Is Modine on Track to Reach $2B in Data Center Revenues by 2028?

Modine Manufacturing CompanyMOD aims to achieve $2 billion in data center revenues by fiscal 2028. The growth is expected to be supported by a strategy centered on capacity expansion and product innovation. To advance this goal, the company recently announced a $100 million investment to strengthen its U.S. manufacturing footprint. The plan includes building a new facility in Dallas, TX, expanding operations in Grenada, MS, and repurposing two existing performance technology sites.

This investment aligns with Modine’s local-for-local supply chain strategy, designed to position the company closer to its data center customers while scaling in key markets. Beyond increasing capacity, the initiative will also expand engineering, product development and testing capabilities. 

Currently, Modine operates with an estimated $1.3-$1.5 billion in revenue capacity. The latest investment is projected to unlock an additional $1 billion in capacity. By fiscal 2028, Modine anticipates reaching $2.5 billion in total production capacity. This will allow the company to operate at approximately 80% utilization, ensuring it can meet its $2 billion revenue target.

The expansion reflects Modine’s proactive response to extraordinary demand, particularly in North America, and underscores its commitment to innovation, customer proximity and long-term growth. MOD carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Expansion Efforts by Peers

Gentex CorporationGNTX completed the acquisition of VOXX International in April 2025. The acquisition has expanded Gentex’s product portfolio by adding VOXX’s automotive, consumer electronics and audio businesses. VOXX generated $78.8 million in revenues in the second quarter, even amid generally weak light vehicle production across key regions. For 2025, Gentex now expects VOXX to add $240-$280 million in annual revenues.

Lear CorporationLEA is set to benefit from its expansion efforts. The acquisition of Kongsberg Automotive Interior Comfort Systems, IGB, and Grupo Antolin's seating business is enhancing the vertical integration capabilities of the Seating business. Lear’s exclusive status as a complete seat manufacturer with thermal comfort components allows for unique module solutions. The thermal comfort business is on track to achieve $1 billion in revenues by 2027.

MOD’s Price Performance, Valuation and Estimates  

Modine has outperformed the Zacks Automotive-Original Equipment industry year to date. Its shares have gained 19.6% compared with the industry’s growth of 12.5%. 

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From a valuation perspective, MOD appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 2.39, higher than the industry’s 2.11. 

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The Zacks Consensus Estimate for MOD’s 2025 and 2026 EPS has moved up 11 cents and 46 cents, respectively, in the past 60 days. 

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This article originally published on Zacks Investment Research (zacks.com).

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