Modine's Q3 revenue beats estimates on higher data center sales

Overview

• Thermal management firm's Q3 revenue rose 31%, beating analyst expectations

• Adjusted EPS for Q3 increased 29% and beat analyst expectations

• Company to spin off Performance Technologies business, combining it with Gentherm

Outlook

• Modine raises fiscal 2026 net sales growth outlook to 20%-25%

• Company expects fiscal 2026 adjusted EBITDA between $455 mln and $475 mln

• Modine anticipates 50%-70% annual growth in data center sales for next two years

Result Drivers

• DATA CENTER SALES - Modine's 78% increase in data center sales drove a 51% rise in Climate Solutions segment sales

• CAPACITY EXPANSION - Ongoing capacity expansion for data center products contributed to a 31% sequential sales increase

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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 $205.00, about 2.8% above its February 3 closing price of $199.48

• The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nPnbJDd3ra

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