Modine's $610M Volume Ranks in Top 500 as Data Center Growth Fuels 18.43% Surge

Modine Manufacturing (MOD) surged 18.43% on July 31, 2025, with a trading volume of $610 million, a 105.78% increase from the prior day. The stock closed near its 52-week high of $146.84, reflecting strong investor confidence. The company’s market capitalization now stands at $7.07 billion.

Q1 FY2026 results highlighted Modine’s outperformance, with earnings per share (EPS) of $1.06, exceeding forecasts by 11.58%, and revenue of $682.8 million, up 4.6% from estimates. The data center segment drove growth, with sales projected to rise over 45% in FY2026. Management cited strategic investments in manufacturing capacity and acquisitions, including Climate by Design International, to meet surging demand in North American data centers.

CEO Neil Brinker emphasized the potential to reach $2 billion in data center revenue by fiscal 2028, supported by high returns on investments—exceeding 40% on capital. CFO Mick Bucharelli noted margin expansion in the Climate Solutions segment, though gross margins dipped to 24.2% due to performance technology challenges. Free cash flow was $200,000, impacted by inventory builds, while net debt rose $123 million from acquisitions.

Modine raised FY2026 total sales guidance to 10-15%, driven by data center and climate solutions growth. The company plans to allocate $100 million in capital expenditures over 12-18 months to expand capacity, including new facilities in Dallas and Grenada. Despite headwinds in Performance Technologies, cost-cutting measures and operational efficiencies are expected to stabilize margins in the second half of the year.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present. This outperformed the benchmark return of 29.18%, generating an excess return of 137.53%. The strategy’s success is attributed to capturing momentum driven by high liquidity, as seen in stocks like Modine during its recent surge.