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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>>>

The ABR suggests buying Modine, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

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.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

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

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

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.

Is MOD a Good Investment?Looking at the earnings estimate revisions for Modine, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $7.65.

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.

Callan Family Office LLC purchased a new position in Modine Manufacturing Company (NYSE:MOD – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 10,937 shares of the auto parts company’s stock, valued at approximately $2,920,000.

Other hedge funds have also recently made changes to their positions in the company. Lazard Asset Management LLC purchased a new stake in shares of Modine Manufacturing during the first quarter valued at about $1,722,000. Ranger Investment Management L.P. bought a new stake in shares of Modine Manufacturing in the 1st quarter valued at about $15,557,000. Allspring Global Investments Holdings LLC grew its position in shares of Modine Manufacturing by 253.2% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 306,005 shares of the auto parts company’s stock worth $68,230,000 after buying an additional 219,373 shares during the last quarter. DUTCH ASSET Corp grew its position in shares of Modine Manufacturing by 122.2% in the 1st quarter. DUTCH ASSET Corp now owns 18,709 shares of the auto parts company’s stock worth $4,055,000 after buying an additional 10,290 shares during the last quarter. Finally, Lisanti Capital Growth LLC bought a new position in shares of Modine Manufacturing during the 2nd quarter worth approximately $6,402,000. 95.23% of the stock is currently owned by hedge funds and other institutional investors.

Modine Manufacturing Stock Performance Shares of Modine Manufacturing stock opened at $198.03 on Friday. The firm has a market capitalization of $10.52 billion, a P/E ratio of 74.45, a PEG ratio of 0.65 and a beta of 1.71. The company has a quick ratio of 1.22, a current ratio of 2.04 and a debt-to-equity ratio of 0.39. The company has a 50 day moving average price of $232.44 and a 200 day moving average price of $236.03. Modine Manufacturing Company has a 52 week low of $111.18 and a 52 week high of $323.25.

Modine Manufacturing (NYSE:MOD – Get Free Report) last released its earnings results on Wednesday, July 29th. The auto parts company reported $1.53 earnings per share for the quarter, topping the consensus estimate of $1.27 by $0.26. Modine Manufacturing had a net margin of 4.28% and a return on equity of 25.59%. The company had revenue of $874.10 million for the quarter, compared to the consensus estimate of $878.69 million. During the same quarter in the previous year, the firm earned $0.95 EPS. Modine Manufacturing’s revenue was up 28.0% compared to the same quarter last year. Sell-side analysts expect that Modine Manufacturing Company will post 7.65 EPS for the current year. Analysts Set New Price Targets A number of equities research analysts recently commented on MOD shares. Glj Research reissued a “buy” rating and set a $428.00 target price on shares of Modine Manufacturing in a research report on Monday, June 1st. DA Davidson reaffirmed a “buy” rating and issued a $330.00 price target on shares of Modine Manufacturing in a report on Monday, June 22nd. Wall Street Zen downgraded Modine Manufacturing from a “buy” rating to a “hold” rating in a research report on Saturday, July 25th. Weiss Ratings upgraded Modine Manufacturing from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, May 28th. Finally, UBS Group raised their price objective on Modine Manufacturing to $310.00 and gave the stock a “buy” rating in a research report on Wednesday, May 27th. Seven investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $320.14.

Check Out Our Latest Research Report on MOD

Insider Transactions at Modine Manufacturing In other news, VP Brian Jon Agen sold 38,282 shares of Modine Manufacturing stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $295.17, for a total transaction of $11,299,697.94. Following the completion of the sale, the vice president directly owned 66,343 shares in the company, valued at approximately $19,582,463.31. The trade was a 36.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric D. Ashleman sold 15,000 shares of the business’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $288.54, for a total transaction of $4,328,100.00. Following the sale, the director directly owned 42,350 shares in the company, valued at $12,219,669. This trade represents a 26.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 54,302 shares of company stock worth $15,928,759. Company insiders own 1.92% of the company’s stock.

(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 2 Biotech Stocks Shaping Up for Major Breakouts 3 Stocks Came Roaring Back—Now They’re Flashing Warning Signs 3 Beaten-Down Stocks That Haven’t Gotten the Message About the S&P 500’s Record Run Darden Restaurants Just Hit a 52-Week High–Is the Olive Garden Comeback Story Legit?

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Key Takeaways Modine's fiscal Q1 sales rose 28% and adjusted EPS jumped 44%, but adjusted EBITDA margin fell to 12.2%.Data Centers revenue surged 90%, while component shortages helped drive margin down to 14.8%.Modine targets $650-$680 million in fiscal 2027 adjusted EBITDA and 100-200 bps of margin expansion. Modine Manufacturing (MOD - Free Report) is delivering strong revenue growth, particularly from its booming data center business. But can the company translate that growth into meaningful margin expansion? Its last quarter results suggest there is still work to do.

Modine’s first-quarter fiscal 2027 revenue rose 28% year over year to $874.1 million, while adjusted EPS jumped 44% to $1.53. Yet gross margin declined 340 basis points (bps) to 20.8%, while adjusted EBITDA margin fell 270 bps to 12.2%.

Data Centers: Growth Outpacing ProfitabilityThe biggest drag was the Data Centers business. Although segment revenue surged 90%, its adjusted EBITDA margin dropped to 14.8% from 22.1% a year earlier. Component shortages limited production and created labor inefficiencies and under-absorbed overhead. These issues reduced the segment’s margin by roughly 450-550 bps.

Modine views these pressures as temporary and expects Data Center margins to recover to 19-20% in the fiscal second quarter as component availability improves and production becomes more efficient. The company is also expanding supplier capacity and preparing its facilities to handle the strong demand reflected in its growing backlog.

Commercial HVAC: Buyouts Fuel Growth, Dilute MarginsCommercial HVAC sales rose 22% to $261.6 million, helped by higher coil sales to data center customers and $19.7 million of incremental revenue from acquired businesses. Organic sales grew a more modest 6%.

But adjusted EBITDA margin slipped to 15.9% from 18.1%, pressured by acquisition-related business mix, manufacturing consolidation inefficiencies and a greater share of lower-margin coil sales.

Management expects the segment's margin to improve sequentially through fiscal 2027. But for now, HVAC is telling a similar story to Data Centers: strong demand, growth outpacing profitability.

Performance Technologies: Weak Demand Meets Rising CostsPerformance Technologies is battling both sales and margin headwinds. Revenue declined 3% to $277.8 million, as weak automotive and commercial vehicle demand outweighed higher sales to power-generation customers, with organic sales down 4%.

Adjusted EBITDA fell 3% to $36.2 million and margin edged down 10 bps to 13%, as higher material and tariff costs outpaced contractual cost recoveries— though a $2 million reduction in SG&A partly offset the impact.

