Item 1. Financial Statements
Item 1. Financial Statements.
MODINE MANUFACTURING COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three months ended June 30, 2025 and 2024
(In millions, except per share amounts)
(Unaudited)
Three months ended June 30,
2025
2024
Net sales
$
682.8
$
661.5
Cost of sales
517.4
498.9
Gross profit
165.4
162.6
Selling, general and administrative expenses
84.9
82.8
Restructuring expenses
4.8
5.4
Operating income
75.7
74.4
Interest expense
( 5.8 )
( 7.5 )
Other expense – net
( 4.2 )
( 0.3 )
Earnings before income taxes
65.7
66.6
Provision for income taxes
( 14.0 )
( 18.8 )
Net earnings
51.7
47.8
Net earnings attributable to noncontrolling interest
( 0.5 )
( 0.5 )
Net earnings attributable to Modine
$
51.2
$
47.3
Net earnings per share attributable to Modine shareholders:
Basic
$
0.97
$
0.90
Diluted
$
0.95
$
0.88
Weighted-average shares outstanding:
Basic
52.6
52.5
Diluted
53.7
53.9
The notes to condensed consolidated financial statements are an integral part of these statements.
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MODINE MANUFACTURING COMPANY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three months ended June 30, 2025 and 2024
(In millions)
(Unaudited)
Three months ended June 30,
2025
2024
Net earnings
$
51.7
$
47.8
Other comprehensive income (loss), net of income taxes:
Foreign currency translation
47.7
( 7.0 )
Defined benefit plans
0.8
0.8
Cash flow hedges
1.4
—
Total other comprehensive income (loss)
49.9
( 6.2 )
Comprehensive income
101.6
41.6
Comprehensive income attributable to noncontrolling interest
( 1.0 )
( 0.4 )
Comprehensive income attributable to Modine
$
100.6
$
41.2
The notes to condensed consolidated financial statements are an integral part of these statements.
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MODINE MANUFACTURING COMPANY
CONSOLIDATED BALANCE SHEETS
June 30, 2025 and March 31, 2025
(In millions, except per share amounts)
(Unaudited)
June 30, 2025
March 31, 2025
ASSETS
Cash and cash equivalents
$
124.5
$
71.6
Trade accounts receivable – net
516.6
478.9
Inventories
434.8
340.9
Other current assets
79.5
69.8
Total current assets
1,155.4
961.2
Property, plant and equipment – net
425.9
390.5
Intangible assets – net
198.8
146.7
Goodwill
268.2
233.9
Deferred income taxes
59.1
67.0
Other noncurrent assets
121.1
118.3
Total assets
$
2,228.5
$
1,917.6
LIABILITIES AND SHAREHOLDERS’ EQUITY
Short-term debt
$
—
$
9.3
Long-term debt – current portion
45.0
44.8
Accounts payable
340.0
290.8
Accrued compensation and employee benefits
78.2
102.7
Other current liabilities
98.7
93.4
Total current liabilities
561.9
541.0
Long-term debt
482.1
296.7
Deferred income taxes
24.8
24.1
Pensions
30.2
29.4
Other noncurrent liabilities
110.8
108.2
Total liabilities
1,209.8
999.4
Commitments and contingencies (see Note 18)
Shareholders’ equity:
Preferred stock, $ 0.025 par value, authorized 16.0 million shares, issued – none
—
—
Common stock, $ 0.625 par value, authorized 80.0 million shares, issued 56.6 million and 56.5 million shares
35.4
35.3
Additional paid-in capital
316.5
310.8
Retained earnings
894.2
843.0
Accumulated other comprehensive loss
( 131.9 )
( 181.3 )
Treasury stock, at cost, 4.1 million shares
( 102.7 )
( 97.6 )
Total Modine shareholders’ equity
1,011.5
910.2
Noncontrolling interest
7.2
8.0
Total equity
1,018.7
918.2
Total liabilities and equity
$
2,228.5
$
1,917.6
The notes to condensed consolidated financial statements are an integral part of these statements.
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MODINE MANUFACTURING COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended June 30, 2025 and 2024
(In millions)
(Unaudited)
Three months ended June 30,
2025
2024
Cash flows from operating activities:
Net earnings
$
51.7
$
47.8
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
19.0
19.1
Stock-based compensation expense
5.3
4.2
Deferred income taxes
0.7
6.1
Other – net
2.6
1.5
Changes in operating assets and liabilities:
Trade accounts receivable
( 10.6 )
( 18.1 )
Inventories
( 61.6 )
6.0
Accounts payable
46.7
6.5
Other assets and liabilities
( 26.1 )
( 32.6 )
Net cash provided by operating activities
27.7
40.5
Cash flows from investing activities:
Expenditures for property, plant and equipment
( 27.5 )
( 26.8 )
Payments for business acquisitions
( 119.0 )
—
Other – net
2.5
0.3
Net cash used for investing activities
( 144.0 )
( 26.5 )
Cash flows from financing activities:
Borrowings of debt
265.0
174.0
Repayments of debt
( 83.2 )
( 163.8 )
Repayments on bank overdraft facilities – net
( 9.8 )
( 5.7 )
Purchases of treasury stock
( 5.1 )
( 4.7 )
Dividend paid to noncontrolling interest
( 0.7 )
( 0.4 )
Other – net
0.7
0.6
Net cash provided by financing activities
166.9
—
Effect of exchange rate changes on cash
2.2
( 1.1 )
Net increase in cash, cash equivalents and restricted cash
52.8
12.9
Cash, cash equivalents and restricted cash – beginning of period
71.9
60.3
Cash, cash equivalents and restricted cash – end of period
$
124.7
$
73.2
The notes to condensed consolidated financial statements are an integral part of these statements.
