carrier Global also highlighted ongoing discussions related to data center projects in China and expects to secure additional Commercial HVAC opportunities in that market going forward.

MOD’s Price Performance, Valuation & EstimatesMOD has outperformed the Zacks Automotive-Original Equipment industry. Modine’s shares have rallied 98.1% compared to the industry’s growth of 2.2% in the last six months.

Image Source: Zacks Investment Research

 
From a valuation perspective, MOD appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 3.47, higher than the industry’s 2.26.

Image Source: Zacks Investment Research

 
The Zacks Consensus Estimate for MOD’s fiscal 2026 and 2027 EPS has moved up 50 cents and $1.10, respectively, in the past 30 days.

Image Source: Zacks Investment Research

Modine (MOD - Free Report) closed at $274.50 in the latest trading session, marking a +1.1% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.5%. Elsewhere, the Dow saw an upswing of 0.7%, while the tech-heavy Nasdaq appreciated by 0.31%.

The heating and cooling products maker's shares have seen a decrease of 7.07% over the last month, not keeping up with the Auto-Tires-Trucks sector's loss of 6.53% and the S&P 500's loss of 0.23%.

Market participants will be closely following the financial results of Modine in its upcoming release. The company is expected to report EPS of $1.43, up 34.91% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $895.49 million, up 31.15% from the year-ago period.

MOD's full-year Zacks Consensus Estimates are calling for earnings of $7.73 per share and revenue of $4.03 billion. These results would represent year-over-year changes of +53.98% and +26.76%, respectively.

It is also important to note the recent changes to analyst estimates for Modine. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.99% upward. Right now, Modine possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Modine has a Forward P/E ratio of 35.12 right now. This expresses a premium compared to the average Forward P/E of 13.11 of its industry.

Investors should also note that MOD has a PEG ratio of 0.88 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Automotive - Original Equipment industry was having an average PEG ratio of 0.88.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 144, positioning it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Shares of Modine Manufacturing surged on Tuesday after the thermal management company announced a long-term agreement to supply more than $4 billion worth of cooling products to a strategic data center customer.

The deal reinforced investor optimism around the expanding artificial intelligence infrastructure market.

The stock climbed more than 17% during trading and was on track for one of its strongest single-day performances in months.

Earlier in the session, shares rose as much as 21%, putting the stock near an all-time high.

Under the agreement, Modine will supply its Airedale cooling products between calendar years 2027 and 2029.

The company also received a $165 million upfront cash payment from the unnamed customer to support manufacturing capacity investments and related expenditures needed to fulfill the contract.

The deal represents a major milestone for Modine as it continues shifting its business toward data center cooling infrastructure tied to AI-driven computing demand.

“This landmark agreement is a testament to the successful execution of our long-term strategy to grow our Data Centers business and validates our position as a technology leader,” Chief Executive Neil Brinker said.

The size of the agreement significantly exceeds Modine’s current annual data center revenue levels and highlights how rapidly the company’s cooling business has expanded alongside growing AI infrastructure spending.

Modine generated approximately $700 million in data center sales during fiscal 2025.

The newly announced agreement implies annualized revenue of roughly $1.3 billion beginning in 2027.

The company’s data center segment recently posted 78% sales growth in its latest quarter, and management had previously projected the business could reach $2 billion in annual revenue by 2028 before announcing the latest deal.

Analysts said the agreement further strengthens Modine’s position within the increasingly competitive market for advanced cooling systems used in hyperscale AI data centers.

The customer involved in the agreement was not disclosed, though Modine described it as one of its strategic data center customers.

The contract also adds substantial long-term revenue visibility for the company as demand for AI-related infrastructure continues to accelerate globally. 

According to Fiscal.ai data in a Stocktwits report, Modine is expected to generate approximately $3.15 billion in total sales during fiscal 2026, meaning the $4 billion agreement alone exceeds the company’s projected annual revenue base.

Investor enthusiasm around the stock also reflects broader optimism surrounding companies tied to AI infrastructure expansion.

Data centers supporting large-scale AI workloads require increasingly sophisticated cooling systems to manage rising energy usage and thermal intensity generated by advanced processors and computing clusters.

Modine’s Airedale products are specifically designed to support those cooling requirements.

The company has also been undergoing a broader strategic transformation.

Modine plans to separate its lower-margin Performance Technologies segment by the fourth quarter of 2026, positioning itself as a more focused climate solutions provider centered on data centers, HVAC, and refrigeration technologies.

Analysts have recently raised price targets on the stock following improving operational performance and continued strength in the company’s earnings results.

Analyst fair value estimates for the company have been raised to $249 following recent target increases from firms including B. Riley, Oppenheimer, KeyBanc, DA Davidson, and UBS.

Strong fourth quarter resulted in fourth consecutive year of record financial results

, /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today reported financial results for the quarter and fiscal year ended March 31, 2026.

Fourth Quarter Highlights:

Record quarterly net sales of $954.4 million increased $307.2 million, or 47 percent, from the prior year Net earnings of $73.6 million increased $23.5 million, or 47 percent, from the prior year Earnings per share of $1.­­36 increased $0.44, or 48 percent, from the prior year Record quarterly adjusted EBITDA of $146.1 million increased $42.0 million, or 40 percent, from the prior year Record quarterly adjusted earnings per share of $1.71 increased $0.59, or 53 percent, from the prior year Full-Year Highlights:

Record net sales of $3.2 billion increased $597.6 million, or 23 percent, from the prior year Net earnings of $123.3 million decreased $62.2 million, or 34 percent, from the prior year and included a $116.1 million non-cash pension termination charge in the third quarter Earnings per share of $2.26 decreased $1.16, or 34 percent, from the prior year Record adjusted EBITDA of $471.0 million increased $78.9 million, or 20 percent, from the prior year Record adjusted earnings per share of $5.02 increased $0.97, or 24 percent, from the prior year Fiscal 2027 Outlook:

Net sales growth between 20 percent and 35 percent Adjusted EBITDA range of $650 million to $680 million, resulting in growth between 38 percent and 44 percent "The team delivered a strong fourth quarter and a fourth consecutive year of record revenue, adjusted EBITDA and adjusted earnings per share," said Modine President and Chief Executive Officer, Neil D. Brinker. "I am incredibly proud of this exceptional performance as we continue to evolve our portfolio to become a more focused, high-growth company. We took decisive action this year to advance our transformation including the completion of three acquisitions in our Climate Solutions segment, the launch of the largest capacity expansion in our company's history to meet growing demand for our data center products, and the announced pending spin-off of the Performance Technologies business. Our future is bright, evidenced by a landmark $4 billion long-term agreement for chiller sales with a major hyperscale customer, cementing Modine's position as a critical partner for data center cooling."

Fourth Quarter Financial Results

Net sales increased 47 percent to $954.4 million, compared with $647.2 million in the prior year. Sales growth was driven by higher sales in the Climate Solutions segment, driven primarily by strong demand from data center customers and sales from acquired businesses. This performance was achieved despite a significant loss of production days from severe weather in multiple locations and shortages of key components from supply chain partners.  

Gross profit increased 29 percent to $214.7 million and gross margin decreased by 320 basis points to 22.5 percent. The decline in gross margin was largely expected and resulted primarily from higher temporary costs related to the capacity expansion for data center products, increased tariffs, and higher material costs.

Selling, general and administrative ("SG&A") expenses increased 25 percent to $101.7 million. The increase was primarily due to higher expenses in the Climate Solutions segment, supporting the segment's growth and including incremental expenses from the recent acquisitions, and costs related to the pending spin-off of the Performance Technologies segment. These higher costs were partially offset by cost saving initiatives, including benefits from previous restructuring actions.

