Modine Manufacturing Company (NYSE:MOD) released its second-quarter fiscal year 2027 financial results via an 8-K press release on November 3, 2026, covering the quarter ended September 30, 2026.

Key Highlights

  • Net sales of $994.4 million increased $255.5 million, or 35 percent, from the prior year, according to the filing.
  • Adjusted EBITDA of $136.2 million increased $32.4 million, or 31 percent, from the prior year.
  • Data Centers segment sales of $439.7 million represented a 95 percent increase from $225.0 million one year ago.
  • Net earnings of $30.3 million decreased $14.5 million, or 32 percent, from the prior year, including $29.5 million of income tax expense related to legal entity restructuring to facilitate the Performance Technologies spin-off.
  • Adjusted earnings per share of $1.35 increased $0.29, or 27 percent, from the prior year adjusted EPS of $1.06.
  • Spin-off of Performance Technologies was completed on October 1, as disclosed in the filing.
  • Fiscal 2027 outlook updated to net sales of $3.1 to $3.2 billion and adjusted EBITDA of $470 to $500 million, excluding Performance Technologies from both periods.

Modine Reports Second-Quarter FY2027 Results Amid Performance Technologies Spin-Off

According to the filing, Modine reported net sales of $994.4 million for the quarter ended September 30, 2026, a 35 percent increase from $738.9 million in the prior year. The company attributed sales growth primarily to the Data Centers and Commercial HVAC segments. Gross profit increased 25 percent to $205.4 million, though gross margin declined 160 basis points to 20.7 percent. Selling, general and administrative expenses increased 24 percent to $104.6 million, with the filing noting higher costs related to growth in the Data Centers segment and spin-off preparation.

The company disclosed operating income of $97.8 million, a 33 percent increase from the prior year. The filing noted $3.0 million in restructuring expenses and $14.1 million in spin-off-related costs during the quarter. Net earnings fell 32 percent to $30.3 million, which the company attributed to a $29.5 million income tax charge tied to legal entity restructuring steps completed to facilitate the spin-off. Adjusted earnings per share rose to $1.35 from $1.06 in the prior year. Net debt as of September 30, 2026, was $573.7 million, an increase of $210.9 million from the end of fiscal 2026, with the filing citing higher working capital and equity compensation plan-related stock repurchases as primary drivers.

At the segment level, the filing reported that Data Centers segment adjusted EBITDA reached $67.6 million, a 66 percent increase from the prior year, while Commercial HVAC segment adjusted EBITDA was $43.0 million, a 22 percent increase. The Performance Technologies segment, which was spun off on October 1, reported adjusted EBITDA of $40.9 million, a 3 percent decrease from the prior year. For the updated fiscal 2027 outlook, the company disclosed expectations for revenue growth of 50 to 55 percent from the prior year excluding Performance Technologies, with adjusted EBITDA of $470 to $500 million for the continuing business.

What Was Disclosed

Modine disclosed its second-quarter fiscal 2027 financial results, including segment-level performance, balance sheet data as of September 30, 2026, the completed spin-off of Performance Technologies on October 1, and a revised fiscal 2027 financial outlook for its continuing operations.