MODINE MANUFACTURING (MOD)

• Modine (NYSE: MOD) has officially opened a new 155,000-square-foot manufacturing facility in Franklin, Wisconsin, significantly expanding its data center cooling capacity.
• This facility is a key component of Modine's multi-year $100 million investment aimed at scaling production of Airedale by Modine™ data center cooling solutions.
• The new Franklin facility is projected to create over 300 new jobs by March 2026, with approximately 430 employees expected within three years.
• The $100 million investment also includes a new manufacturing facility in Grand Prairie, Texas, and expansions in Grenada, MS, and Jefferson City, MO, to further support data center growth.

Modine's Climate Solutions segment demonstrated strong performance in Q2 2026, with revenue growth and data center sales growth as detailed in the table below. This growth was partially driven by contributions from three recent acquisitions.

The company is significantly expanding its U.S. manufacturing capacity for data center products, including launching chiller production in Grenada, Mississippi, and planning initial production in Franklin, Wisconsin, and Jefferson City, Missouri, in Q4 2026. A new facility in Grand Prairie, Texas, is expected to be fully online early next fiscal year.

Investments in data center capacity expansion, including hiring 1,200 employees, led to a temporary decline in Climate Solutions adjusted EBITDA in Q2 2026, as shown in the table. Margins are anticipated to improve in Q4 2026 as new production lines ramp up.

Modine has raised its total company sales outlook for fiscal year 2026 and expects significant data center sales growth, with a long-term revenue target for data centers by fiscal 2028, as presented in the table.

• Modine's Climate Solutions segment reported a 24% increase in revenue for Q2 2026, with data center sales growing 42%. The company is significantly expanding its U.S. manufacturing capacity for data center products in Grenada, Mississippi; Franklin, Wisconsin; Jefferson City, Missouri; and Grand Prairie, Texas, with international expansions in Chennai, India, and the U.K. also underway or planned.
• For fiscal year 2026, Modine raised its total company sales outlook to grow 15%-20%, with Climate Solutions sales expected to increase 35%-40% and data center sales projected to grow in excess of 60%. The adjusted EBITDA outlook for FY 2026 remains $440 million-$470 million.
• The significant investments in data center capacity, including hiring 1,200 employees, led to temporary margin erosion in Climate Solutions in Q2 2026, which is expected to continue in Q3. However, margins are anticipated to improve in Q4 as new production lines ramp up and volumes increase.
• Modine is on track to achieve over $2 billion in data center revenues by fiscal 2028, aiming for a 15%-20% market share in the addressable HVAC market for data centers at that revenue level.

• Modine's Climate Solutions segment saw revenue increase by 24% in Q2 2026, with data center sales growing 42%. This growth was partially offset by lower profit margins in the segment due to significant investments in data center capacity expansion and the hiring of 1,200 employees.
• The company is significantly expanding its data center manufacturing capacity, launching new chiller production lines in Grenada, Mississippi, Franklin, Wisconsin, and Jefferson City, Missouri, and securing a new facility in Grand Prairie, Texas, for early next fiscal year. International expansion includes new production in Chennai, India, and planned chiller capacity in the UK.
• Modine raised its fiscal year 2026 total company sales outlook to grow 15% to 20%, with Climate Solutions sales expected to increase 35% to 40%, and data center sales projected to grow over 60%. The adjusted EBITDA outlook for FY2026 remains between $440 million and $470 million.
• Management expects Climate Solutions' margins to improve sequentially in Q3 2026 and return to more normalized levels in Q4 2026 as new production lines achieve significant volumes. The company aims for over $2 billion in data center revenues by fiscal 2028.

