Just days after Racine-based Modine announced a planned incremental $100 million investment to support its data center business, the company’s CEO said it aims to reach $2 billion in data center revenue by fiscal 2028. Already, Modine is trending towards $1 billion in data center revenue this year, said Neil Brinker, president and CEO of
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Neil Brinker[/caption]
On Thursday the company reported a sales increase of 3% to $682.8 million for the first quarter of its 2026 fiscal year, compared with $661.5 million for the same period a year ago. It also reported earnings of $51.7 million for the quarter, up 8% from a year ago.
The sales increase was primarily driven by growth in Modine’s Climate Solutions segment, which includes the company’s data center business. Modine also operates a Performance Technologies segment of the business.
As part of Modine’s planned $100 million investment in its data center business, the company will boost production capacity at four sites, including the Franklin, Wisconsin, facility and a new plant in Dallas.
The $100 million investment will allow Modine to manufacture more of its Airedale by Modine data center cooling products.
“This expansion is in response to the extraordinary demand we’re seeing, especially in North America,” Brinker said.
When asked what makes company leadership so confident in its ability to reach its $2 billion revenue goal, Brinker explained Modine has insight into its customers plans over the next several years.
"Certainly, we have visibility that goes beyond the year. Some instances can go out as far as for years. We're in close collaboration with our customers' timing," said Brinker.
Modine will transition two of its existing sites currently focused on Performance Technologies into Climate Solutions sites to support the data center business.
The Franklin facility is one option being considered. The Franklin site was previously planned to support Modine’s EV systems business.
"We are making important investments in our business that are advancing our competitive position in key markets and allowing us to capture incremental growth opportunities this fiscal year and beyond," Brinker said.
Modine officially raised its guidance Thursday due in part to increasing demand from data center customers. The company now expects net sales growth of between 10% and 15% for fiscal 2026.