How Are MOD's Latest Acquisitions Reshaping Its Climate Solutions Game?

Modine Manufacturing Company’s MOD Climate Solutions business is benefitting from the successful integration and strong contributions of its recent strategic acquisitions, AbsolutAire, L.B. White and Climate by Design International (CDI), all finalized in 2025.

Modine closed the acquisition of AbsolutAire, a manufacturer of direct-fired heating, ventilation and make-up air systems, in April 2025. This move added a premium HVAC solution to Modine’s portfolio, strengthening its ability to serve customers seeking sustainable, high-performance air management systems. Integrated into Modine’s Heating & Schools IAQ group within the Climate Solutions segment, AbsolutAire expands Modine’s presence in commercial, industrial, food service and warehousing markets. These sectors are experiencing strong demand, driven by stricter HVAC and air quality standards.

In May, Modine acquired L.B. White, a leading supplier of specialty heating products for agriculture, construction and special events. L.B. White and AbsolutAire support the company’s strategy to address mission-critical thermal management challenges while expanding into adjacent, fast-growing markets.

In July, Modine closed the acquisition of CDI, a Minnesota-based firm known for desiccant dehumidification systems and process air handlers. CDI enhances Modine’s Commercial IAQ offerings with advanced humidity control technologies ideal for pharmaceutical, healthcare, food processing and cold storage environments. Alongside previous acquisitions of Napps Technology and Scott Springfield, CDI broadens Modine’s reach and adds U.S. manufacturing capacity for air-handling systems. MOD carries a Zacks Rank #3 (Hold) at present.

Collectively, these acquisitions are expected to be accretive to earnings and support growth under Modine’s 80/20 operating model. In the first quarter of fiscal 2026, Climate Solutions segment sales rose 11% year over year to $397.4 million, driven by $10 million in revenues from the new acquisitions.

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Recent Acquisitions by Other OEMs

In February 2025, Lear Corporation LEA acquired StoneShield Engineering, which specializes in automation technology design and development for the wire harness industry. The move aligns with Lear’s IDEA (Innovative, Digital, Engineered and Automated) by Lear strategy, aimed at advancing technology and innovation to enhance operational performance. This acquisition builds on the successful integration of previous purchases of WIP Industrial Automation, ASI Automation, Thagora Technology SRL and InTouch Automation. Together, these strategic additions strengthen Lear’s automation capabilities and expertise, reinforcing its leadership in next-generation automotive manufacturing technologies.‍

Gentex Corporation GNTX 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 of 2025, even amid generally weak light vehicle production across key regions. For 2025, Gentex now expects VOXX to add $240-$280 million in annual revenues.

MOD’s Price Performance, Valuation & Estimates

Modine shares have gained 33.3% compared with the Zacks Automotive-Original Equipment industry’s growth of 13.5% year to date.

 
From a valuation perspective, MOD appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 2.63, higher than the industry’s 2.14.

 
The Zacks Consensus Estimate for MOD’s fiscal 2026 and 2027 EPS has moved up 11 cents and 46 cents, respectively, in the past 90 days.

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

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