Operating income increased 39 percent to $103.9 million, compared to $74.5 million in the prior year. This increase was driven by higher earnings in the Climate Solutions segment. The Company recorded $5.2 million of restructuring expenses during the fourth quarter, primarily severance expenses related to headcount reductions and costs related to equipment transfers. In addition, the Company incurred $12.5 million of costs related to the pending spin-off of the Performance Technologies segment. Adjusted EBITDA, which excludes restructuring expenses, disposition costs, certain other charges, interest expense, the provision for income taxes, and depreciation and amortization expense, was $146.1 million, an increase of $42.0 million, or 40 percent, compared to $104.1 million in the prior year. 

Earnings per share was $1.36, compared with earnings per share of $0.92 in the prior year, an increase of $0.44, or 48 percent. Adjusted earnings per share was $1.71, compared with adjusted earnings per share of $1.12 in the prior year, an increase of $0.59, or 53 percent.

Fourth Quarter Segment Review

Climate Solutions segment sales were $665.9 million, compared with $356.3 million one year ago, an increase of 87 percent. Data Centers sales increased 158 percent from the prior year, and HVAC Technologies sales increased 51 percent, including $38.2 million of incremental sales from acquired businesses. The segment reported gross margin of 24.6 percent, which was 510 basis points lower than the prior year. This decline was largely expected and resulted primarily from the planned and temporary costs related to the rapid expansion of manufacturing capacity for data center products, and, to a lesser extent, higher tariff and weather-related temporary labor and overtime costs. The segment reported operating income of $108.8 million, a 77 percent increase from the prior year, and adjusted EBITDA of $124.3 million, an increase of 63 percent from the prior year. Performance Technologies segment sales were $294.0 million, compared with $294.8 million one year ago, a decrease of $0.8 million. This decrease primarily resulted from lower sales to stationary power customers, mostly offset by higher sales to automotive, commercial vehicle and off-highway customers. The segment reported gross margin of 16.5 percent, which was 390 basis points lower than the prior year, primarily due to higher material costs and tariffs. The segment reported operating income of $27.7 million, a 7 percent decrease from the prior year, and adjusted EBITDA of $37.4 million, a 15 percent decrease from the prior year. Full-Year Financial Results

Fiscal 2026 net sales increased 23 percent to $3,181.1 million compared with $2,583.5 million in the prior year. The increase was driven by higher sales in the Climate Solutions segment, with particularly strong growth in sales of data center products, and $119.1 million in incremental sales from acquisitions. This was partially offset by lower sales in the Performance Technologies segment.

Gross margin of 23.0 percent was 190 basis points lower than the prior year, primarily due to higher temporary costs related to the capacity expansion for data center products and higher material costs and tariffs.

The Company reported net earnings of $123.3 million compared to $185.5 million in the prior year, a decrease of $62.2 million. The current year results include a $116.1 million non-cash pension termination charge in the third quarter. The Company recorded $20.6 million of restructuring expenses during the year, primarily severance expenses related to headcount reductions and costs related to equipment transfers. In addition, the Company incurred $20.3 million of acquisition and disposition costs.  Adjusted EBITDA, which excludes restructuring expenses, the pension termination charge, acquisition and disposition costs, certain other charges, interest expense, the provision for income taxes, and depreciation and amortization expense, was $471.0 million, an increase of $78.9 million, or 20 percent, compared to $392.1 million in the prior year. 

Earnings per share in fiscal 2026 was $2.26 compared with $3.42 in fiscal 2025, and adjusted earnings per share in fiscal 2026 was $5.02, compared with $4.05 in fiscal 2025.

Balance Sheet & Liquidity

Net cash provided by operating activities for the fiscal year ended March 31, 2026 was $248.7 million, an increase of $35.4 million compared to the prior year. Free cash flow for the fiscal year ended March 31, 2026 was $105.4 million, a decrease of $23.9 million from the prior year. This decrease was due to an increase in working capital and higher capital expenditures, both associated with the rapid growth of our Data Centers business. These drivers, which decreased free cash flow, were partially offset by higher operating earnings and the favorable impact of customer deposits received during fiscal 2026.  Cash payments for restructuring activities, funding of the U.S. pension plan in connection with its termination, acquisition and disposition costs, and certain other costs totaled $49.6 million during the fiscal year ended March 31, 2026.

Total debt was $436.3 million as of March 31, 2026. Cash and cash equivalents totaled $73.5 million as of March 31, 2026. Net debt was $362.8 million as of March 31, 2026, an increase of $83.6 million from the end of fiscal 2025. This increase resulted from borrowings to fund working capital, acquisitions and capital expenditures. 

Outlook

"Our fiscal 2027 outlook implies a fifth consecutive year of record results," added Brinker. "We anticipate another strong year for our Data Centers business, supported by our strong customer relationships and significant order book. Our capacity expansion remains firmly on track and we will continue to invest in our fastest growing business to ensure we meet the future needs of our key customers. Altogether, we expect another terrific year for Modine and are confident in our ability to deliver value for our customers and shareholders."

Outlook includes the Performance Technologies business for all of fiscal 2027. This outlook will be updated for the remaining business once the timing of the spin-off of the Performance Technologies segment is finalized. 

Based on current exchange rates and market conditions, Modine provides its outlook for fiscal 2027:

Fiscal 2027

Current Outlook

Net Sales

+20% to 35%

Adjusted EBITDA

$650 to $680 million

Conference Call and Webcast

Modine will conduct a conference call and live webcast, with a slide presentation, on Wednesday, May 27, 2026, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its fourth quarter and fiscal year 2026 financial results. The webcast and accompanying slides will be available on the Investor Relations section of the Modine website at www.modine.com. Participants are encouraged to log on to the webcast and conference call about ten minutes prior to the start of the event. A replay of the slides and the audio will be available on or after May 27, 2026, on the investor section of Modine's website at http://www.modine.com. An audio only replay will be available through midnight on June 3, 2026, by dialing 877-660-6853 (international replay 201-612-7415) and entering the Conference ID# 13758931. A transcript of the call will be posted to the company's website on or after May 28, 2026.

About Modine

For more than 100 years, Modine has solved the toughest thermal management challenges for mission-critical applications. Our purpose of Engineering a Cleaner, Healthier World™ means we are always evolving our portfolio of technologies to provide the latest heating, cooling, and ventilation solutions. Through the hard work of more than 13,000 employees worldwide, our businesses advance our purpose with systems that improve air quality, reduce energy and water consumption, lower harmful emissions, enable cleaner running vehicles, and use environmentally friendly refrigerants. Modine is a global company headquartered in Racine, Wisconsin (U.S.), with operations in North America, South America, Europe, and Asia. For more information about Modine, visit www.modine.com.

