Modine (MOD) Shares Decline Despite Market Gains: Key Information to Consider Before Trading
Modine's Recent Performance: Modine (MOD) closed at $147.05, down 2.94% in the latest trading session, underperforming compared to the S&P 500's gain of 0.85%. However, the stock has risen 6.9% over the past month, outperforming both the Auto-Tires-Trucks sector and the S&P 500.
Upcoming Earnings Expectations: Analysts anticipate Modine will report an EPS of $1.01 and revenue of $690.47 million in its upcoming earnings disclosure, reflecting year-over-year increases. The Zacks Consensus Estimates project full-year earnings of $4.63 per share and revenue of $2.88 billion, indicating significant growth from the previous year.
Analyst Sentiment and Zacks Rank: Modine currently holds a Zacks Rank of #1 (Strong Buy), indicating positive analyst sentiment. The Zacks Rank system has a strong track record of identifying stocks that outperform the market, with #1 stocks averaging a 25% annual return since 1988.
Valuation Metrics: Modine's Forward P/E ratio stands at 32.72, significantly higher than the industry average of 14.46, while its PEG ratio is 0.96, suggesting a favorable growth outlook compared to the industry average of 1.3. The Automotive - Original Equipment industry ranks in the top 33% of all industries, indicating strong performance potential.
Get Free Real-Time Notifications for Any Stock
Analyst Views on MOD
About MOD
About the author

Modine Sells Performance Tech to Gentherm for ~$1B, Stock Surges
- Transaction Size: Modine announced the sale of its performance technologies business to Gentherm for approximately $1 billion, representing a valuation of about 6.8 times the adjusted EBITDA for 2025, indicating strong market recognition of its assets.
- Shareholder Benefits: Before the transaction closes, Modine is set to receive a cash distribution of $210 million, while shareholders will receive around 21 million shares of newly issued Gentherm common stock, allowing them to hold approximately 40% of the combined company, enhancing long-term shareholder value.
- Synergy Potential: The combined company is projected to have revenue of $2.6 billion and an adjusted EBITDA margin of 13%, with expected annual synergies of $25 million through cost optimization and operational efficiencies, significantly improving overall financial performance.
- Strategic Implications: Analysts view this transaction as a positive strategic move; while the sale of the entire engine business was unexpected, it does not negatively impact Modine's long-term prospects and may strengthen its focus on climate solutions.

Modine and Gentherm Merger Overview
- Cash Distribution Expectation: Modine is expected to receive a cash distribution of approximately $210 million from the spun-off unit before the transaction closes, which will enhance its financial flexibility for future business developments.
- Shareholder Structure Change: After the transaction, Modine shareholders will own about 40% of the new combined company, while Gentherm shareholders will hold the remaining 60%, allowing Modine to maintain a significant market presence post-merger.
- Strategic Focus Shift: Following the spin-off of the Performance Technologies division, Modine will concentrate solely on its Climate Solutions segment, particularly targeting the rapidly growing markets of data center cooling and commercial HVAC & refrigeration.
- Positive Market Reaction: Following the merger announcement, Modine's stock surged over 17% in early trading on Thursday, reflecting investor optimism about the merger's prospects, with retail sentiment shifting from 'bearish' to 'bullish', indicating strong confidence in future growth.