Unlike Data Centers and HVAC, this segment's challenge isn't converting growth into margin— it's stabilizing a shrinking base while inflation works against it.

Modine's Playbook for Closing the Margin GapTo address these pressures across the portfolio, Modine is consolidating product lines and manufacturing operations in Commercial HVAC while taking pricing actions to offset higher material and tariff costs. More broadly, the company's 80/20 strategy is simplifying operations and directing resources toward higher-return products and customers.

These initiatives are important because the company targets $650-$680 million in adjusted EBITDA for fiscal 2027, representing roughly 38-44% growth, along with at least 100-200 bps of margin expansion. It expects profitability to improve sequentially as data center volumes increase and cost-recovery measures take effect.

For investors, the next few quarters will therefore be critical. Modine has already demonstrated that it can generate impressive growth. The bigger test is whether supply-chain constraints ease quickly enough and whether HVAC and 80/20 initiatives gain enough traction for that growth to flow through to the bottom line across all three segments. Margins, not sales, will be the number to watch over Modine's next quarters.

How MOD Stacks Up Against the CompetitionVertiv Holdings (VRT - Free Report) : Its net sales rose 24.1% year over year to $3.27 billion in the last reported quarter, with organic growth of 18% supplemented by acquisitions and foreign exchange. Vertiv's profitability has kept pace with its top line. Its adjusted operating margin expanded 410 bps to 22.6%. Vertiv attributed the improvement to operational execution, productivity gains and favorable price-cost dynamics, even as tariffs and continued capacity and R&D investment worked against it.

Eaton Corp (ETN - Free Report) : its second-quarter 2026 revenue reached $8.53 billion, driven by 14% organic growth and a 7% contribution from acquisitions, with data centers being a major growth engine alongside broad-based demand across other markets. Eaton’s total segment margin came in at 23.1%, 10 bps above the high end of guidance, but still 80 bps below the prior-year quarter, as acquisition-related effects and higher amortization weighed on profitability. For full-year 2026, Eaton guided segment margins to 24.1-24.5%.

The Zacks Rundown on MOD StockOver the past six months, MOD shares are down 14%, while Eaton and Vertiv gained 15% and 8%, respectively.

6-Month Price Performance Comparison Image Source: Zacks Investment Research

Modine still trades at a discount to its peers— around 22x forward 12-month earnings, versus roughly 28x for Eaton and 32x for Vertiv.

MOD’s F12M Vs. Eaton & Vertiv Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Modine’s fiscal 2027 and 2028 EPS implies year-over-year growth of 52% and 41%, respectively.

Image Source: Zacks Investment Research

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

Investors interested in Automotive - Original Equipment stocks are likely familiar with China Yuchai (CYD - Free Report) and 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

China Yuchai and Modine are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that CYD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

CYD currently has a forward P/E ratio of 12.45, while MOD has a forward P/E of 27.39. We also note that CYD has a PEG ratio of 0.32. 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 0.68.

Another notable valuation metric for CYD is its P/B ratio of 0.91. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, MOD has a P/B of 9.2.

These are just a few of the metrics contributing to CYD's Value grade of A and MOD's Value grade of C.

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.

Modine's data-center growth is surging, but falling estimates, margin pressure and a stretched valuation leave little room for execution missteps.

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.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

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.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

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.

Is MOD Worth Investing In?In terms of earnings estimate revisions for Modine, the Zacks Consensus Estimate for the current year has declined 1.4% over the past month to $7.63.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge 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 #4 (Sell) for Modine. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for Modine with a grain of salt.

Modine Manufacturing Company (MOD) Q1 2027 Earnings Call Transcript

Continued strength in core growth engines supports reaffirmed Fiscal 2027 outlook

, /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today reported financial results for the quarter ended June 30, 2026.

First Quarter Highlights:

Net sales of $874.1 million increased $191.3 million, or 28 percent, from the prior year Net earnings of $74.3 million increased $22.6 million, or 44 percent, from the prior year Adjusted EBITDA of $106.5 million increased $5.1 million, or 5 percent, from the prior year Earnings per share of $1.37 increased $0.42, or 44 percent, from the prior year Adjusted earnings per share of $1.53 increased $0.47, or 44 percent, from the prior year "Our targeted growth businesses continued to deliver strong, sustainable year-over-year top-line improvements, including Data Centers and Commercial HVAC revenue expansion of 90% and 22%, respectively," said Modine President and Chief Executive Officer, Neil D. Brinker. "As anticipated, our first quarter was impacted by the supply chain constraints we discussed last quarter, which limited production and temporarily reduced margins within our Data Centers segment. We are taking decisive actions to secure supply, including working closely with our partners to lock in volume requirements while simultaneously qualifying additional suppliers. These initiatives are yielding positive results, driving sequential volume and margin improvements as the quarter progressed. Our team continues to drive operational efficiency and ramp production across our manufacturing footprint, keeping us fully on track to meet future customer commitments and deliver on our full-year financial outlook."

First Quarter Financial Results

Net sales increased 28 percent to $874.1 million, compared with $682.8 million in the prior year. Sales growth was driven by higher sales in the Data Centers and Commercial HVAC segments, partially offset by lower sales in the Performance Technologies segment.

Gross profit increased 10 percent to $182.0 million and gross margin decreased by 340 basis points to 20.8 percent. Gross profit increased in the Data Centers and Commercial HVAC segments, while Performance Technologies experienced a decline in gross profit. The decrease in gross margin resulted from lower gross margins in all three business segments, as further discussed below.

Selling, general and administrative ("SG&A") expenses increased 22 percent to $103.3 million, but decreased as a percentage of sales. The increase in SG&A expenses was primarily due to higher expenses in the Data Centers segment to support growth, incremental expenses from acquisitions in the Commercial HVAC segment, costs related to the pending spin-off of the Performance Technologies segment, and higher expenses related to incentive compensation. 

Operating income decreased 1 percent to $74.8 million. The decrease was driven by higher SG&A expenses to support growth and to prepare for the spin-off of the Performance Technologies segment, partially offset by higher gross profit on higher sales volume, as compared to the prior year. The Company recorded $3.9 million of restructuring expenses during the quarter, primarily severance expenses related to headcount reductions and costs related to equipment transfers. In addition, the Company incurred $7.1 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 benefit or provision for income taxes, and depreciation and amortization expense, was $106.5 million, an increase of $5.1 million, or 5 percent compared to the prior year. 

Earnings per share was $1.37, compared with $0.95 in the prior year, an increase of $0.42 or 44 percent. Adjusted earnings per share was $1.53, compared with adjusted earnings per share of $1.06 in the prior year, an increase of $0.47 or 44 percent. This included a favorable income tax benefit related to shares issued for stock-based incentive compensation awards during the quarter, which is  expected to be largely offset by the negative impact of nondeductible compensation within the fiscal year.    