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MODINE MANUFACTURING COMPANY
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
For the three months ended June 30, 2025
(In millions)
(Unaudited)
Accumulated
Additional
other
Treasury
Non-
Common stock
paid-in
Retained
comprehensive
stock, at
controlling
Shares
Amount
capital
earnings
loss
cost
interest
Total
Balance, March 31, 2025
56.5
$
35.3
$
310.8
$
843.0
$
( 181.3 )
$
( 97.6 )
$
8.0
$
918.2
Net earnings
—
—
—
51.2
—
—
0.5
51.7
Other comprehensive income
—
—
—
—
49.4
—
0.5
49.9
Stock options and awards
0.1
0.1
0.4
—
—
—
—
0.5
Purchases of treasury stock
—
—
—
—
—
( 5.1 )
—
( 5.1 )
Stock-based compensation expense
—
—
5.3
—
—
—
—
5.3
Dividends declared or paid to noncontrolling interest
—
—
—
—
—
—
( 1.8 )
( 1.8 )
Balance, June 30, 2025
56.6
$
35.4
$
316.5
$
894.2
$
( 131.9 )
$
( 102.7 )
$
7.2
$
1,018.7
The notes to condensed consolidated financial statements are an integral part of these statements.
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MODINE MANUFACTURING COMPANY
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
For the three months ended June 30, 2024
(In millions)
(Unaudited)
Accumulated
Additional
other
Treasury
Non-
Common stock
paid-in
Retained
comprehensive
stock, at
controlling
Shares
Amount
capital
earnings
loss
cost
interest
Total
Balance, March 31, 2024
56.1
$
35.0
$
283.7
$
659.0
$
( 163.4 )
$
( 66.7 )
$
7.9
$
755.5
Net earnings
—
—
—
47.3
—
—
0.5
47.8
Other comprehensive loss
—
—
—
—
( 6.1 )
—
( 0.1 )
( 6.2 )
Stock options and awards
0.1
0.1
—
—
—
—
—
0.1
Purchases of treasury stock
—
—
—
—
—
( 4.7 )
—
( 4.7 )
Stock-based compensation expense
—
—
4.2
—
—
—
—
4.2
Dividend paid to noncontrolling interest
—
—
—
—
—
—
( 0.4 )
( 0.4 )
Balance, June 30, 2024
56.2
$
35.1
$
287.9
$
706.3
$
( 169.5 )
$
( 71.4 )
$
7.9
$
796.3
The notes to condensed consolidated financial statements are an integral part of these statements.
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Note 1: General
The accompanying unaudited condensed consolidated financial statements of Modine Manufacturing Company (“Modine” or the “Company”) were prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10- 01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes necessary for a comprehensive presentation of financial position, results of operations and cash flows required by GAAP for complete financial statements. The financial statements include all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement of results for the interim periods. Results for the first three months of fiscal 2026 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the consolidated financial statements and related notes in Modine’s Annual Report on Form 10-K for the year ended March 31, 2025.
Supplier finance programs
The Company facilitates a voluntary supplier finance program through a financial institution that allows certain suppliers in the U.S. and Europe to request early payment for invoices, at a discount, from the financial institution. The Company or the financial institution may terminate the supplier finance program upon 90 days’ notice. The Company’s obligations to its suppliers, including amounts due and payment terms, are consistent, irrespective of whether a supplier participates in the program. The Company is not party to the arrangements between the participating suppliers and the financial institution. Under this program, the Company confirms the validity of supplier invoices to the financial institution and remits payments to it based on the original payment terms, which typically range from 60 to 120 days. The outstanding obligations under this program, included within accounts payable on the consolidated balance sheets, totaled $ 16.4 million and $ 15.5 million at June 30, 2025 and March 31, 2025, respectively.
New accounting guidance: Disaggregation of Income Statement Expenses
In November 2024, the Financial Accounting Standards Board issued new guidance that will require additional disclosure regarding the nature of expenses presented within expense captions on the consolidated statements of operations and selling expenses. The new disclosure requirements will become effective for the Company’s fiscal 2028 annual financial statements. The Company is currently evaluating the new disclosures, but does not expect the guidance will have a material impact on its consolidated financial statements.
Note 2: Acquisitions and Dispositions
The Company acquired two businesses during the first quarter of fiscal 2026, as summarized below. At the time the June 30, 2025 financial statements were finalized, the Company was continuing its review of the fair value estimates for certain assets acquired and liabilities assumed. As part of its purchase accounting and integration activities, the Company is in the process of assessing, refining and harmonizing the internal controls and accounting processes of the acquired businesses with those of the Company. As part of this process, the Company is reviewing the appropriateness of accruals and reserves, including those related to accounts receivable, inventory, and product warranties. As such, the allocations of the purchase prices presented below are considered preliminary. The Company expects to complete its accounting for the acquisitions of AbsolutAire, Inc. (“AbsolutAire”) and LBW Holding Corp. (“L.B. White”) during the second or third quarter of fiscal 2026. The Company has not presented supplemental pro forma financial information for these acquisitions since they are not material, individually or in the aggregate, to the Company’s consolidated financial statements.
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Acquisition of AbsolutAire
On April 1, 2025, the Company acquired substantially all of the net operating assets of AbsolutAire for consideration totaling $ 11.3 million. AbsolutAire is a Michigan-based manufacturer of direct-fired heating, ventilation, and make-up air systems. This acquisition supports the Company’s growth strategy by expanding its heating and indoor air quality product portfolios and also broadens its customer base in the commercial, industrial, food service, and warehousing sectors. Since the date of the acquisition, the Company has reported the financial results of the AbsolutAire business within the Climate Solutions segment. For the three months ended June 30, 2025, the Company included $ 6.8 million of net sales and $ 0.8 million of operating income within its consolidated statement of operations attributable to AbsolutAire.