Forward-Looking Statements

This press release contains statements, including information about future financial performance and market conditions, accompanied by phrases such as "believes," "estimates," "expects," "plans," "anticipates," "intends," "projects," and other similar "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995. Modine's actual results, performance or achievements may differ materially from those expressed or implied in these statements because of certain risks and uncertainties, including, but not limited to those described under "Risk Factors" in Item 1A of Part I of the Company's most recent Annual Report on Form 10-K. Other risks and uncertainties include, but are not limited to, the following: the impact of potential adverse developments or disruptions in the global economy and financial markets, including impacts related to geopolitical tensions and military conflicts, including the conflict between the U.S. and Iran, inflation, energy costs, government incentive or funding programs, supply chain challenges or supplier constraints, logistical disruptions, tariffs, sanctions and other trade issues or cross-border trade restrictions; the impact of other economic, social and political conditions, changes and challenges in the markets where we operate and compete, including foreign currency exchange rate fluctuations, changes in interest rates, tightening of the credit markets, recession or recovery therefrom, restrictions associated with importing and exporting and foreign ownership, public health crises, and the general uncertainties, including the impact on demand for our products and the markets we serve from regulatory and/or policy changes that have been or may be implemented in the U.S. or abroad, including those related to tax and trade, climate change, and public health threats; the overall health and pricing focus of our customers; changes or threats to the market growth prospects for our customers; our ability to successfully exit portions of our business that do not align with our strategic plans, including the various risks related to the pending Reverse Morris Trust transaction with Gentherm; our ability to realize the sales growth and return on investments anticipated in our Data Centers business and our ability to execute on other organic growth opportunities and acquisitions; our ability to realize anticipated benefits, including improved profit margins and cash flow, from strategic initiatives and our continued application of 80/20 principles across our businesses; our ability to be at the forefront of technological advances and the impacts of any changes in the adoption rate of technologies that we expect to drive sales growth; our ability to effectively and efficiently manage our operations in response to sales volume changes, including maintaining adequate production capacity to meet demand in our growing businesses, particularly in our Data Centers business, while also completing restructuring activities and realizing benefits thereof; our ability to fund our global liquidity requirements efficiently and comply with the financial covenants in our credit agreements; operational inefficiencies as a result of product or program launches, unexpected volume increases or decreases, product transfers and product warranty and liability claims; the impact on Modine of any significant increases in commodity prices, particularly aluminum, copper, steel and stainless steel (nickel) and other purchased components and related costs, and our ability to adjust product pricing in response to any such increases; our ability to recruit and maintain talent in managerial, leadership, operational and administrative functions and to mitigate increased labor costs; our ability to protect our proprietary information and intellectual property from theft or attack; the impact of any substantial disruption or material breach of our information technology systems; costs and other effects of environmental investigation, remediation or litigation and the increasing emphasis on environmental, social and corporate governance matters; our ability to realize the benefits of deferred tax assets and the impact of changes in tax regulations; and other risks and uncertainties identified in our public filings with the U.S. Securities and Exchange Commission. Forward-looking statements are as of the date of this press release, and we do not assume any obligation to update any forward-looking statements.

Non-GAAP Financial Disclosures

Adjusted EBITDA, adjusted EBITDA margin, adjusted earnings per share, net debt, free cash flow, organic sales and organic sales growth (which are defined below) as used in this press release are not measures that are defined in generally accepted accounting principles (GAAP). These non-GAAP measures are used by management as performance measures to evaluate the Company's overall financial performance and liquidity. These measures are not, and should not be viewed as, substitutes for the applicable GAAP measures, and may be different from similarly titled measures used by other companies.

Definition – Adjusted EBITDA and adjusted EBITDA margin

The Company defines adjusted EBITDA as net earnings excluding interest expense, the provision or benefit for income taxes, depreciation and amortization expenses, other income and expense, restructuring expenses, impairment charges, pension termination charges, acquisition and disposition costs, and certain other gains or charges. Adjusted EBITDA margin represents adjusted EBITDA as a percentage of net sales. The Company believes that adjusted EBITDA and adjusted EBITDA margin provide relevant measures of profitability and earnings power. The Company views these financial metrics as being useful in assessing operating performance from period to period by excluding certain items that it believes are not representative of its core business. Adjusted EBITDA, when calculated for the business segments, is defined as operating income excluding depreciation and amortization expenses, restructuring expenses, impairment charges, and certain other gains or charges.

Definition – Adjusted earnings per share

Diluted earnings per share plus restructuring expenses, impairment charges, pension termination charges, acquisition and disposition costs, and excluding changes in income tax valuation allowances and certain other gains or charges. Adjusted earnings per share is an overall performance measure, not including costs associated with restructuring, acquisitions, and dispositions and certain other gains or charges.

Definition – Net debt

The sum of debt due within one year and long-term debt, less cash and cash equivalents. Net debt is an indicator of the Company's debt position after considering on-hand cash balances.

Definition – Free cash flow

Free cash flow represents net cash provided by operating activities less expenditures for property, plant and equipment. Free cash flow presents cash generated from operations during the period that is available for strategic capital decisions.

Definition – Organic sales and organic sales growth

Net sales and net sales growth can be impacted by acquisitions, dispositions, and foreign currency exchange rate fluctuations. The Company defines organic sales as external net sales excluding the impact of acquisitions and the effects of foreign currency exchange rate fluctuations. Organic sales growth represents the percentage change of organic sales compared to prior year external net sales, excluding the impact of dispositions. The effect of exchange rate changes is calculated by using the same foreign currency exchange rates as those used to translate financial data for the prior period. The Company adjusts for acquisitions and dispositions by excluding net sales in the current and prior periods, respectively, for which there are no comparable sales in the reported periods. These sales growth measures provide a more consistent indication of our performance, without the effects of foreign currency exchange rate fluctuations or acquisitions and dispositions. 

Forward-looking non-GAAP financial measure

The Company's fiscal 2027 guidance includes adjusted EBITDA, as defined above, which is a non-GAAP financial measure. The fiscal 2027 guidance includes the Company's estimates for interest expense of approximately $15 to $18 million, a provision for income taxes of approximately $135 to $145 million, and depreciation and amortization expense of approximately $90 to $95 million. The non-GAAP financial measure also excludes certain cash and non-cash expenses or gains. These expenses and gains may be significant and include items such as restructuring expenses (including severance and equipment transfer costs), impairment charges, acquisition and disposition costs, and certain other items.  In connection with the pending Reverse Morris Trust transaction with Gentherm, the Company expects to incur approximately $30 to $40 million of additional costs during fiscal 2027, primarily for transaction advisory, legal, accounting, tax and other professional services.  Estimates of other expenses and gains for fiscal 2027 are not available due to the low visibility and unpredictability of these items.

Modine Manufacturing Company

Consolidated statements of operations (unaudited)

(In millions, except per share amounts)

Three months ended March 31, 

Twelve months ended March 31, 

2026

2025

2026

2025

Net sales

$

954.4

$

647.2

$

3,181.1

$

2,583.5

Cost of sales

739.7

481.2

2,450.0

1,939.7

Gross profit

214.7

166.0

731.1

643.8

Selling, general & administrative expenses

101.7

81.5

360.1

332.1

Restructuring expenses

5.2

10.0

20.6

28.2

Impairment charge

—

—

4.1

—

Loss on sale of assets

3.9

—

3.9

—

Operating income

103.9

74.5

342.4

283.5

Interest expense

(8.6)

(5.3)

(31.6)

(26.4)

Pension termination charge

—

—

(116.1)

—

Other income (expense) – net

0.3

(2.4)

(8.2)

(3.1)

Earnings before income taxes

95.6

66.8

186.5

254.0

Provision for income taxes

(22.0)

(16.7)

(63.2)

(68.5)

Net earnings

73.6

50.1

123.3

185.5

Net earnings attributable to noncontrolling interest

(0.3)

(0.5)

(1.8)

(1.5)

Net earnings attributable to Modine

$

73.3

$

49.6

$

121.5

$

184.0

Net earnings per share attributable to Modine shareholders –
diluted

$

1.36

$

0.92

$

2.26

$

3.42

Weighted-average shares outstanding – diluted

54.0

53.9

53.8

53.9

Condensed consolidated balance sheets (unaudited)

(In millions)

March 31, 2026

March 31, 2025

Assets

Cash and cash equivalents

$

73.5

$

71.6

Trade receivables

731.0

478.9

Inventories

506.1

340.9

Other current assets

105.5

69.8

Total current assets

1,416.1

961.2

Property, plant and equipment – net

520.9

390.5

Intangible assets – net

197.0

146.7

Goodwill

292.1

233.9

Deferred income taxes

85.3

67.0

Other noncurrent assets

163.2

118.3

Total assets

$

2,674.6

$

1,917.6

Liabilities and shareholders' equity

Debt due within one year

$

51.4

$

54.1

Accounts payable

464.8

290.8

Other current liabilities

212.7

196.1

Total current liabilities

728.9

541.0

Long-term debt

384.9

296.7

Other noncurrent liabilities

358.0

161.7

Total liabilities

1,471.8

999.4

Total equity

1,202.8

918.2

Total liabilities & equity

$

2,674.6

$

1,917.6

Modine Manufacturing Company

Condensed consolidated statements of cash flows (unaudited)