First Quarter Segment Review

Data Centers segment sales were $348.6 million, compared with $183.7 million one year ago, an increase of 90 percent. This increase was primarily driven by higher sales to hyperscale customers in North America. The segment reported gross margin of 20.2 percent, which was 960 basis points lower than the prior year. This decrease was primarily due to higher expenses related to the capacity expansion in North America combined with the temporary impact of production inefficiencies due to supply chain constraints, higher material costs, and higher warranty expense, as the prior year benefited from the favorable settlement of a warranty claim. SG&A expenses decreased as a percentage of sales due to the significant increase in revenue. The segment reported operating income of $46.3 million, a 33 percent increase from the prior year, and adjusted EBITDA of $51.7 million, an increase of 27 percent from the prior year. Commercial HVAC segment sales were $261.6 million, compared with $214.2 million one year ago, an increase of 22 percent. This increase was primarily driven by higher coil sales to data center customers and $19.7 million of incremental sales from acquired businesses. The segment reported gross margin of 24.4 percent, which was 280 basis points lower than the prior year, primarily due to unfavorable sales mix and temporary inefficiencies due to production transfers. The segment reported operating income of $31.4 million, a 2 percent decrease from the prior year, and adjusted EBITDA of $41.6 million, a 7 percent increase from the prior year. Performance Technologies segment sales were $277.8 million, compared with $285.5 million one year ago, a decrease of 3 percent. This decrease primarily resulted from lower sales to automotive and commercial vehicle customers due to market weakness, partially offset by higher sales to power generation customers. The segment reported gross margin of 17.6 percent, which was 60 basis points lower than the prior year, primarily due to higher material and tariff costs. The segment reported operating income of $27.6 million, a 4 percent increase from the prior year, and adjusted EBITDA of $36.2 million, a 3 percent decrease from the prior year. Balance Sheet & Liquidity

Net cash provided by operating activities for the quarter ended June 30, 2026, was $41.4 million, an increase of $13.7 million compared to the prior year. Free cash flow for the quarter ended June 30, 2026, was a use of $5.0 million, a decrease of $5.2 million from the prior year.  This decrease was primarily due to higher capital expenditures to increase production capacity in the Data Centers segment, partially offset by favorable net changes in working capital. Cash payments for restructuring activities and disposition costs totaled $14.9 million during the quarter ended June 30, 2026.

Total debt was $528.2 million as of June 30, 2026. Cash and cash equivalents totaled $95.3 million as of June 30, 2026. Net debt was $432.9 million as of June 30, 2026, an increase of $70.1 million from the end of fiscal 2026. This increase resulted from purchases of  stock in conjunction with our equity compensation plan. Under this plan, participants have the option to sell back shares of their vested equity awards to satisfy individual tax withholding obligations. These repurchased shares are held as treasury stock, which reduces the number of shares outstanding used to calculate earnings per share.   

Outlook

"Our financial outlook for Fiscal 2027 remains unchanged, and we remain confident in our ability to deliver another year of record-breaking results," said Modine President and Chief Executive Officer, Neil D. Brinker. "In response to the near-term supply chain challenges in our Data Centers segment, we are taking decisive actions to resolve these bottlenecks and have already made significant progress. Demand for our products remains robust as evidenced by three consecutive quarters of record order intake leading to our backlog nearly doubling over the past year. Now we are focused on operational execution across the enterprise, which will allow us to deliver on our near- and long-term goals. Simultaneously, we are also progressing on our long-term strategic transformation. Our planned spin-off and merger of the Performance Technologies business with Gentherm remains firmly on schedule to close in the fourth calendar quarter of this year, having cleared several major milestones this past quarter."

The current full-year guidance remains unchanged and continues to reflect the Performance Technologies business for the entirety of fiscal 2027. Following the close of the transaction (expected in the fourth quarter of calendar 2026), Modine will issue an updated outlook reflecting the continuing business.  

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 Thursday, July 30, 2026, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss its first quarter fiscal year 2027 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 audio and slides will be available on the Investor Relations section of the Modine website at www.modine.com on or after July 30, 2026. A call-in replay will be available through midnight on August 6, 2026, at 877-660-6853, (international replay 201-612-7415); Conference ID# 13761279. The Company will post a transcript of the call on its website on or after August 3, 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 segment 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 segment, 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 $24 to $27 million, a provision for income taxes of approximately $130 to $140 million, and depreciation and amortization expense of approximately $87 to $92 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.  These expenses for the first three months of fiscal 2027 are presented on page 8.  In connection with the pending Reverse Morris Trust transaction with Gentherm, the Company expects to incur approximately $25 to $35 million of additional costs during the remainder of fiscal 2027, primarily for transaction advisory, legal, accounting, tax and other professional services.  Estimates of other expenses and gains for the remainder of 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 June 30, 

2026

2025

Net sales

$

874.1

$

682.8

Cost of sales

692.1

517.4

Gross profit

182.0

165.4

Selling, general & administrative expenses

103.3

84.9

Restructuring expenses

3.9

4.8

Operating income

74.8

75.7

Interest expense

(6.4)

(5.8)

Other income (expense) – net

0.2

(4.2)

Earnings before income taxes

68.6

65.7

Benefit (provision) for income taxes

5.7

(14.0)

Net earnings

74.3

51.7

Net earnings attributable to noncontrolling interest

(0.4)

(0.5)

Net earnings attributable to Modine

$

73.9

$

51.2

Net earnings per share attributable to Modine shareholders – diluted

$

1.37

$

0.95

Weighted-average shares outstanding – diluted

54.0

53.7

Condensed consolidated balance sheets (unaudited)

(In millions)

June 30, 2026

March 31, 2026

Assets

Cash and cash equivalents

$

95.3

$

73.5

Trade receivables

659.9

731.0

Inventories

609.0

506.1

Other current assets

162.7

105.5

Total current assets

1,526.9

1,416.1

Property, plant and equipment – net

536.1

520.9

Intangible assets – net

190.2

197.0

Goodwill

290.2

292.1

Deferred income taxes

88.7

85.3

Other noncurrent assets

163.3

163.2

Total assets

$

2,795.4

$

2,674.6

Liabilities and shareholders' equity

Debt due within one year

$

52.0

$

51.4

Accounts payable

508.9

464.8

Other current liabilities

188.9

212.7

Total current liabilities

749.8

728.9

Long-term debt

476.2

384.9

Other noncurrent liabilities

359.6

358.0

Total liabilities

1,585.6

1,471.8

Total equity

1,209.8

1,202.8

Total liabilities & equity

$

2,795.4

$

2,674.6

Modine Manufacturing Company

Condensed consolidated statements of cash flows (unaudited)

