Modine Q2 revenue jumps 35%, beats estimates on data center growth
Overview
U.S. thermal management firm's Q2 revenue rose 35% yr/yr, beating analyst expectations
Adjusted EPS for Q2 rose 27% but missed analyst expectations
Growth driven by Data Centers and Commercial HVAC segments; net income fell on higher tax expense
Outlook
Modine sees fiscal 2027 net sales of $3.1 bln to $3.2 bln
Company expects fiscal 2027 adjusted EBITDA of $470 mln to $500 mln
Modine forecasts revenue growth of 50-55% for fiscal 2027, excluding Performance Technologies
Result Drivers
DATA CENTERS GROWTH - Revenue in Data Centers segment nearly doubled, driven by higher sales to hyperscale customers in North America
COMMERCIAL HVAC DEMAND - Commercial HVAC segment sales rose 23%, mainly due to higher sales of coils, coatings, and heating and ventilation products
HIGHER MATERIAL AND TARIFF COSTS - Gross margins declined across all segments, mainly due to increased material, component, and tariff costs
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $994.4 mln | $943.72 mln (10 Analysts) |
Q2 Adjusted EPS | Miss | $1.35 | $1.45 (10 Analysts) |
Q2 EPS | $0.56 | ||
Q2 Net Income | $30.3 mln | ||
Q2 Adjusted EBITDA | Beat | $136.2 mln | $133.16 mln (10 Analysts) |
Q2 Gross Profit | $205.4 mln | ||
Q2 Operating Income | $97.8 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"
Wall Street's median 12-month price target for Modine Manufacturing Company is $285.00, about 131.1% above its November 2 closing price of $123.34
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 21 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)