For the June 30, 2025 condensed consolidated financial statements, the Company has preliminarily allocated the purchase price to the identifiable tangible and intangible assets acquired and the liabilities assumed based upon their estimated fair values as of the acquisition date. The Company recorded $ 2.2 million of intangible assets, including customer relationship and trade name assets. The Company is amortizing the acquired intangible assets using a weighted-average life of approximately eleven years . The Company allocated the excess of the purchase price over the net assets recognized to goodwill in the amount of $ 1.1 million, which is deductible for income tax purposes.
The Company’s preliminary allocation of the purchase price for its acquisition of AbsolutAire was as follows:
Trade accounts receivable
$
3.4
Inventories
3.9
Property, plant and equipment
2.8
Intangible assets
2.2
Goodwill
1.1
Accounts payable
( 1.2 )
Accrued compensation and employee benefits
( 0.4 )
Other liabilities
( 0.5 )
Purchase price
$
11.3
Acquisition of L.B. White
On May 31, 2025, the Company acquired all of the issued and outstanding shares of L.B. White for consideration totaling $ 110.5 million ($ 107.7 million net of cash acquired). The Company primarily utilized its revolving credit facility to fund the purchase price.
Headquartered in Onalaska, Wisconsin with additional manufacturing and distribution operations in Georgia, L.B. White is a leading provider of specialty heating solutions, including direct-fired forced air, radiant, indirect-fired, and electric heating solutions, for the agriculture, construction, and special event industries. L.B. White holds a leading position in the swine and poultry agricultural heating markets in North America and is a market leader in portables heating. This acquisition expands the Company’s product portfolio and also broadens its network into adjacent heating markets. Since the date of the acquisition, the Company has reported the financial results of the L.B. White business within the Climate Solutions segment. For the one month during the first quarter of fiscal 2026 that the Company owned L.B. White, it included $ 3.2 million of net sales of the acquired business within its consolidated statement of operations. Operating income attributable to the acquired business during the first quarter of fiscal 2026 was not significant.
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
The Company has preliminarily allocated the purchase price of L.B. White to the identifiable tangible and intangible assets acquired and the liabilities assumed based upon their estimated fair values as of the acquisition date, as follows:
Cash and cash equivalents
$
2.8
Trade accounts receivable
10.2
Inventories
17.9
Property, plant and equipment
15.9
Intangible assets
50.1
Goodwill
25.7
Other assets
1.0
Accounts payable
( 1.8 )
Accrued compensation and employee benefits
( 1.9 )
Deferred income taxes
( 7.7 )
Other liabilities
( 1.7 )
Purchase price
$
110.5
The Company engaged third-party valuation specialists to assist in estimating the fair value of assets acquired. The third-party valuations utilized assumptions developed by management and other information compiled by management, including, but not limited to, future expected cash flows. The Company allocated the excess of the purchase price over the net assets recognized to goodwill in the amount of $ 25.7 million, none of which is expected to be deductible for income tax purposes. Goodwill represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The goodwill recorded as part of the acquisition includes L.B. White’s workforce and anticipated future revenue and cost synergies.
Below is a summary of the methodologies and significant assumptions used within the third-party valuations for estimating the fair value of certain classes of acquired assets. The fair values were primarily based upon significant inputs that are not observable in the market and thus represent Level 3 measurements. See Note 4 for information regarding Level 3 fair value measurements.
Inventories: The Company determined the fair value of acquired work-in-process and finished goods inventory using both the comparative sales and cost of reproduction valuation methods. For raw materials acquired, the Company estimated the cost of replacement. In total, the Company wrote-up acquired inventory by $ 1.0 million. The Company charged $ 0.2 million of this write-up to cost of sales in June 2025 and expects to charge the remaining $ 0.8 million to cost of sales during the second quarter of fiscal 2026, as the remaining underlying inventory is sold.
Property, plant and equipment: The Company valued the land and facilities acquired using the cost approach. The cost approach included consideration of recent sales of comparable land parcels and estimated replacement costs for structures and site improvements, adjusting such values for estimated depreciation as of the acquisition date. The cost approach relies on assumptions regarding replacement costs and the age and estimated remaining useful lives of the assets. For personal property, which primarily consists of machinery and equipment assets, the Company utilized the market valuation approach that considers values for similar assets on secondary equipment markets. The fair value of property, plant and equipment will be recognized as depreciation expense in the Company’s results of operations over the expected remaining useful lives of the assets.
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Intangible assets: The Company determined the fair value of acquired intangible assets by using variations of the income approach. These methods generally forecast expected future net cash flows discretely associated with each of the identified intangible assets and adjust the forecasts to present value by applying a discount rate intended to reflect risk factors associated with the cash flows and the time value of money. Acquired intangible assets were as follows:
Gross Carrying Value
Weighted- Average Useful Life
Customer relationships
$
38.5
14 years
Trade name
11.6
20 years
Total intangible assets acquired
$
50.1
Customer relationships represent the estimated fair value of L.B. White’s business relationships with existing customers, the majority of which are dealers and/or distributors in the agriculture and portables heating markets. The fair value of customer relationships was determined using the multi-period excess earnings method, in which the value is derived by projecting the future anticipated after-tax cash flows attributable to the customer relationships. Key inputs used in the valuation included future revenue growth rates, customer attrition rates, and discount rates.
The Company determined the value of the acquired L.B. White trade name using the relief-from-royalty method, which applies an assumed royalty rate to revenue expected to be derived under the acquired trade name. The fair value was estimated to be the present value of the royalties saved because the Company owns the trade name.
Pending disposition of facilities in Germany
In December 2024, the Company signed a definitive agreement to sell its technical service center and administrative support facility in Germany to a real estate investment firm for € 11.5 million ( $ 13.5 million). The Company closed the technical service center earlier in fiscal 2025 and reduced headcount in light of the sale of three automotive businesses in Germany during fiscal 2024. The Company expects the sale transaction will close during the second or third quarter of fiscal 2026, subject to remaining closing conditions. The Company expects to record a gain on sale, net of costs to sell, of approximately $ 4.0 million when the transaction is completed. As of June 30, 2025 and March 31, 2025, the Company classified $ 8.9 million and $ 8.2 million, respectively, of building and related assets expected to transfer to the buyer as held for sale and presented them within other current assets on its consolidated balance sheets.