(In millions)

Three months ended June 30, 

2026

2025

Cash flows from operating activities:

Net earnings

$

74.3

$

51.7

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

Depreciation and amortization

20.7

19.0

Stock-based compensation expense

8.0

5.3

Deferred income taxes

(3.8)

0.7

Other – net

1.1

2.6

Changes in operating assets and liabilities:

Trade accounts receivable

68.3

(10.6)

Inventories

(105.4)

(61.6)

Accounts payable

58.0

46.7

Other assets and liabilities

(79.8)

(26.1)

Net cash provided by operating activities

41.4

27.7

Cash flows from investing activities:

Expenditures for property, plant and equipment

(46.4)

(27.5)

Payments for business acquisitions, net of cash acquired

—

(119.0)

Other – net

—

2.5

Net cash used for investing activities

(46.4)

(144.0)

Cash flows from financing activities:

Net increase in debt

91.9

172.0

Purchases of treasury stock

(64.6)

(5.1)

Other – net

(0.2)

—

Net cash provided by financing activities

27.1

166.9

Effect of exchange rate changes on cash

(0.3)

2.2

Net increase in cash, cash equivalents and restricted cash

21.8

52.8

Cash, cash equivalents and restricted cash – beginning of period

73.7

71.9

Cash, cash equivalents and restricted cash – end of period

$

95.5

$

124.7

Modine Manufacturing Company

Segment operating results (unaudited)

(In millions)

Three months ended June 30, 

2026

2025

Net sales:

Data Centers

$

348.6

$

183.7

Commercial HVAC

261.6

214.2

Performance Technologies

277.8

285.5

Segment total

888.0

683.4

Corporate and eliminations

(13.9)

(0.6)

Net sales

$

874.1

$

682.8

Three months ended June 30, 

2026

2025

$'s

% of sales

$'s

% of sales

Gross profit:

Data Centers

$

70.3

20.2

%

$

54.7

29.8

%

Commercial HVAC

63.9

24.4

%

58.2

27.2

%

Performance Technologies

48.8

17.6

%

51.9

18.2

%

Segment total

183.0

20.6

%

164.8

24.1

%

Corporate and eliminations

(1.0)

—

0.6

—

Gross profit

$

182.0

20.8

%

$

165.4

24.2

%

Three months ended June 30, 

2026

2025

Operating income:

Data Centers

$

46.3

$

34.7

Commercial HVAC

31.4

32.2

Performance Technologies

27.6

26.5

Segment total

105.3

93.4

Corporate and eliminations

(30.5)

(17.7)

Operating income

$

74.8

$

75.7

Modine Manufacturing Company

Adjusted financial results (unaudited)

(In millions, except per share amounts)

Three months ended June 30, 

2026

2025

Net earnings

$

74.3

$

51.7

Interest expense

6.4

5.8

(Benefit) provision for income taxes

(5.7)

14.0

Depreciation and amortization expense

20.7

19.0

Other (income) expense  – net

(0.2)

4.2

Restructuring expenses (a)

3.9

4.8

Disposition costs (b)

7.1

—

Acquisition and integration costs (c)

—

1.9

Adjusted EBITDA

$

106.5

$

101.4

Net earnings per share attributable to Modine shareholders – diluted

$

1.37

$

0.95

Restructuring expenses (a)

0.06

0.08

Disposition costs (b)

0.10

—

Acquisition and integration costs (c)

—

0.03

Adjusted earnings per share

$

1.53

$

1.06

____

(a)

Restructuring expenses primarily consist of employee severance expenses and equipment transfer costs.  The tax benefit related to restructuring expenses during both the first quarter of fiscal 2027 and fiscal 2026 was $0.7 million. 

(b)

Disposition costs primarily relate to the pending 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 first quarter of fiscal 2027 was $1.7 million.

(c)

Acquisition and integration costs primarily related to the Company's fiscal 2026 acquisitions, including L.B. White, AbsolutAire, and Climate by Design International.  The costs primarily included fees for legal, accounting, and other professional services and costs directly associated with integration activities.  In addition, the adjustment for the first quarter of fiscal 2026 includes $0.2 million for the impact of an inventory purchase accounting adjustment.  The tax benefit related to the acquisition-related costs and adjustments during the first quarter of fiscal 2026 was $0.4 million. 

Modine Manufacturing Company

Segment adjusted financial results (unaudited)

(In millions)

Three months ended June 30, 2026

Three months ended June 30, 2025

Data

Commercial

Performance 

Corporate and 

Data

Commercial

Performance 

Corporate and 

Centers

HVAC

Technologies

eliminations

Total

Centers

HVAC

Technologies

eliminations

Total

Operating income

$

46.3

$

31.4

$

27.6

$

(30.5)

$

74.8

$

34.7

$

32.2

$

26.5

$

(17.7)

$

75.7

Depreciation and
amortization expense

5.4

8.0

6.9

0.4

20.7

5.7

5.5

7.5

0.3

19.0

Restructuring expenses (a)

—

2.2

1.7

—

3.9

0.2

1.1

3.5

—

4.8

Disposition costs (a)

—

—

—

7.1

7.1

—

—

—

—

—

Acquisition and
integration costs (a)

—

—

—

—

—

—

—

—

1.9

1.9

Adjusted EBITDA

$

51.7

$

41.6

$

36.2

$

(23.0)

$

106.5

$

40.6

$

38.8

$

37.5

$

(15.5)

$

101.4

Net sales

$

348.6

$

261.6

$

277.8

$

(13.9)

$

874.1

$

183.7

$

214.2

$

285.5

$

(0.6)

$

682.8

Adjusted EBITDA
margin

14.8

%

15.9

%

13.0

%

12.2

%

22.1

%

18.1

%

13.1

%

14.9

%

____

(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)

June 30, 2026

March 31, 2026

Debt due within one year

$

52.0

$

51.4

Long-term debt

476.2

384.9

Total debt

528.2

436.3

Less: cash and cash equivalents

95.3

73.5

Net debt

$

432.9

$

362.8

Free cash flow (unaudited)

(In millions)

Three months ended June 30, 

2026

2025

Net cash provided by operating activities

$

41.4

$

27.7

Expenditures for property, plant and equipment

(46.4)

(27.5)

Free cash flow

$

(5.0)

$

0.2

Organic sales and organic sales growth (unaudited)

(In millions)

Three months ended June 30, 2026

Three months ended June 30, 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:

Data Centers

$

348.4

$

—

$

—

$

348.4

$

183.6

$

—

$

183.6

90

%

Commercial HVAC

247.9

(2.0)

(19.7)

226.2

213.7

—

213.7

6

%

Performance Technologies

277.8

(4.1)

—

273.7

285.5

—

285.5

(4)

%

Net Sales

$

874.1

$

(6.1)

$

(19.7)

$

848.3

$

682.8

$

—

$

682.8

24

%

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

SOURCE Modine

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Stock to Watch: Modine (MOD - Free Report) Modine Manufacturing Company designs, engineers, and manufactures mission-critical thermal management products that heat, cool, and ventilate across commercial, industrial, and vehicular end markets. The company provides customer-centric systems, services, and components spanning HVAC (heating, ventilating, air conditioning) and refrigeration applications, along with engineered heat transfer systems and components for on- and off-highway OEMs.

