AAON Research | Milton Maxwell

AAON

AAON, Inc.

78.07

+1.24+1.61%

Dec 16, 4:00:02 PM EST

Upcoming Earnings

Report date

-/-

Earnings Call Transcripts

This Quarter (Q1 '26)

No earnings call transcript available yet

Last Quarter (Q4 '25)

FY Q4 '25

Q&A details margin miss, AAON ramp

3/1/26Mar 1, 2026

Q&A pinned Q4's gross margin miss squarely on Tulsa's supply chain constraints and soft volumes, with management forecasting Q1 rebound from ramped throughput despite Longview mix headwinds. 2026's 18-20% sales guide tilts toward AAON recovery over Basics' ~25% growth in a flat HVAC market, all volume-fueled sans major pricing. Oklahoma lead times stretch to mid-20 weeks; ERP delays prioritize execution. Basics backlog diversifies across hyperscalers and colos, extending into 2027. Capacity hunts exceed $1.5B footprint. Tulsa volumes fix margins. Watch supply stability and ramps for thesis traction.

Key Stats

Market Cap

6.37B

P/E (TTM)

64.52

Basic EPS (TTM)

1.21

Dividend Yield

Recent Filings

8-K

CFO transition announced

4/2/26Apr 2, 2026

AAON announced CFO transition on April 2, 2026, with Andy Cheung joining April 20 as EVP and CFO, succeeding Rebecca Thompson who shifts to Chief Accounting Officer. Luke Bomer started as General Counsel on April 1. Cheung's package includes $525,000 base, $341,250 target incentive, $787,500 long-term incentive, plus $1.5M equity and $300,000 cash award. Leadership bolsters financial discipline amid growth.

8-K

AAON declares $0.10 dividend

3/5/26Mar 5, 2026

AAON declared its regular quarterly cash dividend of $0.10 per share, payable March 30, 2026, to shareholders of record March 18. This equates to $0.40 annually. Board maintains steady payout amid forward-looking risks like raw material prices and market fluctuations.

8-K

Q4 sales soar, buyback authorized

3/2/26Mar 2, 2026

AAON crushed Q4 sales up 42.5% to $424.2M, fueled by BASX data center demand surging 138.8%, yet margins slipped to 25.9% from capacity ramps. Record $1.83B backlog vaults 110.9% YoY. Board greenlit $100M stock buybacks. Guides 2026 sales growth 18-20%, margins 29-31%. Backlog powers execution.

10-K

FY2025 results

3/2/26Mar 2, 2026

AAON's FY2025 sales hit $1.44B, up 20% y/y, but net income fell to $108M from $169M as gross margins slipped to 26.7% from 33.1%. BASX data center products exploded 143% to $548M, more than offsetting an 8% drop in AAON-branded sales to $894M amid refrigerant transitions and ERP disruptions; Q4 saw coil shortages but Memphis ramp-up fueled sequential gains. Backlog doubled to $1.83B, revolver drew to $398M (1.77x leverage, $201M available). Steady $0.40/share dividends; $30M buybacks. Customer concentration risks loom large.

8-K

Expands credit to $600M

12/29/25Dec 29, 2025

AAON exercised its credit facility's accordion feature on December 29, 2025, boosting revolving borrowing capacity from $500.0 million to $600.0 million without altering other terms. This bolsters liquidity for strong Q4 bookings and growth investments. Lenders reallocated commitments accordingly. Flexibility fuels demand response.

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. The company operates through three segments: AAON Oklahoma, AAON Coil Products, and BASX. It offers rooftop units, data center cooling solutions, cleanroom systems, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls. The company markets and sells its products to retail, manufacturing, educational, lodging, supermarket, data centers, medical and pharmaceutical, and other commercial industries. It sells its products through a network of independent manufacturer representative organizations and internal sales force, as well as online. AAON, Inc. was incorporated in 1987 and is headquartered in Tulsa, Oklahoma.

CEO

Dr. Matthew J. Tobolski Ph.D., SE

IPO

12/16/1992

Website

https://www.aaon.com

Employees

4,812

Sector

Industrials

Industry

Building Products & Equipment