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Madison Air Q3 revenue rises 25%, guidance raised

By Reuters News


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:


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


Reuters Recommended Reads

  • Nov 3 - Everus Construction Q3 revenue beats on data center demand

  • Nov 3 - Regal Rexnord Q3 sales beat estimates on data center demand

  • Nov 3 - Navitas Semiconductor Q3 revenue beats estimates on rising demand from AI data centers and grid infrastructure


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.)

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