MOD is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. MOD has a Growth Style Score of A, forecasting year-over-year earnings growth of 53.8% for the current fiscal year.

Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.12 to $7.72 per share. MOD also boasts an average earnings surprise of +14.2%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, MOD should be on investors' short list.

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Posted by Defense World Staff on Jul 26th, 2026

Dimensional Fund Advisors LP cut its holdings in shares of Modine Manufacturing Company (NYSE:MOD – Free Report) by 13.0% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 820,568 shares of the auto parts company’s stock after selling 122,414 shares during the period. Dimensional Fund Advisors LP owned approximately 1.56% of Modine Manufacturing worth $177,785,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. World Investment Advisors boosted its stake in Modine Manufacturing by 4.1% during the 1st quarter. World Investment Advisors now owns 1,643 shares of the auto parts company’s stock valued at $356,000 after purchasing an additional 65 shares during the period. Xponance LLC increased its position in Modine Manufacturing by 1.7% in the 4th quarter. Xponance LLC now owns 4,424 shares of the auto parts company’s stock worth $591,000 after buying an additional 75 shares during the period. State of Alaska Department of Revenue increased its position in Modine Manufacturing by 3.4% in the 4th quarter. State of Alaska Department of Revenue now owns 3,156 shares of the auto parts company’s stock worth $421,000 after buying an additional 103 shares during the period. NewEdge Advisors LLC lifted its holdings in shares of Modine Manufacturing by 18.3% during the fourth quarter. NewEdge Advisors LLC now owns 680 shares of the auto parts company’s stock worth $91,000 after buying an additional 105 shares during the last quarter. Finally, V Square Quantitative Management LLC bought a new stake in shares of Modine Manufacturing in the first quarter valued at approximately $25,000. 95.23% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In Several equities research analysts have recently issued reports on MOD shares. Weiss Ratings upgraded shares of Modine Manufacturing from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, May 28th. Wall Street Zen cut shares of Modine Manufacturing from a “buy” rating to a “hold” rating in a research note on Saturday. UBS Group increased their price target on shares of Modine Manufacturing to $310.00 and gave the company a “buy” rating in a report on Wednesday, May 27th. KeyCorp raised their price target on shares of Modine Manufacturing from $250.00 to $370.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 27th. Finally, Glj Research restated a “buy” rating and set a $428.00 price target on shares of Modine Manufacturing in a research note on Monday, June 1st. Seven analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, Modine Manufacturing presently has an average rating of “Moderate Buy” and an average target price of $327.14.

Get Our Latest Stock Analysis on Modine Manufacturing

Insider Activity at Modine Manufacturing In other Modine Manufacturing news, VP Brian Jon Agen sold 38,282 shares of the business’s stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $295.17, for a total value of $11,299,697.94. Following the transaction, the vice president directly owned 66,343 shares in the company, valued at $19,582,463.31. The trade was a 36.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric S. Mcginnis sold 1,020 shares of the business’s stock in a transaction dated 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 transaction, the insider owned 28,364 shares in the company, valued at approximately $8,369,081.84. This trade represents a 3.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 54,302 shares of company stock valued at $15,928,759 in the last ninety days. Insiders own 1.92% of the company’s stock.

Modine Manufacturing Stock Performance Modine Manufacturing stock opened at $241.46 on Friday. The firm has a market capitalization of $12.82 billion, a P/E ratio of 107.80, a P/E/G ratio of 0.78 and a beta of 1.67. The stock has a fifty day moving average price of $262.07 and a two-hundred day moving average price of $227.62. Modine Manufacturing Company has a 52-week low of $98.90 and a 52-week high of $323.25. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.94 and a quick ratio of 1.25.

Modine Manufacturing (NYSE:MOD – Get Free Report) last issued its earnings results on Tuesday, May 26th. The auto parts company reported $1.71 EPS 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 company had revenue of $954.40 million for the quarter, compared to the consensus estimate of $920.67 million. During the same quarter in the previous year, the company earned $1.12 EPS. The firm’s revenue for the quarter was up 47.5% compared to the same quarter last year. As a group, analysts anticipate that Modine Manufacturing Company will post 7.72 EPS for the current fiscal year.

Modine Manufacturing Company 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.

Further Reading Five stocks we like better than Modine Manufacturing Telecom Earnings Reveal a Sector That Finally Looks Healthier Defense Earnings Show Readiness Now and Modernization Ahead Why Palantir Investors Aren’t Panicking While the Rest of AI Sells Off MarketBeat Week in Review – 07/20- 07/24 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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On July 24, 2026, Modine Manufacturing Co (MOD) shares fell 3.1%, bringing the current price to $241.79. This price is significantly high compared to its 52-wee

Investors with an interest in Automotive - Original Equipment stocks have likely encountered both Lear (LEA) and Modine (MOD). But which of these two stocks presents investors with the better value opportunity right now?

Key Takeaways Modine is expected to report 31.2% revenue growth and 30.2% EPS growth in fiscal Q1 2027.Record data center orders & 80/20 gains could boost results, while component shortages may disrupt production.Modine expects 20-35% fiscal 2027 sales growth, but higher capex and working capital needs pressure cash flow. Modine Manufacturing Company (MOD - Free Report) is slated to release first-quarter fiscal 2027 results on July 29, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $1.38 and $895.51 million, respectively.

For the fiscal first quarter, the consensus estimate for Modine’s earnings has moved down 5 cents over the past 30 days. Its bottom-line estimates imply growth of 30.2% from the year-ago reported numbers.

The Zacks Consensus Estimate for MOD's quarterly revenues implies a year-over-year rise of 31.2%. The company's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 14.18%. This is depicted in the graph below:

Q4 HighlightsModine posted adjusted earnings of $1.71 per share for the fourth quarter of fiscal 2026, which increased 53% from the year-ago quarter and came above the Zacks Consensus Estimate of $1.51 by 13.2%. Net sales were $954.4 million, which rose 47% year over year and topped the consensus mark of $907 million by 5.2%.

Things to NoteModine’s data center business is supported by record order intake and roughly five years of pipeline visibility, underpinned by strong exposure to hyperscale customers. The new long-term capacity agreement also improves visibility, with Modine set to supply more than $4 billion of Airedale chiller products to a strategic customer during calendar years 2027 through 2029 and supported by a $165 million upfront payment.

