Modine Manufacturing, a thermal management solutions provider based in Racine, Wis., saw its shares surge on Thursday following the release of its better-than-expected first-quarter financial results. The stock rose 11.5% to $42.55, reaching a high of $45.67, and has more than doubled in value since the beginning of the year.

In the first quarter, Modine reported a profit of $44.8 million, or 85 cents per share, compared to $14.3 million, or 27 cents per share, in the same period last year. This result surpassed analysts’ expectations of 44 cents per share. The company’s revenue also saw significant growth, rising 15% to $622.4 million, surpassing analyst estimates of $575.8 million.

Modine experienced an 11% increase in revenue in its climate solutions segment, driven by strong sales of cooling products to data centers. This growth was partially offset by lower sales of heat transfer products. Additionally, its performance technologies unit achieved an 18% increase in revenue across all products.

Looking ahead, Modine has raised its outlook for the year. The company now expects sales to increase between 6% and 11%, and adjusted earnings before interest, taxes, and depreciation (EBITDA) to range from $280 million to $295 million. This revised outlook represents higher sales growth and adjusted EBITDA compared to the previous forecast.

Despite the positive results and raised outlook, Chief Executive Neil Brinker expressed caution for the second half of the year due to softness in some end markets.

Overall, Modine Manufacturing’s strong first-quarter performance indicates positive momentum for the company. With increased sales and improved financials, the company is well-positioned for continued success in the thermal management solutions industry.

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