Madison Air Q3 revenue rises 25%, guidance raised

Madison Air Solutions

Thu 12:28

Overview
US air quality solutions provider's Q3 revenue rose 25% yr/yr
Adjusted net income doubled, with margin rising to 17.7%
Company raised full-year sales and EBITDA guidance after record backlog

Outlook
Madison Air raises full-year 2026 net sales outlook to $4.05-$4.13 bln
Company lifts 2026 adjusted EBITDA forecast to $1.04-$1.07 bln
Company expects ebm-papst acquisition to close soon after year-end 2026

Result Drivers
COMMERCIAL SEGMENT GROWTH - Commercial segment sales rose 39% yr/yr, driven by broad-based growth in air, liquid and hybrid cooling, air movement, and dehumidification solutions
DATA CENTER DEMAND - Data center cooling business expanded to meet significant customer demand, with margins reflecting strong growth in this strategic market and new-program ramp costs
RESIDENTIAL PRICING AND DEMAND - Residential segment sales increased 3% yr/yr, mainly due to pricing and demand for healthy air systems

Company press release: ID:nPn65x4mra

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
$1.13 bln
 
Q3 Adjusted Net Income
 
$199.30 mln
 
Q3 Net Income
 
$107.40 mln
 
Q3 Adjusted EBITDA
 
$298.30 mln
 
Q3 Free Cash Flow
 
$158 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Madison Air Solutions Corp is $34.00, about 44% above its November 4 closing price of $23.61

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)