The company continues to apply 80/20 principles to simplify operations, improve capacity use and direct resources toward products and markets with the best return profiles. The framework supported Modine’s fourth consecutive year of record revenues and adjusted EBITDA in fiscal 2026. For fiscal 2027, the company expects total sales growth of 20-35% and adjusted EBITDA growth of 38-44%, with at least 100-200 basis points of consolidated margin expansion.

Strength in the data center business and benefits from the application of 80/20 principles are likely to have bolstered Modine’s performance in the to-be-reported quarter.

However, the shortages of critical components that emerged late in the quarter are affecting production schedules and efficiency. The company is qualifying new suppliers and implementing corrective actions, but these issues are expected to have temporarily negatively impacted fiscal first-quarter production. Also, Modine’s free cash flow is currently under pressure due to heavy investment and working capital needs. For fiscal 2027, the company expects capital expenditure of $150 million to $200 million, up from $143.3 million in fiscal 2026.

Expected production disruption and rising capital requirements are likely to have weighed on Modine’s fiscal first-quarter results.

Let’s have a look at the Zacks Consensus Estimate for Modine’s segmental performance.

The Zacks Consensus Estimate for Climate Solutions’ fiscal first-quarter revenues is pegged at $634 million, which suggests a rise of 59.7% year over year. The Zacks Consensus Estimate for Performance Technologies’ revenues is pegged at $289 million, which is in line with the revenues reported in the year-ago period.

The Zacks Consensus Estimate for Climate Solutions’ fiscal first-quarter adjusted EBITDA is pegged at $112 million, suggesting a year-over-year rise of 41.8%. The Zacks Consensus Estimate for Performance Technologies’ adjusted EBITDA is pegged at $37.5 million, which is the same as year-ago adjusted EBITDA.

Earnings WhispersOur proven model does not conclusively predict an earnings beat for Modine for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.

Earnings ESP: MOD has an Earnings ESP of -10.15%. This is because the Most Accurate Estimate is pegged lower than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: It currently carries a Zacks Rank #2.

Stocks With the Favorable CombinationHere are a few players from the auto space that, per our model, have the correct ingredients to post an earnings beat this time.

Cummins Inc. (CMI - Free Report) is slated to release second-quarter 2026 results on Aug. 4. The company has an Earnings ESP of +0.78% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CMI’s to-be-reported quarter’s earnings and revenues is pegged at $7.33 per share and $9.33 billion, respectively.

BorgWarner Inc. (BWA - Free Report) is scheduled to release second-quarter 2026 results on Aug. 5. The company has an Earnings ESP of +0.62% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for BWA’s to-be-reported quarter’s earnings and revenues is pegged at $1.26 per share and $3.58 billion, respectively.

, /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, announced today that it will host a conference call and webcast to discuss its first quarter fiscal year 2027 financial results for the period ended June 30, 2026, on Thursday, July 30, 2026, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). Results are scheduled to be released after the market closes on Wednesday, July 29, 2026.

During the call, Modine President and Chief Executive Officer, Neil D. Brinker, and Executive Vice President and Chief Financial Officer, Michael B. (Mick) Lucareli, will review the company's first quarter financial results.

To access the live webcast, including presentation slides, please log on through the investor section of Modine's website at http://www.modine.com at least 10 minutes prior to the start of the event. A replay of the slides and the audio will be available on or after July 30, 2026, on the investor section of Modine's website at http://www.modine.com. An audio only replay will be available through midnight on August 6, 2026, by dialing 877-660-6853 (international replay 201-612-7415) and entering the Conference ID# 13761279. A transcript of the call will be posted to the company's website on or after August 3, 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.

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

SOURCE Modine

Modine (MOD - Free Report) ended the recent trading session at $234.28, demonstrating a -4.73% change from the preceding day's closing price. This change lagged the S&P 500's 0.79% loss on the day. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 1.55%.

The stock of heating and cooling products maker has fallen by 10.42% in the past month, lagging the Auto-Tires-Trucks sector's gain of 5% and the S&P 500's gain of 4.28%.

Market participants will be closely following the financial results of Modine in its upcoming release. The company's earnings per share (EPS) are projected to be $1.43, reflecting a 34.91% increase from the same quarter last 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.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.73 per share and revenue of $4.03 billion, indicating changes of +53.98% and +26.76%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Modine. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Modine presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Modine is presently being traded at a Forward P/E ratio of 31.81. For comparison, its industry has an average Forward P/E of 12.64, which means Modine is trading at a premium to the group.

It's also important to note that MOD currently trades at a PEG ratio of 0.8. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Automotive - Original Equipment industry had an average PEG ratio of 0.8.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 109, putting it in the top 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

In the latest trading session, Modine (MOD - Free Report) closed at $230.41, marking a -2.03% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.45% for the day. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 1.16%.

Heading into today, shares of the heating and cooling products maker had lost 14.55% over the past month, lagging the Auto-Tires-Trucks sector's gain of 5.02% and the S&P 500's gain of 2.14%.

Analysts and investors alike will be keeping a close eye on the performance of Modine in its upcoming earnings disclosure. 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.

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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Modine is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Modine has a Forward P/E ratio of 30.43 right now. This denotes a premium relative to the industry average Forward P/E of 12.73.

It is also worth noting that MOD currently has a PEG ratio of 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MOD's industry had an average PEG ratio of 0.8 as of yesterday's close.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 178, positioning it in the bottom 28% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

In the latest close session, Modine (MOD - Free Report) was down 8.44% at $244.49. This move lagged the S&P 500's daily loss of 0.22%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.66%.

The stock of heating and cooling products maker has fallen by 12.99% in the past month, lagging the Auto-Tires-Trucks sector's loss of 3.88% and the S&P 500's loss of 1.21%.

The investment community will be closely monitoring the performance of Modine in its forthcoming earnings report. 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. At the same time, our most recent consensus estimate is projecting a revenue of $895.49 million, reflecting a 31.15% rise from the equivalent quarter last 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. Recent revisions tend to reflect the latest near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.67% increase. Modine is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Modine has a Forward P/E ratio of 34.54 right now. This denotes a premium relative to the industry average Forward P/E of 12.88.

It's also important to note that MOD currently trades at a PEG ratio of 0.86. 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. As the market closed yesterday, the Automotive - Original Equipment industry was having an average PEG ratio of 0.78.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. Currently, this industry holds a Zacks Industry Rank of 170, positioning it in the bottom 31% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

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Stock to Watch: Modine (MOD - Free Report) Modine Manufacturing Company designs, engineers, and manufactures mission-critical thermal management products that heat, cool, and ventilate across commercial, industrial, and vehicular end markets. The company provides customer-centric systems, services, and components spanning HVAC (heating, ventilating, air conditioning) and refrigeration applications, along with engineered heat transfer systems and components for on- and off-highway OEMs.

