Modine books record $1B-plus data center orders as AI cooling demand climbs
In brief
- Modine booked more than $1 billion in Data Centers orders in fiscal Q2 2027, a company first.
- Data Centers sales rose 95% to $439.7 million; total net sales rose 35% to $994.4 million.
- Fiscal 2027 sales outlook from continuing operations now stands at $3.1 billion to $3.2 billion.
- New $400 million hyperscale award covers custom air handling units through calendar 2027.
Orders, sales and the AI cooling story
The record intake came from Modine's Data Centers segment in the quarter that ended September 30, 2026, according to Crypto Briefing's report on the results.
By Modine's own count, it's the fourth straight quarter of record orders.
Sales moved in the same direction. Data Centers revenue reached $439.7 million, up 95% year over year, and hyperscale customers in North America drove much of that growth (Americas sales rose 132%). Company-wide net sales climbed 35% to $994.4 million. The Data Centers segment posted an adjusted EBITDA margin of 15.4%.
Modine sells both air and liquid cooling systems. Demand for those systems has risen as AI-focused data centers expand, and the quarter also brought a new $400 million program award from a major hyperscale customer, covering custom air handling units through calendar 2027.
A narrower company after the spin-off
On October 1, 2026, Modine spun off its Performance Technologies business, which was combined with Gentherm. That leaves the company concentrated on two areas: Data Centers and Commercial HVAC. It's a simpler business to read now, with the data center side carrying most of the growth in the latest numbers.
Raised fiscal 2027 outlook
Modine raised its fiscal 2027 outlook for continuing operations. The company now projects sales of $3.1 billion to $3.2 billion (50-55% growth) and adjusted EBITDA between $470 million and $500 million for the fiscal year. By segment, it projects Data Centers revenue growth of 80-90% and Commercial HVAC growth of 10-15%.
Those are company projections, not results.
CEO Neil D. Brinker and CFO Mick Lucareli pointed to multi-year revenue visibility from long-running customer programs, plus rising AI-driven data center demand, as the reasons behind that confidence. They're putting capital behind it too: Modine has started investing in new capacity, including plans to expand its chiller plant in Franklin, Wisconsin.
