FY25 data-center +119% YoY to $644M; FY28 target >$2B
AI supply-chain thesis — mapping bottlenecks, focus companies, and supply-chain exposure for investors.
**Bottleneck theme:** Cooling
**Focus:** $MOD — MODINE MANUFACTURING CO
Modine has converted itself from a legacy auto / industrial heat-exchanger maker into a real data-center cooling pure-play. FY25 data-center revenue grew 119% YoY to $644M; FY28 target is greater than $2B — implying mid-cycle 30%+ revenue growth in the highest-margin segment. The product portfolio covers chillers, CRAH/CRAC units, immersion-cooling tanks, and increasingly rack-level CDU and manifold systems. Modine's positioning is mid-market: where Vertiv ($VRT) targets the largest hyperscaler campuses and nVent ($NVT) competes at the rack-component layer, Modine is one of the most visible vendors at colocation operators and Tier-2 hyperscaler campuses.
The investment case is segment mix shift: data-center is now ~30%+ of revenue (vs <10% three years ago) and growing at 100%+ rates while legacy auto is structurally low-growth. Margin per data-center dollar is materially higher than auto. Risks are competitive intensity (every cooling vendor wants the same sockets), execution on the FY28 target (it is ambitious), and any pause in colocation/Tier-2 hyperscaler capex. Treat as the highest-beta data-center-cooling pure-play among large-cap U.S.-listed vendors.
