| Segment and Geographic Information |
Note 22: Segment and Geographic Information The Company’s Climate Solutions segment provides energy-efficient, safe, climate-controlled solutions and components for a wide range of critical applications. The Climate Solutions segment sells data center products, heat transfer solutions, and HVAC technologies products to customers in North America, EMEA, and Asia. The Company’s Performance Technologies segment designs and manufactures heat exchangers and cooling systems for heavy-duty equipment and on-highway applications. In addition, the Performance Technologies segment sells cooling module generator sets that provide mission-critical stationary power. See Note 3 for additional information regarding net sales by product groups within each segment. The Company’s chief operating decision maker (“CODM”), its President and Chief Executive Officer, reviews the separate financial results for each of its operating segments. The CODM uses segment operating income as a measure of profit and loss to evaluate the financial performance of each segment and as a basis for allocating company resources. Effective April 1, 2026, the Company reorganized its Climate Solutions segment and split it into two separate operating segments: 1) Data Centers and 2) Commercial HVAC. The Company believes that managing these businesses independently will allow it to better deploy its 80/20 strategy focused on capitalizing on growth opportunities, particularly in the Data Centers business, and optimizing profit margins and cash flow. Beginning for fiscal 2027, the Company will report three operating segments: 1) Data Centers; 2) Commercial HVAC and 3) Performance Technologies. The tables below present net sales and significant expense categories for the Company’s operating segments that are regularly provided to the CODM. Net sales for Corporate and eliminations primarily represent the elimination of inter-segment sales. Inter-segment sales are accounted for based upon an established markup over production costs. | | | | | | | | | | | | | | | Year ended March 31, 2026 | | | Climate | | Performance | | Corporate and | | | | | Solutions | | Technologies | | eliminations | | Total | External sales | | $ | 2,055.4 | | $ | 1,125.7 | | $ | — | | $ | 3,181.1 | Inter-segment sales | | | 6.9 | | | 6.1 | | | (13.0) | | | — | Net sales | | | 2,062.3 | | | 1,131.8 | | | (13.0) | | | 3,181.1 | Cost of sales | | | 1,538.3 | | | 927.0 | | | (15.3) | | | 2,450.0 | Gross profit | | | 524.0 | | | 204.8 | | | 2.3 | | | 731.1 | Selling, general and administrative expenses | | | 194.4 | | | 79.1 | | | 86.6 | | | 360.1 | Restructuring expenses | | | 8.5 | | | 11.9 | | | 0.2 | | | 20.6 | Impairment charge | | | — | | | 4.1 | | | — | | | 4.1 | Loss on sale of assets | | | — | | | — | | | 3.9 | | | 3.9 | Operating income | | $ | 321.1 | | $ | 109.7 | | $ | (88.4) | | $ | 342.4 |
| | | | | | | | | | | | | | | Year ended March 31, 2025 | | | Climate | | Performance | | Corporate and | | | | | Solutions | | Technologies | | eliminations | | Total | External sales | | $ | 1,440.6 | | $ | 1,142.9 | | $ | — | | $ | 2,583.5 | Inter-segment sales | | | 0.2 | | | 20.6 | | | (20.8) | | | — | Net sales | | | 1,440.8 | | | 1,163.5 | | | (20.8) | | | 2,583.5 | Cost of sales | | | 1,024.7 | | | 933.1 | | | (18.1) | | | 1,939.7 | Gross profit | | | 416.1 | | | 230.4 | | | (2.7) | | | 643.8 | Selling, general and administrative expenses | | | 161.7 | | | 101.9 | | | 68.5 | | | 332.1 | Restructuring expenses | | | 6.0 | | | 20.5 | | | 1.7 | | | 28.2 | Operating income | | $ | 248.4 | | $ | 108.0 | | $ | (72.9) | | $ | 283.5 |
