Modine Manufacturing Company
Q4 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.26%.
Did MOD Beat Earnings? Q4 2026 Results
Modine Manufacturing posted a convincing fourth-quarter beat <a href="https://247wallst.com/investing/2026/05/26/live-can-modine-manufacturing-rip-higher-after-reporting-q4-earnings-tonight/">heading into the print</a>, delivering adjusted EPS of $1.71 against a consensus estimate of $1.55, a 10.00% beat that extended the company's streak to four consecutive quarters of topping Wall Street expectations. Revenue of $954.40 million exceeded the $920.68 million consensus by 3.66% and surged 47.5% year-over-year, driven predominantly by the Climate Solutions segment, where Data Center sales alone jumped 158% year-over-year and quarterly Data Center revenue crossed $400.00 million. Gross margin contracted 320 basis points to 22.5%, reflecting capacity ramp-up costs, tariffs, and supply chain shortages tied to the largest expansion effort in the company's history. Looking ahead, Modine guided fiscal 2027 net sales growth of 20% to 35%, implying roughly $3.82 billion to $4.29 billion, with adjusted EBITDA of $650 million to $680 million; a pending spin-off of the Performance Technologies segment via a Reverse Morris Trust transaction with Gentherm is expected to close before year-end, sharpening Modine's focus on higher-margin climate and data center thermal solutions.
- Data Centers sales increased 158% YoY in Q4, exceeding $400 million in quarterly revenue
- HVAC Technologies sales increased 51% in Q4, including $38.2 million from acquired businesses
- Heat Transfer Solutions revenue grew 19% in Q4, driven by higher coils sales to data center and heat pump customers
- Three strategic acquisitions completed in FY2026 contributed $119.1 million in incremental annual sales
- Organic sales growth of 37% in Q4 and 16% for full year
“The team delivered a strong fourth quarter and a fourth consecutive year of record revenue, adjusted EBITDA and adjusted earnings per share. I am incredibly proud of this exceptional performance as we continue to evolve our portfolio to become a more focused, high-growth company. We took decisive action this year to advance our transformation including the completion of three acquisitions in our Climate Solutions segment, the launch of the largest capacity expansion in our company's history to meet growing demand for our data center products, and the announced pending spin-off of the Performance Technologies business. Our future is bright, evidenced by a landmark $4 billion long-term agreement for chiller sales with a major hyperscale customer, cementing Modine's position as a critical partner for data center cooling.”
Modine CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2027, Modine guides net sales growth of 20% to 35% (implying approximately $3.82 billion to $4.29 billion) and adjusted EBITDA of $650 million to $680 million, representing 38% to 44% growth. Data Centers sales are expected to grow 60% to 80%, Commercial HVAC 5% to 10%, and Performance Technologies flat to 5%. The company estimates interest expense of approximately $15 to $18 million, income taxes of approximately $135 to $145 million, depreciation and amortization of approximately $90 to $95 million, and capital expenditures of approximately $150 to $200 million. Free cash flow is expected at 4% to 6% of net sales. Guidance includes Performance Technologies for the full fiscal year and will be updated once the timing of the spin-off transaction is finalized. Approximately $30 to $40 million in additional costs are expected related to the Reverse Morris Trust transaction with Gentherm.
MOD YoY Financials
MOD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.