Modine Reports Strong Q2 2027 Results Driven by Data Center Demand
Modine (MOD) reported significant growth for its second quarter of fiscal year 2027, with net sales reaching $994.4 million, a 35% increase year-over-year. This surge was primarily fueled by the Data Centers segment, which saw revenue jump 95% to $439.7 million due to intense demand from North American hyperscale customers. For the first time, quarterly data center order intake exceeded $1 billion. Despite robust top-line growth and a 27% increase in adjusted EPS to $1.35, the company faced significant margin pressure. Material costs, tariffs, and logistics inflation led to a decline in gross margins and specific segment EBITDA margins. Management is actively negotiating cost recoveries to combat these headwinds while simultaneously expanding chiller capacity to meet ongoing demand.
Topics: data centers earnings report EBITDA HVAC revenue growth