MAIR · CIK 0002098430
What Madison Air Solutions Corp told the SEC could break it.
Madison Air Solutions' risks reflect a manufacturer squeezed on inputs and a newly concentrated customer. Tariffs are a realized cost — they added $51.3 million to fiscal 2025 cost of goods sold, about 2.5% of the total — given operations in China, Canada and Mexico, and further escalation could raise costs or dampen demand. It also depends on sole-source suppliers for certain critical components (where a prolonged shortage could halt production) and on commodity inputs like steel, plastic, copper and aluminum; and on the demand side, one customer became about 11% of fiscal 2025 net sales (and 16% of receivables), a concentration that didn't exist in prior years.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Customer concentration
- one customer ~11% of FY2025 net salesmedium
One customer (Commercial segment) was approximately 11% of FY2025 net sales and 16% of accounts receivable — a new ≥10% concentration (no single customer exceeded 10% in 2024 or 2023).
“For the year ended December 31, 2025 the Company had one customer account for approximately 11% of our net sales, the majority of which were tied to our Commercial segment. The same customer accounted for approximately 16% of our accounts receivable balance as of December 31, 2025.”
SEC filing →As of 2026
Regulatory & policy
- tariffs — $51.3M COGS hit (2.5%) FY2025; China/Canada/Mexicomedium
Tariffs added $51.3 million to FY2025 cost of goods sold (2.5% of total COGS), with operations in China, Canada and Mexico; further tariff escalation on foreign-sourced supplies could raise costs or cut demand.
“For the year ended December 31, 2025, we incurred additional expenses and increased our historical cost of goods sold by .3 million as a result of tariffs, which equates to 2.5% of our total cost of goods sold.”
Sole-source dependency
- sole-source critical components; steel/copper/aluminum reliancemedium
Relies on sole-source suppliers for certain critical components; a prolonged shortage that can't be re-sourced would halt production of key products. Also depends on steel, plastic, copper and aluminum.
“If we were to experience a significant or prolonged shortage of critical components from any of our suppliers, particularly those who are our sole sources, and could not procure the components from other sources, we would be unable to meet our production schedules for some of our key products or to ship such products to our customers in a timely fashion, which could adversely affect sales, margins and customer relationships. We also rely on certain materials such as steel, plastic, copper and aluminum.”
SEC filing →As of 2026
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