Focus on margin trajectory in Data Centers and Commercial HVAC for the next 1-2 quarters—if supply chain issues resolve and sequential margins improve, the 60-80% Data Centers growth target supports upside. Monitor execution on cost recovery and the pending spin-off of Performance Technologies (expected calendar Q4 2026), which will reshape the remaining business profile.
Price Chart
Executive Summary
Modine reported Q1 FY2027 adjusted EPS of $1.53, a 44% YoY increase and a 20.5% beat vs consensus of $1.27, driven by strong Data Centers revenue growth of 90%. Revenue of $874.1M grew 28% YoY but slightly missed consensus of $878.7M, and gross margin compressed 340 bps to 20.8% due to temporary supply chain constraints. The company reaffirmed its FY2027 guidance for 20-35% revenue growth and adjusted EBITDA of $650-$680M.
Key Financial Metrics
Key Facts
- Adjusted EPS of $1.53 beat consensus of $1.27 by +20.5%
- Revenue of $874.1M grew 28% YoY but missed consensus of $878.7M by -0.5%
- GAAP EPS of $1.37 rose 44% YoY, helped by a $5.7M income tax benefit
- Data Centers revenue surged 90% to $348.6M; Commercial HVAC +22% to $261.6M; Performance Technologies -3% to $277.8M
- Gross margin fell 340 bps to 20.8%, with all three segments declining, largely due to supply chain constraints and capacity ramp costs
- Operating income declined 1% to $74.8M; adjusted EBITDA grew 5% to $106.5M
- FY2027 guidance reaffirmed: net sales +20-35%, adjusted EBITDA $650-$680M; Data Centers expected +60-80%
- Free cash flow was negative $5.0M (vs +$0.2M prior year), reflecting higher capex for data center capacity expansion
Financial Impact
Strong EPS beat (+20.5%) offset by revenue miss and margin compression; reaffirmed guidance provides a floor. Near-term impact likely neutral as market digests mixed signals.
Risk Factors
- Data Centers margin pressure could persist longer than expected due to supply chain constraints and new capacity ramp costs
- Revenue miss, though small, combined with declining operating income may raise questions about earnings quality
- Free cash flow negative in Q1; capital intensity could strain balance sheet if growth moderates
- Pending spin-off of Performance Technologies introduces execution risk and distraction
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-088230 |
| Document: mod-20260729x8k.htm | 0001104659-26-088230 |
| Document: mod-20260729xex99d2.htm | 0001104659-26-088230 |
| Document: 0001104659-26-088230-index-headers.html | 0001104659-26-088230 |
| Document: 0001104659-26-088230-index.html | 0001104659-26-088230 |
| Document: 0001104659-26-088230.txt | 0001104659-26-088230 |
| 8-K Data (Synthetic) | 0001104659-26-088230 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 4, 2026 8w ago | Institutional Cluster | $194.61 $179.51 | ▼ −7.76% | ▼ −7.16% | $178.20 (−8.43%) |
Jul 31, 2026 9w ago | 425 | $201.06 $177.63 | ▼ −11.65% | ▼ −14.64% | $178.20 (−11.37%) |
Jul 29, 2026 9w ago | 8-K | $193.91 $186.31 | ▼ −3.92% | ▼ −7.88% | $178.20 (−8.10%) |
Jul 29, 2026 9w ago | Press Release | $193.91 $186.31 | ▼ −3.92% | ▼ −7.88% | $178.20 (−8.10%) |
Jul 10, 2026 12w ago | DEFA14A | $245.91 $195.60 | ▼ −20.46% | ▼ −22.88% | $178.20 (−27.53%) |
Jun 2, 2026 17w ago | Insider Cluster | $306.89 $244.49 | ▼ −20.33% | ▼ −18.77% | $178.20 (−41.93%) |
May 28, 2026 18w ago | 425 | $278.91 $256.34 | ▼ −8.09% | ▼ −6.30% | $178.20 (−36.11%) |
May 26, 2026 18w ago | 8-K | $279.93 $283.67 | ▲ +1.34% | ▲ +3.24% | $178.20 (−36.34%) |
US Market Status
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