Modine Q1 revenue rises on data centers, commercial HVAC strength 

Overview

• Thermal management technology firm's fiscal Q1 revenue rose 28% but slightly missed analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company cited supply chain constraints in Data Centers segment as impacting margins

Outlook

• Modine reaffirms fiscal 2027 net sales growth of 20% to 35%

• Company expects fiscal 2027 adjusted EBITDA of $650 mln to $680 mln

• Modine plans Performance Technologies spin-off and merger to close in Q4 2026

Result Drivers

• DATA CENTERS GROWTH - Higher sales to hyperscale customers in North America drove a 90% increase in Data Centers segment revenue

• SUPPLY CHAIN CONSTRAINTS - Production inefficiencies and higher material costs in Data Centers segment reduced margins, per CEO Neil D. Brinker

• COMMERCIAL HVAC EXPANSION - Segment revenue rose 22%, supported by higher coil sales to data center customers and acquisitions

Company press release: ID:nPn8mClvra

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "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 $341.00, about 63.9% above its July 28 closing price of $208.06

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 29 three months ago

Reuters Recommended Reads

• July 29 - Ireland's Johnson Controls Q3 sales beat on data center demand; raises outlook

• July 28 - Carrier raises annual earnings forecast on air conditioning demand

• July 28 - Electrical equipment maker Hubbell lifts profit forecast amid demand from data centers

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)