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Segment Information
 3 Months Ended
Mar. 31, 2026
Madison Industries IAQ Solutions Corporation  
Segment Reporting Information [Line Items]  
Segment Information Segment Information
The Company operates under two reportable segments: Commercial and Residential. This is consistent with how our chief operating decision maker (“CODM”), who is our Chief Executive Officer (“CEO”), evaluates performance and allocates resources.
Segment net sales include sales of equipment and services by our segments. Segment Adjusted EBITDA is determined based on performance measures used by our CODM. Our CODM uses Segment Adjusted EBITDA to assess performance and allocate resources to each segment, primarily through periodic budgeting and segment performance reviews. In connection with that assessment our CODM may exclude matters, such as significant, higher-cost restructuring programs, depreciation and amortization, and other costs determined by the CODM not to be reflective of the ongoing performance of the segment. Segment Adjusted EBITDA excludes results reported as discontinued operations.
The Company places more emphasis on segment profit and loss than it does on segment assets. As a result, the Company’s CODM does not assess performance, make strategic decisions, or allocate resources based on assets at the segment level. Accordingly, asset information is not disclosed by reportable segment.
Segment results for the three months ended March 31, 2026 and 2025 are as follows:
Total Net SalesIntersegment SalesExternal Net Sales
202620252026202520262025
Commercial$609.8 $493.6 $0.1 $— $609.7 $493.6 
Residential315.6 197.5 1.6 0.7 314.0 196.8 
Eliminations(1.7)(0.7)(1.7)(0.7)— — 
Total net sales$923.7 $690.4 $— $— $923.7 $690.4 
20262025
Commercial net sales$609.8 $493.6 
Segment cost of goods sold(1)
(380.1)(308.8)
Segment selling, general and administrative expenses(75.1)(65.6)
Segment EBITDA add-backs(2)
6.4 9.2 
Commercial adjusted EBITDA161.0 128.4 
Residential net sales$315.6 $197.5 
Segment cost of goods sold(1)
(193.4)(128.0)
Segment selling, general and administrative expenses(49.4)(30.6)
Segment EBITDA add-backs(2)
6.5 4.3 
Residential adjusted EBITDA79.3 43.2 
Total segment adjusted EBITDA240.3 171.6 
Central and other costs(3)
(7.6)0.4 
Allocated Madison Industries costs(4)
(10.7)(4.5)
Segment EBITDA add-backs (excluding depreciation)— (3.4)
Depreciation(13.0)(10.1)
Intangible asset amortization(40.9)(25.2)
Restructuring expenses(2.3)(0.1)
Equity appreciation rights expense(10.4)(5.2)
Transaction related expenses(4.0)(0.8)
Interest and financing expenses(90.7)(65.8)
Other income (expense)(0.4)3.0 
Income (loss) from continuing operations before income taxes$60.3 $59.9 
(1)Exclusive of intangible amortization shown separately
(2)Segment EBITDA add-backs primarily include adjustments to remove depreciation and non-recurring items in deriving adjusted EBITDA. For the three months ended March 31, 2026 and 2025 EBITDA add-backs for depreciation were $6.5 and $6.2, respectively, for the Commercial Segment, and $6.5 and $3.9, respectively, for the Residential Segment.
(3)Primarily includes central selling, general and administrative expenses and gains and losses on foreign currency. For the three months ended March 31, 2025, this includes a $3.9 gain on legal settlement.
(4)Direct and indirect support from Holdings for certain central activities including, but not limited to consolidation accounting, tax services, legal, and other Holdings central and infrastructure related services
The following is a summary of net sales by geographic area, based upon the location of the business unit:
Three months ended March 31,
20262025
U.S$819.7 $578.7 
Non-U.S
Americas70.8 78.8 
Europe19.5 18.1 
Asia Pacific13.7 14.8 
Total net sales$923.7 $690.4 
The following is a summary of property, plant and equipment by geographic area:
March 31, 2026December 31, 2025
U.S$307.7 $309.7 
Non-U.S
Americas47.4 49.1 
Europe3.8 3.9 
Asia Pacific9.0 9.0 
Total property, plant and equipment$367.9 $371.7 
In addition to property, plant, and equipment, definite-lived intangible assets are predominantly domiciled in the U.S.