Revenue: As of FY2027 Q1, the actual value is USD 874.1 M, missing the estimate of USD 878.69 M.

EPS: As of FY2027 Q1, the actual value is USD 1.37, beating the estimate of USD 1.1747.

EBIT: As of FY2027 Q1, the actual value is USD 75 M.

Overall Company Financial Review

Net Sales

Modine Manufacturing Company reported net sales of $874.1 million for Q1 FY27, an increase from $682.8 million in Q1 FY26.

Gross Profit

Gross profit for Q1 FY27 was $182.0 million, up from $165.4 million in Q1 FY26. Gross profit as a percentage of net sales was 20.8% in Q1 FY27, compared to 24.2% in Q1 FY26.

SG&A Expenses

SG&A expenses were $103.3 million in Q1 FY27, compared to $84.9 million in Q1 FY26. As a percentage of net sales, SG&A expenses were 11.8% in Q1 FY27, down from 12.4% in Q1 FY26.

Operating Income

Operating income was $74.8 million in Q1 FY27, a slight decrease from $75.7 million in Q1 FY26. Operating income as a percentage of net sales was 8.6% in Q1 FY27, down from 11.1% in Q1 FY26.

Adjusted EBITDA

Adjusted EBITDA increased to $106.5 million in Q1 FY27 from $101.4 million in Q1 FY26. Adjusted EBITDA as a percentage of net sales was 12.2% in Q1 FY27, compared to 14.9% in Q1 FY26.

Segment Performance (Q1 FY27 vs. Q1 FY26)

Data Centers Segment

Net sales for the Data Centers segment increased 112% to $348.6 million in Q1 FY27 from $183.7 million in Q1 FY26. Adjusted EBITDA for this segment grew 27% to $51.7 million in Q1 FY27 from $40.6 million in Q1 FY26. Adjusted EBITDA margin was 14.8% in Q1 FY27, down from 22.1% in Q1 FY26.

Commercial HVAC Segment

Net sales for the Commercial HVAC segment increased 22% to $261.6 million in Q1 FY27 from $214.2 million in Q1 FY26. Adjusted EBITDA for this segment was $41.6 million in Q1 FY27, up from $38.8 million in Q1 FY26. Adjusted EBITDA margin was 15.9% in Q1 FY27, down from 18.1% in Q1 FY26.

Performance Technologies Segment

Net sales for the Performance Technologies segment slightly decreased by 5% to $277.8 million in Q1 FY27 from $285.5 million in Q1 FY26. Adjusted EBITDA for this segment was $36.2 million in Q1 FY27, down from $37.5 million in Q1 FY26. Adjusted EBITDA margin was 13.0% in Q1 FY27, a slight decrease from 13.1% in Q1 FY26.

Cash Flow and Metrics (Q1 FY27)

Free Cash Flow

Free cash flow was - $5 million for Q1 FY27.

Net Debt and Leverage Ratio

Net debt as of June 30 was $433 million, with a leverage ratio of 0.9x.

Capital Expenditures

Capital expenditures for Q1 FY27 were $46 million.

Fiscal 2027 Outlook

Modine Manufacturing Company reaffirms its revenue and earnings outlook for fiscal year 2027, anticipating net sales growth of 20% to 35%, reaching $3.82 billion to $4.29 billion. Adjusted EBITDA is projected to grow 38% to 44%, totaling $650 million to $680 million, with all three segments expected to contribute to margin increases. The company forecasts free cash flow to be 4% to 6% as a percentage of net sales, with capital expenditures estimated between $150 million and $200 million.