(In millions)

Twelve months ended March 31, 

2026

2025

Cash flows from operating activities:

Net earnings

$

123.3

$

185.5

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization

79.7

77.7

Impairment charge

4.1

—

Loss on sale of assets

3.9

—

Pension termination charge

116.1

—

Stock-based compensation expense

22.1

26.4

Deferred income taxes

(39.1)

6.5

Other – net

7.0

6.9

Changes in operating assets and liabilities:

Trade accounts receivable

(222.6)

(61.2)

Inventories

(125.1)

13.6

Accounts payable

151.1

10.5

Accrued compensation and employee benefits

(13.5)

1.6

Contract liabilities

159.0

(44.5)

Other assets

(2.9)

15.3

Other liabilities

(14.4)

(25.0)

Net cash provided by operating activities

248.7

213.3

Cash flows from investing activities:

Expenditures for property, plant and equipment

(143.3)

(84.0)

Payments for business acquisitions, net of cash acquired

(182.4)

(3.4)

Other – net

4.4

0.8

Net cash used for investing activities

(321.3)

(86.6)

Cash flows from financing activities:

Net increase (decrease) in debt

78.7

(82.5)

Purchases of treasury stock

(7.0)

(30.9)

Other – net

1.4

(0.2)

Net cash provided by (used for) financing activities

73.1

(113.6)

Effect of exchange rate changes on cash

1.3

(1.5)

Net increase in cash, cash equivalents and restricted cash

1.8

11.6

Cash, cash equivalents and restricted cash – beginning of period

71.9

60.3

Cash, cash equivalents and restricted cash – end of period

$

73.7

$

71.9

Modine Manufacturing Company

Segment operating results (unaudited)

(In millions)

Three months ended March 31, 

Twelve months ended March 31, 

2026

2025

2026

2025

Net sales:

Climate Solutions

$

665.9

$

356.3

$

2,062.3

$

1,440.8

Performance Technologies

294.0

294.8

1,131.8

1,163.5

Segment total

959.9

651.1

3,194.1

2,604.3

Corporate and eliminations

(5.5)

(3.9)

(13.0)

(20.8)

Net sales

$

954.4

$

647.2

$

3,181.1

$

2,583.5

Three months ended March 31, 

Twelve months ended March 31, 

2026

2025

2026

2025

$'s

% of
sales

$'s

% of
sales

$'s

% of
sales

$'s

% of
sales

Gross profit:

Climate Solutions

$

164.0

24.6

%

$

105.9

29.7

%

$

524.0

25.4

%

$

416.1

28.9

%

Performance Technologies

48.7

16.5

%

60.1

20.4

%

204.8

18.1

%

230.4

19.8

%

Segment total

212.7

22.2

%

166.0

25.5

%

728.8

22.8

%

646.5

24.8

%

Corporate and eliminations

2.0

—

—

—

2.3

—

(2.7)

—

Gross profit

$

214.7

22.5

%

$

166.0

25.7

%

$

731.1

23.0

%

$

643.8

24.9

%

Three months ended March 31, 

Twelve months ended March 31, 

2026

2025

2026

2025

Operating income:

Climate Solutions

$

108.8

$

61.5

$

321.1

$

248.4

Performance Technologies

27.7

29.9

109.7

108.0

Segment total

136.5

91.4

430.8

356.4

Corporate and eliminations

(32.6)

(16.9)

(88.4)

(72.9)

Operating income

$

103.9

$

74.5

$

342.4

$

283.5

Modine Manufacturing Company

Adjusted financial results (unaudited)

(In millions, except per share amounts)

Three months ended March 31, 

Twelve months ended March 31, 

2026

2025

2026

2025

Net earnings

$

73.6

$

50.1

$

123.3

$

185.5

Interest expense

8.6

5.3

31.6

26.4

Provision for income taxes

22.0

16.7

63.2

68.5

Depreciation and amortization expense

20.6

19.2

79.7

77.7

Other (income) expense  – net

(0.3)

2.4

8.2

3.1

Restructuring expenses (a)

5.2

10.0

20.6

28.2

Impairment charge (b)

—

—

4.1

—

Loss on sale of assets (c)

3.9

—

3.9

—

Pension termination charge (d)

—

—

116.1

—

Acquisition and integration costs (e)

—

0.3

5.3

2.3

Disposition costs (f)

12.5

—

15.0

—

Environmental charges (g)

—

0.1

—

0.4

Adjusted EBITDA

$

146.1

$

104.1

$

471.0

$

392.1

Net earnings per share attributable to Modine shareholders – diluted

$

1.36

$

0.92

$

2.26

$

3.42

Restructuring expenses (a)

0.07

0.16

0.30

0.45

Impairment charge (b)

—

—

0.08

—

Loss on sale of assets (c)

0.07

—

0.07

—

Pension termination charge (d)

—

—

1.92

—

Acquisition and integration costs (e)

—

0.04

0.08

0.18

Disposition costs (f)

0.17

—

0.20

—

Tax law changes (h)

0.04

—

0.11

—

Adjusted earnings per share

$

1.71

$

1.12

$

5.02

$

4.05

(a)

Restructuring expenses primarily consist of employee severance expenses and equipment transfer costs.  The tax benefit related to restructuring expenses during the fourth quarter of fiscal 2026 and fiscal 2025 was $1.3 million and $1.5 million, respectively.  The tax benefit related to restructuring expenses during fiscal 2026 and fiscal 2025 was $4.3 million and $4.0 million, respectively. 

(b)

During the second quarter of fiscal 2026, the Company recorded a $4.1 million non-cash asset impairment charge related to its technical service center and administrative support facility in Germany, which it expects to sell during fiscal 2027.  There was no tax impact associated with this impairment charge.

(c)

During the fourth quarter of fiscal 2026, the Company recorded a $3.9 million loss resulting from the settlement of a loan facility that it provided in connection with the sale of its Austrian automotive business in fiscal 2022.  There was no tax impact associated with this loss.

(d)

During the third quarter of fiscal 2026, the Company recorded a non-cash pension termination charge of $116.1 million to recognize actuarial losses that were included within accumulated other comprehensive loss on its consolidated balance sheet.  The tax benefit related to the pension termination charge was $13.1 million.  

(e)

The fiscal 2026 costs primarily relate to the acquisitions of Climate by Design International and L.B. White and include fees for transaction advisory services, legal, accounting, and other professional services and costs directly associated with integration activities.  The acquisition costs also include $1.3 million for the impact of inventory purchase accounting adjustments.  The fiscal 2025 costs relate to the acquisition of Scott Springfield Manufacturing, including $1.6 million for the impact of an inventory purchase accounting adjustment.  In addition, for purposes of calculating adjusted EPS in fiscal 2025, the Company adjusted for $10.6 million of incremental amortization expense recorded in the Climate Solutions segment associated with an acquired order backlog intangible asset.  The tax benefit related to the acquisition costs during fiscal 2026 and 2025 was $0.8 million and $2.9 million, respectively.  The tax benefit related to the acquisition costs during the fourth quarter of fiscal 2025 was $0.7 million. 

(f)

Disposition costs primarily relate to the proposed Reverse Morris Trust transaction with Gentherm and include fees for legal, accounting, tax, and other professional services and other costs directly related to the transaction.  The tax benefit related to the disposition costs during the fourth quarter and during fiscal 2026 was $3.2 million and $3.9 million, respectively.

(g)

Environmental charges, including related legal costs, are recorded as SG&A expenses and relate to previously-owned facilities. 

(h)

The provisions of the One Big Beautiful Bill Act, which was enacted in July 2025, negatively impacted the Company's income tax expense for the fourth quarter and during fiscal 2026 by $2.1 million and $5.8 million, respectively.  The higher income tax expense was primarily due to impacts related to state deferred taxes and the utilization of foreign tax credits.

