Madison Air Q1 Net Sales Jump 33.8% to $923.7M; EBITDA Rises 38.7%
MAIR•Madison Air reported Q1 2026 net sales of $923.7 million, up 33.8%, with adjusted EBITDA up 38.7% to $233.4 million and margin expanding 89 basis points to 25.3%. It generated $57.8 million in operating cash flow and $50.4 million free cash flow, cutting leverage to 3.0x post $2.58 billion IPO.
1. Q1 Financial Results
Madison Air reported Q1 2026 net sales of $923.7 million, a 33.8% increase from $690.4 million in Q1 2025. Backlog rose 115.5% year-over-year and combined orders climbed 29.1%. Net income was $43.0 million (4.7% margin), while adjusted EBITDA increased 38.7% to $233.4 million (25.3% margin).
2. Segment Performance
Commercial segment net sales reached $609.8 million, up 23.5%, driven by robust demand across institutional and industrial markets. Residential segment sales surged 59.8% to $315.6 million as consumer investment in air quality solutions accelerated.
3. IPO and Deleveraging
On April 17, the company completed its IPO of Class A and Class B shares at $27.00 each, raising $2.58 billion net of fees. Proceeds alongside $77.1 million cash on hand repaid $2.66 billion of term loan borrowings, lowering post-IPO adjusted net leverage to 3.0x.
4. Cash Flow and Balance Sheet
Operating activities generated $57.8 million in cash during the quarter, while free cash flow totaled $50.4 million. Strong cash conversion and debt reduction efforts bolster the balance sheet and support ongoing investment in growth initiatives.
