MOD Filings — Modine Manufacturing Company - FilingSpy
MOD
Modine Manufacturing Company
A maker of heating and cooling systems, Modine designs thermal-management products used in data centers, buildings, and vehicles — including radiators and its high-density TurboChill™ data-center chillers. Founded in 1916 in Racine, Wisconsin, and named for founder Arthur B. Modine, it got its start with his patented Spirex radiator. Fun fact: the Spirex was reportedly the only radiator to pass US government standards for World War I artillery trailers.
Q1 FY2027 revenue rose 28% to $874.1M but gross margin fell 340 bps to 20.8% on data center costs
Data center demand pushed up but margins kept sliding. Revenue rose 28% to $874.1M while fell 340 to 20.8% as $21M in higher material costs, tariffs, and capacity-expansion inefficiencies raised cost of sales 34%. The company is growing into its data center buildout while waiting on the Gentherm spin-off to cut debt.
Key takeaways
Consolidated grew 28% to $874.1M, led by a $164.9M increase in Data Centers from hyperscale customer demand, while Performance Technologies declined $7.7M.
contracted 340 to 20.8% as cost of sales rose 34%, pressured by about $21M in higher material costs, tariffs, and Data Center capacity-expansion inefficiencies.
was nearly flat at $74.8M, down 28.0% from the prior quarter and 1.2% below a year ago, as margin pressure offset the gain.
Section summaries
Management's Discussion and Analysis
Q1 FY2027 sales rose 28% to $874M driven by Data Centers, but gross margin fell 340 bps to 20.8% on higher material costs and operating inefficiencies.
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Consolidated grew 28% to $874.1M, led by a $164.9M surge in Data Centers from hyperscale customer demand, while Performance Technologies declined $7.7M.
A $19.7M swing to an income tax benefit — driven by $26.5M in — helped rise 1.4% to $73.9M and rise 1.1% to $1.37 versus Q4 FY2026.
improved $13.7M to $41.4M on favorable , while rose $18.9M to $46.4M, mostly for Data Center capacity.
SG&A rose $18.4M including $7.1M in costs for the pending with Gentherm and about $10M in higher compensation.
The company expects $210M from the Gentherm transaction to pay down debt and remains in compliance with .
What changed
The FY2026 10-K flagged Q1 FY2027 production disruption from data center component shortages that emerged in Q4 FY2026; still rose 28% to $874.1M, indicating the shortage had not yet cut sales this quarter.
FY2026 flagged whether temporary data center capacity inefficiencies would reverse against the 23.0% margin; instead fell further to 20.8%, extending the decline that began Q1 FY2026.
The Reverse Morris Trust spin-off of Performance Technologies and merger with Gentherm remained pending and incurred $7.1M in Q1 SG&A costs, with $210M cash proceeds still expected by end of calendar 2026.
recovered to $41.4M from $27.7M a year earlier and $29.1M year-to-date prior, as turned favorable after prior-quarter builds.
rose 23.7% to $476.2M from $384.9M the prior quarter as the company funded capacity expansion ahead of the expected Gentherm proceeds.
What to watch
Q2 FY2027 as data center capacity inefficiencies and material costs persist or reverse against the 20.8% Q1 level
Closing of the Reverse Morris Trust spin-off of Performance Technologies and merger with Gentherm, including $210M debt paydown, by end of calendar 2026
Q2 FY2027 impact from the data center component supply shortages flagged in the FY2026 10-K
and as the $46.4M Q1 capital spend for data center capacity continues
contracted 340 to 20.8% as cost of sales rose 34%, pressured by ~$21M in higher material costs, tariffs, and Data Center capacity-expansion inefficiencies.
SG&A rose $18.4M, including $7.1M in costs for the pending transaction with Gentherm and ~$10M in higher compensation, partly offset by lower Performance Technologies costs.
was nearly flat at $74.8M; a $19.7M swing to an income tax benefit was driven by $26.5M in tax benefits.
improved $13.7M to $41.4M on favorable , while jumped $18.9M to $46.4M, mostly for Data Center capacity.
The Company expects to receive $210M from the Gentherm transaction to pay down debt and remains in compliance with its and interest coverage covenants.
Quantitative and Qualitative Disclosures About Market Risk
The Company’s quantitative and qualitative disclosures about market risk are incorporated by reference from Part II, Item 7A. of the Company’s Annual Report on Form 10-K for the year ended March 31, 2026. The Company’s market risks have not materially changed since the fiscal 20…
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The Company’s quantitative and qualitative disclosures about market risk are incorporated by reference from Part II, Item 7A. of the Company’s Annual Report on Form 10-K for the year ended March 31, 2026. The Company’s market risks have not materially changed since the fiscal 2026 Form 10-K was filed.