Modine's Q3 revenue beats estimates on higher data center sales

Reuters02-05 05:25
Modine's Q3 revenue beats estimates on higher data center sales

Overview

  • Thermal management firm's Q3 revenue rose 31%, beating analyst expectations

  • Adjusted EPS for Q3 increased 29% and beat analyst expectations

  • Company to spin off Performance Technologies business, combining it with Gentherm

Outlook

  • Modine raises fiscal 2026 net sales growth outlook to 20%-25%

  • Company expects fiscal 2026 adjusted EBITDA between $455 mln and $475 mln

  • Modine anticipates 50%-70% annual growth in data center sales for next two years

Result Drivers

  • DATA CENTER SALES - Modine's 78% increase in data center sales drove a 51% rise in Climate Solutions segment sales

  • CAPACITY EXPANSION - Ongoing capacity expansion for data center products contributed to a 31% sequential sales increase

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$805 mln

$760.42 mln (7 Analysts)

Q3 Adjusted EPS

Beat

$1.19

$0.99 (7 Analysts)

Q3 EPS

-$0.90

Q3 Adjusted EBITDA

Beat

$119.60 mln

$102.40 mln (7 Analysts)

Q3 Gross Profit

$186.10 mln

Q3 Operating Income

$89.30 mln

Q3 Pretax Profit

-$38.50 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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 $205.00, about 2.8% above its February 3 closing price of $199.48

  • The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nPnbJDd3ra

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)

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