Key Takeaways Modine is using its 80/20 principles to enhance profitability and streamline operations.The approach focuses resources on high-return products and markets while improving efficiency.In fiscal 2026, Modine will deepen 80/20 in Climate Solutions to capture growth in thermal solutions.Modine Manufacturing Company (MOD) is applying its 80/20 principles to drive commercial excellence and operational focus. By analyzing customer and product data, the company is targeting actions that enhance profita ...

Key Takeaways Modine completed three acquisitions, expanding its Climate Solutions portfolio in 2025.AbsolutAire, L.B. White and CDI strengthen Modine's HVAC and air-quality capabilities.Climate Solutions sales rose 11% y/y in Q1 FY26, with $10M revenues from new acquisitions.Modine Manufacturing Company’s (MOD) Climate Solutions business is benefitting from the successful integration and strong contributions of its recent strategic acquisitions, AbsolutAire, L.B. White and Climate by Design International ( ...

Core Insights - Modine Manufacturing Company (MOD) anticipates overall margin improvement in fiscal 2026, primarily driven by the Performance Technologies segment, with expectations for stronger margins in the second half of the year [1][8] Segment Analysis - Climate Solutions is projected to see significant volume growth in the second half, driven by data center ramp, although initial margins may be flat or slightly lower due to preparation costs [2][8] - Data center volumes are expected to grow by over 80% in the second half, supported by substantial inventory built to meet project timelines [2] - The acquisition of L.B. White is expected to deliver margins of 15-20% in the fiscal second quarter, contributing positively to performance in the second half [3][8] - Performance Technologies is expected to achieve nearly 100 basis points of margin improvement in the second half, despite flat to declining volumes, due to cost reduction efforts and recovery of tariff and metals costs [4][8] Competitive Landscape - Magna International Inc. (MGA) is implementing restructuring and cost containment measures to address macroeconomic pressures, while enhancing productivity through advanced technologies [5] - BorgWarner Inc. (BWA) is streamlining its portfolio and consolidating operations to improve profitability, with expected annual cost savings of about $20 million by 2026 [6] Financial Performance - Modine has outperformed the Zacks Automotive-Original Equipment industry year to date, with shares gaining 29.1% compared to the industry's 12% growth [7] - Modine's price/sales ratio indicates it may be overvalued, trading at a forward sales multiple of 2.57, higher than the industry's 2.11 [10] - The Zacks Consensus Estimate for MOD's fiscal 2026 and 2027 EPS has increased by 11 cents and 46 cents, respectively, in the past 60 days [11]