Madison Air (NYSE: MAIR) boosts Q2 profit, trims debt, hikes sales
Rhea-AI Filing Summary
Madison Air Solutions reported strong second-quarter 2026 performance, with net sales of $991.3 million, up 21% from $819.6 million, and net income of $70.5 million, up 129% with a 7.1% margin. Adjusted results were also solid, including adjusted net income of $147.7 million, a 14.9% margin, and adjusted EBITDA of $265.8 million, up 18% with a 26.8% margin. Backlog reached $2,868.4 million, up 133% year over year, and orders grew 45% on a combined basis, reflecting broad demand across commercial and residential markets.
The company used IPO and private placement net proceeds of $2,584.2 million, together with $41.5 million of cash on hand, to repay $2,625.7 million of borrowings, reducing total debt to $3,053.7 million and bringing net leverage down to 2.8x from 5.9x. Cash flow from continuing operations was $98.6 million in the quarter and free cash flow was $89.6 million. Given strong first-half execution and record backlog, Madison Air raised its full‑year 2026 net sales outlook to $3,825–$3,925 million, while reiterating adjusted EBITDA guidance of $1,020–$1,065 million.
Positive
- Net sales grew 21% to $991.3 million, while net income rose 129% to $70.5 million, with diluted EPS from continuing operations increasing to $0.15 and adjusted EPS to $0.31.
- Backlog reached a record $2,868.4 million, up 133% year-over-year, and orders increased 45% on a combined basis, indicating strong demand across key end markets.
- Net leverage improved to 2.8x from 5.9x as the company used IPO and private placement proceeds plus cash to repay $2,625.7 million of outstanding borrowings.
- Full-year 2026 net sales guidance was raised to $3,825–$3,925 million from $3,750–$3,850 million, while maintaining adjusted EBITDA guidance of $1,020–$1,065 million, reflecting confidence in the outlook.
Negative
- None.
Insights
Analyzing...
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales Q2 2026: $991.3 million
Net income Q2 2026: $70.5 million
Adjusted EBITDA Q2 2026: $265.8 million
+5 more
8 metrics
Net sales Q2 2026
$991.3 million
Three months ended June 30, 2026 net sales, up 21% year-over-year
Net income Q2 2026
$70.5 million
Three months ended June 30, 2026 net income, margin 7.1%
Adjusted EBITDA Q2 2026
$265.8 million
Three months ended June 30, 2026 adjusted EBITDA, up from $225.5 million
Backlog
$2,868.4 million
Backlog up 133% year-over-year with orders up 45% on a combined basis
Debt repaid post-IPO
$2,625.7 million
Borrowings repaid using IPO and private placement proceeds plus cash
Net leverage
2.8x
Net leverage at June 30, 2026 versus 5.9x at December 31, 2025
Operating cash flow Q2 2026
$98.6 million
Cash from operating activities from continuing operations for the quarter
2026 net sales guidance
$3,825 to $3,925 million
Updated full-year 2026 net sales outlook, raised from $3,750 to $3,850 million
Key Terms
Adjusted EBITDA, Free cash flow, Net Leverage, Organic sales, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA* of $265.8 million, up 18%, with adjusted EBITDA margin* of 27%"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Free cash flow financial
"Cash flow from operations - continuing operations of $98.6 million and free cash flow* of $89.6 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Net Leverage financial
"Ended 2Q with 2.8x net leverage*, down ~0.2x from immediately following the IPO"
Net leverage measures how many years it would take for a company to pay off its outstanding debt using its annual operating cash flow, after subtracting cash on hand from total debt. Think of it like a household’s mortgage balance minus savings divided by yearly income; a lower number means the company is in a safer position to handle debt, while a higher number signals greater financial risk and potential pressure on profits or growth.
Organic sales financial
"Organic sales | 837.0 | | | 733.5 | | | | 1,607.9 | | | 1,423.9"
Organic sales are the change in a company’s revenue that comes from its existing business operations, excluding effects of acquisitions, divestitures, and currency swings. Think of it like measuring how much a garden grows from the plants you already tended, rather than adding new pots; investors use organic sales to judge whether demand and core business performance are genuinely improving or if growth is driven by one‑time deals or accounting shifts.
Pro Forma financial
"Financial information presented on a Pro Forma basis solely to give effect to the AprilAire Acquisition"
Pro forma refers to financial information that is prepared based on estimates or adjustments to show what a company's results might look like under certain scenarios, such as new projects or acquisitions. It helps investors understand the potential impact of future events by providing a clear, hypothetical view of financial performance, much like a weather forecast shows possible future conditions.
EAR Plan financial
"Represents compensation expense under the EAR Plan and Amended EAR Plan"
Earnings Snapshot
Net sales: $991.3 million · Guidance included
second quarter 2026
Net sales
$991.3 million
up 21% from $819.6 million in the prior-year quarter
Net income
$70.5 million
up from $30.8 million in 2025, net margin 7.1%
Adjusted EBITDA
$265.8 million
up from $225.5 million in 2025, margin 26.8%
Adjusted EPS
$0.31
increased from $0.24 in the prior-year quarter
Backlog
$2,868.4 million
up 133% year-over-year with orders up 45% on a combined basis
Guidance
For full-year 2026, the company expects net sales of $3,825 to $3,925 million and Adjusted EBITDA of $1,020 to $1,065 million, raising net sales guidance from a prior range of $3,750 to $3,850 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Madison Air (MAIR) net sales and growth in Q2 2026?
Madison Air reported Q2 2026 net sales of $991.3 million, up 21% from $819.6 million in 2025. Commercial net sales were $658.9 million and Residential net sales were $333.8 million, both contributing to the overall double-digit growth.
How profitable was Madison Air (MAIR) in the second quarter of 2026?
Q2 2026 net income was $70.5 million, up from $30.8 million, for a 7.1% net margin. Adjusted net income was $147.7 million with a 14.9% margin, and adjusted EBITDA was $265.8 million with a 26.8% margin, showing strong underlying profitability.
What guidance did Madison Air (MAIR) give for full-year 2026?
For 2026, Madison Air expects net sales of $3,825 to $3,925 million, raising its prior $3,750 to $3,850 million range. It maintains adjusted EBITDA guidance of $1,020 to $1,065 million, targeting high-single-digit to low-double-digit pro forma adjusted EBITDA growth.
How did Madison Air (MAIR) use IPO proceeds and affect leverage?