Q2 acquisition of Climate by Design International
On July 1, 2025, the Company acquired Climate by Design International (“Climate by Design”). The Company paid $ 64.1 million upon transaction closing. The final purchase price is pending and may be adjusted for net working capital. Based in Minnesota, Climate by Design specializes in desiccant dehumidification technology and critical process air handlers and has annual sales of approximately $ 45.0 million. This acquisition supports the Company’s growth strategy by expanding its commercial indoor air quality product portfolio. The financial results for Climate by Design will be reported within the Company’s Climate Solutions segment beginning for the second quarter of fiscal 2026.
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Note 3: Revenue Recognition
Disaggregation of revenue
The tables below present revenue for each of the Company’s operating segments. Each segment’s revenue is disaggregated by product group and by geographic location.
In connection with the Company’s strategic transformation and application of 80/20 principles, the Company has realigned its segment teams around five market-based product groups, as summarized below. Accordingly, the Company has updated its disaggregated revenue disclosure to reflect the new product group structure. The disaggregated revenue information presented for fiscal 2025 has been recast to be comparable with the fiscal 2026 presentation.
Climate Solutions
The Climate Solutions segment has aligned its teams around three product groups: i) Data Centers, ii) Heat Transfer Solutions and iii) HVAC Technologies. The Data Centers business provides sustainable cooling solutions for data center customers. Data center products include precision air conditioning units, computer room air conditioning and air handler units, fan coils and fan walls. The Heat Transfer Solutions business provides heat exchanger coils, commercial refrigeration coolers, and anti-corrosion coating products. The HVAC Technologies business provides a wide array of commercial and residential heating products, including unit heaters, roof-mounted makeup air units, duct furnaces, infrared units, and perimeter heating products. In addition, the HVAC Technologies business sells indoor air quality products for schools and commercial applications.
Performance Technologies
The Performance Technologies segment has aligned its teams around two product groups: i) Heavy-Duty Equipment and ii) On-Highway Applications. The Heavy-Duty Equipment business provides heat exchangers and cooling modules for off-highway markets, including agricultural, construction, and mining. In addition, the Heavy-Duty Equipment business sells cooling module generator sets that provide mission critical stationary power. The On-Highway Applications business provides heat exchangers and cooling systems for commercial vehicle, automotive, and specialty vehicle customers. In addition to products for traditional powertrains, the On-Highway Applications business provides products and solutions for zero-emission and hybrid vehicles, primarily for commercial vehicle, bus and specialty vehicles.
Three months ended June 30, 2025
Three months ended June 30, 2024
Climate
Performance
Segment
Climate
Performance
Segment
Solutions
Technologies
Total
Solutions
Technologies
Total
Product groups:
Data centers
$
186.9
$
—
$
186.9
$
162.6
$
—
$
162.6
Heat transfer solutions
143.2
—
143.2
144.6
—
144.6
HVAC technologies
67.2
—
67.2
50.0
—
50.0
Heavy-duty equipment
—
106.3
106.3
—
110.5
110.5
On-highway applications
—
179.2
179.2
—
193.8
193.8
Inter-segment sales
0.1
—
0.1
0.1
4.7
4.8
Net sales
$
397.4
$
285.5
$
682.9
$
357.3
$
309.0
$
666.3
Geographic location:
Americas
$
276.7
$
153.0
$
429.7
$
240.0
$
184.7
$
424.7
Europe
114.2
84.0
198.2
111.5
80.1
191.6
Asia
6.5
48.5
55.0
5.8
44.2
50.0
Net sales
$
397.4
$
285.5
$
682.9
$
357.3
$
309.0
$
666.3
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Contract balances
Contract assets and contract liabilities from contracts with customers were as follows:
June 30, 2025
March 31, 2025
Contract assets
$
16.1
$
13.3
Contract liabilities
35.3
35.1
Contract assets primarily consist of capitalized costs related to customer-owned tooling contracts, wherein the customer has guaranteed reimbursement, and assets recorded for revenue recognized over time, which represent the Company’s rights to consideration for work completed but not yet billed. Contract assets are included within other current assets on the Company’s consolidated balance sheets. The $ 2.8 million increase in contract assets during the first three months of fiscal 2026 primarily resulted from increases in contract assets for revenue recognized over time and capitalized costs related to the Company’s fulfillment of its performance obligations.
Contract liabilities consist of payments received in advance of satisfying performance obligations under customer contracts, including contracts for data center cooling products and customer-owned tooling. Contract liabilities are included within other current liabilities on the Company’s consolidated balance sheets. The $ 0.2 million increase in contract liabilities during the first three months of fiscal 2026 resulted from payments received in advance of the Company’s satisfaction of performance obligations.
Note 4: Fair Value Measurements
Fair value is defined as the price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Fair value measurements are classified under the following hierarchy:
● Level 1 – Quoted prices for identical instruments in active markets.
● Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets.
● Level 3 – Model-derived valuations in which one or more significant inputs are not observable.
When available, the Company uses quoted market prices to determine fair value and classifies such measurements as Level 1. In some cases, where market prices are not available, the Company uses observable market-based inputs to calculate fair value, in which case the measurements are classified as Level 2. If quoted or observable market prices are not available, the Company determines fair value based upon valuation models that use, where possible, market-based data such as interest rates, yield curves or currency rates. These measurements are classified as Level 3.
The carrying values of cash, cash equivalents, restricted cash, trade accounts receivable, accounts payable, and short-term debt approximate fair value due to the short-term nature of these instruments. In addition, the Company assesses the fair value of a disposal group for each reporting period it is held for sale. The fair value of the Company’s long-term debt is disclosed in Note 17.
