Modine Secures $180 Million in Orders for Data Center Cooling Systems
Rhea-AI Summary
Modine (NYSE: MOD) has secured $180 million in orders for Airedale by Modine™ data center cooling systems from a new customer in AI infrastructure development. The high-capacity equipment will be manufactured at facilities in Rockbridge, Virginia, and Grenada, Mississippi, with delivery scheduled throughout 2025 and first half of 2026.
The cooling systems are designed to lower total ownership costs through superior Power Usage Effectiveness (PUE), featuring free-cooling technology and advanced control systems. These solutions will support the customer's objectives of building large-scale, optimized data centers for AI applications.
The company expects this to be a long-term partnership and projects organic growth exceeding 30% in their next fiscal year, supported by current order intake and development pipeline.
Positive
- $180M new order secured from AI infrastructure customer
- Expected organic growth >30% next fiscal year
- Geographic manufacturing expansion across multiple facilities
- Entry into high-growth AI infrastructure market
- Long-term partnership potential with new customer
Negative
- None.
News Market Reaction – MOD
On the day this news was published, MOD gained 6.50%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
"These initial orders from an important new customer demonstrate the value provided by Airedale by Modine data center cooling products, underscoring our strategic advantage in this market," said Eric McGinnis, President, Climate Solutions. "We expect this to be a long-term partnership as we support their significant growth objectives to develop some of the largest, high-performance computing clusters in the world."
"Building relationships and delivering on promises are key to meeting and exceeding our aggressive growth targets for this business," added Neil D. Brinker, President and Chief Executive Officer. "Our current order intake, significant development funnel and this new business win provide us with confidence in our ability to drive organic growth, and support our expectation of delivering organic growth in excess of
"We are excited to leverage our engineering expertise to provide a fit-for-purpose solution that helps this important customer achieve their objectives," said Art Laszlo, Group Vice President, Data Centers at Modine. "Airedale by Modine partners with our customers' to solve their most complex challenges through customized solutions that are meticulously engineered by our global Data Centers team to deliver superior operating performance, efficiency, and reliability."
These substantial orders underscore Modine's precision-engineering capabilities and commitment to providing innovative and efficient thermal management solutions that meet the rigorous demands of modern data centers.
For more information about Airedale by Modine solutions, please visit www.airedale.com.
About Modine
At Modine, we are Engineering a Cleaner, Healthier World™. Building on more than 100 years of excellence in thermal management, we provide trusted systems and solutions that improve air quality and conserve natural resources. More than 11,000 employees are at work in every corner of the globe, delivering the solutions our customers need, where they need them. Our Climate Solutions and Performance Technologies segments support our purpose by improving air quality, reducing energy and water consumption, lowering harmful emissions and enabling cleaner running vehicles and environmentally-friendly refrigerants. Modine is a global company headquartered in
Media Contacts:
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Investor Contact:
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kathleen.t.powers@modine.com
Forward-Looking Statements
This press release contains statements, including information about future financial performance and market conditions, accompanied by phrases such as "believes," "estimates," "expects," "plans," "anticipates," "intends," "projects," and other similar "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995. Modine's actual results, performance or achievements may differ materially from those expressed or implied in these statements because of certain risks and uncertainties, including, but not limited to those described under "Risk Factors" in Item 1A of Part I of the Company's Annual Report on Form 10-K for the year ended March 31, 2024 and under Forward-Looking Statements in Item 7 of Part II of that same report and in the Company's Quarterly Report on Form 10-Q for the quarters ended June 30, 2024, September 30, 2024, and December 31, 2024. Other risks and uncertainties include, but are not limited to, the following: the impact of potential adverse developments or disruptions in the global economy and financial markets, including impacts related to inflation, energy costs, government incentive or funding programs, supply chain challenges or supplier constraints, logistical disruptions, tariffs, sanctions and other trade issues or cross-border trade restrictions; the impact of other economic, social and political conditions, changes and challenges in the markets where we operate and compete, including foreign currency exchange rate fluctuations, changes in interest rates, tightening of the credit markets, recession or recovery therefrom, restrictions associated with importing and exporting and foreign ownership, public health crises, and the general uncertainties, including the impact on demand for our products and the markets we serve from regulatory and/or policy changes that have been or may be implemented in the
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SOURCE Modine