Modine Manufacturing (MOD) has reported a 62% increase in shares year-to-date, reflecting a strategic shift from a traditional thermal components supplier to a higher-growth climate solutions provider. The Climate Solutions segment accounted for nearly 56% of fiscal 2025 sales, with revenues up 51% year-over-year and an adjusted EBITDA margin of 17.9%, projected to rise to 20-21% in the near term. Management aims for margins of 20-23% in the long term as the company plans to separate its Performance Technologies segment.
The data center business is expected to witness annual growth rates of 50-70% over the next two years, supported by a robust order pipeline. Analysts project EPS growth of approximately 19% for fiscal 2026 and 50% for fiscal 2027. Modine’s current trading reflects a forward PE of around 30x, above its 5-year average, indicating a critical evolution as it positions itself alongside higher-margin peers like Trane Technologies and Johnson Controls.
