AAON (AAON) Company Report

AAON reported Q3 2025 sales of $384.2 million, a 17.4% increase year-over-year, with Non-GAAP Adjusted Diluted EPS of $0.37, reflecting strong sequential improvement.
The total backlog reached $1.32 billion, up 103.8% year-over-year, significantly boosted by a 119.5% increase in BASX-branded backlog to $896.8 million, driven by robust data center demand.
Gross Profit Margin for Q3 2025 was 27.8%, improving 120 basis points sequentially, despite a year-over-year decline due to ERP inefficiencies and $4.5 million in unabsorbed costs from the new Memphis plant.
The company revised its 2025 outlook, now projecting mid-teens year-over-year sales growth (up from low-teens) and a Gross Margin of 28.0%-28.5%.
Operational updates include the Memphis facility adding nearly 800,000 square feet to triple production capabilities by year-end, and the ERP rollout progressing with Memphis going live on November 1st.

Nov 6, 2025, 2:00 PM

Presentation

AAON Reports Strong Q3 2025 Sales Growth and Positive Outlook

AAON

Earnings

Revenue Acceleration/Inflection

Guidance Update

AAON reported net sales of $384.2 million in Q3 2025, marking a 17.4% increase year-over-year, primarily driven by a 95.8% rise in BASX-branded sales due to demand for data center solutions and increased production from the Memphis facility.
Gross margin for the quarter was 27.8% and diluted EPS was $0.37, both showing sequential improvements of 120 basis points and 94.7%, respectively, despite continued operational inefficiencies and costs associated with the new Memphis facility.
The company's BASX-branded backlog reached $896.8 million, representing a 119.5% increase year-over-year and 43.9% from the prior quarter, fueled by strong momentum in the data center market.
For the full year 2025, AAON anticipates mid-teens sales growth and a gross margin between 28% and 28.5%, with expectations for double-digit revenue growth in Q4 and cash flow from operations turning significantly positive.

Nov 6, 2025, 2:00 PM

Transcript

AAON Reports Q3 2025 Results with Strong Sales Growth and Backlog

AAON

Earnings

Guidance Update

New Projects/Investments

AAON reported Q3 2025 net sales of $384.2 million, a 17.4% increase year-over-year, primarily driven by a 95.8% rise in Basics-branded sales.
Diluted EPS was $0.37, marking a 94.7% sequential increase, and gross margin improved 120 basis points sequentially to 27.8%. The company anticipates continued sequential margin improvement through Q4 and into early 2026.
The Basics branded backlog reached $896.8 million, growing 119.5% year-over-year and 43.9% from the prior quarter, largely due to robust demand in the data center market.
The new Memphis facility, which adds nearly 800,000 sq ft of manufacturing capacity, is progressing as planned, with large-scale production expected by year-end.
For full-year 2025, AAON expects mid-teens sales growth and a gross margin between 28% and 28.5%. Capital expenditures for 2025 are now projected to be $180 million.

Nov 6, 2025, 2:00 PM

Transcript

AAON Reports Q3 2025 Financial Results and Operational Progress

AAON

Earnings

Guidance Update

New Projects/Investments

AAON reported net sales of $384.2 million in Q3 2025, an increase of 17.4% year-over-year, primarily driven by a 95.8% rise in Basics-branded sales.
Diluted EPS for Q3 2025 was $0.37, marking a 94.7% sequential increase, while gross margin improved 120 basis points sequentially to 27.8%.
The Basics brand backlog reached $896.8 million, growing 119.5% year-over-year and 43.9% from the prior quarter, driven by strong demand in the data center market.
The company expects full-year 2025 sales growth in the mid-teens and a gross margin of 28-28.5%, with double-digit revenue growth anticipated for Q4.
2025 capital expenditures were revised to $180 million from a previous estimate of $220 million, with the majority of these expenditures now expected to shift into 2026, and the Memphis facility's large-scale production is on track for year-end.

Nov 6, 2025, 2:00 PM

Transcript

AAON Reports Strong Q3 2025 Results

AAON

Earnings

Guidance Update

Revenue Acceleration/Inflection

AAON reported net sales of $384.2 million in Q3 2025, marking a 17.4% year-over-year increase.
Diluted earnings per share (EPS) for Q3 2025 was $0.37, which is down 41.3% year-over-year but up 94.7% sequentially.
The company achieved a record backlog of $1.32 billion, representing a 103.8% year-over-year increase and an 18.1% sequential rise, driven by strong demand for both AAON and BASX-branded equipment, particularly in data center applications.
Gross profit margin for the quarter was 27.8%, showing sequential improvement from 26.6% despite a year-over-year contraction, attributed to higher production volumes and progress with ERP system optimization.
AAON updated its full-year 2025 outlook for year-over-year sales growth to Mid Teens and reiterated its gross profit margin guidance of 28.0%-28.5%.

