Madison Air Solutions (MAIR) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales reached $991.3 million, up 14% pro forma and 21% reported year-over-year, with strong growth in both commercial and residential segments, driven by the AprilAire acquisition and broad-based demand.

• Adjusted EBITDA was $265.8 million (26.8% margin), up 12% pro forma and 18% reported, reflecting robust performance and margin expansion.

• Backlog reached a record $2.87 billion, up 133% year-over-year, with orders up 45% and over 50% of backlog expected to convert in 2027 and beyond.

• The company completed its IPO and private placement, raising $2.58 billion in net proceeds, which were used to repay $2.63 billion in debt, reducing net leverage to 2.8x and enhancing liquidity.

• Innovation, digital tools, and service capabilities are being expanded to drive aftermarket and recurring revenue streams.

Financial highlights

• Net sales for Q2 2026 were $991.3 million, up from $819.6 million year-over-year; adjusted EBITDA was $265.8 million (26.8% margin), up from $225.5 million (27.5% margin) in Q2 2025.

• Adjusted net income was $148 million, up 83% year-over-year, with free cash flow of $140 million year-to-date and free cash flow conversion of 123%.

• LTM revenue reached $3.75 billion, with $430 million in free cash flow and 26.6% adjusted EBITDA margin.

• Net leverage improved to 2.8x, down from 5.9x at year-end 2025.

• Gross profit margin was 38.0%; adjusted gross profit margin was 39.0%.

Outlook and guidance

• Full-year 2026 net sales guidance raised to $3.825–$3.925 billion, with high single-digit to low double-digit pro forma growth expected.

• Full-year adjusted EBITDA guidance maintained at $1.02–$1.065 billion, with margins around 27%.

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

• Q3 net sales growth expected to be high single-digit plus, with a base of $898 million in Q3 2025.

• Commercial net sales expected to grow high single- to low double-digit; residential net sales to grow low single-digit.