Madison Air Solutions Corporation

What they do

Madison Air sells air quality equipment and systems into commercial and residential markets through a portfolio it describes as diversified. The company operates with a stated 'Return on Air' approach, winning applications that include mission-critical cooling, semiconductor cleanrooms and public health laboratories, and Healthy Air Systems for residential use. It went public on April 17, 2026, and is headquartered in Chicago.

Revenue drivers

• Commercial — Commercial orders rose 45% on a combined basis, driven by wins in mission-critical applications including liquid cooling, semiconductor cleanrooms and public health laboratories; total company net sales were $991.3 million in 2Q 2026.
• Residential / Healthy Air Systems — The company is expanding adoption of Healthy Air Systems through contractor engagement in the residential channel; total company net sales were $991.3 million in 2Q 2026.

Recent performance

Second quarter 2026 net sales were $991.3 million, up 21% from $819.6 million a year earlier and up 14% on a pro forma basis. Net income was $70.5 million, up 129%, with adjusted net income of $147.7 million, up 71%. Adjusted EBITDA was $265.8 million, up 18%, at a 27% margin. Backlog reached $2,868.4 million, up 133% year over year, and orders rose 45% on a combined basis. Cash flow from continuing operations was $98.6 million and free cash flow was $89.6 million.

Strategy

Madison Air completed its IPO and concurrent private placement on April 17, 2026, generating $2,584.2 million in net proceeds, which together with $41.5 million of cash was used to repay $2,625.7 million of borrowings. The company increased its revolving credit facility commitment to $1,300.0 million, leaving $1,294.3 million available at June 30, 2026. In June 2026 it repriced the remaining Incremental Term Loan Facility, lowering the spread by 100 bps to an applicable margin of 1.75%. Management highlights an entrepreneurial culture, with employee engagement scores up four percentage points year over year and monthly voluntary turnover about 30% below industry benchmarks.

Risks

• Leverage — Net leverage stood at 2.8x as of June 30, 2026, leaving the company exposed to interest-rate and refinancing risk on borrowings.
• Acquisition integration — The AprilAire acquisition closed May 6, 2025, and reported growth depends in part on pro forma and combined-basis figures management acknowledges do not comply with GAAP or SEC pro forma rules.
• Backlog conversion — Backlog of $2,868.4 million, up 133% year over year, must convert to revenue for the raised guidance to be met, and timing depends on customer project schedules.
• End-market concentration — Commercial momentum is tied to mission-critical applications such as liquid cooling, semiconductor cleanrooms and public health laboratories, which can be cyclical and project-driven.

Outlook

Management raised full-year guidance to high-single-digit-plus pro forma net sales growth, a range of $3,825 to $3,925 million. It also expects high-single-digit to low-double-digit pro forma Adjusted EBITDA growth, a range of $1,020 to $1,065 million. The company cites strong first-half execution, continued customer demand and backlog visibility as support for the raised outlook.