Modine Reports Earnings Growth Despite Supply Chain Hurdles

The Racine, Wisconsin-based company saw strong demand in its core segments, with Data Centers revenue surging 90 percent and Commercial HVAC expanding by 22 percent. Despite this top-line performance, the company faced margin pressure as production bottlenecks and capacity expansion costs weighed on profitability. Chief Executive Officer Neil D. Brinker noted that the firm is actively qualifying additional suppliers to resolve these constraints, which he expects will drive sequential margin improvements throughout the remainder of the year.

Operating income for the quarter dipped slightly to $74.8 million, impacted by $11 million in combined restructuring and spin-off costs. Modine is currently preparing for the divestiture of its Performance Technologies segment, a transaction with Gentherm that remains on track to close in the fourth calendar quarter of 2026. Looking ahead, management reaffirmed its full-year fiscal 2027 outlook, anticipating sales growth between 20 and 35 percent and adjusted EBITDA in the range of $650 million to $680 million.