Financial Performance Overview - Net sales increased to $738.9 million, up from $658.0 million, representing a growth of approximately 12.3%[13] - Adjusted EBITDA grew by 4% to $103.8 million, compared to $99.8 million in the prior year[15] - Adjusted EPS increased by 9% to $1.06[15] Climate Solutions Segment - Climate Solutions revenue increased by 24%, driven by acquisitions and organic growth[6] - Organic growth within Climate Solutions was 15%, including a 42% increase in Data Centers[6] - Recent acquisitions contributed $28 million in sales to HVAC Technologies[10] - Climate Solutions adjusted EBITDA margin was 16.7%, down from 21.5% due to investments in Data Centers and integration costs[10] - The company expects data center sales to grow more than 60% this year[20] - The company is targeting more than $2 billion of data center revenue in FY28[6] Performance Technologies Segment - Performance Technologies revenues decreased by 4% to $286.3 million, aligning with market conditions[9, 12] - Adjusted EBITDA for Performance Technologies increased by 3% to $42.2 million, improving the margin by 90 bps to 14.7%[9, 12] - Cost reduction actions resulted in nearly $7 million lower SG&A expenses[12] Fiscal Year 2026 Outlook - The company raised its net sales outlook to +15% to +20%, projecting $2.97 billion to $3.10 billion[19] - Climate Solutions revenue outlook raised to +35% to +40%[20] - Performance Technologies revenue outlook adjusted to flat to (7%)[20] - Adjusted EBITDA outlook reaffirmed at $440 million to $470 million, representing a growth of 12% to 20%[19]

