Modine Manufacturing (MOD) Is Up 8.3% After Opening New Wisconsin Facility for Data Center Cooling Expansion

• Modine Manufacturing recently opened a new 155,000-square-foot manufacturing facility in Franklin, Wisconsin, as part of a US$100 million initiative to expand its data center cooling capacity and create over 300 new jobs by March 2026.
• This expansion places Modine at the forefront of supporting the rapid rise in digital infrastructure, especially as Wisconsin emerges as a hub for data center development.
• We'll explore how this major boost to data center cooling capacity impacts Modine's investment narrative amid rising digital infrastructure demand.

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Modine Manufacturing Investment Narrative Recap

To be comfortable as a Modine Manufacturing shareholder, I believe investors need to have confidence in the company's ability to capture surging demand for data center cooling, while effectively managing the financial and operational risks of rapid expansion. The opening of the Franklin facility directly supports Modine’s biggest near-term catalyst, accelerated data center revenue growth, but it does not materially reduce the principal risks around potential delays in customer deployment or unabsorbed costs if demand falters. A recent announcement closely tied to this development is Modine's decision to raise its full-year 2026 net sales guidance, now expecting growth between 15% and 20%, compared to the previous 10% to 15%. This upward revision reflects management’s conviction that its U.S. manufacturing investments, including the new Franklin site, are lining up with robust order pipelines and supporting faster fulfillment for data center and digital infrastructure customers. In contrast, investors should not overlook the risk that large-scale capital commitments could lock in excess capacity if new data center deployments slow...

Read the full narrative on Modine Manufacturing (it's free!)

Modine Manufacturing's outlook anticipates $4.0 billion in revenue and $453.0 million in earnings by 2028. This requires a 15.3% annual revenue growth rate and an earnings increase of $265.1 million from the current $187.9 million.

Uncover how Modine Manufacturing's forecasts yield a $185.00 fair value, a 29% upside to its current price.

Exploring Other Perspectives

Community members in Simply Wall St have set fair value estimates for Modine Manufacturing spanning US$96.88 to US$218.18 based on four different outlooks. Many analysts are highlighting that Modine’s rapid expansion to serve data center demand could carry a risk of underutilized assets if customer orders are delayed, sparking sharply different expectations for future returns.

Explore 4 other fair value estimates on Modine Manufacturing - why the stock might be worth 32% less than the current price!

Build Your Own Modine Manufacturing Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Modine Manufacturing research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Modine Manufacturing research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Modine Manufacturing's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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