MOD is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. MOD has a Growth Style Score of A, forecasting year-over-year earnings growth of 54% for the current fiscal year.

For fiscal 2027, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.50 to $7.73 per share. MOD boasts an average earnings surprise of +14.2%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, MOD should be on investors' short list.

A month has gone by since the last earnings report for Modine (MOD - Free Report) . Shares have lost about 1.2% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Modine due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

Modine Q4 Earnings Beat EstimatesModine posted adjusted earnings of $1.71 per share for the fourth quarter of fiscal 2026, which increased 53% from the year-ago quarter and came above the Zacks Consensus Estimate of $1.51 by 13.2%. Net sales were $954.4 million, which rose 47% year over year and topped the consensus mark of $907 million by 5.2%.

Momentum in the company’s data center cooling business remained the key catalyst, with Data Centers revenues exceeding $400 million in the quarter, even after severe weather reduced production time.

Climate Solutions to Drive GrowthModine delivered another quarter of outsized growth as demand for its thermal management solutions stayed strong in mission-critical applications. The quarter capped a fourth consecutive year of record revenues and adjusted EBITDA, underscoring the pace of its portfolio shift toward faster-growing end markets.

Despite supply chain constraints and weather-driven downtime across multiple locations, it still pushed meaningful volume through the system. That execution mattered because Modine is expanding capacity to meet rising needs from hyperscale data center customers.

Higher Tariffs & Material Costs BiteProfitability reflected the near-term cost of growth. Gross margin fell 320 basis points year over year to 22.5% due to temporary costs tied to the rapid capacity expansion for data center products. Higher tariffs and material costs also weighed on the quarter, while storm-related disruption added overtime and other temporary labor expenses.

Even with those headwinds, gross profit increased to $214.7 million, helped by the sharp pickup in sales. Operating income rose to $103.9 million from $74.5 million in the year-ago period, though results included a restructuring expense of $5.2 million and $12.5 million of costs related to the pending spin-off of the Performance Technologies segment.

Climate Solutions Drives Profitability HigherClimate Solutions was the clear engine of the quarter. Segment sales surged 87% year over year to $665.9 million, powered by strength across both data centers and HVAC technologies. Data Centers sales jumped 158% from the prior year, while HVAC Technologies sales increased 51%, including $38.2 million of incremental sales from acquired businesses.

The growth came with planned margin pressure as Modine accelerates manufacturing investments. Climate Solutions’ gross margin was 24.6%, down 510 basis points year over year, yet earnings still expanded meaningfully as scale improved. Segment operating income climbed 77% to $108.8 million, and adjusted EBITDA increased 63% to $124.3 million.

Performance Technologies Steadies Ahead of Spin-OffPerformance Technologies was largely stable on the top line. Segment sales were $294 million versus $294.8 million a year ago, as lower stationary power demand was mostly offset by higher volumes tied to automotive, commercial vehicle and off-highway customers.

Margins, however, tightened. Performance Technologies’ gross margin declined 390 basis points year over year to 16.5%, primarily due to higher material costs and tariffs. Operating income slipped 7% to $27.7 million, and adjusted EBITDA declined 15% to $37.4 million, reflecting the tougher cost backdrop as the business moves toward separation.

Cash Flow Supports Investment-Led GrowthBalance sheet and cash generation remained an important support as Modine ramps up capital spending to expand data center capacity. For fiscal 2026, net cash provided by operating activities increased to $248.7 million, while free cash flow was $105.4 million as working capital and higher capital expenditures absorbed cash.

As of March 31, 2026, cash and cash equivalents totaled $73.5 million, up from $71.6 million as of March 31, 2025. Total debt was $436.3 million, leaving net debt at $362.8 million, as borrowings funded working capital needs, acquisitions and capital expenditures during the year.

FY27 OutlookThe company’s fiscal 2027 outlook calls for another year of record performance, supported by customer relationships and a significant order book in Data Centers. Modine expects net sales growth of 20% to 35% for fiscal 2027, alongside adjusted EBITDA of $650 million to $680 million.

The company’s outlook includes Performance Technologies for all of fiscal 2027 and will be refreshed for the remaining business once the timing of the planned spin-off is finalized. Modine also expects to incur approximately $30 million to $40 million of additional costs during fiscal 2027 tied to the pending Reverse Morris Trust transaction with Gentherm.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -13.58% due to these changes.

VGM ScoresAt this time, Modine has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Modine has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerModine belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, Westport Innovations (WPRT - Free Report) , has gained 9.6% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Westport reported revenues of $2.29 million in the last reported quarter, representing a year-over-year change of -96.8%. EPS of -$0.33 for the same period compares with -$0.14 a year ago.

For the current quarter, Westport is expected to post a loss of $0.45 per share, indicating a change of -55.2% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Westport. Also, the stock has a VGM Score of F.

Key Takeaways MOD has doubled its data center business for four consecutive years amid strong customer demand.MOD is working closely with key suppliers and adding vendor options to ease component shortages.MOD expects a temporary first-quarter production impact but no change to its full-year outlook. Modine Manufacturing Company (MOD - Free Report) is taking an all-hands-on-deck approach as it scales its data center business to meet strong customer demand. The company has doubled its data center business for four consecutive years, a pace that has required significant operational effort and coordination across the organization.

As the business has scaled, Modine has begun encountering supply chain constraints for the first time, particularly with certain key suppliers. In response, the company is working closely with suppliers at both strategic and operational levels to ensure continuity of supply and maintain production capacity. This includes providing greater day-to-day support and oversight while strengthening supplier relationships to meet growing demand.

Supply chain management remains one of Modine’s top priorities. The company has invested heavily in talent and resources to support its expansion and ensure that capacity keeps pace with demand. The component shortages emerged late in the fourth quarter of fiscal 2026, creating some near-term challenges for production schedules and operational efficiency. To address these issues, a dedicated team is actively implementing corrective measures, including qualifying new vendors to ensure a more stable supply of components.

While these supply chain challenges are expected to affect the production plans of the first quarter temporarily, Modine does not anticipate any impact on its full-year outlook. Demand for Modine’s products remains exceptionally strong in the data center market, and the company is not experiencing any signs of a slowdown. For fiscal 2027, the data center sales are expected to grow by 60-80% year over year.

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.

MOD Peers’ Effort to Build a Resilient Supply ChainnVent Electric plc (NVT - Free Report) reported that its backlog continues to grow sequentially, with most orders extending beyond the next 12 months and providing visibility into 2027. To support this demand, nVent is focused on maintaining competitive lead times while ensuring its suppliers can scale alongside its operations. nVent expects to invest about $130 million in capital expenditures this year, with much of the spending directed toward expanding data center capacity and enhancing supply chain resilience.

