Modine Manufacturing Co (NYSE: MOD) plummeted 5.03% on Thursday, despite reporting strong third-quarter results driven by robust revenue growth and improved profitability. However, investors appeared to focus on the near-term challenges and headwinds facing the company.

The company reported a 10% increase in third-quarter sales, driven by strength in the Data Center and Climate Solutions segments. Notably, Data Center revenue surged by 176% due to the Scott Springfield acquisition, while Climate Solutions sales increased by 42%. Adjusted EBITDA and earnings per share also saw significant year-over-year improvements.

However, the stock's decline was likely influenced by the following factors:

• The Performance Technologies segment faced challenges with lower sales due to extended seasonal shutdowns and ongoing softness in vehicular markets.
• Heat Transfer product sales declined by 13% due to lower demand from commercial and residential HVAC, refrigeration, and European heat pump customers.
• Potential tariff risks on U.S. imports from Canada, Mexico, and China could add complexity to market operations.
• The company anticipates significant revenue headwinds in Performance Technologies due to normal seasonal trends and ongoing market weakness.