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Jun 30
Modine Q1 2026 Earnings Report
Modine reported its first quarter fiscal 2026 results, showing increased net sales, net earnings, and adjusted EBITDA, driven by strong performance in Climate Solutions.
Key Takeaways
Modine delivered a solid first quarter for fiscal 2026, with net sales increasing by 3% to $682.8 million, net earnings growing by 8% to $51.7 million, and adjusted EBITDA rising by 0.5% to $101.4 million. The Climate Solutions segment was a key driver of growth, benefiting from strong data center product sales and acquisitions, while Performance Technologies experienced a decline due to market weakness and product line exits.
Net sales increased 3% to $682.8 million, primarily driven by the Climate Solutions segment.
Net earnings rose 8% to $51.7 million, and diluted EPS increased 8% to $0.95.
Adjusted EBITDA reached $101.4 million, a slight increase from the prior year.
The company raised its fiscal 2026 guidance for revenue and adjusted EBITDA, citing improved outlook for data center sales and recent acquisitions.
Modine
Modine
Modine Revenue by Segment
Revenue by Segment
Climate Solutions Revenue
CapyFin.comPerformance Technologies Revenue
CapyFin.com Forward Guidance
Modine is raising its fiscal year 2026 revenue and earnings outlook, driven by recent acquisitions in Climate Solutions and increased demand from data center customers. The company anticipates significant ramp in volumes in the second half of the year.
Positive Outlook
- Net sales growth projected between 10% to 15% for fiscal 2026.
- Adjusted EBITDA expected to range from $440 million to $470 million, representing 12% to 20% growth.
- Planned capacity expansion for data center products in North America expected to positively impact the second half of fiscal 2026 and beyond.
- Clear path to approach $2 billion in data center revenues by fiscal 2028.
- Continued focus on advancing multi-year transformation strategy, reallocating resources to higher growth and higher margin businesses.
Challenges Ahead
- No specific negative forward guidance points were explicitly stated in the provided text.
- The company is actively working to control and offset higher material costs in Performance Technologies.
- Free cash flow decreased compared to the prior year, primarily due to an increase in working capital related to higher inventory balances in Climate Solutions.
- Net debt increased due to borrowings to fund acquisitions.
- Restructuring expenses are expected to continue, primarily severance expenses related to headcount reduction in the Performance Technologies segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income