Modine Manufacturing Company

Segment adjusted financial results (unaudited)

(In millions)

Three months ended March 31, 2026

Three months ended March 31, 2025

Climate 

Performance 

Corporate and 

Climate 

Performance 

Corporate and 

Solutions

Technologies

eliminations

Total

Solutions

Technologies

eliminations

Total

Operating income

$

108.8

$

27.7

$

(32.6)

$

103.9

$

61.5

$

29.9

$

(16.9)

$

74.5

Depreciation and amortization expense

12.6

7.5

0.5

20.6

11.6

7.4

0.2

19.2

Restructuring expenses (a)

2.9

2.2

0.1

5.2

3.2

6.8

—

10.0

Loss on sale of assets (a)

—

—

3.9

3.9

—

—

—

—

Acquisition and integration costs (a)

—

—

—

—

—

—

0.3

0.3

Disposition costs (a)

—

—

12.5

12.5

—

—

—

—

Environmental charges (a)

—

—

—

—

—

—

0.1

0.1

Adjusted EBITDA

$

124.3

$

37.4

$

(15.6)

$

146.1

$

76.3

$

44.1

$

(16.3)

$

104.1

Net sales

$

665.9

$

294.0

$

(5.5)

$

954.4

$

356.3

$

294.8

$

(3.9)

$

647.2

Adjusted EBITDA margin

18.7

%

12.7

%

15.3

%

21.4

%

15.0

%

16.1

%

Twelve months ended March 31, 2026

Twelve months ended March 31, 2025

Climate 

Performance 

Corporate and 

Climate 

Performance 

Corporate and 

Solutions

Technologies

eliminations

Total

Solutions

Technologies

eliminations

Total

Operating income

$

321.1

$

109.7

$

(88.4)

$

342.4

$

248.4

$

108.0

$

(72.9)

$

283.5

Depreciation and amortization expense

47.5

30.8

1.4

79.7

48.3

28.7

0.7

77.7

Restructuring expenses (a)

8.5

11.9

0.2

20.6

6.0

20.5

1.7

28.2

Impairment charge (a)

—

4.1

—

4.1

—

—

—

—

Loss on sale of assets (a)

—

—

3.9

3.9

—

—

—

—

Acquisition and integration costs (a)

—

—

5.3

5.3

—

—

2.3

2.3

Disposition costs (a)

—

—

15.0

15.0

—

—

—

—

Environmental charges (a)

—

—

—

—

—

—

0.4

0.4

Adjusted EBITDA

$

377.1

$

156.5

$

(62.6)

$

471.0

$

302.7

$

157.2

$

(67.8)

$

392.1

Net sales

$

2,062.3

$

1,131.8

$

(13.0)

$

3,181.1

$

1,440.8

$

1,163.5

$

(20.8)

$

2,583.5

Adjusted EBITDA margin

18.3

%

13.8

%

14.8

%

21.0

%

13.5

%

15.2

%

(a)

See the Adjusted EBITDA reconciliations on the previous page for information on restructuring expenses and other adjustments.

Modine Manufacturing Company

Net debt (unaudited)

(In millions)

March 31, 2026

March 31, 2025

Debt due within one year

$

51.4

$

54.1

Long-term debt

384.9

296.7

Total debt

436.3

350.8

Less: cash and cash equivalents

73.5

71.6

Net debt

$

362.8

$

279.2

Free cash flow (unaudited)

(In millions)

Three months ended March 31, 

Twelve months ended March 31, 

2026

2025

2026

2025

Net cash provided by operating activities

$

194.9

$

54.8

$

248.7

$

213.3

Expenditures for property, plant and equipment

(42.1)

(27.7)

(143.3)

(84.0)

Free cash flow

$

152.8

$

27.1

$

105.4

$

129.3

Organic sales and organic sales growth (unaudited)

(In millions)

Three months ended March 31, 2026

Three months ended March 31, 2025

Effect of

Sales

Organic

External

Exchange Rate

Effect of

Organic

External

Effect of

Excluding

 Sales

Sales

Changes

 Acquisitions

Sales

Sales

Dispositions

Dispositions

Growth

Net sales:

Climate Solutions

$

662.0

$

(17.1)

$

(38.2)

$

606.7

$

356.3

$

—

$

356.3

70

%

Performance Technologies

292.4

(12.0)

—

280.4

290.9

—

290.9

(4)

%

Net Sales

$

954.4

$

(29.1)

$

(38.2)

$

887.1

$

647.2

$

—

$

647.2

37

%

Twelve months ended March 31, 2026

Twelve months ended March 31, 2025

Effect of

Sales

Organic

External

Exchange Rate

Effect of

Organic

External

Effect of

Excluding

Sales

Sales

Changes

 Acquisitions

Sales

Sales

Dispositions

Dispositions

Growth

Net sales:

Climate Solutions

$

2,055.4

$

(37.6)

$

(119.1)

$

1,898.7

$

1,440.6

$

—

$

1,440.6

32

%

Performance Technologies

1,125.7

(25.3)

—

1,100.4

1,142.9

—

1,142.9

(4)

%

Net Sales

$

3,181.1

$

(62.9)

$

(119.1)

$

2,999.1

$

2,583.5

$

—

$

2,583.5

16

%

Kathleen Powers
(262) 636-1687
[email protected] 

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Modine (MOD - Free Report) reported $954.4 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 47.5%. EPS of $1.71 for the same period compares to $1.12 a year ago.

The reported revenue represents a surprise of +5.19% over the Zacks Consensus Estimate of $907.34 million. With the consensus EPS estimate being $1.51, the EPS surprise was +13.49%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Modine performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales- Performance Technologies: $294 million compared to the $288.48 million average estimate based on two analysts. The reported number represents a change of -0.3% year over year.Net Sales- Climate Solutions: $665.9 million versus the two-analyst average estimate of $655.08 million. The reported number represents a year-over-year change of +86.9%.Adjusted EBITDA- Climate Solutions: $124.3 million versus the two-analyst average estimate of $131.66 million.Adjusted EBITDA- Corporate and eliminations: $-15.6 million versus $-18.41 million estimated by two analysts on average.Adjusted EBITDA- Performance Technologies: $37.4 million versus $31.36 million estimated by two analysts on average.View all Key Company Metrics for Modine here>>>

Shares of Modine have returned +6.4% over the past month versus the Zacks S&P 500 composite's +4.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

The market consistently misprices the physical infrastructure required to sustain exponential technological growth. Right now, the structural bottleneck for artificial intelligence (AI) is not silicon availability. The true bottleneck is thermal management. Next-generation GPUs operate at thermal densities that shatter the limits of legacy cooling architectures. Hyperscalers recognize this physical limit and are aggressively locking down viable supply chains to prevent catastrophic deployment delays.

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Breaking the Ice: Modine Leaves the Rust Belt BehindModine Manufacturing NYSE: MOD is squarely at the center of this exact friction point. Long viewed as a cyclical automotive sector and industrial sector supplier, Modine has reconstructed its operational DNA. With shares recently climbing past $300, Wall Street is grappling with the company's profound structural pivot. Modine has decoupled from its low-margin roots, securing massive guaranteed capacity lock-ups and shedding legacy assets to emerge as a pure-play AI infrastructure business.

Modine Manufacturing Today

MOD

Modine Manufacturing

$258.51 -19.67 (-7.07%)

As of 06/10/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$86.48▼

$323.25P/E Ratio115.40

Price Target$327.14

The most glaring indicator of an extreme supply-demand imbalance in the liquid cooling sector came in the form of a $4 billion Long-Term Capacity Agreement through 2029. Modine will supply cutting-edge Airedale cooling solutions to a strategic data center client, but the headline revenue figure is only part of the equation.

