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Modine Manufacturing Company (MOD) investor relations material

Modine Manufacturing Company Q2 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2026 earnings summary29 Oct, 2025

Executive summary

  • Net sales rose 12% year-over-year to $738.9 million in Q2 FY2026, driven by strong growth in Climate Solutions, robust data center demand, and recent acquisitions.

  • Adjusted EBITDA increased 4% to $103.8 million, with a 14.0% margin; adjusted EPS grew 9% to $1.06.

  • Net earnings declined 3% to $44.8 million, impacted by a $4.1 million impairment charge and restructuring costs.

  • Free cash flow was negative, reflecting inventory builds and capital expenditures for data center capacity expansion.

  • Full-year revenue guidance was raised, reflecting robust demand, especially in data center solutions.

Financial highlights

  • Q2 FY2026 net sales: $738.9 million, up from $658.0 million in Q2 FY2025.

  • Gross profit was $164.9 million (22.3% of sales), down $0.7 million year-over-year; gross margin declined 290 basis points, mainly due to expansion costs.

  • Operating income was $73.5 million (9.9% of sales), down $1.8 million year-over-year, mainly due to a $4.1 million impairment charge.

  • Adjusted EBITDA: $103.8 million (14.0% margin), up from $99.8 million (15.2%).

  • Free cash flow for the six months was negative $30.3 million, down $87.8 million year-over-year, due to higher working capital and capital expenditures.

Outlook and guidance

  • Fiscal 2026 net sales growth outlook raised to 15%–20%, with total sales expected at $2.97–$3.10 billion.

  • Climate Solutions full-year sales outlook raised to 35%–40% growth; data center sales expected to grow over 60% year-over-year.

  • Performance Technologies revenue outlook improved to flat to down 7% for the year.

  • Adjusted EBITDA guidance reaffirmed at $440–$470 million.

  • Free cash flow for the year expected at 2.5%–3% of sales, with normalization anticipated in fiscal 2027.

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Frequently asked questions

Modine Manufacturing Company provides engineered heat transfer systems and heat transfer components for use in on- and off-highway original equipment manufacturer vehicular applications. The company's Engine Cooling segment produces aluminum radiators and charge air coolers, which are used to cool the engine's coolant and intake air for on-highway heavy duty truck applications; radiators for medium duty truck applications; aluminum radiators, charge air coolers and oil coolers for various off-highway vehicular applications, including various agricultural, construction, military and industrial equipment; aftermarket aluminum radiators through direct sales to customers, as well as through radiator supply houses for a range of end market customers; and marine application products, such as keel coolers, raw water chillers, radiators and sea water pumps..

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