Modine's first quarter revenue misses estimates despite 90% Data Center growth, company reaffirms FY2027 outlook.

Modine reported first quarter fiscal 2027 revenue of $874.1 million, a 28% increase year-over-year, which missed analyst expectations. Adjusted EPS of $1.53 grew 44% and beat estimates, while the company reaffirmed its full-year guidance.

Key Highlights

• Data Center segment sales surged 90% year-over-year to $348.6 million, driven by higher sales to hyperscale customers in North America.
• The Data Center segment's gross margin declined significantly by 960 basis points from the prior year, attributed to supply chain constraints, higher material costs, and expenses related to capacity expansion.
• Commercial HVAC segment sales grew 22% to $261.6 million, while the Performance Technologies segment saw a 3% decline in sales to $277.8 million.
• Management reaffirmed its full-year fiscal 2027 guidance for sales growth of +20% to 35% and Adjusted EBITDA of $650 to $680 million.