The crucial metric buried in the contract is the $165 million upfront cash payment from the customer to fund Modine's capital expenditures. When tier-one hyperscalers start directly financing a supplier's manufacturing footprint, investors should immediately recognize panic-buying. Customers are footing the bill to expand capacity because the alternative is millions of dollars in highly expensive, idle AI servers sitting in overheating data centers.

This upfront capital completely alters Modine's financial risk profile. The payment effectively de-risks the heavy capital intensity traditionally associated with rapid industrial expansion, providing immediate liquidity to bridge the gap toward sustained free cash flow generation.

While third-quarter free cash flow briefly dipped to negative $17 million due to necessary inventory builds for the data center ramp, this cash injection fortifies Modine's balance sheet, already resting on a healthy 0.51 debt-to-equity ratio and a 2.19 current ratio. Modine secures the capacity to scale without relying on toxic debt or shareholder dilution.

Dropping Deadweight to Ignite Structural MarginsRevenue growth means little if margin compression drags down the bottom line. To execute a pure-play data center transformation, Modine had to shed historical dead weight. Modine announced the spin-off of the automotive-focused Performance Technologies segment through a Reverse Morris Trust transaction with Gentherm NASDAQ: THRM.

The financial engineering behind this maneuver is highly accretive. The deal values the legacy Performance Technologies asset at $1 billion, translating to a respectable 6.8x trailing EBITDA. Modine walks away with $210 million in cash, while shareholders receive a 40% tax-free distribution in the newly combined Gentherm entity.

By jettisoning this lower-margin, highly cyclical revenue stream, Modine cleanses the income statement. The market no longer has to apply a conglomerate discount to Modine Manufacturing. Instead, Modine can now be benchmarked directly against high-growth, pure-play data center infrastructure peers like Vertiv NYSE: VRT and Schneider Electric OTCMKTS: SBGSY. The structural margin expansion unlocked by this divestiture clears the deck for rapid multiple expansion as Modine isolates the most profitable verticals.

TurboChill: The Megawatt Solution to Grid Limits AlternativeFundamental earnings momentum provides confirmation of the investment thesis. Modine's third-quarter results delivered $1.19 in earnings per share, beating the consensus estimate of 99 cents. Top-line revenue rose 30.5% year-over-year to $805 million, but the underlying segment data is where the true velocity lies. Organic data center sales accelerated by 78% year-over-year.

This growth is defended by a formidable technological moat. Modine recently launched the 3-megawatt TurboChill platform, specifically engineered to reject heat in high-density GPU environments. The system capitalizes on the higher ambient operating temperatures of modern chips, enabling data centers to use free cooling.

By dramatically lowering mechanical cooling requirements, Modine directly improves a facility's Power Usage Effectiveness. Power Usage Effectiveness remains the absolute holy grail metric for data center operators constrained by grid power limitations, which means Modine delivers undeniable ROI to end users.

Armed with this pricing power, management has guided for data center revenue to expand by 50% to 70% annually over the next two years, targeting a $2 billion run rate by fiscal 2028. Total Modine sales guidance for fiscal 2026 was consequently raised to 20% to 25% growth, reflecting strong revenue visibility over the next 24 months.

Wall Street Sweats as Modine Breaks the ThermometerDespite the undeniable fundamental shift, sell-side analysts are demonstrably behind the curve. The consensus average price target sits at a glaring $238.57. Even recent upward revisions fall short. B. Riley raised its target to $264, and GLJ Research initiated coverage at $290, yet both lag the trading price of over $300.

Modine Manufacturing Stock Forecast Today12-Month Stock Price Forecast:
$327.14
26.55% Upside

Moderate Buy
Based on 9 Analyst Ratings

Current Price$258.51High Forecast$428.00Average Forecast$327.14Low Forecast$263.00Modine Manufacturing Stock Forecast Details

This analytical disconnect creates a coiled spring for Modine stock. As legacy coverage models are forced to factor in the $4 billion capacity agreement, the $165 million cash injection, and the post-spin-off entity's margin profile, a wave of aggressive target recalibrations is expected. These forced upgrades will serve as secondary upside catalysts, which typically drive further institutional accumulation.

The mechanics of the trade heavily favor sustained upward price discovery. Institutional ownership is dominant at 95.23%, backed by $2.48 billion in trailing 12-month inflows against just $1.28 billion in outflows. Meanwhile, short interest sits at 3.47 million shares, or 6.75% of the public float. With a days-to-cover ratio of 4.4, any sharp uptick in volume threatens to ignite a rolling short squeeze.

Options market data confirms this aggressive forward positioning. Heavy call volume is currently concentrated at the $300 and $330 strike prices for June 2026 expirations, indicating that smart money is explicitly betting on breakout continuation rather than technical consolidation.

The Final Catalyst for a Re-RatingSkeptics will rightly point to the lack of insider accumulation. Executive leadership systematically sold shares, trailing up to the $184 level earlier in the year. While heavy insider selling often warrants caution, in this context, the selling reflects management de-risking personal portfolios before the ultimate breakout rather than a lack of faith in the underlying business model.

Trading at a forward price-to-earnings ratio of 63, Modine carries a premium valuation. With a price-to-earnings-growth ratio of 1.06, that premium remains tightly aligned with near-term earnings trajectories. Modine has transformed from an industrial auto-parts manufacturer into an essential provider of mission-critical AI picks and shovels. Backed by guaranteed capital, unmatched revenue visibility, and a rapidly expanding technological moat, Modine Manufacturing is undergoing a strong and permanent re-rating.

Should You Invest $1,000 in Modine Manufacturing Right Now?Before you consider Modine Manufacturing, you'll want to hear this.

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Modine’s $4B AI Coup Freezes Out the CompetitionModine Manufacturing NYSE: MOD executives said the company closed fiscal 2026 with another record year for revenue and adjusted EBITDA, driven by rapid growth in data center cooling and the continuing reshaping of its portfolio toward higher-growth businesses.

President and Chief Executive Officer Neil Brinker said the year marked Modine’s fourth consecutive year of record revenue and adjusted EBITDA. He pointed to three acquisitions — AbsolutAire, L.B. White and Climate by Design — that collectively added $119 million in incremental revenue during the year, as well as a previously announced $100 million investment to expand U.S. capacity for data center products.

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Ride the Rally: 3 Earnings Winners With More Upside AheadBrinker also highlighted a newly announced long-term capacity agreement with a strategic data center customer. Under the agreement, Modine will guarantee capacity to supply more than $4 billion of data center cooling products during calendar years 2027 through 2029.

“This agreement highlights the confidence our customers have in Modine and validates our need for our current investment in capacity expansion,” Brinker said.

Data center demand drives Climate Solutions results 3 Summer Stocks With Insider Buying and Analyst SupportModine’s Climate Solutions segment posted a 43% increase in full-year revenue, including acquisitions, while organic sales rose 32%. Brinker said sales to data center customers increased 73% for the year to $1.1 billion, including more than $400 million in fourth-quarter revenue.

Brinker said North American chiller production increased fivefold from the prior year, despite weather-related disruptions that caused the company to lose 20 production shifts in data centers. He said Modine also shipped its first chillers from Jefferson City, Missouri, and shipped air handling units and coolant distribution units from its Franklin, Wisconsin, plant during the fourth quarter.

Executive Vice President and Chief Financial Officer Michael Lucareli said Climate Solutions fourth-quarter sales rose 87% from the prior year. Data center sales increased by $246 million, or 158%, while HVAC technology sales rose $33 million, or 51%, driven by recent acquisitions. Heat Transfer Solutions sales increased $26 million, or 19%, primarily from higher coil sales to commercial HVAC and data center customers.

Adjusted EBITDA in Climate Solutions grew 63% in the quarter, Lucareli said, though margins were down from the prior year and improved sequentially. He said severe weather and storms cost Climate Solutions about 50 to 100 basis points of gross margin, including 20 lost production shifts in data centers and 35 shifts in other areas of the business.

