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RACINE, Wis. - Modine (NYSE:MOD), a $5.5 billion market cap thermal management solutions provider whose stock has surged over 12% in the past week, announced Tuesday a $100 million investment to expand its U.S. manufacturing capacity for data center cooling products over the next 12-18 months, responding to growing demand from hyperscale and colocation data center customers. According to InvestingPro analysis, the company maintains a strong financial health score of 3.14 (rated as GREAT).
The expansion includes a new facility in the Dallas area, expansion in Grenada, Mississippi, and potential repurposing of existing sites in Wisconsin and Missouri. The investment will also enhance engineering capabilities and create new jobs.
"The U.S. market is driving a significant portion of global data center activity," said Neil D. Brinker, Modine President and CEO, who stated that the company believes its total data centers revenue could approach $2 billion in fiscal 2028.
The expansion supports Modine’s Airedale product line, which provides cooling solutions including chillers, indoor air systems, liquid cooling technologies, and controls for data centers.
Eric McGinnis, President of Modine’s Climate Solutions segment, said the investment advances the company’s "local-for-local strategy" to expand capacity in regions with greatest demand.
The company is also developing a modular data center platform for key global customers to meet increasing demand for rapid deployment and scalable infrastructure.
Art Laszlo, Group Vice President of Global Data Centers at Modine, noted that demand growth is being driven by AI and high-density computing needs.
Modine, headquartered in Wisconsin, has operated for over 100 years providing thermal management solutions through its Climate Solutions and Performance Technologies segments.
The announcement was made in a company press release statement.
In other recent news, Modine Manufacturing has reported several significant developments. The company has entered into a Sixth Amended and Restated Credit Agreement, establishing a senior secured revolving credit facility of up to $400 million and a $200 million term loan facility, both maturing on July 10, 2030. Additionally, Modine has acquired Climate by Design International (CDI) for $65 million, which will enhance its capabilities in commercial indoor air quality solutions. This acquisition is expected to bolster Modine’s offerings in environments requiring precise humidity control, such as pharmaceutical manufacturing and healthcare facilities. In terms of leadership changes, Alan Lowe, former CEO of Lumentum Holdings, has been appointed to Modine’s Board of Directors. Analyst firm DA Davidson has reiterated its Buy rating on Modine’s stock, maintaining a price target of $135.00, expressing optimism about the company’s growth prospects. The firm highlighted a "multi-pronged, multi-year growth algorithm" after hosting investors at Modine’s manufacturing operations in Calgary. These developments reflect Modine’s strategic efforts to expand its market presence and financial stability.
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