Core Insights - Modine reported revenue of $738.9 million for the quarter ended September 2025, reflecting a 12.3% increase year-over-year and a surprise of +7.02% over the Zacks Consensus Estimate of $690.47 million [1] - Earnings per share (EPS) for the quarter was $1.06, compared to $0.97 in the same quarter last year, resulting in an EPS surprise of +9.28% against the consensus estimate of $0.97 [1] Revenue Performance - Net Sales in Climate Solutions reached $454.4 million, exceeding the estimated $424.63 million, marking a 24% increase compared to the previous year [4] - Net Sales in Performance Technologies were $286.3 million, slightly below the estimated $269.59 million, representing a decrease of 3.8% year-over-year [4] - Corporate and eliminations reported net sales of $-1.8 million, better than the estimated $-5.2 million, showing a significant improvement of 69.5% compared to the year-ago quarter [4] EBITDA Analysis - Adjusted EBITDA for Climate Solutions was $76 million, slightly below the average estimate of $79.81 million from two analysts [4] - Adjusted EBITDA for Corporate and eliminations was $-14.4 million, better than the estimated $-17.82 million [4] - Adjusted EBITDA for Performance Technologies was $42.2 million, exceeding the average estimate of $37.04 million from two analysts [4] Stock Performance - Modine's shares have returned +15.5% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Modine (MOD) reported quarterly earnings of $1.06 per share, exceeding the Zacks Consensus Estimate of $0.97 per share, and showing an increase from $0.97 per share a year ago, resulting in an earnings surprise of +9.28% [1] - The company achieved revenues of $738.9 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 7.02% and increasing from $658 million year-over-year [2] - Modine's stock has increased approximately 40.6% since the beginning of the year, outperforming the S&P 500's gain of 16.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $708.52 million, while for the current fiscal year, the estimate is $4.65 on revenues of $2.88 billion [7] - The estimate revisions trend for Modine was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - Modine operates within the Zacks Automotive - Original Equipment industry, which is currently ranked in the top 29% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - The performance of Modine's stock may be influenced by the overall industry outlook, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - Net sales increased by 12% to $738.9 million, compared to $658.0 million in the prior year, driven by strong demand in the Climate Solutions segment and strategic acquisitions[3]. - Net earnings decreased by $1.6 million, or 3%, to $44.8 million, while adjusted earnings per share increased by 9% to $1.06[6][8]. - Adjusted EBITDA rose by 4% to $103.8 million, with a projected range for fiscal 2026 of $440 million to $470 million, indicating growth between 12% and 20%[6][12]. - Gross profit decreased by $0.7 million to $164.9 million, with gross margin declining by 290 basis points to 22.3% due to increased costs from capacity expansion[4]. - Operating income decreased by $1.8 million to $73.5 million, impacted by a $4.1 million impairment charge on real estate held for sale in Europe[7]. - Adjusted EBITDA for the six months ended September 30, 2025, was $205.2 million, compared to $200.7 million for the same period in 2024[29]. - Adjusted EBITDA for the six months ended September 30, 2025, was $205.2 million, compared to $200.7 million for the same period in 2024, reflecting a growth of 2.2%[31]. Segment Performance - Climate Solutions segment sales grew by 24% to $454.4 million, with data center sales increasing by 42% year-over-year[13]. - Modine's Climate Solutions segment net sales increased to $454.4 million in Q2 2025, up from $366.4 million in Q2 2024, representing a 24% growth[28]. - The Performance Technologies segment reported net sales of $286.3 million in Q2 2025, a decrease of 3.9% from $297.5 million in Q2 2024[28]. - Organic sales growth for Climate Solutions was 15% for the three months ended September 30, 2025, while Performance Technologies experienced a decline of 4%[34]. - The adjusted EBITDA margin for Climate Solutions was 18.2% for the six months ended September 30, 2025, compared to 14.4% in the same period of 2024[31]. Cash Flow and Debt - Free cash flow for the six months ended September 30, 2025, was negative $30.3 million, a decrease of $87.8 million from the prior year[10]. - Total debt as of September 30, 2025, was $582.1 million, with net debt increasing by $219.1 million to $498.3 million due to borrowings for acquisitions and capital expenditures[11]. - Cash and cash equivalents increased to $83.8 million as of September 30, 2025, up from $71.6 million at the end of March 2025[26]. - The Company reported a net cash provided by operating activities of $29.1 million for the six months ended September 30, 2025, down from $97.8 million in the same period of 2024[27]. - The Company reported a free cash flow of $(30.5) million for the three months ended September 30, 2025, compared to $43.8 million in the same period of 2024[33]. - Total debt increased to $582.1 million as of September 30, 2025, up from $350.8 million on March 31, 2025[32]. Acquisitions and Impairments - The company incurred $182.1 million in payments for business acquisitions during the six months ended September 30, 2025[27]. - The Company recorded a $4.1 million non-cash asset impairment charge related to its technical service center in Germany during Q2 of fiscal 2026[30]. - Acquisition and integration costs for the first six months of fiscal 2026 amounted to $1.3 million due to inventory purchase accounting adjustments, with total costs of $3.4 million in Q2[30]. Tax and Other Expenses - SG&A expenses decreased by $1.6 million to $84.2 million, primarily due to headcount reductions in Performance Technologies[5]. - The Company faced a $3.1 million increase in income tax expense in Q2 of fiscal 2026 due to the One Big Beautiful Bill Act enacted in July 2025[30].

