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1. Company Snapshot

1.a. Company Description

Modine Manufacturing Company provides engineered heat transfer systems and heat transfer components for use in on- and off-highway original equipment manufacturer (OEM) vehicular applications.It operates through Climate Solutions and Performance Technologies segments.The company offers gas-fired, hydronic, electric, and oil-fired unit heaters; indoor and outdoor duct furnaces; infrared units; perimeter heating products, such as commercial fin-tube radiation, cabinet unit heaters, and convectors; roof-mounted direct- and indirect-fired makeup air units; unit ventilators; single packaged vertical units; precision air conditioning units for data center applications; air handler units; fan walls; chillers; ceiling cassettes; hybrid fan coils; and condensers and condensing units.


It also provides microchannel, heat recovery, round tube plate fin, and motor and generator cooling coils; evaporator unit, fluid, transformer oil, gas, air blast, and dry and brine coolers, as well as remote condensers; and coatings to protect against corrosion.In addition, the company offers powertrain cooling products, including engine cooling modules, radiators, charge air coolers, condensers, oil coolers, fan shrouds, and surge tanks; on-engine cooling products comprising exhaust gas recirculation, engine oil, fuel, charge air, and intake air coolers; auxiliary cooling products, such as transmission and retarder oil coolers, and power steering coolers; and complete battery thermal management systems and electronics cooling packages.It serves heating, ventilation, and cooling OEMs; construction architects and contractors; wholesalers of heating equipment; automobile, truck, bus, and specialty vehicle OEMs; agricultural, industrial, and construction equipment OEMs; and commercial and industrial equipment OEMs. The company has operations in North America, South America, Europe, and Asia.


Modine Manufacturing Company was incorporated in 1916 and is headquartered in Racine, Wisconsin.

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1.b. Last Insights on MOD

Breaking News: Modine Manufacturing Company has not reported recent earnings. However Mueller Industries Inc was a key focus in Mario Gabelli's latest 13F filing. Gabelli increased his stake in Mueller Industries. Modine Manufacturing and Mueller Industries operate in similar sectors. No immediate recommendations are available from noted analysts. A recent earnings release for Modine Manufacturing is not available.

1.c. Company Highlights

2. Modine's Q3 Results Exceed Expectations on Strong Data Center Growth

Modine reported revenue growth of 20% year-over-year, driven by a 51% increase in Climate Solutions segment revenues, which includes a 78% surge in data center sales. Adjusted EBITDA margin improved significantly, with Climate Solutions segment margin expanding due to the ramp-up in data center production. Earnings per share (EPS) came in at $1.19, beating estimates of $0.99. The company's capacity expansion plans are on schedule, supporting the sequential margin improvement. With the strong performance, Modine raised its revenue outlook for fiscal '26, expecting total sales to grow in the range of 20% to 25%.

Publication Date: Feb -10

📋 Highlights
  • Climate Solutions Revenue Growth: 51% YoY increase, driven by 78% surge in data center sales ($130M boost).
  • Performance Technologies Merger: Transaction valued at $1B with Modine receiving $210M cash and 40% ownership of combined entity.
  • Full-Year Revenue Outlook Raised: Total sales growth projected at 20-25% for fiscal 2026, up from prior guidance of 15-20%.
  • Data Center Segment Momentum: Expected to grow sales by >70% in fiscal 2026, with 50-70% Q4 growth range and capacity expansion in U.S. projects.
  • Margin Improvements in Climate Solutions: Adjusted EBITDA margin to improve by 200+ basis points sequentially in Q4, while PT margins dip temporarily due to material costs.

Segment Performance

The Climate Solutions segment delivered another quarter of outstanding growth, with revenues increasing 51% year-over-year, including a 78% growth in data center sales. The Performance Technologies segment revenue increased 1% from the prior year, with adjusted EBITDA improving 38% from the prior year, driven by a 6% increase in on-highway product sales. The company's data center order intake is record-breaking, primarily with existing customers.

Outlook and Guidance

Modine is raising its revenue outlook for fiscal '26, with total sales expected to grow in the range of 20% to 25%. For Climate Solutions, the company is raising its outlook for full year sales to grow 40% to 45%, up from 35% to 40%, with data center sales expected to grow in excess of 70% this year. The company expects adjusted EBITDA margin to sequentially improve and begin to reach more normalized levels as data center production volumes ramp up.