On April 17, 2026 Madison Air generated $2,584.2 million in net IPO and private placement proceeds and, with $41.5 million of cash, repaid $2,625.7 million of borrowings. Total debt fell to $3,053.7 million, and net leverage improved to 2.8x at June 30, 2026.
What is Madison Air (MAIR) backlog and order growth as of Q2 2026?
Madison Air reported a backlog of $2,868.4 million, up 133% year-over-year, with orders up 45% on a combined basis. Growth was driven by commercial wins in applications like liquid cooling and semiconductor cleanrooms and continued adoption of Healthy Air Systems in residential markets.
What were Madison Air (MAIR) Q2 2026 cash flow and free cash flow?
For Q2 2026, Madison Air generated $98.6 million of cash flow from operating activities from continuing operations and $89.6 million of free cash flow. For the first six months of 2026, operating cash flow from continuing operations was $156.4 million and free cash flow was $140.0 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The
Securities Exchange Act of 1934
Date of Report (Date of earliest event Reported): July 30, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number): | (I.R.S. Employer Identification Number) | ||||||||||||
(Address of principal executive offices)
(312 ) 262-6374
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 240.425) | |||||
| Soliciting materials pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbols(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Act of 1934 (§240.12.b-2 of this chapter). | |||||||||||
| Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ | ||||||||||
Item 2.02. Results of Operations and Financial Condition.
On July 30, 2026, Madison Air Solutions Corporation (the "Company") issued a press release announcing its second quarter 2026 results. A copy of such press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section and shall not be deemed to be incorporated by reference to any filing by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
Exhibit Number | Exhibit Description | ||||
| 99.1 | Press release, dated July 30, 2026, issued by Madison Air Solutions Corporation (Earnings). | ||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Madison Air Solutions Corporation (Registrant) | |||||||||||
| Date: | July 30, 2026 | By: | /s/ JILL WYANT | ||||||||
| Jill Wyant | |||||||||||
| President and Chief Executive Officer | |||||||||||
Exhibit 99.1
Madison Air Reports Second Quarter 2026 Results
•Backlog of $2,868.4 million up 133% year-over-year and orders up 45% on a combined basis***
•Net sales of $991.3 million, up 21%, including up 14% on a pro forma basis**
•Net income of $70.5 million, up 129%, with net income margin of 7% and adjusted net income* of $147.7 million, up 71%
•Adjusted EBITDA* of $265.8 million, up 18%, with adjusted EBITDA margin* of 27%
•Cash flow from operations - continuing operations of $98.6 million and free cash flow* of $89.6 million
•Ended 2Q with 2.8x net leverage*, down ~0.2x from immediately following the IPO
*This news release contains non-GAAP financial measures. Definitions and reconciliations of the non-GAAP financial measures can be found under “Selected Financial Data, Non-GAAP Measures and Definitions.”
**Financial information presented on a Pro Forma basis solely to give effect to the AprilAire Acquisition as if such transaction had occurred on January 1, 2025, and for net leverage to give effect to the IPO and debt prepayment. See the unaudited pro forma combined statements of operations filed as Exhibit 99.1 to our Quarterly Report on Form 10-Q for a description of the adjustments and assumptions underlying the Pro Forma financial information
***For the six months ended June 30, 2025, certain results are presented on a “combined basis” as the sum of the amounts for the Company for such period and the amounts for AprilAire for the period From January 1, 2025 through May 6, 2025 (acquisition date),, without any other adjustments. This presentation does not comply with GAAP or SEC rules for pro forma presentation.
Chicago, Illinois, July 30, 2026 - Madison Air Solutions Corporation (NYSE: MAIR) (the “Company” or “Madison Air”), a global provider of air quality solutions, today reported financial results for the second quarter of 2026.
“We exist to make the world safer, healthier and more productive through the power of better air, and our second-quarter results reflect the strength of that purpose-driven strategy,” said Jill Wyant, President and CEO. “Our differentiated Return on Air™ approach is helping us win with customers across a diversified portfolio of commercial and residential applications. We delivered double-digit net sales growth, strong orders momentum and record backlog across a diverse set of end markets. The combination of strong first-half execution, continued customer demand and the visibility provided by our backlog gives us confidence to raise our full-year outlook. These results also reflect the dedication of our people, our entrepreneurial culture and the deep partnerships we build with customers. Together, those strengths help customers achieve better outcomes through better air while creating sustainable long-term value.”
Recent highlights include:
•Continued Commercial growth momentum, with orders up 45% on a combined basis, driven by wins in mission-critical applications including, liquid cooling, semiconductor cleanrooms and public health laboratories, while expanding Healthy Air Systems adoption through contractor engagement in Residential.
•Raised full-year net sales guidance given strong first-half performance and continued revenue visibility. We now expect high-single-digit-plus pro forma net sales growth (range of $3,825 to $3,925 million). In addition, we expect high-single-digit to low-double-digit pro forma Adjusted EBITDA growth (range of $1,020 to $1,065 million).
•Continued to strengthen our entrepreneurial culture, with employee engagement scores increasing four percentage points year-over-year, and strong retention, where monthly voluntary turnover remained approximately 30% below industry benchmarks.
•Successfully completed our initial public offering (“IPO”) and concurrent private placement on April 17, 2026, generating net proceeds of $2,584.2 million. Together with $41.5 million of cash on hand, these proceeds were used to repay $2,625.7 million of outstanding borrowings. Net leverage was 2.8x as of June 30, 2026.
•Strengthened financial flexibility by increasing our revolving credit facility commitment to $1,300.0 million, resulting in $1,294.3 million available capacity under the revolving credit facility as of June 30, 2026.
•Reduced annual interest expense by repricing the remaining Incremental Term Loan Facility in June 2026, lowering the spread by 100 bps and removing the margin step-up and step-down. Following the amendment, the applicable margin is 1.75%.
2026 2Q Madison Air 1
Second Quarter 2026 Results
| (Unaudited) | (Unaudited) | ||||||||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| (in millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||
| GAAP Metrics | |||||||||||||||||||||||
| Net sales | $ | 991.3 | $ | 819.6 | $ | 1,915.0 | $ | 1,510.0 | |||||||||||||||
| Net Income (Loss) | 70.5 | 30.8 | 113.5 | 77.0 | |||||||||||||||||||
| Net Income (Loss) margin | 7.1 | % | 3.8 | % | 5.9 | % | 5.1 | % | |||||||||||||||
| Earnings Per Share (EPS) - continuing operations | 0.15 | 0.07 | 0.26 | 0.18 | |||||||||||||||||||
| Cash from Operating Activities | 98.6 | 105.5 | 156.4 | 160.4 | |||||||||||||||||||
| Non-GAAP Metrics | |||||||||||||||||||||||
| Organic sales | 837.0 | 733.5 | 1,607.9 | 1,423.9 | |||||||||||||||||||
| Adjusted net income (loss) | 147.7 | 86.5 | 243.3 | 156.5 | |||||||||||||||||||
| Adjusted net income (loss) margin | 14.9 | % | 10.6 | % | 12.7 | % | 10.4 | % | |||||||||||||||
| Adjusted EPS | 0.31 | 0.24 | 0.59 | 0.43 | |||||||||||||||||||
| Free cash flow (FCF) | 89.6 | 102.0 | 140.0 | 152.4 | |||||||||||||||||||
| Adjusted EBITDA | 265.8 | 225.5 | 499.2 | 393.8 | |||||||||||||||||||
| Adjusted EBITDA margin | 26.8 | % | 27.5 | % | 26.1 | % | 26.1 | % | |||||||||||||||
| By Segment | |||||||||||||||||||||||
| Commercial | $ | 658.9 | $ | 532.4 | $ | 1,268.7 | $ | 1,026.0 | |||||||||||||||
| Residential | 333.8 | 287.3 | 649.4 | 484.8 | |||||||||||||||||||
| Eliminations | (1.4) | (0.1) | (3.1) | (0.8) | |||||||||||||||||||
| Net Sales | $ | 991.3 | $ | 819.6 | $ | 1,915.0 | $ | 1,510.0 | |||||||||||||||
| Commercial | $ | 173.1 | $ | 156.0 | $ | 334.1 | $ | 284.4 | |||||||||||||||
| Residential | 98.6 | 72.7 | 177.9 | 115.9 | |||||||||||||||||||
| Central and other costs | (5.9) | (3.2) | (12.8) | (6.5) | |||||||||||||||||||
| Adjusted EBITDA | $ | 265.8 | $ | 225.5 | $ | 499.2 | $ | 393.8 | |||||||||||||||
Full-Year 2026 Guidance**
| Prior Guidance** | Current Guidance*** | |||||||
| Net Sales | $3,750 to $3,850 million | $3,825 to $3,925 million | ||||||
| Adjusted EBITDA* | $1,020 to $1,065 million | $1,020 to $1,065 million | ||||||
*Note: When the Company provides expectations for non-GAAP measures on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and the corresponding GAAP measures generally is not available without unreasonable effort, because certain material reconciling items, such as depreciation and amortization, interest expense, and provision for income tax cannot be estimated due to factors outside of the Company’s control and could have a material impact on the reported results. See “Selected Financial Data, Non-GAAP Measures and Definitions” below for additional information.
**As of May 12, 2026 and may be impacted by factors outside of the Company’s control.
***Based on information as of July 30, 2026 and may be impacted by factors outside of the Company’s control.
Second Quarter 2026 Results by Segment
Commercial. Commercial segment net sales increased $126.5 million, or 23.8%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. Organically, our Commercial net sales increased by 22.3% driven by broad-based growth across the segment, led by air, liquid and hybrid cooling, custom air handling, and air movement solutions. These increases were partially offset by modest volume declines in commercial dehumidification. Acquisitions contributed $9.3 million, or 1.7%, of additional net sales in the period.
Commercial segment Adjusted EBITDA increased $17.3 million, or 11.1%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. Acquisitions contributed $3.4 million of incremental Adjusted EBITDA to the Commercial segment growth. Excluding the AprilAire Acquisition, Commercial segment Adjusted EBITDA growth was mainly driven by volume growth.
Net sales for our Commercial segment increased $242.7 million, or 23.7%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. Organically, our Commercial net sales increased by 19.8% driven by broad-based growth across the segment, led by air, liquid and hybrid cooling, air movement, and energy efficiency solutions. These increases were partially offset by modest volume declines in commercial dehumidification. Acquisitions contributed $36.1 million, or 3.5%, of additional net sales in the period.
Commercial segment Adjusted EBITDA increased $49.7 million, or 17.5%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. Acquisitions contributed $9.2 million of incremental Commercial segment Adjusted EBITDA to the Commercial segment growth. Excluding the AprilAire Acquisition, Commercial segment Adjusted EBITDA growth was mainly driven by volume growth.
2026 2Q Madison Air 2
Residential. Residential segment net sales increased $46.5 million, or 16.2%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. Organically, our Residential net sales decreased by 4.8% driven by modest volume declines in our professional distribution channels for ventilation solutions, net of price increases. Acquisitions contributed $56.4 million, or 19.6%, of additional net sales in the period.
Residential segment Adjusted EBITDA increased $25.9 million, or 35.6%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. Acquisitions contributed $21.8 million of incremental Adjusted EBITDA. Excluding the AprilAire Acquisition, Residential segment Adjusted EBITDA increased by $4.1 million due to productivity, pricing and favorable net tariff impacts partially offset by modest volume declines.
Net sales for our Residential segment increased $164.6 million, or 34.0%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. Organically, our Residential net sales decreased by 3.4% driven by modest volume declines in our professional distribution channels for ventilation solutions, net of price increases. Acquisitions contributed to $177.0 million, or 36.5%, of additional net sales in the period.
Residential segment Adjusted EBITDA increased $62.0 million, or 53.5%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. Acquisitions contributed $59.3 million of additional Residential segment Adjusted EBITDA. Excluding the AprilAire Acquisition, Residential segment Adjusted EBITDA increased by $2.7 million.
Cash Flows and Balance Sheet
| Six months ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash flows provided by (used in) operating activities | $ | 156.4 | $ | 160.1 | |||||||
| Net cash flow provided by (used in) operating activities - discontinued operations | — | (0.3) | |||||||||
| Net cash flows provided by operating activities— continuing operations | 156.4 | 160.4 | |||||||||
| Purchases of property, plant and equipment | (16.5) | (10.5) | |||||||||
| Proceeds from disposal of property, plant and equipment | 0.1 | 2.5 | |||||||||
| FCF | $ | 140.0 | $ | 152.4 | |||||||
| Net income (loss) from continuing operations | 113.5 | 76.0 | |||||||||
| Operating cash flow conversion—continuing operations | 137.8 | % | 211.1 | % | |||||||
| FCF Conversion | 123.3 | % | 200.5 | % | |||||||
Madison Air generated $156.4 million of cash flow from operations and had net investment of $16.4 million in capital expenditures, resulting in free cash flow of $140.0 million. This compares to $160.4 million of cash flow from operations, $8.0 million in net capital expenditure investments, and $152.4 million in free cash flow for the prior-year period.
As of June 30, 2026, the Company had cash and cash equivalents of $261.8 million and a balance available on its revolving credit facility of $1,294.3 million. Total debt was $3,053.7 million at quarter-end. Net proceeds from the IPO and concurrent private placement, together with $77.1 million of cash on hand, were used to repay $2,661.2 million of outstanding borrowings under the Initial Term Loan Facility and Incremental Term Loan Facility, consisting of $2,425.7 million of principal and $35.5 million of accrued interest on our Initial Term Loan and $158.4 million of principal and $41.6 million of accrued interest on our Incremental Term Loan.
JJ Foley, Chief Financial Officer, said, “Our cash flow and balance sheet demonstrate the discipline at the core of our business. We delivered strong free cash flow in the quarter, with capital expenditures less than 1% of net sales and free cash flow conversion of 123.3%, enabling us to invest behind attractive growth opportunities, strengthen our balance sheet and maintain the flexibility to create value over the long term. Combined with our Return on Air™ value proposition, we are well positioned to scale in advantaged markets and compound value over the long term.”
SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS
Following are tables that present the Company's selected financial data.
Madison Air reports its financial results in accordance with United States GAAP. We supplement the reporting of our financial information determined under GAAP with certain non-GAAP financial information. The non-GAAP information presented provides investors with additional useful information, but should not be considered in isolation or as substitutes for related GAAP measures. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparison with such other companies. A reconciliation of the non-GAAP measures to the corresponding amounts prepared in accordance with GAAP appears in the tables. The tables provide additional information as to the items and amounts that have been excluded from the adjusted measurements.
Organic sales and organic sales growth are non-GAAP financial measures. We define organic sales and organic sales growth rate as net sales and net sales growth rate as adjusted for acquisitions and divestitures and currency exchange rates. Sales from acquired businesses are excluded from the organic sales and organic sales growth calculation for the
2026 2Q Madison Air 3
first 12 months following the acquisition date, while sales from divested businesses are excluded for the 12 months preceding the divestiture. Organic sales and organic sales growth are based on continuing operations and exclude sales from discontinued operations.
Free Cash Flow (“FCF”) is a non-GAAP liquidity measure. We define FCF as net cash flows provided by operating activities—continuing operations less purchases of property, plant and equipment plus proceeds from sale of property, plant and equipment.
Free Cash Flow Conversion is a non-GAAP liquidity measure. We define Free Cash Flow Conversion as free cash flow divided by net income (loss) from continuing operations.
Adjusted Gross Profit is a non-GAAP financial measure. We define Adjusted Gross Profit as net sales less cost of goods sold, excluding the purchase accounting impacts of acquisitions such as amortization related to technology-related intangible assets and purchase accounting inventory adjustments.
Adjusted Gross Profit Margin is a non-GAAP financial measure. We define Adjusted Gross Profit Margin as Adjusted Gross Profit divided by net sales.
Adjusted EBITDA is a non-GAAP financial measure. We define Adjusted EBITDA as net income (loss) as adjusted for net (income) loss from discontinued operations, interest and financing expenses, income tax expense (benefit), depreciation and amortization, acquisition and divestiture expenses, restructuring expenses, equity appreciation rights expense, non-operating expenses (income), allocated Madison Industries costs, and non-recurring professional and consulting expenses.
Adjusted EBITDA Margin is a non-GAAP financial measure. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net sales for the same period.
Adjusted Net Income (Loss) is a non-GAAP financial measure. We define Adjusted Net Income (Loss) as net income (loss) as adjusted for certain items that impact comparability from period to period. These adjustments include net (income) loss from discontinued operations, amortization expense, acquisition and divestiture expenses, restructuring expenses, equity appreciation rights expense, non-operating expenses (income), allocated Madison Industries costs, non-recurring professional and consulting expenses, and the tax effect of net income (loss) adjustments.
Adjusted Earnings Per Share is a non-GAAP financial measure. We define Adjusted Earnings Per Share as Adjusted Net Income (Loss) divided by weighted average diluted shares outstanding. The most directly comparable GAAP financial metric is earnings per share.
Adjusted Net Income Margin is a non-GAAP financial measure. We define Adjusted Net Income Margin as Adjusted Net Income divided by net sales for the same period.
Net debt is a non-GAAP liquidity measure. We define net debt as total debt adjusted for discounts and financing fees, net and cash and cash equivalents.
Net leverage is a non-GAAP liquidity measure. We define Net Leverage as net debt divided by Adjusted EBITDA on a trailing twelve-month basis (“TTM”).
Backlog is a key performance indicator used to assist us in evaluating the performance of our business. Backlog represents the total expected future revenue from confirmed customer orders that have been received but not yet shipped or rendered as of a given date. Backlog is applicable to sales of products and systems and services. However, the timing and conversion of backlog is subject to numerous uncertainties and risks and are not necessarily indicative of the amount of revenue to be earned in the upcoming fiscal year.
Reconciliations
The following table reconciles Adjusted Gross Profit to GAAP Gross Profit, the most directly comparable GAAP measure:
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net sales | $ | 991.3 | $ | 819.6 | $ | 1,915.0 | $ | 1,510.0 | |||||||||||||||
Cost of goods sold (excluding intangible amortization) | (604.9) | (497.2) | (1,175.6) | (933.2) | |||||||||||||||||||
| Technology intangible amortization | (9.4) | (8.7) | (18.9) | (16.1) | |||||||||||||||||||
| Gross Profit | 377.0 | 313.7 | 720.5 | 560.7 | |||||||||||||||||||
| Technology intangible amortization | 9.4 | 8.7 | 18.9 | 16.1 | |||||||||||||||||||
| Purchase accounting inventory adjustment | — | 7.0 | — | 7.0 | |||||||||||||||||||
| Adjusted Gross Profit | $ | 386.4 | $ | 329.4 | $ | 739.4 | $ | 583.8 | |||||||||||||||
| Gross Profit Margin | 38.0 | % | 38.3 | % | 37.6 | % | 37.1 | % | |||||||||||||||
| Adjusted Gross Profit Margin | 39.0 | % | 40.2 | % | 38.6 | % | 38.7 | % | |||||||||||||||
2026 2Q Madison Air 4
The following table reconciles Adjusted Net Income to net income (loss), the most directly comparable GAAP measure and Adjusted Net Income (Loss) Margin to net income (loss) margin, the most directly comparable GAAP measure, in each of the periods:
| Actuals | Pro Forma(1) | Actuals | Pro Forma(1) | ||||||||||||||||||||||||||||||||
| Three months ended June 30, | Three months ended June 30, | Six months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2026 | 2025 | 2025 | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | 70.5 | $ | 30.8 | $ | 16.5 | $ | 113.5 | $ | 77.0 | $ | 10.8 | |||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
Net (income) loss from discontinued operations(2) | — | — | — | — | (1.0) | (1.0) | |||||||||||||||||||||||||||||
| Amortization expense | 40.7 | 34.7 | 40.8 | 81.6 | 59.9 | 81.4 | |||||||||||||||||||||||||||||
Transaction related expenses(3) | (0.8) | 17.9 | 17.9 | 3.2 | 18.8 | 62.9 | |||||||||||||||||||||||||||||
Restructuring expenses(4) | 0.6 | 2.6 | 2.6 | 2.9 | 2.7 | 4.6 | |||||||||||||||||||||||||||||
Equity appreciation rights expense(5) | 16.3 | 22.1 | 23.9 | 26.7 | 27.3 | 32.7 | |||||||||||||||||||||||||||||
Non-operating expenses (income)(6) | (0.7) | (0.5) | 4.3 | — | (3.6) | 1.2 | |||||||||||||||||||||||||||||
Allocated Madison Industries costs(7) | — | 2.6 | 2.6 | 10.0 | 5.8 | 5.8 | |||||||||||||||||||||||||||||
Non-recurring professional and consulting expenses(8) | 0.8 | 1.1 | 1.1 | 1.9 | 2.1 | 2.1 | |||||||||||||||||||||||||||||
| Loss on extinguishment of debt | 27.7 | — | — | 27.7 | — | — | |||||||||||||||||||||||||||||
Gain on insurance proceeds(9) | — | (5.8) | (5.8) | — | (5.8) | (5.8) | |||||||||||||||||||||||||||||
Write-off of deferred tax asset(10) | 13.7 | — | — | 13.7 | — | — | |||||||||||||||||||||||||||||
Tax effect of net income (loss) adjustments(11) | (21.1) | (19.0) | (23.0) | (37.9) | (26.7) | (45.8) | |||||||||||||||||||||||||||||
| Adjusted net income (loss) | $ | 147.7 | $ | 86.5 | $ | 80.9 | $ | 243.3 | $ | 156.5 | $ | 148.9 | |||||||||||||||||||||||
| Net sales | 991.3 | 819.6 | 867.9 | 1,915.0 | 1,510.0 | 1,688.8 | |||||||||||||||||||||||||||||
| Net income (loss) margin | 7.1 | % | 3.8 | % | 1.9 | % | 5.9 | % | 5.1 | % | 0.6 | % | |||||||||||||||||||||||
| Adjusted net income (loss) margin | 14.9 | % | 10.6 | % | 9.3 | % | 12.7 | % | 10.4 | % | 8.8 | % | |||||||||||||||||||||||
(1)Financial information presented on a Pro Forma basis solely to give effect to the AprilAire Acquisition as if such transaction had occurred on January 1, 2025. See the unaudited pro forma combined statements of operations filed as Exhibit 99.1 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, for a description of the adjustments and assumptions underlying the Pro Forma financial information.
(2)Represents the results of discontinued operations from the divestiture of Nortek Global HVAC and its subsidiary.
(3)Represents direct transaction costs related to acquisition and divestiture activity, including transaction fees, due diligence costs, transfer taxes and other direct costs related to acquisition activities, changes in the fair value of contingent consideration, purchase accounting adjustments, and other acquisition related charges, such as integration charges and professional and legal fees, and gain on the disposition of business For the three and six months ended June 30, 2026, transaction expenses included professional and legal fees, and other costs associated with becoming a public company offset by $1.2 million gain on contingent consideration remeasurement. Transaction expenses for the three months and six months ended June 30, 2025 primarily related to the AprilAire Acquisition.
(4)Represents costs and expenses in connection with various restructuring initiatives.
(5)Represents compensation expense under the EAR Plan and Amended EAR Plan.
(6)Represents foreign currency gains and losses on corporate intercompany loans, gains and losses on sale of fixed assets, gains and losses on marketable securities and other non-operating items. For the three months ended June 30, 2026, non-operating expenses (income) included $1.0 million foreign currency translation gain on intercompany loans, offset by $0.4 million loss on disposal of fixed assets. For the three months ended June 30, 2025, non-operating expenses (income) included $0.8 million gain on available-for-sale marketable securities, and $1.6 million gain on disposal of fixed assets offset by a $1.9 million foreign currency translation loss on intercompany loans. For the six months ended June 30, 2026, non-operating expenses (income) included $0.9 million foreign currency translation gain on intercompany loans offset by a $0.5 million loss on disposal of fixed assets. For the six months ended June 30, 2025, non-operating expenses (income) included $1.9 million gain on available-for-sale marketable securities, $1.3 million gain on divestiture of Nortek Global HVAC and its subsidiary, $1.4 million gain on disposal of fixed assets, $0.3 million foreign currency translations loss on intercompany loans and $0.2 million of pension expense.
(7)Represents indirect costs for support received from Madison Industries for certain internal and external corporate activities including, but not limited to, consolidation accounting, legal, and other Madison Industries corporate and infrastructure related services that will no longer be incurred following the consummation of the Company's IPO. This does not include services that will continue to be provided by Madison Industries International Holdings LLC following the consummation of the IPO pursuant to the Transition Services Agreement.
(8)Represents expenses for professional and consulting services related to non-recurring transactions. For the three months ended June 30, 2026, non-recurring professional and consulting expenses included $0.7 million for one-time audit, legal and consulting fees incurred to prepare for IPO and SOX implementation and $0.1 million in consulting fees for productivity improvement projects. For the three months ended June 30, 2025, these services primarily included $0.5 million in consulting fees for productivity improvement projects, $0.3 million in legal fees, and $0.3 million in leadership recruiting and relocation fees. For the six months ended June 30, 2026, non-recurring professional and consulting expenses included $1.6 million for one-time audit, legal and consulting fees incurred to prepare for IPO and SOX
2026 2Q Madison Air 5
implementation and $0.4 million in consulting fees for productivity improvement projects. For the six months ended June 30, 2025, these services primarily included $1.2 million in consulting fees for productivity improvement projects, $0.4 million in legal fees, and $0.5 million in leadership recruiting and relocation fees.
(9)Represents a one-time gain on insurance proceeds from damage to one of our manufacturing facilities.
(10)Represents the write-off of a deferred tax asset related to compensation deductions that are no longer expected to be realized due to limitation on deductibility following the IPO.
(11)The tax effect from the above adjustments assumes an estimated worldwide marginal current tax rate of approximately 24.9% and 24.6% for the three and six months ended June 30, 2026, respectively, and 25.4% and 25.1% for the three and six months ended June 30, 2025, respectively.
The following table reconciles Adjusted EBITDA to net income (loss), the most directly comparable GAAP measure, and Adjusted EBITDA Margin to net income (loss) margin, the most directly comparable GAAP measure, in each of the periods:
| Actuals | Pro Forma(1) | Actuals | Pro Forma(1) | ||||||||||||||||||||||||||||||||
| Three months ended June 30, | Three months ended June 30, | Six months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2026 | 2025 | 2025 | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | 70.5 | $ | 30.8 | $ | 16.5 | $ | 113.5 | $ | 77.0 | $ | 10.8 | |||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
Net (income) loss from discontinued operations(2) | — | — | — | — | (1.0) | (1.0) | |||||||||||||||||||||||||||||
| Interest and financing expenses | 57.1 | 89.1 | 102.6 | 147.8 | 154.9 | 201.6 | |||||||||||||||||||||||||||||
| Income tax expense (benefit) | 40.6 | 18.5 | 17.6 | 57.9 | 33.2 | 16.7 | |||||||||||||||||||||||||||||
| Depreciation and amortization | 53.7 | 47.1 | 54.5 | 107.6 | 82.4 | 108.1 | |||||||||||||||||||||||||||||
Transaction related expenses(3) | (0.8) | 17.9 | 17.9 | 3.2 | 18.8 | 62.9 | |||||||||||||||||||||||||||||
Restructuring expenses(4) | 0.6 | 2.6 | 2.6 | 2.9 | 2.7 | 4.6 | |||||||||||||||||||||||||||||
Equity appreciation rights expense(5) | 16.3 | 22.1 | 23.9 | 26.7 | 27.3 | 32.7 | |||||||||||||||||||||||||||||
Non-operating expenses (income)(6) | (0.7) | (0.5) | 4.3 | — | (3.6) | 1.2 | |||||||||||||||||||||||||||||
Allocated Madison Industries costs(7) | — | 2.6 | 2.6 | 10.0 | 5.8 | 5.8 | |||||||||||||||||||||||||||||
Non-recurring professional and consulting expenses(8) | 0.8 | 1.1 | 1.1 | 1.9 | 2.1 | 2.1 | |||||||||||||||||||||||||||||
| Loss on extinguishment of debt | 27.7 | — | — | 27.7 | — | — | |||||||||||||||||||||||||||||
Gain on insurance proceeds(9) | — | (5.8) | (5.8) | — | (5.8) | (5.8) | |||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 265.8 | $ | 225.5 | $ | 237.8 | $ | 499.2 | $ | 393.8 | $ | 439.7 | |||||||||||||||||||||||
| Net sales | 991.3 | 819.6 | 867.9 | 1,915.0 | 1,510.0 | 1,688.8 | |||||||||||||||||||||||||||||
| Net income (loss) margin | 7.1 | % | 3.8 | % | 1.9 | % | 5.9 | % | 5.1 | % | 0.6 | % | |||||||||||||||||||||||
| Adjusted EBITDA Margin | 26.8 | % | 27.5 | % | 27.4 | % | 26.1 | % | 26.1 | % | 26.0 | % | |||||||||||||||||||||||
(1)Financial information presented on a Pro Forma basis solely to give effect to the AprilAire Acquisition as if such transaction had occurred on January 1, 2025. See the unaudited pro forma combined statements of operations filed as Exhibit 99.1 to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, for a description of the adjustments and assumptions underlying the Pro Forma financial information.
(2)Represents the results of discontinued operations from the divestiture of Nortek Global HVAC and its subsidiary.
(3)Represents direct transaction costs related to acquisition and divestiture activity, including transaction fees, due diligence costs, transfer taxes and other direct costs related to acquisition activities, changes in the fair value of contingent consideration, purchase accounting adjustments, and other acquisition related charges, such as integration charges and professional and legal fees, and gain on the disposition of business For the three and six months ended June 30, 2026, transaction expenses included professional and legal fees, and other costs associated with becoming a public company offset by $1.2 million gain on contingent consideration remeasurement. Transaction expenses for the three months and six months ended June 30, 2025 primarily related to the AprilAire Acquisition.
(4)Represents costs and expenses in connection with various restructuring initiatives.
(5)Represents compensation expense under the EAR Plan and Amended EAR Plan.
(6)Represents foreign currency gains and losses on corporate intercompany loans, gains and losses on sale of fixed assets, gains and losses on marketable securities and other non-operating items. For the three months ended June 30, 2026, non-operating expenses (income) included $1.0 million foreign currency translation gain on intercompany loans, offset by $0.4 million loss on disposal of fixed assets. For the three months ended June 30, 2025, non-operating expenses (income) included $0.8 million gain on available-for-sale marketable securities, and $1.6 million gain on disposal of fixed assets offset by a $1.9 million foreign currency translation loss on intercompany loans. For the six months ended June 30, 2026, non-operating expenses (income) included $0.9 million foreign currency translation gain on intercompany loans offset by a $0.5 million loss on disposal of fixed assets. For the six months ended June 30, 2025, non-operating expenses (income) included $1.9 million gain on available-for-sale marketable securities, $1.3 million gain on divestiture of Nortek Global HVAC and its subsidiary, $1.4 million gain on disposal of fixed assets, $0.3 million foreign currency translations loss on intercompany loans and $0.2 million of pension expense.
2026 2Q Madison Air 6
(7)Represents indirect costs for support received from Madison Industries for certain internal and external corporate activities including, but not limited to, consolidation accounting, legal, and other Madison Industries corporate and infrastructure related services that will no longer be incurred following the consummation of the Company's IPO. This does not include services that will continue to be provided by Madison Industries International Holdings LLC following the consummation of the IPO pursuant to the Transition Services Agreement.
(8)Represents expenses for professional and consulting services related to non-recurring transactions. For the three months ended June 30, 2026, non-recurring professional and consulting expenses included $0.7 million for one-time audit, legal and consulting fees incurred to prepare for IPO and SOX implementation and $0.1 million in consulting fees for productivity improvement projects. For the three months ended June 30, 2025, these services primarily included $0.5 million in consulting fees for productivity improvement projects, $0.3 million in legal fees, and $0.3 million in leadership recruiting and relocation fees. For the six months ended June 30, 2026, non-recurring professional and consulting expenses included $1.6 million for one-time audit, legal and consulting fees incurred to prepare for IPO and SOX implementation and $0.4 million in consulting fees for productivity improvement projects. For the six months ended June 30, 2025, these services primarily included $1.2 million in consulting fees for productivity improvement projects, $0.4 million in legal fees, and $0.5 million in leadership recruiting and relocation fees.
(9)Represents a one-time gain on insurance proceeds from damage to one of our manufacturing facilities.
The following table reconciles Adjusted EPS to EPS from continuing operations, the most directly comparable GAAP measure in each of the periods:
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Income (loss) from continuing operations attributable to common share holders | $ | 69.2 | $ | 22.3 | $ | 102.8 | $ | 59.0 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Net (income) loss from discontinued operations(1) | — | — | — | (1.0) | |||||||||||||||||||
| Amortization expense | 40.7 | 34.7 | 81.6 | 59.9 | |||||||||||||||||||
Transaction related expenses(2) | (0.8) | 17.9 | 3.2 | 18.8 | |||||||||||||||||||
Restructuring expenses(3) | 0.6 | 2.6 | 2.9 | 2.7 | |||||||||||||||||||
Equity appreciation rights expense(4) | 16.3 | 22.1 | 26.7 | 27.3 | |||||||||||||||||||
Non-operating expenses (income)(5) | (0.7) | (0.5) | — | (3.6) | |||||||||||||||||||
Allocated Madison Industries costs(6) | — | 2.6 | 10.0 | 5.8 | |||||||||||||||||||
Non-recurring professional and consulting expenses(7) | 0.8 | 1.1 | 1.9 | 2.1 | |||||||||||||||||||
| Loss on extinguishment of debt | 27.7 | — | 27.7 | — | |||||||||||||||||||
Gain on insurance proceeds(8) | — | (5.8) | — | (5.8) | |||||||||||||||||||
Write-off of deferred tax asset(9) | 13.7 | — | 13.7 | — | |||||||||||||||||||
Tax effect of net income (loss) adjustments(10) | (21.1) | (19.0) | (37.9) | (26.7) | |||||||||||||||||||
| Adjusted Income (loss) from continuing operations attributable to common share holders | $ | 146.4 | $ | 78.0 | $ | 232.6 | $ | 138.5 | |||||||||||||||
| Weighted-average shares outstanding - diluted | 473,974,905 | 320,676,155 | 396,562,288 | 320,676,155 | |||||||||||||||||||
| Net earnings per share - diluted | 0.15 | 0.07 | 0.26 | 0.18 | |||||||||||||||||||
| Adjusted net earnings per share - diluted | 0.31 | 0.24 | 0.59 | 0.43 | |||||||||||||||||||
(1)Represents the results of discontinued operations from the divestiture of Nortek Global HVAC and its subsidiary.
(2)Represents direct transaction costs related to acquisition and divestiture activity, including transaction fees, due diligence costs, transfer taxes and other direct costs related to acquisition activities, changes in the fair value of contingent consideration, purchase accounting adjustments, and other acquisition related charges, such as integration charges and professional and legal fees, and gain on the disposition of business For the three and six months ended June 30, 2026, transaction expenses included professional and legal fees, and other costs associated with becoming a public company offset by $1.2 million gain on contingent consideration remeasurement. Transaction expenses for the three months and six months ended June 30, 2025 primarily related to the AprilAire Acquisition.
(3)Represents costs and expenses in connection with various restructuring initiatives.
(4)Represents compensation expense under the EAR Plan and Amended EAR Plan.
(5)Represents foreign currency gains and losses on corporate intercompany loans, gains and losses on sale of fixed assets, gains and losses on marketable securities and other non-operating items. For the three months ended June 30, 2026, non-operating expenses (income) included $1.0 million foreign currency translation gain on intercompany loans, offset by $0.4 million loss on disposal of fixed assets. For the three months ended June 30, 2025, non-operating expenses (income) included $0.8 million gain on available-for-sale marketable securities, and $1.6 million gain on disposal of fixed assets offset by a $1.9 million foreign currency translation loss on intercompany loans. For the six months ended June 30, 2026, non-operating expenses (income) included $0.9 million foreign currency translation gain on intercompany loans offset by a $0.5 million loss on disposal of fixed assets. For the six months ended June 30, 2025, non-operating expenses (income) included $1.9 million gain on available-for-sale marketable securities, $1.3 million gain on divestiture of Nortek Global HVAC and its subsidiary, $1.4 million gain on disposal of fixed assets, $0.3 million foreign currency translations loss on intercompany loans and $0.2 million of pension expense.
(6)Represents indirect costs for support received from Madison Industries for certain internal and external corporate activities including, but not limited to, consolidation accounting, legal, and other Madison Industries corporate and infrastructure related services that will no longer be incurred following the consummation of the Company's IPO. This does not include services that will continue to be provided by Madison Industries International Holdings LLC following the consummation of the IPO pursuant to the Transition Services Agreement.
(7)Represents expenses for professional and consulting services related to non-recurring transactions. For the three months ended June 30, 2026, non-recurring professional and consulting expenses included $0.7 million for one-time audit, legal and consulting fees incurred to prepare for IPO and SOX implementation and $0.1 million in consulting fees for productivity improvement projects. For the three months ended June 30, 2025, these services primarily included $0.5 million in consulting fees for productivity improvement projects, $0.3 million in legal fees, and $0.3 million in leadership recruiting and relocation fees. For the six months ended June 30, 2026, non-recurring professional and consulting expenses included $1.6 million for one-time audit, legal and consulting fees incurred to prepare for IPO and SOX implementation and $0.4 million in consulting fees for productivity improvement projects. For the six months ended June 30, 2025, these services primarily included $1.2 million in consulting fees for productivity improvement projects, $0.4 million in legal fees, and $0.5 million in leadership recruiting and relocation fees.
(8)Represents a one-time gain on insurance proceeds from damage to one of our manufacturing facilities.
(9)Represents the write-off of a deferred tax asset related to compensation deductions that are no longer expected to be realized due to limitation on deductibility following the IPO.
(10)The tax effect from the above adjustments assumes an estimated worldwide marginal current tax rate of approximately 24.9% and 24.6% for the three and six months ended June 30, 2026, respectively, and 25.4% and 25.1% for the three and six months ended June 30, 2025, respectively.
2026 2Q Madison Air 7
The following table reconciles Free Cash Flow to cash flows provided by (used in) operating activities, the most directly comparable GAAP measure, and calculates FCF Conversion in each of the periods:
| Six months ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash flows provided by (used in) operating activities | $ | 156.4 | $ | 160.1 | |||||||
| Net cash flow provided by (used in) operating activities - discontinued operations | — | (0.3) | |||||||||
| Net cash flows provided by operating activities— continuing operations | 156.4 | 160.4 | |||||||||
| Purchases of property, plant and equipment | (16.5) | (10.5) | |||||||||
| Proceeds from disposal of property, plant and equipment | 0.1 | 2.5 | |||||||||
| FCF | $ | 140.0 | $ | 152.4 | |||||||
| Net income (loss) from continuing operations | 113.5 | 76.0 | |||||||||
| Operating cash flow conversion—continuing operations | 137.8 | % | 211.1 | % | |||||||
| FCF Conversion | 123.3 | % | 200.5 | % | |||||||
The following table reconciles Organic Sales to net sales, the most directly comparable GAAP measure in each of the periods:
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net sales | $ | 991.3 | $ | 819.6 | $ | 1,915.0 | $ | 1,510.0 | |||||||||||||||
| Less: Net sales attributable to AprilAire | (154.3) | (86.1) | (307.1) | (86.1) | |||||||||||||||||||
| Organic sales | $ | 837.0 | $ | 733.5 | $ | 1,607.9 | $ | 1,423.9 | |||||||||||||||
The following table reconciles Net Leverage to total debt, the most directly comparable GAAP measure, and calculates Net Leverage Ratio in each of the periods:
| June 30, 2026 | December 31, 2025 | ||||||||||
| Total debt | $ | 3,053.7 | $ | 5,650.4 | |||||||
| Adjustments: | |||||||||||
| Discounts and financing fees, net | 32.7 | 68.6 | |||||||||
| Cash and cash equivalents | (261.8) | (208.4) | |||||||||
| Net Debt | $ | 2,824.6 | $ | 5,510.6 | |||||||
Net income (loss), TTM(1) | 160.8 | 58.1 | |||||||||
Adjusted EBITDA, TTM(1) | 996.1 | 936.6 | |||||||||
| Total debt to Net income (loss) | 19.0 | x | 97.3 | x | |||||||
| Net Leverage | 2.8 | x | 5.9 | x | |||||||
(1)Net income (loss), TTM and Adjusted EBITDA, TTM are calculated as the sum of net income (loss) and sum of Adjusted EBITDA, respectively, for the most recent four fiscal quarters.
FORWARD-LOOKING STATEMENTS. This press release and the corresponding presentation contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve substantial risks and uncertainties. Forward-looking statements are subject to risks and uncertainties. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our guidance, financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “positions,” “likely,” “target,” “goal,” “strategy” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. For example, all statements we make relating to our future results of operations, estimated and projected costs, expenditures, cash flows, margin expansion, growth rates and financial results or our plans and objectives for future operations, growth opportunities, initiatives or strategies, or creation of long-term value are forward-looking statements.
All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including: our estimates of the size of the markets we serve, including our total addressable market and the runway for growth in those markets, prove to be inaccurate; an inability to reduce or effectively manage our significant indebtedness and interest expense; a failure to develop and maintain effective internal control over financial reporting, including a failure to design and implement sufficient controls to remediate our material weaknesses; the markets into which we sell our products and services decline, do not grow as expected, experience cyclicality or shift towards products or services outside of our portfolio; changes in the general economy, the housing market or other business conditions; difficulties executing, integrating or realizing expected benefits from acquisitions, dispositions or joint ventures, or exposure to unexpected liabilities from such transactions; the restrictions imposed on our ability to conduct
2026 2Q Madison Air 8
primary follow-on equity offerings during the two-year period following the organizational transactions and associated limitations on our ability to raise equity capital to fund growth initiatives, acquisitions or other strategic opportunities; increasing competitive pressures in our industry and the markets in which we operate; difficulties implementing our 80/20 operating model or other strategies intended to improve organic growth, including our AI initiatives; an inability to demonstrate or communicate the benefits of our Return on Air value proposition; the loss of key customers; delays, failures or other challenges in developing and commercializing new versions of our products or new features and accessories; unsuccessful efforts to expand into adjacent markets; supplier shortages, rising raw material costs or disruptions in our distribution network; disruption of our operations in our manufacturing facilities, wholesale locations or key customer operations, including as a result of tariffs or other trade policies; changes in government regulations, trade policies and tariffs; and other factors disclosed in our filings with the Securities and Exchange Commission.
We caution you that the important factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our operations in the way we expect. The forward-looking statements included in this press release and in the accompanying presentation are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.
Conference Call Details
Madison Air will host a conference call at 8:30 a.m. (ET) today to discuss second quarter results. A live webcast and replay will be available at https://investors.madisonair.com/events. In connection with this press release and conference call, the Company has posted an investor presentation for the three and six months ended June 30, 2026 on its website at https://investors.madisonair.com.
About Madison Air
Madison Air (NYSE: MAIR) is an air quality solutions provider serving priority commercial and residential markets. Through its portfolio of trusted brands, including Addison, AprilAire, Big Ass Fans, Broan-NuTone, Nortek Air Solutions, Nortek Data Center Cooling and Reznor, the Company helps customers improve performance, protect critical assets and create healthier indoor environments. Madison Air's mission is to make the world safer, healthier and more productive through the power of better air.
Investor Relations:
Email: IR@MadisonAir.com
Media Contact:
Email: ccarey@MadisonAir.com
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