Modine Manufacturing's stock surged 18.99% during intraday trading on Tuesday, marking a significant upward movement for the thermal management technology company.

The sharp rise follows Modine's announcement of a landmark long-term capacity agreement with a strategic data center customer. Under the deal, Modine will supply more than $4 billion worth of its Airedale cooling products between 2027 and 2029, solidifying its position in the data center cooling market. The company also received a $165 million upfront cash payment from the customer to support capacity investments needed to fulfill the commitment.

Adding to the positive sentiment, B. Riley raised its price target on Modine Manufacturing to $264 from $250 while maintaining a buy rating. The combination of this major business development and analyst confidence contributed to the stock's substantial intraday gain.