Management expects Data Centers margin to rebound to about 19%-20% in Q2 on roughly $100 million higher revenue, with further step-ups in Q3 and Q4.
Outlook stayed unchanged: total sales growth 20%-35% with adjusted EBITDA of $650-$680 million.
Free cash flow is targeted at 4%-6% of sales.
First-quarter earnings call highlights
Modine held its first-quarter fiscal 2027 earnings call on July 30, 2026, led by CEO Neil Brinker, CFO Mick Lucareli, and IR head Kathy Powers.
Data Centers revenue rose 90% year over year; component shortages cut output and drove a 14.8% adjusted EBITDA margin, with a 450-550 bps hit from inefficiencies.
Commercial HVAC sales rose 22% with margin pressure from acquisition mix.
The Performance Technologies spin-off and merger with Gentherm are targeted before year-end.
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