Modine Q1 revenue beats estimates, raises annual rev guidance

Overview

• Modine fiscal Q1 rev rises 3% yr/yr, beating analyst expectations, per LSEG data

• Adjusted EBITDA for fiscal Q1 beats consensus, driven by Climate Solutions

• Co raises fiscal 2026 guidance, expects 10%-15% net sales growth

Outlook

• Modine raises fiscal 2026 net sales growth guidance to 10%-15%

• Company expects fiscal 2026 adjusted EBITDA of $440 mln to $470 mln

• Modine anticipates $2 bln in data center revenues by fiscal 2028

• Company sees positive impact from North American capacity expansion in H2 of 2025

Result Drivers

• CLIMATE SOLUTIONS - Higher sales driven by data center and organic and inorganic growth in the HVAC Technologies product group

• PERFORMANCE TECHNOLOGIES - Sales decline due to market weakness

• MATERIAL COSTS - Co actively managing higher material costs in Performance Technologies segment

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Modine Manufacturing Co is $127.50, about 12.2% above its July 29 closing price of $111.95

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nPn8YYyd4a