📈 Price History

Ratio Health

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By Category

📊 Sector Averages

About

AAON, Inc., together with its subsidiaries, engages in engineering, manufacturing, marketing, and selling air conditioning and heating equipment in the United States and Canada.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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📊 Quick Scorecard

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🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific ↑ Improving 4 quarters analysed

Q2 2025

Mixed

Management is upfront about ERP-related misses and margin compression, using language like 'fall short of our expectations' and 'do not reflect the high standard we set,' but also repeatedly emphasizes strong fundamentals and a positive long-term outlook, calling the core fundamentals 'never been stronger.' The overall tone balances accountability with confidence in recovery.

Q3 2025

Confident Specific

Management repeatedly described a 'decisive inflection point' and gave precise operational metrics such as BASX backlog up 119.5%, AAON-branded sales up 28.1% sequentially, and production throughput improvements of over 20% at multiple facilities. The tone was forward-looking and specific about near-term and 2026 expectations, with clear guidance on margins and CapEx.

Q4 2025

Confident Specific

Management repeatedly used phrases like 'strong visibility', 'confident in our ability to execute', and 'positioned for meaningful margin improvement', while also providing specific guidance ranges for revenue, gross margin, and capex. The tone acknowledges temporary headwinds but frames them as well-understood and contained.

Q1 2026 latest

Confident Specific

Management emphasizes record sales, 37% earnings growth, and strong bookings with book-to-bill above one, while upfront about temporary margin pressures from outsourcing and tariffs, repeatedly using phrases like 'strong start', 'intentional', and 'temporary'.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis is stronger after this call because growth accelerated well above expectations, with record sales and bookings, particularly at BASX where revenue grew 72% and backlog doubled. Management now expects 40-45% full-year sales growth, implying roughly $1 billion in BASX revenue. The temporary margin compression (gross margin 27-28% for the year) is presented as a strategic choice to capture share, and management expects margins to improve sequentially through 2026 as outsourcing declines and capacity matures. The key risk is whether margin recovery materializes as quickly as guided, especially given tariff and inflation headwinds. Next quarter's margin progression and any update on outsourcing reduction will be critical to watch.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Confident Specific ↑ Improving 4 quarters Full tone analysis in Intelligence →

📊 MIXED AAON Q1 2026 record sales $496.9M, 54% growth, BASX revenue up 72%.

Revenue & Profitability

First quarter 2026 net sales were a record $496.9 million, up 54% year-over-year. Diluted EPS increased 37% to $0.48. Non-GAAP adjusted EBITDA grew 44% to $78 million, representing a margin of 15.7%. Gross margin was 25.1%, down 170 basis points year-over-year due to temporary outsourcing, tariff, and inflation pressures.

Outlook

Management expects strong demand to continue, particularly in data center cooling (BASX) and recovery in the unitary HVAC market, evidenced by a 56% increase in Alpha Class heat pump orders. The company raised full-year sales growth guidance to 40%-45%, with gross margin expected in the 27%-28% range, improving through the year as temporary cost headwinds moderate.

Growth Drivers

Key growth levers include sustained strength in data center cooling (BASX), market share gains across both brands, and recovery in the transactional AAON-branded business. Alpha Class electric heat pump orders grew 56% in Q1. The company also highlighted broad demand for its entire portfolio, including air-side products, liquid cooling units (CDUs), and AI-centric free cooling chillers.

Balance Sheet & CapEx

Capital expenditures in Q1 2026 totaled $52.9 million, reflecting continued investment in incremental capacity. Full-year CapEx guidance remains at $190 million, with a concentration on the Memphis facility build-out and equipment. Management noted that prior investments provide capacity to support revenue well above $2 billion without triggering massive additional CapEx.

Margins

Gross margin was 25.1% in Q1, with temporary pressures from outsourcing, tariff surcharges, and inflation. Management expects margins to improve sequentially through the year, reaching 27%-28% for full-year 2026. AAON Oklahoma segment margin, excluding Memphis overhead, was ~30% compared to historical highs in the upper 30s, with all temporary headwinds addressed via pricing actions embedded in backlog.

Key Risks

Management flagged temporary cost pressures from outsourcing as the company prioritizes growth and share gains, as well as tariff-related impacts and general inflation. These are expected to moderate as internal capacity scales. No other risks were raised by management or analysts in the Q&A.

Generated by AI · Q1 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q2 2026 Q2 2026 2026-08-10

Record Q2 sales and earnings growth were driven by strong BASX and AAON brand performance, rapid scaling of new capacity, and operational improvements. Margin pressures from ramping facilities and inflation are expected to ease, with further gains anticipated in Q4 and into 2027.

Q1 2026 Q1 2026 2026-05-07

Q1 2026 saw record sales and 37% earnings growth, driven by strong demand and capacity investments. BASX and AAON brands posted significant share gains, with BASX revenue expected to reach $1 billion for the year. Margin improvement is anticipated as outsourcing declines.

Q4 2025 Q4 2025 2026-03-02

Q4 2025 saw 42.5% sales growth, led by BASX's 143% surge and strong data center demand. 2026 guidance calls for 18%-20% sales growth and margin expansion, with investments in capacity and supply chain expected to drive improved performance despite a flat commercial HVAC market.

Q3 2025 Q3 2025 2025-11-06

Third quarter saw strong sales and backlog growth, led by BASX's data center demand and capacity expansion. Margins were pressured by ERP and new facility ramp-up but are expected to improve, with double-digit revenue growth and robust cash flow anticipated in Q4 and 2026.

Q2 2025 Q2 2025 2025-08-11

Second quarter results were impacted by ERP rollout disruptions, leading to lower AAON branded sales and margins, but BASX branded products saw strong growth in the data center market. Guidance for 2025 was revised lower, but sequential improvement is expected as ERP headwinds ease and new capacity comes online.

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