Note 19: Segment Information The Company operates as the Performance Technologies segment within Modine’s consolidated group. The President of Performance Technologies is the chief operating decision maker (“CODM”) of the Company. The Company has three operating segments: Heavy-Duty Equipment, Commercial Vehicle, and Automotive. The Company’s CODM, its President, 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 the basis for allocating company resources. The tables below present net sales and significant expense categories for each of the Company’s segments that are regularly provided to the CODM. Inter-segment sales are accounted for based upon an established markup over production costs. | | | | | | | | | | | | | | | | | | Three months ended June 30, 2026 | | | Heavy-Duty | | Commercial | | | | | Inter-segment | | | | | | Equipment | | Vehicle | | Automotive | | eliminations | | Total | External sales | | $ | 132.7 | | $ | 81.0 | | $ | 64.1 | | $ | — | | $ | 277.8 | Inter-segment sales | | | 5.4 | | | 0.9 | | | 0.9 | | | (7.2) | | | — | Net sales | | | 138.1 | | | 81.9 | | | 65.0 | | | (7.2) | | | 277.8 | Cost of sales | | | 115.8 | | | 62.0 | | | 58.6 | | | (7.2) | | | 229.2 | Gross profit | | | 22.3 | | | 19.9 | | | 6.4 | | | — | | | 48.6 | Selling, general and administrative expenses | | | 13.2 | | | 7.4 | | | 6.9 | | | — | | | 27.5 | Restructuring expenses | | | 1.2 | | | 0.5 | | | — | | | — | | | 1.7 | Operating income (loss) | | $ | 7.9 | | $ | 12.0 | | $ | (0.5) | | $ | — | | $ | 19.4 |
| | | | | | | | | | | | | | | | | | Three months ended June 30, 2025 | | | Heavy-Duty | | Commercial | | | | | Inter-segment | | | | | | Equipment | | Vehicle | | Automotive | | eliminations | | Total | External sales | | $ | 132.7 | | $ | 86.9 | | $ | 65.9 | | $ | — | | $ | 285.5 | Inter-segment sales | | | 3.2 | | | 2.8 | | | 0.6 | | | (6.6) | | | — | Net sales | | | 135.9 | | | 89.7 | | | 66.5 | | | (6.6) | | | 285.5 | Cost of sales | | | 109.7 | | | 72.4 | | | 57.3 | | | (6.6) | | | 232.8 | Gross profit | | | 26.2 | | | 17.3 | | | 9.2 | | | — | | | 52.7 | Selling, general and administrative expenses | | | 12.4 | | | 9.7 | | | 6.7 | | | — | | | 28.8 | Restructuring expenses | | | 2.4 | | | 0.9 | | | 0.2 | | | — | | | 3.5 | Operating income | | $ | 11.4 | | $ | 6.7 | | $ | 2.3 | | $ | — | | $ | 20.4 |
The following is a summary of segment assets, comprised entirely of trade accounts receivable and inventories, and other assets: | | | | | | | | | June 30, 2026 | | March 31, 2026 | Assets: | | | | | | | Heavy-Duty Equipment | | $ | 204.7 | | $ | 215.0 | Commercial Vehicle | | | 123.1 | | | 116.2 | Automotive | | | 69.6 | | | 71.6 | Other (a) | | | 317.1 | | | 413.0 | Total assets | | $ | 714.5 | | $ | 815.8 | ____ | | | | | | |
| (a) | Represents cash and cash equivalents, related party notes receivable, due from related party, other current assets, property plant and equipment, deferred income taxes, other noncurrent assets, and noncurrent related party notes receivable. |
The following is a summary of capital expenditures and depreciation expense by segment: | | | | | | | | | Three months ended June 30, | | | 2026 | | 2025 | Capital expenditures: | | | | | | | Heavy-Duty Equipment | | $ | 5.2 | | $ | 1.4 | Commercial Vehicle | | | 2.0 | | | 3.2 | Automotive | | | 1.4 | | | 2.7 | Total capital expenditures | | $ | 8.6 | | $ | 7.3 |
| | | | | | | | | Three months ended June 30, | | | 2026 | | 2025 | Depreciation expense: | | | | | | | Heavy-Duty Equipment | | $ | 3.3 | | $ | 3.5 | Commercial Vehicle | | | 1.5 | | | 1.7 | Automotive | | | 2.2 | | | 2.5 | Total depreciation expense | | $ | 7.0 | | $ | 7.7 |
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