Modine Manufacturing reports a 90% jump in data center cooling sales and projects $2 billion in segment revenue by 2028, positioning itself as a key infrastructure play in the AI market.
Modine Manufacturing's data center cooling segment grew 90% YoY to $348.6M, management raised guidance projecting over $2B in data center revenue by fiscal 2028, and the forward P/E of 24 makes it a justifiable AI infrastructure play.
Modine Manufacturing is pivoting from automotive parts to thermal management, capitalizing on the AI infrastructure boom. The company reported a 90% year-over-year surge in data center cooling revenue to $348.6 million, prompting management to raise long-term guidance. With a forward P/E ratio of 24, the stock offers a more accessible entry point into the AI hardware sector compared to high-multiple chipmakers.
Modine has successfully transitioned from an automotive parts supplier to a thermal management company, providing critical cooling technology for data centers and hyperscalers.