Vertiv Holdings Co’s (VRT - Free Report) continues to navigate supply chain challenges arising from global trade and macroeconomic uncertainties. To reduce supplier-related risks, Vertiv has prioritized multi-sourcing strategies across its supply chain. In addition, Vertiv is leveraging strategic acquisitions to further strengthen its supply chain capabilities and support long-term growth.

Modine’s Price Performance, Valuation & EstimatesMOD has outperformed the Zacks Automotive-Original Equipment industry in the last six months. Modine’s shares have rallied 112.8% compared with the industry’s growth of 3.9%.

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 3.59, higher than the industry’s 2.31.

Image Source: Zacks Investment Research

 
The Zacks Consensus Estimate for MOD’s fiscal 2027 and 2028 EPS has moved up 50 cents and $1.10, respectively, in the past 30 days.

Image Source: Zacks Investment Research

In the latest close session, Modine (MOD - Free Report) was down 6.13% at $277.46. The stock fell short of the S&P 500, which registered a loss of 1.44% for the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 2.22%.

The stock of heating and cooling products maker has risen by 13.46% in the past month, leading the Auto-Tires-Trucks sector's loss of 3.79% and the S&P 500's gain of 0.08%.

The upcoming earnings release of Modine will be of great interest to investors. In that report, analysts expect Modine to post earnings of $1.43 per share. This would mark year-over-year growth of 34.91%. At the same time, our most recent consensus estimate is projecting a revenue of $895.49 million, reflecting a 31.15% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.73 per share and a revenue of $4.03 billion, representing changes of +53.98% and +26.76%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Modine. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 6.99% increase. Right now, Modine possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Modine is at present trading with a Forward P/E ratio of 38.24. This expresses a premium compared to the average Forward P/E of 13.11 of its industry.

Meanwhile, MOD's PEG ratio is currently 0.96. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MOD's industry had an average PEG ratio of 0.9 as of yesterday's close.

The Automotive - Original Equipment industry is part of the Auto-Tires-Trucks sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 35% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Key Takeaways MOD raised adjusted EBITDA margin by 30 basis points to 13.8% in fiscal 2026 through cost discipline.MOD forecasts $650-$680 million in adjusted EBITDA for fiscal 2027, implying 100-200 bps expansion.MOD expects margin gains from Q2 as supply constraints ease and stronger revenue boosts leverage. Modine Manufacturing Company (MOD - Free Report) delivered margin improvement in fiscal 2026 by maintaining tight control over expenses despite lower revenues and several cost headwinds. The company’s adjusted EBITDA margin for fiscal 2026 increased 30 basis points year over year to 13.8%, reflecting its focus on cost discipline and its 80/20 operational strategy.

Modine expects further profitability gains in fiscal 2027. The company projects adjusted EBITDA in the range of $650-$680 million, representing more than 40% growth from the prior year. This outlook implies an additional 100 to 200 basis points of margin expansion, supported by commodity-related pricing adjustments, tariff recoveries and margin improvements across all three business segments.

For the first quarter of fiscal 2027, Modine’s margins in its Commercial HVAC and Data Center businesses are expected to remain below year-ago levels due to difficult comparisons and ongoing supply chain constraints affecting data center operations.

Modine anticipates a turnaround beginning in the second quarter, with all three business segments expected to post year-over-year margin improvement. The company expects favorable margin performance to continue through the third and fourth quarters, supported by stronger revenue growth and the easing of data center supply chain shortages, which should enable higher production volumes and improved operating leverage. 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.

How Do Modine’s Peers Expect Margins to Evolve?Lennox International Inc. (LII - Free Report) continues to drive growth through customer-focused initiatives, disciplined capital allocation and successful acquisition integration, supporting its resilient margin profile. In the first quarter, Lennox attributed its margin decline entirely to factory underabsorption. As underabsorption issues ease through the second quarter and the latter half of the year, Lennox expects margins to return to more normal levels.

Johnson Controls International plc (JCI - Free Report) reported approximately 100 basis points of year-over-year margin expansion in its Americas segment during the second quarter of fiscal 2026, largely driven by revenue growth and operating leverage. However, Johnson Controls' productivity was temporarily affected by the ramp-up of manufacturing capacity in North America. While Johnson Controls expects some near-term inefficiencies as new employees are trained and production scales up, the company believes strong backlog levels will support continued margin improvement through the remainder of the year.

MOD’s Price Performance, Valuation & EstimatesMOD has outperformed the Zacks Automotive-Original Equipment industry in the last six months. Modine’s shares have rallied 124.3% compared to the industry’s growth of 3.3%.

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 3.61, 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

I am initiating coverage Modine with a strong buy and a $366 price target, reflecting a 42% upside potential. The main growth driver is data centers, where MOD expects sales to grow 60% to 80% in FY27, supported by capacity expansion and a multi-year agreement. I arrive at my PT by applying a 35.45x FWD non-GAAP P/E multiple to my estimated 2028 EPS of $10.34.

Shares of leading thermal management solutions provider Modine Manufacturing (MOD 7.07%) are 16% higher as of 1 p.m. ET today after the company announced a major $4 billion deal with a hyperscaler customer. The data center customer will use Modine's Airedale cooling solutions to support the incredible ongoing infrastructure build-out tied to the AI boom. The $4 billion will cover work scheduled for 2027 through 2029 and includes a $165 million upfront payment to help "support capacity investments and other expenditures needed to meet its commitments."

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I think the market's positive reaction to this news makes sense for a couple of reasons. First, the deal shows they're not only a leader in the climate solutions industry (HVAC and heat transfer solutions), but also in the booming data center space. It looks like a major vote of confidence from a big-time customer. Neil Brinker, Chief Executive Officer, explained, "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."

Image source: Getty Images.

Second, the size of the deal is simply massive, considering that Modine's data center sales in 2025 were only about $700 million, and this deal will be somewhere around $1.3 billion annually starting in 2027. This data center unit just grew sales by 78% in Modine's most recent quarter, and management believed it would hit $2 billion in revenue by 2028 -- before today's news.

As Modine plans to spin off its lower-margin performance technologies unit by the fourth quarter of 2026, the company will become a "true" growth stock, generating the bulk of its sales from data center cooling solutions. Following today's jump, Modine trades at 41 times forward earnings and 34 times EBITDA, so the stock is far from traditionally "cheap." However, if you believe the ongoing AI boom and data center build-out is more than a short-term cyclical peak and is instead a decade-long (or more) run, Modine could be a stellar growth stock to consider if it keeps landing deals like these.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Modine Manufacturing. The Motley Fool has a disclosure policy.