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Note 5: Pensions
Pension cost included the following components:
Three months ended June 30,
2025
2024
Service cost
$
—
$
—
Interest cost
2.4
2.3
Expected return on plan assets
( 2.2 )
( 2.2 )
Amortization of unrecognized net loss
1.2
1.2
Net periodic benefit cost
$
1.4
$
1.3
The company did no t make cash contributions to its U.S. pension plan during the three months ended June 30, 2025.
In June 2024, the Company approved the termination of its primary U.S. pension plan, which is pending approval from the Pension Benefit Guaranty Corporation. The Company intends to offer certain participants the option to receive their pension benefits in the form of a lump-sum distribution prior to purchasing annuity contracts to transfer its remaining obligations under the plan. In connection with the plan termination, the Company expects to make additional cash contributions in the range of $ 17.0 million to $ 22.0 million to fully fund the plan, on a plan termination basis, and to record non-cash pension settlement charges totaling approximately $ 115.0 million to $ 125.0 million during the second half of fiscal 2026. The timing and amount of the final cash contribution and settlement charges could materially differ from the Company’s estimates due to the nature and timing of participant settlements, prevailing market and economic conditions, the duration of the termination process, and/or other factors.
Note 6: Stock-Based Compensation
The Company’s stock-based incentive programs consist of the following: (i) a long-term incentive plan (“LTIP”) for officers and other executives that authorizes grants of stock awards, stock options, and performance-based awards for retention and performance, (ii) a discretionary equity program for other management and key employees, and (iii) stock awards for non-employee directors.
The Company calculates compensation expense based upon the fair value of the awards at the time of grant and subsequently recognizes expense ratably over the respective vesting periods of the stock-based awards. The Company recognized stock-based compensation expense of $ 5.3 million and $ 4.2 million for the three months ended June 30, 2025 and 2024, respectively.
During the first three months of fiscal 2026, the Company granted performance-based stock awards and restricted stock awards. The performance metrics for the performance-based stock awards are based upon a target three -year average cash flow return on invested capital and a target three -year average growth in consolidated net earnings before interest, taxes, depreciation, amortization, and certain other adjustments (“Adjusted EBITDA”) at the end of the performance period ending March 31, 2028.
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
The weighted-average fair value of stock-based compensation awards granted during the three months ended June 30, 2025 and 2024 were as follows:
Three months ended June 30,
2025
2024
Fair Value
Fair Value
Shares
Per Award
Shares
Per Award
Performance stock awards
0.1
$
104.26
0.1
$
103.77
Restricted stock awards
—
$
103.41
—
$
103.77
As of June 30, 2025, unrecognized compensation expense related to non-vested stock-based compensation awards, which will be recognized as expense over the remaining service periods, was as follows:
Unrecognized
Weighted-Average
Compensation
Remaining Service
Expense
Period in Years
Performance stock awards
$
37.1
2.2
Restricted stock awards
7.4
2.0
Total
$
44.5
2.2
Note 7: Restructuring Activities
Restructuring and repositioning expenses were as follows:
Three months ended June 30,
2025
2024
Employee severance and related benefits
$
4.5
$
4.8
Other restructuring and repositioning expenses
0.3
0.6
Total
$
4.8
$
5.4
During the first three months of fiscal 2026, restructuring and repositioning expenses primarily consisted of severance expenses, the majority of which were recorded in the Performance Technologies segment. The Performance Technologies severance charges 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. In addition, as part of its transformational initiatives supported by 80/20 principles, the Company is taking steps to optimize the efficiency of its supply chain and manufacturing processes in order to improve profit margins in the Climate Solutions and Performance Technologies segments. These restructuring activities have included transferring the production and warehousing for certain product lines among its facilities.
During the first three months of fiscal 2025, restructuring and repositioning expenses primarily consisted of severance expenses recorded in the Performance Technologies segment. These severance charges were primarily related to the closure of a technical service center and other targeted headcount reductions in Europe. In addition, the Company incurred equipment transfer costs within the Performance Technologies and Climate Solutions segments.
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
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,
2025
2024
Beginning balance
$
6.6
$
13.0
Additions
4.5
4.8
Payments
( 3.3 )
( 9.2 )
Effect of exchange rate changes
0.3
—
Ending balance
$
8.1
$
8.6
Note 8: Other Income and Expense
Other income and expense consisted of the following:
Three months ended June 30,
2025
2024
Interest income
$
0.5
$
0.7
Foreign currency transactions (a)
( 3.4 )
0.2
Net periodic benefit cost (b)
( 1.3 )
( 1.2 )
Total other expense – net
$
( 4.2 )
$
( 0.3 )
____
(a) Foreign currency transactions primarily consist of foreign currency transaction gains and losses on the re-measurement or settlement of foreign currency-denominated assets and liabilities, including intercompany loans and transactions denominated in a foreign currency, along with gains and losses on certain foreign currency exchange contracts.
(b) Net periodic benefit cost for the Company’s pension and postretirement plans is exclusive of service cost.
Note 9: Income Taxes
The Company’s effective tax rate for the three months ended June 30, 2025 and 2024 was 21.3 percent and 28.2 percent, respectively. The effective tax rate for the first quarter of fiscal 2026 is lower than the first quarter of the prior year, primarily due to changes in the mix and amount of foreign and U.S. earnings.
The Company records valuation allowances against its net deferred tax assets to the extent it determines it is more likely than not that such assets will not be realized in the future. Each quarter, the Company evaluates the probability that its deferred tax assets will be realized and determines whether valuation allowances or adjustments thereto are needed. This determination involves judgment and the use of significant estimates and assumptions, including expectations of future taxable income and tax planning strategies. In addition, the Company considers the duration of statutory carryforward periods and historical financial results.