Nov 6, 2025, 12:00 PM

8-K

AAON Reports Third Quarter 2025 Results

AAON

Earnings

Guidance Update

New Projects/Investments

AAON reported net sales of $384.2 million for the third quarter of 2025, marking a 17.4% increase year-over-year.
GAAP diluted earnings per share (EPS) for Q3 2025 was $0.37, which is down 41.3% year-over-year but up 94.7% sequentially.
The company achieved a record backlog of $1.32 billion as of September 30, 2025, representing a 103.8% increase year-over-year and 18.1% sequential growth, driven by robust demand for both AAON and BASX brands, particularly in data center applications.
Gross profit margin in Q3 2025 was 27.8%, a decrease from 34.9% in the prior-year period but an improvement sequentially from 26.6%, attributed to improved ERP efficiency and increased production throughput.
AAON updated its 2025 outlook, forecasting mid-teens year-over-year sales growth and a gross profit margin between 28.0% and 28.5%.

Nov 6, 2025, 12:00 PM

Press Release

AAON's Cold Climate Heat Pumps are in Production and Exceed DOE Challenge Standards

AAON

Product Launch

New Projects/Investments

AAON's engineered cold climate heat pump rooftop units (RTUs) meet the performance criteria of the U.S. Department of Energy's (DOE) Commercial Building HVAC Technology Challenge.
These heat pumps have been in production, shipped, and installed in the field since February.
The Company's Alpha Class EXTREME SERIES heat pumps provide 100% heating capacity at 5°F and can operate reliably down to -20°F ambient temperatures.
AAON offers this technology in a product lineup up to 30 tons, with larger sizes to be available in the coming months.

Oct 28, 2025, 12:00 PM

Press Release

AAON Provides Update on ERP Implementation, Memphis Facility, and Growth Strategies

AAON

New Projects/Investments

Guidance Update

Revenue Acceleration/Inflection

AAON's ERP implementation saw significant recovery in July and August, with the Tulsa facility returning to target efficiency and Longview showing consistent improvement. The company plans to roll out the ERP to Memphis next, followed by Redmond and then Tulsa, leveraging lessons learned and increased personnel interaction within the system.
The Memphis manufacturing facility is progressing well, transitioning from an assembly site to a true manufacturing site by the end of 2025, with equipment installation underway. This new capacity is being sold, with the Applied Digital order being the first large-scale project, expected to drive backlog and revenue growth in the second half of 2025 and 2026.
Demand for Basics branded products remains strong, particularly in the AI and cloud data center markets, with customers providing 3-7 years of pipeline visibility. The company sees upside to its 20-25% annual growth targets, contingent on effective capacity scaling and maintaining brand integrity.
AAON's share capture strategy for its core brand is showing positive results, driven by a focus on national accounts, which now represent mid-30s% of bookings compared to 20% a year ago. The Alpha Class heat pump, especially the Extreme series, is a key technological differentiator, with its bookings growth outpacing overall bookings.
While the macro environment remains soft, AAON anticipates a positive trajectory into next year, with signs of stabilization in price dynamics and reduced tariff volatility. The supply chain has also stabilized, and the company is proactively managing supplier relations.

Sep 18, 2025, 3:30 PM

Transcript

AAON Reports Q2 2025 Results and Reaffirms Guidance

AAON

Earnings

Guidance Update

New Projects/Investments

AAON reported Q2 2025 sales of $311.6 million, a 0.6% year-over-year decrease, and Non-GAAP Adjusted Diluted EPS of $0.22, a 64.5% year-over-year decrease, primarily impacted by a new ERP system implementation.
The company's adjusted backlog remains strong at $1.1 billion, marking a 71.9% year-over-year increase, which is anticipated to lead to a strong recovery in the second half of 2025.
AAON reaffirmed its 2025 outlook, projecting low-teens sales growth and a gross margin of 28%-29%, while also reiterating its 3-year targets of 12.5%+ organic sales CAGR and 32%-35% gross margin.
Strategic capacity expansion includes the Memphis facility, which is expected to double BASX's production capacity for data center equipment, with production commencing in Q4 2025.

Sep 18, 2025, 11:02 AM

8-K

AAON Reports Q2 2025 Results and Revises Full-Year Outlook

AAON

Earnings

Guidance Update

Profit Warning

AAON's Q2 2025 results fell short of expectations, with net sales declining 0.6% to $311.6 million, gross margin at 26.6% (down 950 basis points), and non-GAAP adjusted EPS at $0.22 (down 64.5%). This underperformance was primarily due to challenges from its ERP implementation at the Longview facility, impacting Aon branded equipment and coil production.
The company has revised its full-year 2025 outlook lower, now anticipating sales growth in the low teens and a gross margin of 28% to 29%.
Despite the challenges, AAON's backlog remains strong, with the Basics brand showing significant growth in data center sales (up 127% in Q2) and the Aon brand's national accounts orders growing 163% in Q2.
Management expects a strong recovery in the second half of 2025, with production rates improving, ERP impacts lessening, and favorable pricing dynamics contributing positively to sales and margins.