Modine Manufacturing Company
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.06%.
Did MOD Beat Earnings? Q3 2026 Results
Modine Manufacturing posted a standout fiscal third quarter for 2026, with adjusted earnings per share of $1.19 beating the $0.99 consensus estimate by 19.71% and revenue of $805.00 million topping expectations by 5.86% while climbing 30.5% year over year. The headline driver was an explosive performance in the Climate Solutions segment, where data center sales surged 78% and overall segment revenue jumped 51% to $544.60 million, reflecting soaring demand for thermal management solutions tied to AI infrastructure buildouts. On a GAAP basis, results were weighed down by a $116.10 million non-cash pension termination charge that produced a net loss of $46.80 million, though the adjusted figures told a markedly different story. Strategically, Modine announced a pending spin-off of its Performance Technologies segment in a $1.00 billion Reverse Morris Trust transaction with Gentherm, positioning the company as a pure-play climate solutions business. Management raised its fiscal 2026 outlook, now targeting net sales growth of 20% to 25% and adjusted EBITDA of $455.00 million to $475.00 million, while lifting its data center revenue growth forecast to more than 70% for the year, keeping its $2.00 billion fiscal 2028 revenue target well within reach.
- 78% increase in data center sales driving Climate Solutions organic growth of 36%
- HVAC Technologies sales increased 48%, including $42.8 million from acquisitions
- Performance Technologies adjusted EBITDA margin improved 400 bps to 14.8% from 80/20 cost reduction actions
- SG&A reduced by nearly $7M in Performance Technologies through 80/20 reorganization
- Favorable pricing and cost recoveries in Performance Technologies offsetting lower volumes
- Heat Transfer Solutions growth driven by coils volume and coatings demand from aerospace industry
“Modine delivered another quarter of outstanding performance, with 21 percent organic sales growth driven by a 78 percent increase in data center sales. The capacity expansion for data center products remains on schedule, with new production lines contributing to a 31 percent sequential increase in sales compared to the second fiscal quarter. Margins in the Climate Solutions segment improved sequentially this quarter, as expected, and we remain confident that we are on pace for a strong fourth quarter as more production lines are commissioned to keep pace with the strong demand.”
Modine CEO, on the earnings call
Forward Guidance & Outlook
Modine raised its fiscal 2026 outlook, now expecting net sales growth of 20% to 25% (implying $3.10B to $3.23B) and adjusted EBITDA of $455 million to $475 million (growth of 16% to 21%). Climate Solutions revenue is expected to grow 40% to 45% (raised from 35%-40%), with data center sales expected to grow more than 70% year-over-year. Performance Technologies revenue is expected to be flat to down 7%. Capital expenditures are anticipated at $150M to $180M for FY26. Interest expense is estimated at $30-$34 million, income taxes at $72-$76 million, and depreciation/amortization at $77-$82 million. The company raised its multi-year data center revenue growth outlook to 50-70% annual growth for the next two years, putting it ahead of its $2 billion revenue target for fiscal 2028. Leverage ratio is expected to decline further by fiscal year end.
MOD YoY Financials
MOD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.