Earnings Releases·Nov 3, 2026, 4:25 PM ET

Modine — Second Quarter Fiscal 2027 Earnings Summary

Net sales rose 35% year-over-year to $994.4 million, while adjusted EBITDA increased 31% to $136.2 million; however, reported net earnings and EPS declined 32% and 33% respectively to $30.3 million and $0.56 due to $29.5 million in tax expenses related to the Performance Technologies spin-off.
Fiscal 2027 guidance was updated to reflect higher core business expectations, projecting net sales of $3.1–$3.2 billion and adjusted EBITDA of $470–$500 million (excluding Performance Technologies), with revenue growth of 50–55% expected for the continuing business.
The Performance Technologies spin-off was completed on October 1, 2026, via a Reverse Morris Trust transaction with Gentherm, with historical results for this unit to be reported as discontinued operations starting in Q3.
Data Centers sales surged 95% to $439.7 million driven by hyperscale demand, though gross margins compressed across all segments due to elevated material, component, and tariff costs.
Free cash flow for the first six months was a use of $145.6 million, negatively impacted by higher capital expenditures for Data Centers capacity and inventory buildup, while net debt increased $210.9 million to $573.7 million.