Core Insights - Modine reported strong revenue growth driven by the Climate Solutions segment and strategic acquisitions, raising its full-year revenue guidance [1][2][7] - The company anticipates a significant increase in Data Centers revenue, projecting over 60% year-over-year growth [7][9] Financial Performance - Net sales for the quarter increased by 12% to $738.9 million, compared to $658.0 million in the prior year [3][9] - Net earnings decreased by 3% to $44.8 million, down from $46.4 million in the previous year [4][9] - Adjusted EBITDA rose by 4% to $103.8 million, compared to $99.8 million in the prior year [4][9] - Earnings per share decreased by 3% to $0.83, while adjusted earnings per share increased by 9% to $1.06 [4][9] Segment Performance - The Climate Solutions segment reported sales of $454.4 million, a 24% increase from $366.4 million a year ago, with data center sales up 42% [10] - The Performance Technologies segment saw a 4% decline in sales to $286.3 million, primarily due to lower sales in On-Highway Applications [10] Cost and Margin Analysis - Gross profit decreased slightly to $164.9 million, with a gross margin of 22.3%, down 290 basis points from the prior year [4][10] - The Climate Solutions segment's gross margin fell to 24.6%, impacted by costs related to capacity expansion and the absence of prior year pricing settlements [10] Balance Sheet and Liquidity - As of September 30, 2025, total debt was $582.1 million, with cash and cash equivalents at $83.8 million, resulting in net debt of $498.3 million [7][32] - Net cash provided by operating activities for the first half of fiscal 2026 was $29.1 million, a decrease of $68.7 million from the prior year [6][33] Outlook - Modine raised its fiscal 2026 revenue outlook to a growth range of 15% to 20%, up from the previous 10% to 15% [7][9] - Adjusted EBITDA is projected to be between $440 million and $470 million for fiscal 2026 [7][9]

Core Insights - Modine Manufacturing Company (MOD) is set to release its second-quarter fiscal 2026 results on October 28, with earnings per share (EPS) estimated at 97 cents and revenues at $690.5 million, reflecting a year-over-year revenue growth of 4.9% [1][2][6] Financial Performance - The consensus estimate for Modine's fiscal 2026 sales and EPS is $2.88 billion and $4.65, respectively, with the company having beaten earnings estimates in the last four quarters, averaging a surprise of 13.16% [3] - Modine's Earnings ESP is -5.86%, indicating that the Most Accurate Estimate is lower than the Zacks Consensus Estimate, and it currently holds a Zacks Rank of 3 [4] Segment Performance - The Climate Solutions segment reported an 11% increase in revenues and a 10% improvement in adjusted EBITDA in the first quarter of fiscal 2026, driven by higher sales of data center products and growth in HVAC Technologies [5] - The Performance Technologies segment faced challenges, with revenues expected to decline by 2-12% due to weak end-market demand, including a 4% drop in heavy-duty equipment sales and an 8% decrease in on-highway sales [6][7] Market Position and Valuation - Modine's shares have increased by over 39% year-to-date, outperforming the industry but lagging behind peers like Dana Incorporated and Aptiv PLC, which saw increases of 71.9% and 43.2%, respectively [8] - The company appears overvalued compared to the industry, trading at a forward sales multiple of 2.73, higher than the industry's 2.01 [10] Strategic Growth Initiatives - Modine is focusing on strategic growth through acquisitions, having acquired AbsolutAire, L.B. White, and Climate by Design International, which support its mission-critical thermal management strategy [11][12] - A $100 million investment is planned over the next 12-18 months to expand U.S. manufacturing of data center cooling products, enhancing engineering and product development capabilities [14]

Core Viewpoint - Modine (MOD) is showing potential as a bullish investment opportunity due to its recent technical indicators and positive earnings estimate revisions [1][4]. Technical Analysis - MOD has recently reached a key level of support and has overtaken the 20-day moving average, indicating a short-term bullish trend [1]. - The 20-day simple moving average is a popular trading tool that helps smooth out short-term price trends and signals trend reversals [2]. Performance Metrics - Over the past four weeks, MOD shares have increased by 12.1% [4]. - The company currently holds a Zacks Rank of 3 (Hold), suggesting potential for continued upward movement [4]. Earnings Estimates - There has been one upward revision in earnings estimates for the current fiscal year, with no downward revisions, indicating a positive outlook [4]. - The consensus estimate for MOD has also increased, further supporting the bullish sentiment [4]. Investment Consideration - Given the positive technical indicators and earnings estimate revisions, investors are encouraged to consider adding MOD to their watchlist [5].