At June 30, 2025, valuation allowances against deferred tax assets in the U.S. and in certain foreign jurisdictions totaled $ 42.9 million and $ 28.0 million, respectively. The Company will maintain the valuation allowances in each applicable tax jurisdiction until it determines it is more likely than not the deferred tax assets will be realized, thereby eliminating the need for a valuation allowance. Future events or circumstances, such as lower taxable income or unfavorable changes in the financial outlook of the Company’s operations in the U.S. and certain foreign jurisdictions, could necessitate the establishment of further valuation allowances.
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Accounting policies for interim reporting require the Company to adjust its effective tax rate each quarter to be consistent with its estimated annual effective tax rate. Under this methodology, the Company applies its estimated annual income tax rate to its year-to-date ordinary earnings to derive its income tax provision each quarter. The Company records the tax impacts of certain significant, unusual or infrequently occurring items in the period in which they occur. In addition, the Company excludes the impact of operations anticipated to generate net operating losses for the full fiscal year from the overall effective tax rate calculation and instead records them discretely based upon year-to-date results. The Company does not anticipate a significant change in unrecognized tax benefits during the remainder of fiscal 2026.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, including 100 % bonus depreciation and domestic research cost expensing. It also includes modifications to the international tax framework. The legislation has multiple effective dates, with certain provisions being implemented through the Company’s fiscal 2027. The Company is currently assessing the impact on the consolidated financial statements.
Note 10: Earnings Per Share
The components of basic and diluted earnings per share were as follows:
Three months ended June 30,
2025
2024
Net earnings attributable to Modine
$
51.2
$
47.3
Weighted-average shares outstanding – basic
52.6
52.5
Effect of dilutive securities
1.1
1.4
Weighted-average shares outstanding – diluted
53.7
53.9
Earnings per share:
Net earnings per share – basic
$
0.97
$
0.90
Net earnings per share – diluted
$
0.95
$
0.88
There were no securities that were anti-dilutive for the three months ended June 30, 2025 and 2024.
Note 11: Cash, Cash Equivalents and Restricted Cash
Cash, cash equivalents and restricted cash consisted of the following:
June 30, 2025
March 31, 2025
Cash and cash equivalents
$
124.5
$
71.6
Restricted cash
0.2
0.3
Total cash, cash equivalents and restricted cash
$
124.7
$
71.9
Restricted cash, which is reported within other current assets on the consolidated balance sheets, consists primarily of deposits for contractual guarantees or commitments required for rents, import and export duties, and commercial agreements.
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Note 12: Inventories
Inventories consisted of the following:
June 30, 2025
March 31, 2025
Raw materials
$
281.6
$
223.3
Work in process
74.2
65.9
Finished goods
79.0
51.7
Total inventories
$
434.8
$
340.9
Note 13: Property, Plant and Equipment
Property, plant and equipment, including depreciable lives, consisted of the following:
June 30, 2025
March 31, 2025
Land
$
19.4
$
16.4
Buildings and improvements ( 10 - 40 years)
277.3
257.7
Machinery and equipment ( 3 - 15 years)
890.7
843.7
Office equipment ( 3 - 10 years)
96.7
92.6
Construction in progress
57.9
69.5
1,342.0
1,279.9
Less: accumulated depreciation
( 916.1 )
( 889.4 )
Net property, plant and equipment
$
425.9
$
390.5
The June 30, 2025 and March 31, 2025 property, plant and equipment in the table above exclude amounts classified as held for sale. See Note 2 for additional information.
Note 14: Goodwill and Intangible Assets
The following table presents a roll forward of the carrying value of goodwill from March 31, 2025 to June 30, 2025.
Climate Solutions
Goodwill, March 31, 2025
$
233.9
Acquisitions (a)
26.8
Effect of exchange rate changes
7.5
Goodwill, June 30, 2025
$
268.2
____
(a) During the first quarter of fiscal 2026, the Company recorded $ 25.7 million and $ 1.1 million of goodwill in connection with its acquisition of L.B. White and AbsolutAire, respectively. See Note 2 for additional information.
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Intangible assets consisted of the following:
June 30, 2025
March 31, 2025
Gross
Net
Gross
Net
Carrying
Accumulated
Intangible
Carrying
Accumulated
Intangible
Value
Amortization
Assets
Value
Amortization
Assets
Customer relationships
$
191.9
$
( 53.8 )
$
138.1
$
145.4
$
( 47.5 )
$
97.9
Trade names
66.7
( 22.4 )
44.3
53.1
( 21.2 )
31.9
Acquired technology
33.5
( 17.1 )
16.4
32.6
( 15.7 )
16.9
Total intangible assets
$
292.1
$
( 93.3 )
$
198.8
$
231.1
$
( 84.4 )
$
146.7
During the first quarter of fiscal 2026 and in connection with its acquisitions of L.B. White and AbsolutAire, the Company recorded customer relationship and trade name intangible assets totaling $ 39.8 million and $ 12.5 million, respectively.
The Company recorded amortization expense of $ 5.7 million and $ 6.9 million for the three months ended June 30, 2025 and 2024, respectively. The Company estimates that it will record approximately $ 15.0 million of amortization expense during the remainder of fiscal 2026. The Company estimates that it will record approximately $ 19.0 million, $ 19.0 million, $ 19.0 million, $ 18.0 million, and $ 17.0 million of annual amortization expense in fiscal 2027 through 2031, respectively.
Note 15: Product Warranties
Changes in accrued warranty costs were as follows:
Three months ended June 30,
2025
2024
Beginning balance
$
9.2
$
10.7
Warranties recorded at time of sale
1.9
1.9
Adjustments to pre-existing warranties
( 2.8 )
( 0.1 )
Settlements
( 2.1 )
( 1.7 )
Effect of exchange rate changes
0.3
—
Ending balance
$
6.5
$
10.8
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Note 16: Leases
Lease assets and liabilities
The following table provides a summary of leases recorded on the consolidated balance sheets.
