Income Taxes

3 Months Ended

Mar. 31, 2026

Madison Industries IAQ Solutions Corporation

Income Tax Disclosure [Line Items]

Income Taxes

Income Taxes

For the three months ended March 31, 2026 and 2025, the Company's effective income tax rate was 28.7% and 24.5%, respectively. The increase in the effective tax rate is primarily driven by increased tax on non-US operations.

As of March 31, 2026, tax years 2021 and later remain open to audit for the U.S. federal jurisdiction and tax years 2019 and later remain open to audit in U.S. state jurisdictions. Tax years 2018 and later remain open to audit in foreign locations.

The Organization for Economic Co-operation and Development (“OECD”) issued Pillar Two model rules for a global minimum tax of 15% effective January 1, 2024. While the United States has not adopted Pillar Two, other countries in which the Company operates have enacted such legislation or are considering implementation. Given our limited operations in low-tax jurisdictions, Pillar Two has not materially increased our global tax costs. On January 5, 2026, the OECD released a comprehensive package for a “side-by-side arrangement” with respect to Pillar Two. Notably, once adopted, this new guidance will prevent other countries from imposing tax on the U.S. profits of American companies. We will continue to monitor U.S. and international legislative developments, including further announcements on the Side-by-Side package, to assess any potential impacts on our operations. During the three months ended March 31, 2026, we have not accrued any tax expenses in connection with the incorporation of the Pillar Two model rules.