Modine Manufacturing (MOD)
Thermal management pure-play. Data center segment (Airedale) fastest-growing. Liquid cooling for high-density AI racks.
- Ticker: MOD
- Sector: cooling (liquid cooling)
- DC exposure tier: high
Modine Manufacturing (MOD) is a high-exposure name in the data-center supply chain in the cooling sector. Data Center Index tracks Modine Manufacturing's capex history, project wins, and supplier exposure across the AI infrastructure buildout, refreshed daily from SEC filings and project announcements.
Modine Manufacturing data center thesis
Modine is the second-source liquid-cooling story: Airedale's CDU and chilled-water plants for hyperscale AI halls have been elevated to a stand-alone reporting line and are the fastest-growing piece of the Climate Solutions segment. Gross margin expanded from 16% in 2021 to 25% in 2025, operating income 7x'd to $280M, and the stock is +188% YoY as data-center mix re-rates a former auto thermal supplier into an AI-infrastructure name.
Bull case
- Climate Solutions data-center vertical now reported separately because it grew large enough to demand it; gross margin moved from 21.8% (FY24) to 24.9% (FY25) on the mix shift toward Airedale CDU and chiller systems.
- B200/B300 thermal density (120 kW+ per rack) makes the chilled-water plant, not just the CDU, the new bottleneck. Airedale ships pre-fabricated chiller modules that cut on-site mechanical work for hyperscalers fighting time-to-power.
- Hyperscalers are deliberately qualifying a second cooling vendor next to Vertiv; Modine is the most credible Western alternative on liquid + air, and benefits regardless of which hyperscaler wins the capex auction.
Bear case
- Stock at 95% of its 52-week high after +188%; any miss on the data-center segment growth rate triggers a multiple reset on what was an industrial-thermal name trading at AI-infrastructure multiples.
- Lead times in liquid cooling are easing (12-24 weeks) as Vertiv, Boyd, CoolIT, and Asetek all add capacity. The supply scarcity that drove the 2025 margin expansion is a 2026 risk, not a 2026 floor.
- Auto and HVAC heritage businesses remain ~60% of revenue and are cyclical; a soft commercial-buildings or EV cycle drags the consolidated multiple even if the DC segment keeps printing.
Data center exposure rationale
Climate Solutions data-center vertical is the fastest-growing piece of the portfolio; mgmt has elevated DC cooling to a standalone reporting line.
Modine Manufacturing revenue and capex
In fiscal 2026, Modine Manufacturing reported revenue of $3.2B, capital spending of $143.3M and operating income of $342.4M.
| Fiscal year | Revenue | Capex | Operating income |
|---|---|---|---|
| 2026 | $3.2B | $143.3M | $342.4M |
| 2025 | $2.6B | $84.0M | $283.5M |
| 2024 | $2.4B | $87.7M | $240.7M |
Tracked Modine Manufacturing data center projects
- Meta Hyperion, 5 GW, Holly Ridge, LA · under construction
- Meta Prometheus, 1 GW, New Albany, OH · operational
- Azure Northern Virginia, 1 GW est., Northern Virginia, VA · operational
- Microsoft Fairwater Atlanta, 636 MW est., Fayetteville, GA · operational
- Microsoft Fairwater Wisconsin, Mount Pleasant, WI · operational