Oct. 19, 2025 at 12:44 PM ET5 min read

North American Truck Orders Decline Amid Upcoming U.S. Tariffs

Tim BohenAvatar
Written by Tim Bohen Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

Modine Manufacturing stocks have been trading down by -4.14 percent amid shifts in strategic operations and market uncertainties.

Market Insights: Key Highlights

  • North American Class 8 truck orders plunged 32% year-over-year in September, tallying 20,500 vehicles, despite a robust month-on-month rebound, marking the highest order level in eight months.
  • A 25% tariff on Medium and Heavy Duty Trucks imported into the United States will take effect November 1, 2025, based on an announcement from President Donald Trump, set to impact companies like Paccar, Allison Transmission, Cummins, Eaton, and Modine.

Consumer Discretionary industry expert:

Analyst sentiment – neutral

  1. Modine Manufacturing Company (MOD) occupies a stable market position with a diverse product lineup in the thermal management industry. The company’s profitability ratios, such as an EBIT margin of 10.7% and a gross margin of 24.8%, indicate healthy operating efficiency. However, its high P/E ratio of 44.07 and price-to-free-cash-flow ratio of 62.6 suggest that the stock is currently overvalued compared to its industry peers and historical benchmarks. MOD’s financial discipline is shown by a manageable total debt-to-equity ratio of 0.52 and strong interest coverage at 14.4, indicating solid financial health and the ability to sustain current debt levels. The revenue growth rate of 7.5% over three years aligns with moderate industry growth, but improvement in net income and a high return on equity LTM of 20.88% are positive signals for the company’s sustained profitability trajectory.

  2. The weekly price pattern for MOD indicates a bearish trend reversal following a recent peak at $162.99, with the price subsequently correcting to $153.79. The recent closing prices, along with volume data showing declining interest at highs, suggest weakening bullish momentum. A notable support level exists around $150, while resistance remains firm at $163. Traders should observe temporary bearish continuation with expectations of a pivotal reversal if the price nears the resistance. Strategic short positions might be considered below $155 with a stop loss around $163—pending supportive volume confirmation—to capture downward price moves before short-term bullish signals are evident.

  3. Recent developments entail significant macroeconomic shifts impacting MOD’s future outlook. The 32% YOY decline in North American Class 8 truck orders adversely affects demand projections, while the incremental month-to-month increase provides a slight buffer. The upcoming 25% tariff on imported trucks complicates supply chain dynamics, potentially increasing costs for players like MOD within the Consumer Discretionary and Vehicles sectors. Based on these factors, MOD’s performance may encounter mid-term challenges, especially given its connections with tariff-affected product categories. With 2025-2026 likely to test stock resilience, price targets are recalibrated to reflect uncertainty—critical support at $150 and strong resistance anticipated near $165. Overall, MOD’s prospects seem cautiously constrained, warranting a vigilant approach to evolving market conditions.

Candlestick Chart

More Breaking News

Weekly Update Oct 13 – Oct 17, 2025: On Sunday, October 19, 2025 Modine Manufacturing Company stock [NYSE: MOD] is trending down by -4.14%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Modine Manufacturing has seen its stock price fluctuate significantly in recent days. From an opening of 149.6 to a high of 163, the price demonstrated volatility, ultimately settling down to 153.79. This broad movement reflects the market’s reaction to the heavy fall of North American Class 8 truck orders and the looming tariff introduction led by U.S. governmental policy. Looking at the five-day trading data further uncovers a zigzag pattern, which points to uncertain investor sentiment as conflicting news impacts business expectations.

From a financial perspective, Modine Manufacturing Company reported revenues of approximately $2.58B, coupled with a gross profit margin of 24.8%, offering a resilient face amid the turbulent macroeconomic backdrop. However, with profitability metrics such as an EBIT margin at 10.7% and a challenging PE ratio of 44.07, it becomes critical for the firm to navigate the operational obstacles presented by the newly enacted tariffs.

Hastening the financial complexity, Modine’s key financial strength indicators embark on a delicate equilibrium with a total debt-to-equity ratio of 0.52 and a current ratio of 2.1. This unveils its broad ambition intertwined with balanced gearing, yet it still posits the challenge of managing adequate liquidity amidst market dissonance. As a cascade, the potential financial ramifications introduced by both a downturn in truck orders and new tariffs can’t be underestimated, pressuring profit margins and possibly igniting strategic shifts to uphold shareholder value.

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