Modine Posts 47% Revenue Growth, Wins $4B AI Cooling Deal
MOD•Modine reported Q4 revenue of $954.4 million, up 47% year-on-year, with adjusted EPS of $1.71, topping analyst estimates. The company secured a $4 billion multi-year AI data center cooling contract, expected to generate about $1.3 billion in annual revenue through 2029.
1. Record Q4 Financial Performance
Modine generated $954.4 million in Q4 revenue, up 47% year-over-year, with net income rising 47% to $73.6 million and adjusted earnings of $1.71 per share, both surpassing consensus forecasts.
2. Segment Growth Drivers
The Climate Solutions segment delivered sales of $665.9 million, an 87% increase driven by three strategic acquisitions, while data center cooling sales soared 158% as demand for AI infrastructure intensified.
3. $4B AI Data Center Cooling Deal
Modine secured a $4 billion long-term contract running from 2027 through 2029 to supply Airedale cooling systems for a major hyperscale cloud customer, with an upfront payment of $165 million and expected annual revenue of $1.3 billion.
4. Outlook and Stock Reaction
For fiscal 2027, Modine forecasts net sales growth of 20% to 35% and adjusted EBITDA between $650 million and $680 million, a backdrop for the stock’s record rally to $323.25.