• Modine reported strong Q2 FY26 financial results, with net sales increasing to $738.9 million from $658.0 million in Q2 FY25, and adjusted EPS rising to $1.06 from $0.97.
• The Climate Solutions segment was a key growth driver, with revenue increasing 24% to $454.4 million, including 15% organic growth and a 42% increase in Data Centers. This growth was partially offset by a temporary margin impact due to substantial investments in data center capacity expansion.
• Despite a 4% decline in Performance Technologies revenues to $286.3 million, the segment's adjusted EBITDA margin improved by 90 basis points to 14.7% due to cost containment and operational efficiencies.
• Modine raised its fiscal year 2026 net sales outlook to +15% to +20% ($2.97 billion to $3.10 billion) and reaffirmed its adjusted EBITDA outlook of $440 million to $470 million. The company expects data center sales to grow over 60% this year.

• Modine reported Net Sales of $738.9 million for Q2 FY26, an increase from $658.0 million in Q2 FY25, with Adjusted EPS rising to $1.06 from $0.97.
• The Climate Solutions segment revenue grew 24% to $454.4 million in Q2 FY26, driven by acquisitions and 42% growth in Data Centers. This growth was partially offset by a 4% decline in Performance Technologies revenue to $286.3 million.
• The company is undertaking significant Data Center capacity expansion in North America, with new production launches planned through FY26, which is temporarily impacting Climate Solutions' margins.
• Modine raised its FY26 Net Sales outlook to 15% to 20% growth ($2.97B to $3.10B) and reaffirmed its Adjusted EBITDA outlook of $440M to $470M. Climate Solutions data center sales are expected to grow more than 60% this year.
• Free Cash Flow was negative $30 million for Q2 FY26 YTD due to inventory build and capital spending for capacity expansion, but the company maintains a strong balance sheet with Net Debt of $498 million and a 1.2x leverage ratio as of September 30, 2025.

• Modine reported net sales of $738.9 million for the second quarter of Fiscal 2026, marking a 12 percent increase from the prior year.
• Adjusted EBITDA grew 4 percent to $103.8 million, and adjusted earnings per share increased 9 percent to $1.06 for the quarter.
• The company raised its full-year Fiscal 2026 net sales growth outlook to between 15 percent to 20 percent (up from a prior outlook of 10 to 15 percent) and reaffirmed its Adjusted EBITDA range of $440 million to $470 million.
• Sales growth was primarily driven by the Climate Solutions segment, which saw a 24 percent increase in sales, including a 42 percent increase in data center sales.
• Net debt increased by $219.1 million from the end of fiscal 2025 to $498.3 million as of September 30, 2025, mainly due to borrowings to fund acquisitions and capital expenditures.

• Modine reported net sales of $738.9 million for the second quarter of fiscal year 2026, an increase of 12 percent from the prior year.
• Adjusted earnings per share increased 9 percent to $1.06 for the second quarter of fiscal year 2026, compared to $0.97 in the prior year.
• The company raised its fiscal 2026 net sales growth outlook to between 15 percent and 20 percent, up from the prior outlook of 10 to 15 percent, while reaffirming its adjusted EBITDA guidance of $440 million to $470 million.
• This performance was driven by strong organic growth in the Climate Solutions segment, particularly from 42 percent growth in data center sales.
• Net debt increased by $219.1 million from the end of fiscal 2025 to $498.3 million as of September 30, 2025, primarily due to borrowings for acquisitions and capital expenditures.

• Modine is conducting a significant hiring drive for its new 153,000-square-foot Franklin, WI facility, aiming to fill 55 immediate openings and reach approximately 300 employees by March 2026.
• This expansion is a direct result of the growth in Modine's North American data center business, supported by a $100 million investment over the next 12-18 months to boost manufacturing capacity for data center cooling products across four U.S. sites.
• The company is actively recruiting with a career fair on September 25-26, 2025, offering competitive starting hourly wages of $22 for production assemblers and $32 for certified welders.

• Modine (NYSE:MOD) has officially opened a new 100,000 sq. ft. facility in Chennai, India, on August 21, 2025.
• This new facility will begin full-scale, in-region production of Airedale by Modine™ data center cooling equipment.
• The purpose of the new facility is to meet accelerated demand from data center customers across the Asia-Pacific (APAC) region, driven by the increasing use of AI applications.