Madison Air Posts $1.13B Q3 Sales, Raises 2026 Outlook

Madison Air Solutions Corporation reported third-quarter net sales of $1.127 billion on Thursday, up 25.4% from a year earlier, and raised its full-year 2026 sales and adjusted EBITDA outlook after posting a record backlog.

Net income rose 89.1% to $107.4 million, or $0.20 a diluted share from continuing operations, according to the company’s release carried on Nasdaq. Adjusted net income was $199.3 million. Adjusted earnings were $0.38 a share. Adjusted EBITDA climbed 18.6% to $298.3 million, for a 26.5% margin, down from 28.0% a year earlier. Free cash flow in the quarter was $158.0 million. Orders rose 25.9%, and backlog reached $3.187 billion, up 119.3%.

Commercial and residential split

Commercial segment sales jumped 39.3% to $771.9 million, led by air, liquid and hybrid cooling, air movement, heat and commercial dehumidification, the company said. Commercial adjusted EBITDA rose 23.6% to $200.5 million. Residential sales increased 3.2% to $355.5 million, with residential adjusted EBITDA up 11.7% to $104.9 million. Madison Air said data-center cooling demand remained strong and that margins reflected that mix plus new-program ramp costs.

Guidance and planned deal

The Chicago-based company lifted 2026 net sales guidance to $4.05 billion to $4.125 billion from $3.825 billion to $3.925 billion, and adjusted EBITDA guidance to $1.04 billion to $1.07 billion from $1.02 billion to $1.065 billion. It said it still expects to complete its acquisition of ebm-papst soon after year-end, with financing secured. As of Sept. 30, cash and cash equivalents were $2.645 billion, including $2.217 billion of net private-placement proceeds earmarked for that deal; total debt was $3.057 billion. Net leverage was 0.4x, and adjusted net leverage was 2.6x.

Sources: Nasdaq, SquawkNews, SEC Form 8-K Exhibit 99.1