Balance Sheet Location
June 30, 2025
March 31, 2025
Lease Assets
Operating lease ROU assets
Other noncurrent assets
$
98.4
$
97.2
Finance lease ROU assets (a)
Property, plant and equipment - net
7.2
6.9
Lease Liabilities
Operating lease liabilities
Other current liabilities
$
19.8
$
18.0
Operating lease liabilities
Other noncurrent liabilities
80.2
80.6
Finance lease liabilities
Long-term debt - current portion
0.5
0.5
Finance lease liabilities
Long-term debt
2.2
2.2
____
(a) Finance right of use ( “ ROU ” ) assets were recorded net of accumulated amortization of $ 4.5 million and $ 4.2 million as of June 30, 2025 and March 31, 2025, respectively.
Components of lease expense
The components of lease expense were as follows:
Three months ended June 30,
2025
2024
Operating lease expense (a)
$
9.7
$
6.9
Finance lease expense:
Depreciation of ROU assets
0.1
0.1
Interest on lease liabilities
—
—
Total lease expense
$
9.8
$
7.0
____
(a) For the three months ended June 30, 2025 and 2024, operating lease expense included short-term lease expense of $ 2.4 million and $ 1.3 million, respectively. Variable lease expense was not significant.
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Note 17: Indebtedness
Long-term debt consisted of the following:
Fiscal year
of maturity
June 30, 2025
March 31, 2025
Revolving credit facility
2028
$
221.0
$
30.0
Term loans
2028
194.4
193.7
5.9 % Senior Notes
2029
93.8
100.0
5.8 % Senior Notes
2027
16.7
16.7
Finance lease obligations
2.7
2.7
528.6
343.1
Less: current portion
( 45.0 )
( 44.8 )
Less: unamortized debt issuance costs
( 1.5 )
( 1.6 )
Total long-term debt
$
482.1
$
296.7
Long-term debt, including the current portion of long-term debt, matures as follows:
Fiscal Year (a)
Remainder of 2026
$
35.8
2027
45.0
2028
421.5
2029
25.5
2030
0.1
2031 & beyond
0.7
Total
$
528.6
____
(a) Amounts reflect scheduled maturity payments as of June 30, 2025. As described below, the Company executed an amended credit agreement in July 2025, which extended the maturity dates for the revolving credit and term loan facilities.
Borrowings under the revolving credit, swingline and term loan facilities bear interest at variable rates, based upon the applicable reference rate and including a margin percentage dependent upon the Company’s leverage ratio, as described below. At June 30, 2025, the weighted-average interest rate for revolving credit facility borrowings and the term loans was 5.8 and 5.3 percent, respectively.
Based upon the terms of the credit agreement, the Company classifies borrowings under its revolving credit and swingline facilities as long-term and short-term debt, respectively, on its consolidated balance sheets. At June 30, 2025, the Company’s borrowings under its revolving credit facility totaled $ 221.0 million and domestic letters of credit totaled $ 6.2 million. As a result, available borrowing capacity under the Company’s revolving credit facility was $ 47.8 million as of June 30, 2025. At June 30, 2025 and March 31, 2025 the Company had no borrowings under the swingline facility. At March 31, 2025, the Company’s borrowings under its revolving credit facility totaled $ 30.0 million.
The Company also maintains credit agreements for its foreign subsidiaries. There were no short-term borrowings related to these foreign credit agreements at June 30, 2025. At March 31, 2025, the outstanding short-term borrowings on foreign credit agreements totaled $ 9.3 million.
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
In July 2025, the Company executed an amended and restated credit agreement with a syndicate of banks that provides for a multi-currency $ 400.0 million revolving credit facility and a $ 200.0 million term loan facility maturing in July 2030. This credit agreement modified the Company’s then-existing revolving credit and term loan facilities, which would have matured in October 2027. The Company also amended the agreement governing its Senior Notes to conform the applicable terms to those of the aforementioned amended and restated credit agreement.
Indebtedness under the Company’s credit agreement and Senior Notes is secured by substantially all domestic assets, excluding real estate. These agreements further require compliance with various covenants that may limit the Company’s ability to incur additional indebtedness; grant liens; make investments, loans, or guarantees; engage in certain transactions with affiliates; and make restricted payments, including dividends. In addition, the agreements may require prepayment in the event of certain asset sales.
Financial covenants within the credit agreements include a leverage ratio covenant, which requires the Company to limit the ratio of its consolidated indebtedness, less a portion of its cash balances, both as defined by the credit agreements, to its consolidated net earnings before interest, taxes, depreciation, amortization, and certain other adjustments (“Adjusted EBITDA”). The credit agreements existing as of June 30, 2025 included a leverage ratio covenant of no more than three and one-quarter times. As amended, the credit agreements include a leverage ratio covenant of no more than three and one-half times. The Company must also maintain a ratio of Adjusted EBITDA of at least three times consolidated interest expense. As of June 30, 2025, the Company was in compliance with its debt covenants.
The Company estimates the fair value of long-term debt using discounted future cash flows at rates offered to the Company for similar debt instruments of comparable maturities. As of June 30, 2025 and March 31, 2025, the carrying value of the Company’s long-term debt approximated fair value, with the exception of the Senior Notes, which had an aggregate fair value of $ 112.2 million and $ 116.6 million, respectively. The fair value of the Company’s long-term debt is categorized as Level 2 within the fair value hierarchy. Refer to Note 4 for the definition of a Level 2 fair value measurement.
