Abstract

Modine Manufacturing will report fiscal results on February 04, 2026, Post Market; this preview consolidates last quarter’s outcomes and the current quarter’s forecasts to outline revenue, margin, net income, and adjusted EPS expectations alongside institutional sentiment and business segment dynamics.

Market Forecast

Current-quarter forecasts indicate Modine Manufacturing’s revenue at USD 760.42 million, up 23.64% year over year, with estimated EBIT at USD 84.16 million, and estimated adjusted EPS at USD 1.00, reflecting estimated year-over-year growth of 31.17% for EBIT and 25.65% for EPS; company-level gross margin and net margin guidance was not disclosed within the accessible forecast, while last quarter’s gross margin was 22.47% and net margin was 6.01%. The main business outlook centers on Climate Solutions, supported by demand across HVAC, ventilation, and data center thermal systems, while Performance Technologies is positioned for steady improvement in heavy-duty and on-highway applications. The most promising segment is Climate Solutions, which contributed USD 454.40 million last quarter; year-over-year growth data for the segment was not provided in the collected dataset.

Last Quarter Review

Modine Manufacturing reported revenue of USD 738.90 million, a gross profit margin of 22.47%, GAAP net profit attributable to the parent company of USD 44.40 million with a net profit margin of 6.01%, and adjusted EPS of USD 1.06, with total revenue up 12.30% year over year and EPS up 9.28% year over year. A notable highlight was EBIT of USD 84.10 million, slightly ahead of internal estimates, showcasing operational leverage amid mix benefits. Main business highlights included Climate Solutions revenue of USD 454.40 million and Performance Technologies revenue of USD 286.30 million; specific year-over-year segment growth rates were not available from the dataset.

Current Quarter Outlook

Climate Solutions: margin mix, data center thermal, and HVAC-led demand

Climate Solutions remains the core driver, underpinned by broad-based demand for HVAC, ventilation, and specialized cooling solutions. The segment’s last-quarter revenue of USD 454.40 million underscores its scale and its operating leverage in high-value applications, including data centers and mission-critical indoor air quality systems. With the forecasted company revenue growth of 23.64% year over year and EBIT growth of 31.17%, the mix-shift toward higher-margin Climate Solutions products can plausibly support sustained gross margin resilience relative to the 22.47% reported last quarter, although no explicit company guidance was captured for margin. Pricing discipline and backlog conversion in commercial HVAC and ventilation should further support earnings per share expected at USD 1.00, up 25.65% year over year. Execution risks are most evident in project timing and supply chain cadence, yet the segment’s pipeline breadth offers a buffer against discrete delays.

Performance Technologies: operational improvement and heavy-duty cycles

Performance Technologies posted USD 286.30 million last quarter, reflecting steady contribution from heavy-duty equipment and on-highway applications. Leadership changes announced in late September 2025, appointing a new segment president, suggest an emphasis on streamlined operations and margin improvement initiatives, which may gradually enhance profitability. In the near term, order visibility across stationary power generation, agriculture, construction equipment, and commercial vehicles is stable, and operational execution should sustain segment-level margins, though the company did not provide segment-specific margin guidance for the current quarter. The forecasted uplift in company-level EBIT points to improved throughput and cost control, with potential benefits from 80/20 deployment across product and customer portfolios. While macro sensitivity in off-highway and truck cycles introduces volatility, ongoing cost actions are likely to support earnings stability.

Stock price drivers: earnings cadence, data center exposure, and margin trajectory

The stock’s near-term performance hinges on whether reported results align with the robust revenue and EPS estimates—USD 760.42 million topline and USD 1.00 adjusted EPS—alongside commentary on backlog, pricing, and order intake in Climate Solutions. Strategic exposure to data center thermal systems has been highlighted by institutions as an incremental growth catalyst, with elevated AI and cloud demand translating into higher capacity additions and thermal management needs. Margin trajectory will be closely watched relative to the last quarter’s 22.47% gross margin and 6.01% net margin, with investors looking for evidence that mix and operational discipline can lift EBIT beyond the USD 84.16 million estimate. Any updates on execution in Performance Technologies, including productivity actions and customer program timing, will influence confidence in sustaining EPS growth beyond the current quarter.

Analyst Opinions

Analyst sentiment over the past six months is predominantly bullish. Multiple institutions have maintained or initiated Buy ratings, including UBS with a price target of USD 173.00, D.A. Davidson with USD 185.00, Robert W. Baird with USD 175.00, and KeyBanc with USD 175.00, indicating confidence in Modine Manufacturing’s multi-year growth supported by data center demand and disciplined operational execution. The majority view emphasizes that approximately 30.00% exposure to data center-related solutions offers a meaningful tailwind to revenue expansion and mix improvement, with forecasts of double-digit annual growth anchored in AI and cloud infrastructure investments. The bullish perspective anticipates that the company can deliver on the USD 760.42 million revenue estimate and USD 1.00 adjusted EPS, citing backlog strength, pricing, and improved throughput; risks noted by bulls primarily center around project phasing and macro-driven variability in heavy-duty end markets, which they expect to be manageable within the quarter.