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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.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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