MOD · Modine Manufacturing Company

Modine's Q4 FY2026 results exceeded expectations, with record quarterly revenue of $954.4M (+47% YoY) driven by the Climate Solutions segment, which surged 87% to $665.9M on 158% growth in Data Centers and 51% growth in HVAC Technologies (including acquisitions). Adjusted EBITDA rose 40% to $146.1M and adjusted EPS hit $1.71 (+53%), despite gross margin contraction of 320 bps to 22.5% due to temporary costs from capacity expansion, tariffs, and weather disruptions. The Performance Technologies segment was essentially flat in sales, with operating income down 7% on lower margins from tariffs and material costs. Full-year metrics were also record-setting: adjusted EBITDA $471.0M (+20%), adjusted EPS $5.02 (+24%). However, net earnings fell 34% to $123.3M due to a $116.1M non-cash pension termination charge in Q3. Management highlighted a landmark $4B long-term chiller agreement with a hyperscale customer, underscoring data center momentum. Guidance for FY2027 calls for net sales growth of 20-35% and adjusted EBITDA of $650-680M, implying continued margin expansion despite planned spin-off costs for Performance Technologies. The balance sheet shows $362.8M net debt, up from $279.2M, reflecting working capital and capex investments. Overall, Modine is well-positioned for sustained high growth in thermal management, especially in data center cooling.