Modine Manufacturing's data‑center cooling revenue surges 90% as AI build‑out fuels growth
Modine Manufacturing, once an auto‑parts supplier, has rebranded as a thermal‑management specialist serving AI‑driven data centers. In its fiscal 2027 Q1, overall revenue rose 28% YoY, while sales to data‑center customers jumped 90% to $348.6 million, and the backlog more than doubled. The company now expects data‑center revenue to exceed $2 billion in fiscal 2028, prompting an upgraded…
Key points
- Data‑center cooling sales rose 90% YoY to $348.6 million in fiscal 2027 Q1.
- Modine projects data‑center revenue over $2 billion for fiscal 2028.
- Shares have risen >280% over three years, yet trade below a $323 52‑week high.
The stock, trading well below its 52‑week peak of $323, has climbed over 280% in three years, reflecting investor enthusiasm for AI infrastructure exposure without the lofty multiples of chip makers. Valuation remains steep with a trailing P/E above 70, though a forward P/E of 24 suggests a more reasonable outlook. Risks include reliance on short‑term AI spend cycles and concentration among a few hyperscale customers, but multiyear contracts could sustain growth.
Analysts view Modine as a way to capture the AI boom’s cooling‑technology demand, offering a potentially lower‑priced alternative to semiconductor stocks. While not highlighted in top‑pick lists, its rapid revenue expansion and strategic positioning make it a noteworthy play for long‑term investors interested in the AI supply chain.
Wall Street Is Obsessed With the Anthropic IPO. Here's the AI Cooling Stock Nobody Is Talking About.
bing.com · 14 September 2026
Wall Street Is Obsessed With the Anthropic IPO. Here's the AI Cooling Stock Nobody Is Talking About.
While the investing world is largely distracted by thoughts of Anthropic's potential $2 trillion IPO -- an event that's now looking likely to occur next month -- a far smaller player that has been benefiting from the AI build-out has been making gains out of the spotlight. Data center cooling provider Modine Manufacturing (NYSE: MOD) has flown under the radar, but you'll want to pay attention.
Modine transformed itself from an auto parts supplier into a thermal management company, providing technology that prevents data centers from overheating. The company's climate solutions segment is now its most powerful growth channel as it provides necessary components to hyperscalers.
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In Modine's most recently reported quarter (its fiscal 2027 Q1), revenue climbed 28% year over year, but its data center sales rose by 90% to $348.6 million. The company's backlog more than doubled in the same time frame. Management raised its full-year guidance, and now projects that its data center revenue will top $2 billion in fiscal 2028.
Shares are currently well below their 52-week high of $323, but the stock has still risen by more than 280% in the past three years. Its valuation is quite rich because of this incredible growth, with a trailing P/E ratio above 70. Still, Modine has multiyear agreements in the pipeline and room for further growth. And its forward P/E is a more reasonable 24.
Modine still looks like a justifiable buy for long-term investors. There are risks associated with short-term AI infrastructure build-out spending, as well as a high degree of customer concentration in its data center segment. Still, Modine offers a way to invest in the AI infrastructure trend without paying the sky-high valuation multiples currently commanded by chipmakers.
Should you buy stock in Modine Manufacturing right now?
Before you buy stock in Modine Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Modine Manufacturing wasn't one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.
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This text was published by bing.com and written by Catie Hogan, The Motley Fool. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗
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