| | | | | | | | | | | | | | | Year ended March 31, 2024 | | | Climate | | Performance | | Corporate and | | | | | Solutions | | Technologies | | eliminations | | Total | External sales | | $ | 1,108.1 | | $ | 1,299.7 | | $ | — | | $ | 2,407.8 | Inter-segment sales | | | — | | | 21.6 | | | (21.6) | | | — | Net sales | | | 1,108.1 | | | 1,321.3 | | | (21.6) | | | 2,407.8 | Cost of sales | | | 811.2 | | | 1,091.7 | | | (20.7) | | | 1,882.2 | Gross profit | | | 296.9 | | | 229.6 | | | (0.9) | | | 525.6 | Selling, general and administrative expenses | | | 115.3 | | | 105.9 | | | 52.7 | | | 273.9 | Restructuring expenses | | | 3.0 | | | 12.0 | | | — | | | 15.0 | Gain on sale of assets | | | — | | | — | | | (4.0) | | | (4.0) | Operating income | | $ | 178.6 | | $ | 111.7 | | $ | (49.6) | | $ | 240.7 |
SG&A expenses at Corporate include legal, finance, general corporate and central services expenses and other costs that are either not directly attributable to an operating segment or not considered when the CODM evaluates segment performance. The following is a summary of segment assets, comprised entirely of trade accounts receivable and inventories, and other assets: | | | | | | | | | March 31, | | | 2026 | | 2025 | Assets: | | | | | | | Climate Solutions | | $ | 834.5 | | $ | 448.7 | Performance Technologies | | | 402.6 | | | 371.1 | Other (a) | | | 1,437.5 | | | 1,097.8 | Total assets | | $ | 2,674.6 | | $ | 1,917.6 | ____ | | | | | | |
| (a) | Represents cash and cash equivalents, other current assets, property plant and equipment, intangible assets, goodwill, deferred income taxes, and other noncurrent assets for the Climate Solutions and Performance Technologies segments and Corporate. |
The following is a summary of capital expenditures and depreciation and amortization expense by segment: | | | | | | | | | | | | Years ended March 31, | | | 2026 | | 2025 | | 2024 | Capital expenditures: | | | | | | | | | | Climate Solutions | | $ | 113.4 | | $ | 53.3 | | $ | 52.7 | Performance Technologies | | | 28.4 | | | 30.2 | | | 34.3 | Corporate | | | 1.5 | | | 0.5 | | | 0.7 | Total capital expenditures | | $ | 143.3 | | $ | 84.0 | | $ | 87.7 |
| | | | | | | | | | | | Years ended March 31, | | | 2026 | | 2025 | | 2024 | Depreciation and amortization expense: | | | | | | | | | | Climate Solutions | | $ | 47.5 | | $ | 48.3 | | $ | 26.5 | Performance Technologies | | | 30.8 | | | 28.7 | | | 28.7 | Corporate | | | 1.4 | | | 0.7 | | | 0.9 | Total depreciation and amortization expense | | $ | 79.7 | | $ | 77.7 | | $ | 56.1 |
The following is a summary of net sales by geographic area, based upon the location of the selling unit: | | | | | | | | | | | | Years ended March 31, | | | 2026 | | 2025 | | 2024 | United States | | $ | 1,676.9 | | $ | 1,287.5 | | $ | 1,233.7 | Canada | | | 332.6 | | | 241.7 | | | 7.9 | Italy | | | 226.8 | | | 209.7 | | | 242.4 | Hungary | | | 213.4 | | | 179.8 | | | 224.7 | United Kingdom | | | 192.7 | | | 157.8 | | | 135.8 | Other | | | 538.7 | | | 507.0 | | | 563.3 | Net sales | | $ | 3,181.1 | | $ | 2,583.5 | | $ | 2,407.8 |
The following is a summary of property, plant and equipment by geographic area: | | | | | | | | | March 31, | | | 2026 | | 2025 | United States | | $ | 244.5 | | $ | 133.6 | Italy | | | 44.2 | | | 39.9 | Hungary | | | 40.8 | | | 38.4 | Mexico | | | 39.3 | | | 36.5 | China | | | 36.6 | | | 37.4 | Other | | | 115.5 | | | 104.7 | Total property, plant and equipment | | $ | 520.9 | | $ | 390.5 |
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