Modine Gears Up to Report Q1 Earnings: Here's What to Expect

Core Insights - Modine Manufacturing Company (MOD) is expected to report first-quarter fiscal 2026 results on July 30, with earnings per share (EPS) estimated at 93 cents and revenues at $651.12 million, reflecting a 10.58% decline in EPS year-over-year [1][9] - The consensus estimate for quarterly revenues indicates a year-over-year decline of 1.57% [2] Financial Performance - In the fourth quarter of fiscal 2025, MOD reported adjusted EPS of $1.12, exceeding the Zacks Consensus Estimate of 95 cents, and net sales of $647 million, surpassing the estimate of $625 million [2] - The company has consistently beaten earnings estimates in the past four quarters, with an average surprise of 14.90% [2] Revenue Projections - For fiscal 2026, MOD anticipates net revenues to increase by 2-10% year-over-year, with the Climate Solutions segment projected to grow by 12-20%, driven by strong demand in data centers and commercial indoor air quality products [3] - The company expects revenue growth of over 30% year-over-year specifically for data centers [3] EBITDA Expectations - Adjusted EBITDA for fiscal 2026 is expected to range between $420 million and $450 million, compared to $392.1 million in fiscal 2025, indicating a positive outlook for the company's performance [4] Segment Performance - Performance Technologies sales are projected to decline by 2% to 12% year-over-year due to ongoing market weaknesses and trade conflicts, which may offset overall top-line growth in the first quarter [5] - SG&A expenses as a percentage of sales increased to 12.8% in fiscal 2025 from 11.3% in fiscal 2024, and are expected to remain elevated, potentially impacting margin performance in the upcoming quarter [6] Earnings Prediction - The current Earnings ESP for MOD is -4.30%, indicating that the model does not predict an earnings beat for the upcoming quarter [7][8]