Q1 27 EPS
$1.53
BEAT +20.02%
Est. $1.27
Q1 27 Revenue
$874.1M
MISS 0.52%
Est. $878.7M
vs S&P Since Q1 27
-9.6%
TRAILING MARKET
MOD -5.3% vs S&P +4.3%
Market Reaction
Did MOD Beat Earnings? Q1 2027 Results
Modine Manufacturing delivered a sharply better-than-expected first quarter for fiscal 2027, with adjusted EPS of $1.53 beating the $1.27 consensus estimate by 20.02%, extending the company's streak of consensus EPS beats to five consecutive quarters… Read more Modine Manufacturing delivered a sharply better-than-expected first quarter for fiscal 2027, with adjusted EPS of $1.53 beating the $1.27 consensus estimate by 20.02%, extending the company's streak of consensus EPS beats to five consecutive quarters. Revenue climbed 28.0% year-over-year to $874.10 million, fractionally below the $878.69 million estimate by 0.52%, as explosive growth in the Data Centers segment, where sales surged 90% to $348.60 million driven by hyperscale customers in North America, more than offset weakness in Performance Technologies. Gross margin pressure in the data center business, tied to capacity expansion costs and supply chain bottlenecks, was the primary offset to the revenue momentum, though management flagged sequential improvement in volumes and margins through the quarter. Institutional investors have taken note of the growth trajectory, with several funds adding to or increasing positions in the stock. Looking ahead, Modine reaffirmed full-year FY2027 guidance calling for net sales growth of 20% to 35% and adjusted EBITDA of $650 million to $680 million, with Data Centers segment earnings expected to grow in excess of 85%.
Key Takeaways
- • Data Centers revenue surged 90% driven by higher sales to hyperscale customers in North America
- • Commercial HVAC grew 22% from acquisitions ($19.7M incremental) and higher coil sales to data center customers
- • Supply chain constraints in Data Centers limited production and temporarily reduced margins, causing 960 bps gross margin decline
- • Performance Technologies declined 3% due to automotive and commercial vehicle market weakness
- • SG&A increased 22% to support Data Centers growth, acquisitions, and spin-off costs ($7.1M disposition costs)
- • Favorable income tax benefit related to stock-based compensation awards boosted EPS
- • Three consecutive quarters of record order intake with backlog nearly doubling over the past year
MOD Forward Guidance & Outlook
Modine reaffirmed its full-year FY2027 outlook: net sales growth of 20% to 35% (approximately $3.82B to $4.29B), and adjusted EBITDA of $650 million to $680 million (38% to 44% growth). Segment-level sales guidance includes Data Centers growth of 60% to 80%, Commercial HVAC growth of 5% to 10%, and Performance Technologies flat to up 5%. The company anticipates Data Centers full-year earnings growth in excess of 85%. Free cash flow is expected at 4% to 6% of net sales, with capital expenditures of approximately $150 to $200 million. Interest expense is estimated at $24 to $27 million, income taxes at $130 to $140 million, and depreciation and amortization at $87 to $92 million. The guidance includes Performance Technologies for the full fiscal year; an updated outlook will be issued once the Gentherm transaction closes. The company expects $25 to $35 million of additional disposition costs during the remainder of FY2027.
MOD YoY Financials
Q1 2027 vs Q1 2026, source: SEC Filings
MOD Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our targeted growth businesses continued to deliver strong, sustainable year-over-year top-line improvements, including Data Centers and Commercial HVAC revenue expansion of 90% and 22%, respectively. As anticipated, our first quarter was impacted by the supply chain constraints we discussed last quarter, which limited production and temporarily reduced margins within our Data Centers segment. We are taking decisive actions to secure supply, including working closely with our partners to lock in volume requirements while simultaneously qualifying additional suppliers. These initiatives are yielding positive results, driving sequential volume and margin improvements as the quarter progressed. Our team continues to drive operational efficiency and ramp production across our manufacturing footprint, keeping us fully on track to meet future customer commitments and deliver on our full-year financial outlook.”
— Neil D. Brinker, Q1 2027 Earnings Press Release
MOD Earnings Trends
MOD vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
MOD EPS Trend
Earnings per share: estimate vs actual
MOD Revenue Trend
Quarterly revenue: estimate vs actual
MOD Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 27 BEAT | $1.27 | $1.53 | +20.02% | $874.1M | -0.52% |
| Q4 26 BEAT FY | $1.55 | $1.71 | +10.00% | $954.4M | +3.66% |
| FY Full Year | $4.87 | $5.02 | +3.18% | $3.18B | +1.07% |
| Q3 26 BEAT | $0.99 | $1.19 | +19.71% | $805.0M | +5.86% |
| Q2 26 BEAT | $1.01 | $1.06 | +4.95% | $738.9M | +5.79% |
| Q1 26 BEAT | $0.92 | $1.06 | +14.81% | $682.8M | +4.88% |
| Q4 25 BEAT FY | $0.96 | $1.12 | +17.28% | $647.2M | +2.49% |
| FY Full Year | — | $4.05 | — | $2.58B | — |