v3.26.1
Restructuring Activities
3 Months Ended
Jun. 30, 2026
Restructuring Activities  
Restructuring Activities

Note 6: Restructuring Activities

Restructuring and repositioning expenses were as follows:

Three months ended June 30, 

  ​ ​ ​

2026

  ​ ​ ​

2025

Employee severance and related benefits

$

0.5

$

3.5

Other restructuring and repositioning expenses

 

1.2

 

Total

$

1.7

$

3.5

During the first three months of fiscal 2027, restructuring and repositioning expenses primarily consisted of costs associated with transferring product lines among its facilities and severance expenses. As part of Modine’s transformational initiatives supported by 80/20 principles, the Company is taking steps to optimize its supply chain and manufacturing footprint. The severance expenses were primarily recorded in Europe and North America and include severance related to targeted headcount reductions intended to reduce selling, general and administrative (“SG&A”) and operational expenses.

During the first three months of fiscal 2026, restructuring and repositioning expenses primarily consisted of severance expenses in Europe and North America and included targeted headcount reductions.

The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements. Changes in accrued severance were as follows:

Three months ended June 30, 

  ​ ​ ​

2026

  ​ ​ ​

2025

Beginning balance

$

3.3

$

4.5

Additions (a)

 

0.5

 

4.0

Payments

 

(1.9)

 

(2.4)

Effect of exchange rate changes

 

 

0.2

Ending balance

$

1.9

$

6.3

____

(a)The fiscal 2026 amount excludes $0.5 million of non-cash stock-based compensation forfeiture benefits in connection with restructuring actions.