Valuation and Growth Expectations

With a P/E Ratio of 118.3 and an EV/EBITDA of 45.68, the market is pricing in high growth expectations. Analysts estimate next year's revenue growth at 21.7%, which is slightly above the company's current guidance. The company's ROIC is 10.5%, indicating a decent return on invested capital. As Modine continues to expand its capacity and execute on its growth plans, investors will be watching the company's ability to deliver on its promises.

Long-term Prospects

Modine is working on securing long-term agreements (LTAs) with customers, which would provide higher confidence in customer commitments. The company is also looking at diversifying around higher-margin businesses outside of data centers through M&A, with a focus on privately owned and fragmented businesses in the $50-100 million revenue sweet spot. As the data center pipeline continues to trend positively, Modine is well-positioned for long-term growth.

3. NewsRoom

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3 Auto Equipment Stocks Positioned for Growth in a Tough Market

Feb -10

Source: zacks.com

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Modine Manufacturing (NYSE:MOD) Reaches New 1-Year High on Analyst Upgrade

Feb -10

Source: defenseworld.net

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Mueller Industries Inc: A Key Focus in Mario Gabelli's Latest 13F Filing

Feb -06

Source: gurufocus.com

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Modine Manufacturing Company (MOD) Q3 2026 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

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Here's What Key Metrics Tell Us About Modine (MOD) Q3 Earnings

Feb -05

Source: zacks.com

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Modine (MOD) Q3 Earnings and Revenues Top Estimates

Feb -04

Source: zacks.com

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Modine Reports Third Quarter Fiscal 2026 Results

Feb -04

Source: prnewswire.com

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Modine Manufacturing to Spin Off Performance Tech in $1B Gentherm Deal, Targets Pure-Play Climate Growth

Feb -03

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.94%)

6. Segments

Performance Technologies

Expected Growth: 7.5%

Modine's Performance Technologies segment growth of 7.5% is driven by increasing demand for electric vehicles, rising adoption of advanced engine cooling systems, and growing need for thermal management solutions in data centers and 5G infrastructure. Additionally, the company's strategic acquisitions and investments in new product development have expanded its market share and improved operational efficiency.

Climate Solutions

Expected Growth: 8.5%

Modine Manufacturing Company's Climate Solutions segment growth of 8.5% is driven by increasing demand for electric vehicle (EV) thermal management systems, growing adoption of heat pump technology in HVAC systems, and rising sales of data center cooling solutions. Additionally, the company's focus on sustainable and energy-efficient products, as well as its expanding presence in the renewable energy market, contribute to its growth momentum.

7. Detailed Products

Heat Exchangers

Modine's heat exchangers are designed to provide efficient heat transfer in a variety of applications, including HVAC, refrigeration, and industrial processes.

Radiators

Modine's radiators are designed to provide efficient heat transfer in a variety of applications, including automotive, industrial, and HVAC.

Coils

Modine's coils are designed to provide efficient heat transfer in a variety of applications, including HVAC, refrigeration, and industrial processes.

Finned Tube Heat Exchangers

Modine's finned tube heat exchangers are designed to provide efficient heat transfer in a variety of applications, including HVAC, refrigeration, and industrial processes.

Oil Coolers

Modine's oil coolers are designed to provide efficient cooling of oil in a variety of applications, including automotive, industrial, and HVAC.

Charge Air Coolers

Modine's charge air coolers are designed to provide efficient cooling of air in a variety of applications, including automotive and industrial.

8. Modine Manufacturing Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Modine Manufacturing Company faces moderate threat from substitutes due to the availability of alternative products in the market.

Bargaining Power Of Customers

Modine Manufacturing Company has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Modine Manufacturing Company relies on a few key suppliers for raw materials, giving them moderate bargaining power.

Threat Of New Entrants

The automotive industry is highly competitive, and new entrants can easily enter the market, posing a high threat to Modine Manufacturing Company.

Intensity Of Rivalry

The automotive industry is highly competitive, with many established players, leading to a high intensity of rivalry among companies like Modine Manufacturing Company.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 37.31%
Debt Cost 6.22%
Equity Weight 62.69%
Equity Cost 15.32%
WACC 11.92%
Leverage 59.52%

11. Quality Control: Modine Manufacturing Company passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Modine

A-Score: 3.9/10

Value: 1.6

Growth: 7.7

Quality: 5.5

Yield: 0.0

Momentum: 6.5

Volatility: 2.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

219.76$

Current Price

219.76$

Potential

-0.00%

Expected Cash-Flows