MOD
Modine Manufacturing
Q1 2026 Report
Modine Manufacturing Company (MOD) Q1 2026 Earnings Report: Optimism Amidst Strategic Growth...
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Executive Summary
In Q2 2025, Modine Manufacturing Company (MOD) reported revenues of $658 million, representing a 6% year-over-year increase. Driven primarily by robust growth in its Climate Solutions segment, particularly in the data center business, Modine's performance reflects its strategic investments and focus on high-growth customer segments. The company successfully navigated some headwinds in its Performance Technologies segment due to declining demand in vehicular markets. Despite facing challenges, management's commitment to its 80/20 strategy has led to improvements in gross profit margins and a healthy EBITDA growth of 23%.
CEO Neil Brinker highlighted the ongoing momentum in the data center market, with sales growing over 100% year-over-year, underscoring the strong demand from hyperscale customers. Looking forward, Modine maintains its three-year financial targets, aiming for compounded annual revenue growth of 10% to 13% and adjusted EBITDA margins of 16% to 18%.
Key Performance Indicators
Revenue
658.00M
QoQ: -0.53% | YoY:6.04%
Gross Profit
165.60M
25.17% margin
QoQ: 0.67% | YoY:22.58%
Operating Income
75.30M
QoQ: -5.64% | YoY:14.61%
Net Income
46.10M
QoQ: -2.54% | YoY:-0.86%
EPS
0.88
QoQ: -2.22% | YoY:-1.12%
Revenue Trend
Margin Analysis
Key Insights
1. **Revenue:** $658 million, (YoY growth of 6.04%, QoQ decline of 0.53%) 2. **Gross Profit:** $165.6 million, gross margin improved 340 bps to 25.2% 3. **Operating Income:** $75.3 million, operating margin at 11.4% 4. **Net Income:** $46.1 million, net margin of 7% 5. **EPS:** $0.88 (diluted) 6. **Adjusted EBITDA:** $93.8 million, representing a growth of 23% YoY 7. **Free Cash Flow:** Generated $44 million this quarter, Year-to-Date at $58 million 8. **Net Debt:** Reduced to $327...