Core Viewpoint - The comparison between Aptiv PLC (APTV) and Modine (MOD) indicates that APTV is more attractive to value investors due to its stronger earnings estimate revisions and favorable valuation metrics [1][3][7] Valuation Metrics - APTV has a forward P/E ratio of 11.33, significantly lower than MOD's forward P/E of 33.83 [5] - APTV's PEG ratio is 0.93, while MOD's PEG ratio is 1.00, suggesting APTV is expected to grow earnings at a more favorable rate relative to its price [5] - APTV's P/B ratio stands at 1.89, compared to MOD's P/B of 8.07, indicating APTV is more undervalued based on its book value [6] Investment Grades - APTV holds a Zacks Rank of 2 (Buy), reflecting a positive analyst outlook, while MOD has a Zacks Rank of 3 (Hold) [3] - APTV has received a Value grade of A, whereas MOD has a Value grade of C, further supporting APTV's position as the superior choice for value investors [6][7]

Core Insights - Modine Manufacturing Company (MOD) and Dana Incorporated (DAN) are both key players in the thermal-management products sector for the automotive industry, with Modine also involved in HVAC and agricultural equipment, while Dana focuses on motion/drive systems for vehicles and machinery [1] Modine Stock Analysis - In Q1 FY26, Modine reported net sales of $682.8 million, a 3% increase from $661.5 million year-over-year, driven by the Climate Solutions segment [4] - Modine anticipates net sales growth of 10-15% for FY26, supported by recent acquisitions such as AbsolutAire and L.B. White, which enhance its market presence [5][7] - The company expects adjusted EBITDA for FY26 to be between $440-$470 million, reflecting a growth of 12-20% [7] - Performance Technologies segment faced challenges with a 4% decline in heavy-duty equipment sales and an 8% drop in on-highway sales, leading to a projected revenue decrease of 2-12% for FY26 [8] Dana Stock Analysis - Dana reported sales of $1.9 billion from continuing operations in Q2 2025, alongside a $2.7 billion divestiture of its Off-Highway business to streamline operations [9][10] - The company expects to generate approximately $2.4 billion in net cash from the sale, with plans to use $2 billion for debt repayment and initiate a $1 billion capital return program [10] - Dana's cost-savings initiative has realized $60 million in savings in Q2, contributing to a target of a 10% adjusted EBITDA margin by 2026 [11] - For 2025, Dana forecasts revenues between $7.25 billion and $7.55 billion, with an adjusted EBITDA margin of 7.4-8.1% [11] Valuation and Estimates - Modine trades at a forward sales multiple of 2.66X, while Dana's forward sales multiple is at 0.35X [13] - The Zacks Consensus Estimate for Modine's FY26 EPS indicates a year-over-year growth of 14.3%, while Dana's FY25 EPS suggests a significant growth of 50% [15][16] Conclusion - Modine's growth is supported by strategic acquisitions but faces challenges in its Performance Technologies segment due to market demand [17] - Dana's strong debt reduction strategy, capital return program, and focus on electrified systems position it favorably for profitability and margin expansion through 2026 [19]

Core Insights - Modine Manufacturing Company is a key player in the thermal management industry, focusing on heating and cooling solutions across automotive, commercial, and industrial sectors [1] - B. Riley has reaffirmed a "Buy" rating for Modine, raising the price target from $160 to $180, indicating confidence in the company's future performance [2][6] - Modine's stock has shown a recent increase of 2.56%, outperforming major indexes, although it has declined by 0.75% over the past month [3][6] Financial Performance - Modine's upcoming earnings report is expected to show earnings per share (EPS) of $1.01, reflecting a 4.12% increase year-over-year [4] - The Zacks Consensus Estimate anticipates net sales of $690.47 million, representing a 4.93% rise from the previous year [4] - Currently, Modine's stock is priced at approximately $153.57, with a market capitalization of around $8.06 billion [5]