Ride the Rally: 3 Earnings Winners With More Upside Ahead

Key Points

• Under-appreciated earnings winners for the latest quarter include MOD, CECO, and XPRO.
• These companies—a maker of thermal management products, a producer of air quality and water treatment components, and an energy services firm—all exceeded expectations for both earnings and revenue.
• Further, each company presented numerous other indicators suggesting the possibility of future growth.

In the height of earnings season, investors typically watch many of the biggest names across industries for an essential update on how these key businesses—and the broader market—have fared. Only following major firms when it comes to earnings reports may cause an investor to miss out on potential opportunities for gains to be found in lesser-known companies as well.

Three niche names, including two small-cap companies and a mid-cap firm, stand out in the second-quarter 2025 earnings season for posting strong results that have attracted informed investors to buy in. Even after these short-term rallies, analysts see the potential for more upside in the near future, meaning it may not be too late to buy in.

Data Center Business Drives Production and Acquisition Growth for Modine

Modine Manufacturing Co. NYSE: MOD makes a wide variety of thermal management products used in residential and commercial applications, including chillers, heaters, air handling and condensing units, and much more. The company's recent earnings report, which actually coincides with its first quarter of fiscal 2026, brought a 13-cent earnings per share beat and revenue ahead of analyst estimates as well.

While Modine's traditional heating and cooling products will likely always have a market, some of its biggest business in recent months has been in the data center area. The firm also builds a line of air conditioning units, coolers, and other thermal control products specifically for data centers. This segment of Modine's business is growing at an impressive pace; the company is aiming for $2 billion in data center revenue by fiscal 2028, while its entire climate solutions segment (including data center products, among others) stood at $1.4 billion in sales for fiscal 2025. Modine is supporting this sales growth with a recently announced $100-million investment to build out manufacturing capacity.

Modine has also been executing strategic acquisitions with a high degree of success. Last quarter, its purchases of Absolute Air, L.B. White, and CDI all helped to drive climate solutions revenue growth of 11% year-over-year (YOY). These and potential future acquisitions may aid Modine in achieving its lofty full-year fiscal 2026 outlook of 10-15% YOY revenue growth, recently revised up from 2-10%. MOD shares are up 28% in the last month, with about 7% in additional upside potential projected.

Surging Demand Leads to Major Backlog and Sales Opportunity Growth for CECO

A maker of components and systems used in industrial air quality and water treatment applications, CECO Environmental Corp. NASDAQ: CECO also wowed in its latest earnings report. The company beat analyst predictions on both top- and bottom-line performance while boosting both EPS and revenue by 35% YOY and EBITDA by 45% over the same period.

CECO's strong performance is likely due to rising demand for environmental solutions and CECO's increased capacity to meet that demand, thanks to its expansion into Saudi Arabia and ongoing growth across the Middle East and Asia.

Owing to its broad array of products and services, CECO has business opportunities in a number of fast-growing spaces, including power generation, semiconductor, and natural gas infrastructure. This has driven a 40% CAGR since 2021 to the company's sales opportunity pipeline, which currently sits at $5.5 billion. Backlog is also growing rapidly, having reached $688 million in the latest quarter thanks to $274 million in new bookings. That's three-quarters higher than the same figure last year.

With all of this growth, it's unsurprising that CECO management raised the company's forward guidance. The company now expects $725–775 million in revenue for the full year. CECO shares are up an impressive 50.4% in the last month, but analysts see the possibility of another 9% upside.

International Footprint Benefits Expro

Expro Group Holdings N.V. NYSE: XPRO provides energy services including well construction, drilling, tubular running, and more. Like the firms above, Expro also topped predictions for both EPS and revenue for the latest quarter, as revenue in particular climbed 8% YOY despite unpredictability in the energy sector more broadly.

Expro's advantage lies in part in its massive reach, as the company serves clients in dozens of countries throughout the world. Thus, when demand increases in a particular area, the firm is prepared to meet it quickly—this is evidenced in the latest quarter by $595 million in new awards, including major new projects in Guyana and North Africa. The firm also distinguishes itself for its cutting-edge technology, including both remote clamp insulation and a fully remote cementing system launched in recent months, among others.

The company's guidance is strong, and it expects about $1.7 billion in full-year revenue and 7% free cash flow thanks to its international business. It also plans to engage in a share buyback campaign to return about $40 million to shareholders in the coming months.

XPRO shares are up nearly 17% in the last month, with more than 16% in additional upside possible.