Supply chain issues expected to affect first quarter, not full year Brinker said the company began seeing shortages of certain components late in the fourth quarter, affecting production schedules and efficiency. He said Modine is working to qualify new vendors and stabilize supply.

“While this will temporarily impact our Q1 production plans, we do not anticipate any impact on our full-year outlook,” Brinker said.

Lucareli said Modine expects first-quarter margins in commercial HVAC and data centers to be down year over year, with favorable margin comparisons beginning in the second quarter and continuing through the rest of fiscal 2027.

Brinker said the demand outlook for data centers remains strong, with hyperscale customers continuing significant investment, particularly in North America. He also cited Modine’s 3-megawatt chiller, which he said provides a 50% increase in cooling capacity with only a 9% increase in footprint, as a product designed for higher chip densities and increasing data center heat loads.

Long-term agreement adds visibility During the question-and-answer session, Brinker said the long-term agreement is with an existing customer and is specific to chillers. Lucareli said the deal is “absolutely within the target margins” for the data center business and would be accretive to current levels.

Executives said the agreement is included in the capacity expansion plan previously discussed with investors. Brinker said Modine believes its normal annual capital spending cycle in data centers will be sufficient to continue expanding capacity beyond the agreement.

Lucareli said revenue under the agreement will begin ramping in Modine’s fiscal fourth quarter, with the contract covering three calendar years and no more than $2 billion expected in any one year.

Performance Technologies prepares for Gentherm transaction Modine also continues to prepare for the planned spin-off of its Performance Technologies segment and merger with Gentherm. Brinker said the process remains on track, with the company still expecting the transaction to close before the end of the calendar year, assuming required approvals are received.

Performance Technologies revenue was relatively flat in the fourth quarter, Lucareli said, with lower sales offset by a $12 million positive impact from foreign exchange. Heavy-duty equipment sales declined 5%, primarily from lower genset revenue, while on-highway sales rose 4% on higher sales to automotive and commercial vehicle customers.

Adjusted EBITDA in the segment fell 15% from the prior year due to lower volume and higher material and tariff costs. Lucareli said Modine expects to recover tariffs through surcharges and mitigate metals inflation through pricing mechanisms in customer contracts, though those adjustments typically lag by three to six months.

Fiscal 2027 outlook calls for another record year For the full company, fourth-quarter sales rose 47%, adjusted EBITDA increased 40% and adjusted earnings per share rose 53% to $1.71, Lucareli said. Free cash flow was $153 million in the fourth quarter, including a $165 million upfront cash payment tied to the long-term capacity agreement. He said the payment was recorded as a contract liability and did not affect the income statement.

For fiscal 2027, Modine expects:

Total company sales growth of 20% to 35%. Data center sales growth of 60% to 80%. Commercial HVAC sales growth of 5% to 10%. Performance Technologies sales to be flat to up 5%. Adjusted EBITDA of $650 million to $680 million, representing growth of more than 40%. Free cash flow equal to 4% to 6% of sales. Lucareli said the outlook includes a full year of Performance Technologies, and Modine will update its guidance once the timing of the pending transaction is known. Beginning in fiscal 2027, the company will report three segments: Data Centers, commercial HVAC and Performance Technologies until the planned spin-off closes.

About Modine Manufacturing NYSE: MODModine Manufacturing Company NYSE: MOD is a global provider of thermal management solutions serving automotive, commercial transportation, heavy-duty off-highway, industrial, HVAC and refrigeration markets. The company designs, manufactures, tests and markets a broad array of heat-transfer products that manage temperature and energy efficiency for engines, power electronics and building climate control systems.

Its product portfolio includes heat exchangers, condensers, radiators, evaporators, charge air coolers, fan systems and associated controls.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways MOD Q4 revenues rose 47% to $954.4M and adjusted EPS jumped 53% to $1.71.MOD data center cooling revenues surged 158% in Q4 and topped $1.1B for fiscal 2026.Modine expects 20-35% fiscal 2027 revenue growth and signed a $4B cooling supply agreement. Modine Manufacturing (MOD - Free Report) has emerged as one of the big beneficiaries of the artificial intelligence (AI) infrastructure boom. As hyperscalers race to build AI-ready data centers, the need for advanced cooling solutions has become critical, and Modine is positioned to benefit from that.

The company recently capped off fiscal 2026 with a strong fourth-quarter performance, beating expectations on both revenue and earnings. Adjusted earnings per share jumped 53% year over year to $1.71, while revenues climbed 47% to $954.4 million. The standout performer once again was the data center cooling business, where quarterly revenues surged 158% to more than $400 million. For the full fiscal year, data center sales grew 73% and exceeded $1.1 billion, highlighting the strength of demand from AI infrastructure customers.

Even more significant was Modine's announcement of a landmark agreement to supply more than $4 billion worth of cooling products between calendar 2027 and 2029. The deal significantly improves revenue visibility and validates Modine's aggressive capacity expansion plans to meet demand.

Investors have already been rewarding Modine for its growing exposure to AI infrastructure and its consistent execution in the fast-growing data center cooling market. The shares of MOD have more than doubled year to date, outperforming peers like Vertiv Holdings (VRT - Free Report) and Trane Technologies (TT - Free Report) . While Vertiv is a more established, scaled player in data center infrastructure and is already viewed as a direct beneficiary of the AI boom, Trane is a high-quality HVAC leader with strong margins, steady growth and proven execution. 

YTD Price Performance Comparison Image Source: Zacks Investment Research

After such a remarkable run, the key question for investors is whether Modine stock is still worth buying at current levels.

Factors to Drive ModineModine's primary growth engine remains its rapidly expanding data center cooling business. Management expects data center revenues to grow 60-80% in fiscal 2027 and believes growth can remain between 50% and 70% beyond that. To support this demand, Modine is expanding its U.S. manufacturing footprint, with chiller production capacity expected to double by the end of fiscal 2027.

Modine is transforming its portfolio toward higher-growth and higher-margin markets. The acquisitions of AbsolutAire, L.B. White and Climate by Design strengthened its commercial HVAC offerings and added revenues of $119 million during fiscal 2026. At the same time, the planned separation of the Performance Technologies business would further sharpen the company's focus on data centers and commercial HVAC solutions.

Modine's fiscal 2027 outlook is also quite encouraging. The company expects revenue growth of 20% to 35% and adjusted EBITDA of $650-$680 million (up from $471 million recorded in fiscal 2026). Free cash flow generation is also expected to improve, supporting future investments and shareholder value creation.

Near-Term Supply Chain and Margin Pressure for MODModine faces some near-term operational headwinds despite strong demand trends. Management noted shortages of certain critical components that are affecting production schedules and manufacturing efficiency, particularly in the Data Center and Commercial HVAC segments. As a result, margins are expected to decline year over year in the first quarter of fiscal 2027. While management expects these issues to be temporary, with margins improving from the second quarter onward as supply constraints ease and volumes increase, any prolonged disruptions could weigh on profitability and delay revenue realization.

Consensus EPS Estimates & Price Target for MODThe Zacks Consensus Estimate for Modine’s fiscal 2027 and 2028 EPS has moved up 37 cents and $1.05 to $7.60 and $10.82, implying year-over-year growth of 51.4% and 42.3%, respectively.

The consensus price target is $316.63, implying a 13.5% upside from current levels.

Image Source: Zacks Investment Research

Our Take: Modine is Worth Holding OntoModine is benefiting from powerful secular tailwinds in data center cooling, has secured a massive multi-year supply agreement and continues to post strong revenue, earnings and cash flow growth. Management's long-term growth outlook also suggests that the AI opportunity is still in its early stages.

That said, much of this optimism is already reflected in the stock price. After more than doubling year to date, valuation has become less attractive, as evidenced by its unfavorable Value Score of D. 

