Madison Air Solutions (MAIR) Q1 2026 earnings summary

Executive summary

• First quarter 2026 marked the inaugural earnings call as a public company after a successful IPO, with a focus on scalable, profitable long-term growth and delivering superior air quality solutions across commercial and residential markets.

• Achieved strong financial performance in Q1 2026, with net sales rising 33.8% year-over-year to $923.7 million, driven by the AprilAire acquisition and robust commercial segment growth.

• Core strengths include outcome-driven solutions, leadership in growth markets, a disciplined value creation model, and a decentralized, entrepreneurial culture supported by significant investment in innovation and talent.

• Positioned for sustainable, profitable growth and robust free cash flow, leveraging a differentiated value creation model and disciplined capital allocation.

• Backlog increased 115.5% year-over-year and orders rose 29.1% on a combined basis, reflecting strong demand and execution.

Financial highlights

• Net sales reached $924 million, up 13% pro forma year-over-year, with adjusted EBITDA up 16% to $233 million and margin expanding to 25.3%.

• Adjusted net income was $93 million, up 36% year-over-year; reported free cash flow was $50 million, representing 117% conversion.

• Commercial segment net sales grew 23.5% to $610 million, with adjusted EBITDA up 25.4%; residential segment net sales rose 59.8% to $316 million, with adjusted EBITDA up 83.6%.

• Organic revenue growth was 11.7% overall, with 17.2% in Commercial and -1.9% in Residential.

• Record backlog of $2.5 billion, up 116% year-over-year, and a book-to-bill ratio of 1.4x in Q1.

Outlook and guidance

• Full-year 2026 net sales guidance: $3,750–$3,850 million, representing mid- to high single-digit growth year-over-year.

• Adjusted EBITDA guidance: $1,020–$1,065 million, with margins expected between 20% and 27%.

• Free cash flow conversion expected to exceed 100% of net income; CapEx to remain below 2% of sales.

• Net leverage targeted below 2.5x within 12 months post-IPO.

• Guidance incorporates $100 million in gross tariff costs, with mitigation actions planned.