Start here if you're new
what it is
Modine makes heating and cooling systems for buildings, vehicles, and data centers.
how it gets paid
Last year Modine Mfg made $2.6B in revenue.
why it's growing
Revenue grew 7.3% last year. The quarter also showed revenue of $2.2B, up 177% vs. prior year, with gross margin at 23.2%.
what just happened
Latest earnings showed EPS of $1.19, beating the $1.05 estimate by 13.33%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
60/100 earnings predictability — reasonably predictable
29.2x trailing p/e — priced about right
18.5% return on capital — nothing to write home about
xvary composite: 59/100 — below average
What they do
Modine makes heating and cooling systems for buildings, vehicles, and data centers.
Modine wins where failure is expensive. If your data center cooling or building HVAC dies, your problem is not the invoice. Climate Solutions was 56% of fiscal 2024 sales and grew more than 20%, which tells you customers are paying for uptime, not bargain-bin equipment.
How they make money
$2.6B
annual revenue · their business grew +7.3% last year
total revenue
$2.6B
+7.3%
The products that matter
thermal management systems
Climate Solutions
56% of fy '24 sales
this is the larger segment. At 56% of a $2.2B business, it is where the data center cooling angle starts to matter financially.
majority segment
engine and exhaust systems
Performance Technologies
44% of fy '24 sales
44% of sales is still a very large piece of the company. If industrial or vehicle demand softens, this segment keeps the old-cycle risk alive.
legacy exposure
Key numbers
18.5%
return on capital
Return on capital → profit earned on money invested → so what: Modine turns every $1 put into the business into $0.185 of operating return.
29.2x
trailing p/e
P/E → price compared with annual profit → so what: you are not buying a cheap industrial, you are buying a growth story.
$526M
long-term debt
Long-term debt → money owed over many years → so what: it is just 7% of capital, so the balance sheet is not the first thing likely to break.
16.0%
operating margin
Operating margin → profit after running the business → so what: Modine keeps $16 on every $100 of sales before interest and taxes.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 15 / 100
- long-term debt $526M (7% of capital)
- net profit margin 10.1% — keeps 10 cents of every dollar in revenue
- return on equity 20% — $0.20 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in MOD 3 years ago → it's now worth $69,910.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Latest earnings showed EPS of $1.19, beating the $1.05 estimate by 13.33%.
The quarter also showed revenue of $2.2B, up 177% vs. prior year, with gross margin at 23.2%. The bigger pattern is steadier than that headline quarter: annual EPS rose from $3.25 in 2023 to $4.70 in 2025.
$2.2B
revenue
$1.19
eps
23.2%
gross margin
the number that mattered
The 13.33% EPS beat matters because this stock already trades at 29.2x trailing earnings, so the bar is high every quarter.
-
modine manufacturing is well on its way to delivering strong fiscal 2025 results. (year ends march 31, 2026.) the company's september-quarter sales clocked in at $738.9 million, which came in ahead of our estimate and increased 12% vs. prior year.
-
the climate solutions unit performed exceptionally well, advancing over 20%, thanks to the data center business continuing to see impressive gains.
-
too, hvac sales jumped.
-
the performance technologies division did not follow suit, however, decreasing 4%.
-
softer demand from on-highway applications was problematic.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is AI data center cooling demand cooling off before it is large enough to carry the rest of the business.
med
data center cooling demand slows
78% growth in AI data center cooling sales is the exciting number. if that cools quickly, the stock is left looking like an expensive industrial instead of a growth rerating story.
at 29.2x trailing earnings, the valuation already assumes more than an ordinary cyclical business.
med
legacy segments still matter a lot
Performance Technologies still represents 44% of fy '24 sales. if vehicle or industrial demand weakens, almost half the business can lean the wrong way.
this is why MOD is not a pure-play AI infrastructure stock, even if the market sometimes treats it like one.
med
growth outruns operating discipline
revenue grew 56.6% last year. fast growth sounds great until sourcing, manufacturing, or pricing discipline slips and the 15.0% operating margin starts moving the wrong way.
if growth slows while margins compress, the market will not keep paying a premium multiple.
med
earnings and the stock can both swing hard
the latest quarter printed -$0.90 EPS, and price stability is just 15/100. that is not a calm setup.
you are holding a company with decent fundamentals and a stock that still behaves like a story.
a slowdown in the hot end market or a stumble in execution would pressure a business where 100% of the $2.2B revenue base still depends on thermal-management demand holding up.
source: institutional data · regulatory filings · risk analysis
Pay attention to
estimate gap
the jump from $2.2B to $4B revenue
the street is modeling $4B for fy2026 against a $2.2B base last year. that gap is the whole debate.
trend
AI data center cooling growth
78% growth is strong enough to move sentiment. if that rate fades fast, the story cools with it.
margin
15.0% operating margin
rapid growth gets attention. holding margin while scaling is what makes it durable.
earnings
january report
after -$0.90 EPS on $805M revenue, the next print needs to clarify whether that quarter was noise or a warning.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they still like the setup.
risk profile
below average
stability score 4 — this is more volatile than most stocks, and the 15/100 price stability backs that up.
chart momentum
top 20%
technical score 2 — the chart still screens well even after pulling back from the high.
earnings predictability
60 / 100
good enough to follow, not good enough to trust blindly. quarters like the recent EPS loss are why.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 228 buyers vs. 203 sellers in 3q2025. total institutional holdings: 58.4M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$73
$245
$137
current price
$159
target midpoint · +16% from current · 3-5yr high: $275 (+100% · 19% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive