Madison Air revenue skyrockets 34% as IPO proceeds wipe out $2.6B in debt

Madison Air (NYSE:MAIR) generated $923.7 million in net sales for the quarter ended March 31, 2026, a 33.8% increase over the prior-year period.

On a pro forma basis, revenue grew 12.5%, anchored by a 23.5% surge in the Commercial segment.

The quarter’s primary highlight was a 115.5% year-over-year jump in total backlog, driven by record-level demand for the company’s Nortek Data Center Cooling and custom air quality systems.

While GAAP net income dipped slightly to $43 million due to IPO-related transition costs, adjusted net income rose 32.1% to $92.5 million.

The company’s operational efficiency was reflected in a 38.7% increase in adjusted EBITDA, which reached $233.4 million, yielding a robust 25.3% margin.

Free cash flow was equally strong at $50.4 million, representing a 117.2% conversion rate.

Following the quarter’s end, Madison Air completed its initial public offering in April 2026, raising $2.58 billion in net proceeds.

These funds, combined with a concurrent private placement from founder Larry Gies, were utilized to repay $2.66 billion in term loans, significantly strengthening the company’s capital structure.

Citing strong visibility from its $1.4 billion order backlog, Madison Air established full-year 2026 financial guidance.

The company expects net sales to come in between $3.75 billion and $3.85 billion.