Modine Manufacturing is scheduled to release fiscal fourth-quarter results on May 26 after market close. Shares have risen sharply intraday and over the past year, reflecting elevated expectations. The prior quarter showed adjusted EPS above estimate and revenue growth, with Climate Solutions revenue increasing strongly as data center sales rose. Management raised the full-year outlook and announced a $1 billion Reverse Morris Trust combination with Gentherm, expected to close in the fourth calendar quarter of 2026, leaving Modine as a climate solutions pure play focused on data center cooling and commercial HVAC. Key watch items include Climate Solutions margins, free cash flow, and cash conversion amid capacity investments and net debt increases.
"Investors are watching Modine Manufacturing ( NYSE: MOD) ahead of its fiscal fourth-quarter results due today, May 26, expected after the close around 4:15 PM ET. With shares up 15.7% intraday and 95.13% year to date, expectations are already high."
"Last quarter reset the story for Modine. MOD posted adjusted EPS of $1.19 against a $0.9941 estimate, with revenue of $805.0 million, up 30.51% year over year. Climate Solutions revenue jumped 51% as data center sales climbed 78%. Management used the strength to raise the full-year outlook and unveil a $1 billion Reverse Morris Trust combination of Performance Technologies with Gentherm, valued at 6.8x trailing EBITDA and expected to close in the fourth calendar quarter of 2026."
"Management guided to sequential improvement of over 200 basis points in Q4, keeping the segment within a 20% to 21% range. That hinges on new chiller lines in Grenada, Mississippi, and Dallas coming online cleanly, plus the Franklin, Wisconsin, air handler ramp. The implied Q4 data center run rate is roughly $400 million, at an annualized pace of $1.6 billion."
"Investors will also watch free cash flow. Q3 FCF was negative $17.1 million, with net debt up $238 million to fund capacity. With CapEx still tracking $150M to $180M for the year, Q4 cash conversion matters."
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