As a result, existing shareholders should consider holding onto the stock to benefit from its strong position in the AI data center cooling market. However, investors looking to initiate a new position may wait for a more attractive entry point, particularly after such a sharp rally.

MOD stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Modine (MOD - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this heating and cooling products maker have returned +13%, compared to the Zacks S&P 500 composite's +5.4% change. During this period, the Zacks Automotive - Original Equipment industry, which Modine falls in, has gained 8.5%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Modine is expected to post earnings of $1.43 per share, indicating a change of +34.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -13.6% over the last 30 days.

The consensus earnings estimate of $7.73 for the current fiscal year indicates a year-over-year change of +54%. This estimate has changed +7% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $10.86 indicates a change of +40.5% from what Modine is expected to report a year ago. Over the past month, the estimate has changed +11.2%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Modine.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Modine, the consensus sales estimate for the current quarter of $895.49 million indicates a year-over-year change of +31.2%. For the current and next fiscal years, $4.03 billion and $4.76 billion estimates indicate +26.8% and +18% changes, respectively.

Last Reported Results and Surprise HistoryModine reported revenues of $954.4 million in the last reported quarter, representing a year-over-year change of +47.5%. EPS of $1.71 for the same period compares with $1.12 a year ago.

Compared to the Zacks Consensus Estimate of $907.34 million, the reported revenues represent a surprise of +5.19%. The EPS surprise was +13.25%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Modine is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Modine. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Investors looking for stocks in the Automotive - Original Equipment sector might want to consider either China Yuchai (CYD) or Modine (MOD). But which of these two stocks is more attractive to value investors?

Modine Manufacturing Company is transforming into a focused climate solutions and AI data center cooling provider, shedding its old-line industrial image. MOD's Airedale data center cooling business is experiencing rapid growth, with Data Centers sales up 158% and Climate Solutions up 87% year-over-year in Q4. A $4 billion long-term capacity agreement (2027–2029) with a major data center customer provides exceptional revenue visibility and underpins MOD's strategic pivot.

Key Takeaways Modine's AI data center sales rose 73% in fiscal 2026 and topped $1.1 billion. Quanta Services posted a record $48.5 billion backlog and plans to expand transformer capacity.Comfort Systems is gaining from AI-driven data center cooling needs, supporting high-margin HVAC growth. U.S. industrial and manufacturing stocks are seeing a massive price surge from the artificial intelligence (AI) data center boom. U.S. industrial firms are profiting immensely through increased demand for electrical grid equipment, advanced cooling systems, and specialized semiconductor packaging.

Demand for these products is likely to remain buoyant as four major hyperscalers raised their AI capital expenditure budget to $750 billion for 2026 from $670 billion estimated earlier. This figure is set to cross $1 trillion next year and is likely to rise further beyond 2027. 

Here, we recommend five U.S. industrial stocks that have thrived in 2026 with more firepower in their cylinders supported by growing demand for AI-powered data center infrastructure products. 

The stocks are: Caterpillar Inc. (CAT - Free Report) , Modine Manufacturing Co. (MOD - Free Report) , Quanta Services Inc. (PWR - Free Report) , Comfort Systems USA Inc. (FIX - Free Report) and Vertiv Holdings Co. (VRT - Free Report) . 

The chart below shows the price performance of the above-mentioned five stocks year to date.

Image Source: Zacks Investment Research

Caterpillar Inc.Caterpillar is gaining from rising AI data-center-related power demand. As big technology companies establish data centers globally to support their generative AI applications, CAT is witnessing robust order levels for reciprocating engines for data centers. The company is planning to double its output with a multi-year capital investment. CAT currently carries a Zacks Rank #3 (Hold).

CAT has also revised its target of growing Power Generation sales to more than 3.0X from the earlier stated 2.0X target by 2030. CAT announced another agreement to provide PROPWR up to 2.1 gigawatts of large gas generator sets for prime power generation in support of data center, oil and gas and industrial applications.

Caterpillar has an expected revenue and earnings growth rate of 13.2% and 29.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 7.8% in the last 30 days.

Modine Manufacturing Co.Modine has emerged as one of the big beneficiaries of the AI infrastructure boom. As hyperscalers race to build AI-ready data centers, the need for advanced cooling solutions has become critical, and Modine is positioned to benefit from that.

For fiscal 2026, AI-powered data center sales grew 73% and exceeded $1.1 billion, highlighting the strength of demand from AI infrastructure customers. Moreover, MOD entered into a landmark agreement to supply more than $4 billion worth of cooling products between 2027 and 2029.

MOD expects AI data center revenues to grow 60-80% in fiscal 2027 and believes growth can remain between 50% and 70% beyond that. To support this demand, MOD is expanding its U.S. manufacturing footprint, with chiller production capacity expected to double by the end of fiscal 2027. MOD currently carries a Zacks Rank #3.

Modine has an expected revenue and earnings growth rate of 26.8% and 54%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 1.7% in the last seven days.

Quanta Services Inc.Quanta Services’ mix across transmission and distribution, grid hardening, renewable integration and generation gives it multiple paths to participate as those plans become multi-year capital programs. 

Surging AI-related power demand and expanding utility investments are driving data center project opportunities, making data centers a central pillar of PWR’s long-term growth strategy. PWR currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PWR achieved a record total backlog of $48.5 billion as of March 31, 2026, providing a clear and durable runway for long-term growth. This record includes a 12-month backlog of $28.2 billion and remaining performance obligations of $26.2 billion. The Electric Power Infrastructure Services segment accounted for $40.1 billion of the total backlog. 

PWR is heavily investing in deepening its vertical supply chain to offset the ongoing global uncertainties and rising inflation. The company expects to invest $500-$700 million over the next several years in power transformer manufacturing facilities and related strategy, which is intended to double transformer manufacturing capacity.

Quanta Services has an expected revenue and earnings growth rate of 21.5% and 29.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 6.2% over the last 60 days. 

Comfort Systems USA Inc.Comfort Systems operates primarily in the commercial and industrial heating, ventilation and air conditioning (HVAC) markets, and performs most of its services within manufacturing plants, office buildings, retail centers, apartment complexes, and healthcare, education and government facilities. FIX currently sports a Zacks Rank #1.

The data center boom, driven by AI, cloud computing, and high-performance computing, is fueling demand for specialized HVAC solutions from FIX. Cooling systems for these facilities should deliver precise and reliable performance, prompting investments in advanced technologies such as liquid cooling and modular units. 

This segment is becoming a significant growth driver for FIX, offering high-margin growth and attracting M&A activity. HVAC firms with capabilities in precision cooling and energy-efficient infrastructure are well-positioned to capture share in this fast-expanding niche. 

Comfort Systems USA has an expected revenue and earnings growth rate of 30.5% and 49.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.7% in the last seven days.

Vertiv Holdings Co.Vertiv Holdings benefits from an extensive product portfolio, which spans thermal systems, liquid cooling, UPS, switchgear, busbar, and modular solutions. Buoyed by unprecedented data center growth, VRT is strategically expanding capacity to accelerate its AI-enabled pipeline. 

VRT also benefited from the accelerating digital transformation driven by AI and data center demand. Acquisitions have also played a vital role, with Great Lakes enhancing IT systems and white space solutions, and Weeleay boosting service capabilities through real-time machine data analysis and predictive actions.

Vertiv’s partnership with NVIDIA Corp. (NVDA) is a key catalyst. VRT co-develops an 800-volt DC power architecture with NVIDIA, timed to align with the 2027 rollout of NVIDIA's Rubin Ultra platforms. 

This keeps VRT one GPU generation ahead of evolving silicon architectures, ensuring that its infrastructure solutions remain relevant as rack power requirements scale toward and beyond the megawatt threshold. VRT currently carries a Zacks Rank #2 (Buy).

Vertiv Holdings has an expected revenue and earnings growth rate of 34.4% and 51.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.1% in the last 60 days.