Net sales climbed 35% compared to the previous year, bolstered further by a 23% revenue increase within the commercial HVAC segment. Despite this momentum, net income fell to $30 million, or 56 cents a share, down from $44.4 million. The bottom line was impacted by a $29.5 million income tax expense tied to the corporate restructuring.

Investors noted that adjusted earnings of $1.35 a share missed the consensus estimate of $1.45. Looking ahead, Modine management set fiscal 2027 revenue guidance between $3.1 billion and $3.2 billion. The company continues to capitalize on the massive infrastructure buildout for artificial intelligence and cloud computing, which relies heavily on specialized cooling systems for high-density server environments.