On May 26, Modine Manufacturing surged 18.35% in regular trading, trading at $318.6/share, with trading volume of $235 million. The stock was driven sharply higher by a landmark contract announcement and strong earnings expectations ahead of its quarterly report.

The company announced it has signed a milestone long-term capacity agreement with a strategic data center customer, with a total contract value exceeding $4 billion. Under the agreement, Modine will reserve production capacity to supply its Airedale by Modine cooling solutions between 2027 and 2029. The customer has provided an upfront cash payment of $165 million to support capacity expansion and investments required to meet future demand, locking in core revenue growth and solidifying the company's leadership in AI-driven data center cooling.

Additionally, the company is expected to report quarterly earnings after the close, with consensus estimates projecting revenue of approximately $921 million, up 45.86% year-over-year; adjusted EPS of $1.56, up 62.80%; and EBIT of $122 million, up 63.44%. B.Riley raised its price target on the stock to $264, maintaining a Buy rating.

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