Note 18: Risks, Uncertainties, Contingencies and Litigation
Environmental
The Company has recorded environmental monitoring and remediation accruals related to manufacturing facilities in the U.S., one of which the Company currently owns and operates, and a former manufacturing facility in the Netherlands. These accruals primarily relate to soil and groundwater contamination at facilities where past operations followed practices and procedures that were considered acceptable under then-existing regulations, or where the Company is a successor to the obligations of prior owners, and current laws and regulations require investigative and/or remedial work to ensure sufficient environmental compliance. In instances where a range of loss can be reasonably estimated for a probable environmental liability, but no amount within the range is a better estimate than any other amount, the Company accrues the minimum of the range. The Company’s accruals for environmental matters totaled $ 15.0 million and $ 15.8 million as of June 30, 2025 and March 31, 2025, respectively. As additional information becomes available regarding environmental matters, the Company will re-assess the liabilities and revise the estimated accruals, if necessary. While it is possible that the ultimate environmental remediation costs may be in excess of amounts accrued, the Company believes, based upon currently available information, that the ultimate outcome of these matters, individually and in the aggregate, will not have a material adverse effect on its financial position. However, these matters are subject to inherent uncertainties, and unfavorable outcomes could occur, including significant monetary damages.
Information technology purchase commitments
The Company has entered into purchase commitments for information technology services, primarily related to implementation and support for cloud infrastructure, data analytics, and AI-enablement services. In total, the Company expects to spend approximately $ 35.0 million in connection with these purchase commitments from fiscal 2027 through fiscal 2030.
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Other litigation
In the normal course of business, the Company and its subsidiaries are named as defendants in various lawsuits and enforcement proceedings by private parties, governmental agencies and/or others in which claims are asserted against Modine. The Company believes that any additional loss in excess of amounts already accrued would not have a material effect on the Company’s consolidated balance sheet, results of operations, and cash flows. In addition, management expects that the liabilities which may ultimately result from such lawsuits or proceedings, if any, would not have a material adverse effect on the Company’s financial position.
Note 19: Accumulated Other Comprehensive Loss
Changes in accumulated other comprehensive loss were as follows:
Three months ended June 30, 2025
Foreign
Currency
Defined
Cash Flow
Translation
Benefit Plans
Hedges
Total
Beginning balance
$
( 76.8 )
$
( 103.8 )
$
( 0.7 )
$
( 181.3 )
Other comprehensive income before reclassifications
47.2
—
1.4
48.6
Reclassifications:
Amortization of unrecognized net loss (a)
—
1.1
—
1.1
Realized losses - net (b)
—
—
0.5
0.5
Income taxes
—
( 0.3 )
( 0.5 )
( 0.8 )
Total other comprehensive income
47.2
0.8
1.4
49.4
Ending balance
$
( 29.6 )
$
( 103.0 )
$
0.7
$
( 131.9 )
Three months ended June 30, 2024
Foreign
Currency
Defined
Cash Flow
Translation
Benefit Plans
Hedges
Total
Beginning balance
$
( 62.8 )
$
( 100.7 )
$
0.1
$
( 163.4 )
Other comprehensive income (loss) before reclassifications
( 6.9 )
—
—
( 6.9 )
Reclassifications:
Amortization of unrecognized net loss (a)
—
1.1
—
1.1
Income taxes
—
( 0.3 )
—
( 0.3 )
Total other comprehensive income (loss)
( 6.9 )
0.8
—
( 6.1 )
Ending balance
$
( 69.7 )
$
( 99.9 )
$
0.1
$
( 169.5 )
____
(a) Amounts are included in the calculation of net periodic benefit cost for the Company’s defined benefit plans, which include pension and other postretirement plans. See Note 5 for additional information about the Company’s pension plans.
(b) Amounts represent net gains and losses associated with cash flow hedges that were reclassified to net earnings.
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
Note 20: Segment Information
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 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. 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.
Three months ended June 30, 2025
Climate
Performance
Corporate and
Solutions
Technologies
eliminations
Total
External sales
$
397.3
$
285.5
$
—
$
682.8
Inter-segment sales
0.1
—
( 0.1 )
—
Net sales
397.4
285.5
( 0.1 )
682.8
Cost of sales
284.5
233.6
( 0.7 )
517.4
Gross profit
112.9
51.9
0.6
165.4
Selling, general and administrative expenses
44.7
21.9
18.3
84.9
Restructuring expenses
1.3
3.5
—
4.8
Operating income
$
66.9
$
26.5
$
( 17.7 )
$
75.7
Three months ended June 30, 2024
Climate
Performance
Corporate and
Solutions
Technologies
eliminations
Total
External sales
$
357.2
$
304.3
$
—
$
661.5
Inter-segment sales
0.1
4.7
( 4.8 )
—
Net sales
357.3
309.0
( 4.8 )
661.5
Cost of sales
256.5
245.5
( 3.1 )
498.9
Gross profit
100.8
63.5
( 1.7 )
162.6
Selling, general and administrative expenses
40.8
26.8
15.2
82.8
Restructuring expenses
0.2
5.2
—
5.4
Operating income
$
59.8
$
31.5
$
( 16.9 )
$
74.4
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.
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MODINE MANUFACTURING COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share amounts)
(unaudited)
The following is a summary of capital expenditures and depreciation and amortization expense by segment:
Three months ended June 30,
2025
2024
Capital expenditures:
Climate Solutions
$
19.9
$
16.0
Performance Technologies
7.3
10.8
Corporate
0.3
—
Total capital expenditures
$
27.5
$
26.8
Three months ended June 30,
2025
2024
Depreciation and amortization expense:
Climate Solutions
$
11.2
$
11.9
Performance Technologies
7.5
7.0
Corporate
0.3
0.2
Total depreciation and amortization expense
$
19.0
$
19.1
The following is a summary of segment assets, comprised entirely of trade accounts receivable and inventories, and other assets:
June 30, 2025
March 31, 2025
Assets:
Climate Solutions
$
585.4
$
448.7
Performance Technologies
366.0
371.1
Other (a)
1,277.1
1,097.8
Total assets
$
2,228.5
$
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.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.