Annual report [Section 13 and 15(d), not S-K Item 405]

Segment Information

v3.25.1
Segment Information
 12 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
We maintain four reportable segments based on four geographic countries or regions in which we operate: (i) United States and Latin America ("US-LAM"), (ii) Canada, (iii) Europe, Middle East and Africa ("EMEA") and (iv) Asia-Pacific ("APAC"). Within our four reportable segments, our core products and services are focused on the following markets: general industrial, chemical and petrochemical, oil, gas, power generation, commercial, food and beverage, rail and transit, and other, which we refer to as our "key end markets."
We offer a full suite of products (heating units, electrode and gas-fired boilers, heating cables, industrial heating blankets and related products, temporary power solutions and tubing bundles), services (engineering, installation and maintenance services) and software (design optimization and wireless and network control systems) required to deliver comprehensive solutions to some of the world's largest and most complex projects. Our Chief Operating Decision Maker ("CODM") is our President and Chief Executive Officer. Our CODM uses the reported measure of segment profit or loss to
assess segment performance and allocate resources to the segments informed by a strategic process to optimize value to our shareholders.
We measure the profitability of our consolidated entity using "Segment profit." Segment profit is sales reviewed by the CODM, less cost of sales and selling, general, and administrative expenses, adjusted. For purposes of this note, sales and expenses reviewed by the CODM are attributed to segments on the basis of the business unit of record. Sales as stated on our consolidated statements of operations and comprehensive income is based on the legal entity of record.
We transact business frequently between our legal entities through intercompany transactions. These transactions result in intersegment sales and costs recognized. We account for such transactions using our transfer pricing methodology and intercompany transactions are eliminated upon consolidation.
    
For the year ended March 31, 2025 US-LAM Canada EMEA APAC Total
Sales(1)
$ 256,006  $ 158,969  $ 45,320  $ 37,912  $ 498,207 
Adjustments(1)
13,497  (16,024) 1,790  737  — 
Sales reviewed by the CODM $ 269,503  $ 142,945  $ 47,110  $ 38,649  $ 498,207 
Less:(2)
Cost of sales 142,200  80,886  27,648  24,577  275,311 
Selling, general, and administrative expenses, adjusted(3)
64,352  21,812  15,489  10,944  112,597 
Segment profit $ 62,951  $ 40,247  $ 3,973  $ 3,128  $ 110,299 
Reconciliation to Income before provision for income taxes:
Deferred compensation plan (expense)/income $ (452)
Depreciation and amortization (22,339)
Other unallocated enterprise expense4
(7,751)
Interest expense, net (10,325)
Other income/(expense) 687 
Income before provision for income taxes $ 70,119 
Supplementary data US-LAM Canada EMEA APAC Total
Intersegment revenue $ 48,900  $ 16,571  $ 1,954  $ 2,944  $ 70,369 
For the year ended March 31, 2024 US-LAM Canada EMEA APAC Total
Sales(1)
$ 256,293  $ 155,319  $ 45,301  $ 37,716  $ 494,629 
Adjustments(1)
11,057  (15,394) 1,626  2,711  — 
Sales reviewed by the CODM $ 267,350  $ 139,925  $ 46,927  $ 40,427  $ 494,629 
Less:(2)
Cost of sales 144,713  83,453  28,213  26,686  283,065 
Selling, general, and administrative expenses, adjusted(3)
57,224  22,324  13,984  10,994  104,526 
Segment profit $ 65,413  $ 34,148  $ 4,730  $ 2,747  $ 107,038 
Reconciliation to Income before provision for income taxes:
Deferred compensation plan (expense)/income $ (1,231)
Depreciation and amortization (18,837)
Other unallocated enterprise expense4
(11,599)
Interest expense, net (8,845)
Other income/(expense) 1,148 
Income before provision for income taxes $ 67,674 
Supplementary data US-LAM Canada EMEA APAC Total
Intersegment revenue $ 39,784  $ 18,162  $ 1,371  $ 3,363  $ 62,680 

For the year ended March 31, 2023 US-LAM Canada EMEA APAC Total
Sales(1)
$ 209,154  $ 153,967  $ 43,159  $ 34,310  $ 440,590 
Adjustments(1)
11,064  (14,872) 1,168  2,640  — 
Sales reviewed by the CODM $ 220,218  $ 139,095  $ 44,327  $ 36,950  $ 440,590 
Less:(2)
Cost of sales 120,247  78,134  33,670  23,418  255,469 
Selling, general, and administrative expenses, adjusted(3)
48,988  21,089  10,170  9,966  90,213 
Segment profit $ 50,983  $ 39,872  $ 487  $ 3,566  $ 94,908 
Reconciliation to Income before provision for income taxes:
Deferred compensation plan (expense)/income $ 208 
Depreciation and amortization (19,231)
Other unallocated enterprise expense4
(20,695)
Interest expense, net (5,871)
Other income/(expense) (86)
Income before provision for income taxes $ 49,233 
Supplementary data US-LAM Canada EMEA APAC Total
Intersegment revenue $ 42,657  $ 17,715  $ 1,409  $ 2,033  $ 63,814 
(1) - "Sales" are attributed to the reportable segment on the basis of the physical location and jurisdiction of organization of the subsidiary that invoices the material and services. The sales reviewed by the CODM are attributed based on the business unit which made the sale. The adjustments shown above represent these differences. Therefore, we have adjusted the sales reviewed by the CODM to reconcile such Sales.
(2) - The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(3) - Selling, general, and administrative expenses, adjusted (non-GAAP), represents the Selling, general, and administrative expenses less depreciation expense, other unallocated enterprise expense, and impairment and other charges.
(4) - Other unallocated enterprise expense includes miscellaneous corporate costs not allocated, such as stock-based compensation, miscellaneous gain/loss on sale of assets and other. The fiscal 2024 and 2023 amounts include charges associated with the Russia Exit. Refer to Note 14, "Restructuring and other charges/(income)" for more information.
We do not provide segment asset information to our CODM, and as such, we do not have a segment assets measure. The following table represents our capital expenditures by reportable segment:
March 31, 2025 March 31, 2024
Capital expenditures, by reportable segment
United States and Latin America $ 4,347  $ 5,029 
Canada 5,114  5,398 
Europe, Middle East and Africa 285  329 
Asia-Pacific 503  260 
$ 10,249  $ 11,016