Modine (MOD) Q2 2026 Earnings Transcript

Modine Manufacturing’s Q2 2026 results underscore a growth-shifted portfolio, with total revenue up 12% and Climate Solutions rising 24% on acquisitions and rising data-center demand. Organic Climate Solutions sales grew 15%, with data-center sales up 42% as the main driver. HVAC Technologies increased 25% on recent acquisitions, offset by softer indoor air quality and weaker early-season heating shipments. Performance Technologies declined 4%, with heavy-duty equipment and on-highway applications down modestly. Adjusted EBITDA margin rose 90 basis points to 14.7%, helped by cost cuts and efficiency programs, while gross margin fell 290 basis points to 22.3% due to data-center investments. Net debt reached $498 million, up $219 million year over year, and free cash flow was negative $30 million. Full-year 2026 guidance remains a sales rise of 15%-20%, Climate Solutions up 35%-40%, and data-center growth surpassing 60%; Performance Technologies is expected to be flat to down 7%. Major capex includes five chillers across Grenada and Grand Prairie, four at Jefferson City, and initial modular data-center shipments.