Derivative Financial Instruments

3 Months Ended

Mar. 31, 2026

Madison Industries IAQ Solutions Corporation

Derivative [Line Items]

Derivative Financial Instruments

Derivative Financial Instruments

The Company enters into commodity futures, foreign currency forward contracts and options, and interest rate swaps and collars. Commodity futures are intended and effective as hedges of market price risk associated with the anticipated purchase of certain raw materials (primarily steel). Foreign currency forward contracts are intended and are effective as

hedges of the Company’s exposure to the variability of cash flows, primarily related to foreign exchange rate changes of products manufactured in countries abroad and sold in the United States. Interest rate swaps are intended and effective as hedges of market changes in interest rates associated with floating rate debt.

The Company does not engage in trading or other speculative use of derivative instruments. The Company recognizes all derivative instruments as assets and liabilities at fair value. The Company uses either hedge accounting or mark-to-market accounting for its derivative instruments. Derivatives that qualify for hedge accounting are designated as cash flow hedges by formally documenting the hedge relationships, including identification of the hedging instruments, the hedged items and other critical terms as well as the Company’s risk management objectives and strategies for undertaking the hedge transaction. As of the periods presented, all derivative instruments are accounted for using hedge accounting.

As of March 31, 2026 and December 31, 2025, respectively, derivatives consisted of the following:

	Notional Amount		Assets		Liabilities
Interest rate swaps and collars	$	2,550.0	$	3.5	$	(0.4)
Foreign currency swaps and options	139.8		1.9		(0.1)
Balance at March 31, 2026	$	2,689.8	$	5.4	$	(0.5)

	Notional Amount		Assets		Liabilities
Interest rate swaps and collars	$	2,550.0	$	0.3	$	(4.7)
Foreign currency swaps and options	26.4		2.2		—
Balance at December 31, 2025	$	2,576.4	$	2.5	$	(4.7)

All amounts reported in accumulated other comprehensive income (loss) for foreign currency swaps and options are expected to be reclassified to cost of goods sold during the next 12 months. Approximately $0.2, $0.5 and $2.4 of this accumulated other comprehensive loss on interest rate swaps is expected to be reclassified into interest and financing expenses in 2026 (remainder of year), 2027 and 2028, respectively. As of March 31, 2026, $0.4 was recorded in other current assets, $3.1 in other long-term assets and $0.4 in accrued expenses and other current liabilities for interest rate swaps and collars and $1.9 was recorded in other current assets and $0.1 in accrued expenses and other current liabilities for foreign currency swaps and options. As of December 31, 2025, $0.3 was recorded in other current assets and, $0.6 in accrued expenses and other current liabilities, $4.1 was recorded in other long-term liabilities for interest rate swaps and collars and $2.2 was recorded in other current assets for foreign currency swaps and options.

Amounts recorded to earnings for interest rate swaps and collars are included in interest and financings expenses, and amounts recorded to earnings for foreign currency swaps and options are included in cost of goods sold on the consolidated income statement.

The effects of derivative financial instruments on the Company’s condensed consolidated statements of income (loss) and comprehensive income for the three months ended March 31, 2026 consisted of the following:

	Gain (Loss) Recognized in OCI		Gain (Loss) Reclassified from Accumulated OCI to Earnings
Interest rate swaps and collars	$	5.9	$	0.6
Foreign currency swaps and options	(0.3)		0.9
Total	$	5.6	$	1.5

The effects of derivative financial instruments on the Company’s condensed consolidated statements of income (loss) and comprehensive income for the three months ended March 31, 2025 consisted of the following:

	Gain (Loss) Recognized in OCI		Gain (Loss) Reclassified from Accumulated OCI to Earnings
Interest rate swaps and collars	$	(4.2)	$	1.7
Foreign currency swaps and options	0.4		(0.2)
Total	$	(3.8)	$	1.5