Accessibility Statement Skip Navigation
  • Resources
  • Investor Relations
  • Journalists
  • Agencies
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Hamburger menu
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • Explore Our Platform
  • Plan Campaigns
  • Create with AI
  • Distribute Press Releases
  • Amplify Content
  • All Products
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Client Login
  • Resources
  • Blog
  • Journalists
  • RSS

AAON Reports Fourth Quarter and Full Year 2025 Results

AAON, Inc. Logo (PRNewsfoto/AAON)

News provided by

AAON

Mar 02, 2026, 07:00 ET

Share this article

Share toX

Share this article

Share toX

Carries Record Backlog into 2026 

Full Year 2025 Results

(All comparisons are year-over-year, unless otherwise noted)

  • Delivered strong sales growth in 2025, while margins and earnings reflected strategic investments in production expansion and ERP implementation to support future growth
    • Net sales increased 20.1% to $1.44 billion compared to $1.20 billion in 2024
    • Gross margin was 26.7% compared to 33.1% in 2024
    • GAAP diluted EPS was $1.29 compared to $2.02 in 2024
  • Robust bookings trends of both AAON- and BASX-branded equipment support continued market share gains
    • Record year-end backlog of $1.83 billion, up 110.9% year-over-year, providing strong visibility entering 2026

Fourth Quarter 2025 Results

(All comparisons are year-over-year, unless otherwise noted)

  • Delivered strong sales growth in the quarter, while margins reflected capacity expansions and upfront fixed costs absorption associated with production ramp-up
    • Net sales increased 42.5% to $424.2 million compared to $297.7 million in the fourth quarter of 2024
    • Gross margin was 25.9% compared to 26.1% in the fourth quarter of 2024
    • GAAP diluted EPS was $0.39 compared to $0.30 in the fourth quarter of 2024

Company Introduces 2026 Outlook

  • 2026 outlook reflects revenue growth of 18-20% and gross margins of approximately 29-31%, supported by record backlog, expanded capacity, and improving operational execution

TULSA, Okla., March 2, 2026 /PRNewswire/ -- AAON, INC. (NASDAQ-AAON), a leader in high-performing, energy-efficient HVAC solutions that bring long-term value to customers and owners, today announced its results for the fourth quarter and full year 2025.

Full Year 2025 Results

Continue Reading
Aerial View of AAON Tulsa (PRNewsfoto/AAON)
Aerial View of AAON Tulsa (PRNewsfoto/AAON)

"2025 represented a year of record growth for AAON, driven by strong bookings and sales reflecting expanding market share and growing demand for our products and custom solutions," said AAON President and CEO Matt Tobolski. "During the year, we executed on targeted investments to support long-term growth and profitability. These actions included strengthening our leadership team, enhancing supply chain management capabilities, and expanding manufacturing capacity. These investments have increased production throughput and expanded our ability to serve customers at scale, although lead times have remained extended as a result of strong order activity and recovery from prior production challenges.

"Our manufacturing footprint increased approximately 25%, and our production capacity for BASX-branded data center equipment more than doubled following the renovation and commissioning of our new 787,000-square-foot Memphis, Tennessee facility. Together, these investments have significantly strengthened the Company's operating foundation and position us well for continued growth and margin improvement in 2026 and beyond.

"The BASX brand more than doubled revenue and ended the year with backlog up 141.3%, reflecting strong adoption of our customized air-side and liquid cooling solutions in the data center market. Demand for AAON-branded equipment also remained strong, and production increased steadily throughout the year, with additional ramping planned. We made substantial progress stabilizing and advancing the implementation of our new Enterprise Resource Planning ("ERP") system. While the ERP rollout initially impacted production at our Longview, TX facility, operating performance improved consistently over time, reinforcing our confidence in execution as we focus on continued operational improvement and meeting customer commitments."

Fourth Quarter 2025 Results

Net sales for the fourth quarter of 2025 increased 42.5% to $424.2 million, from $297.7 million in the fourth quarter of 2024. BASX-branded sales increased 138.8% to $181.4 million, reflecting strong demand for both air-side and liquid cooling equipment for data center applications. AAON-branded sales increased 9.5% to $242.8 million, supported by a strong backlog and favorable comparison to the prior-year period, which was adversely impacted by the industry's refrigerant transition. Booking activity remained solid across both brands, led by the BASX brand, which ended the quarter with backlog up 141.3%, while AAON-branded bookings increased approximately 20% compared to the prior-year period.

Gross profit margin in the quarter was 25.9%, compared to 26.1% in the prior-year period. The modest year‑over‑year decline primarily reflected unabsorbed fixed‑cost investments at the Company's new Memphis facility as production capacity was brought online to support a significant ramp of BASX‑branded data center equipment, positioning the business for improved operating leverage as volume scales.

Earnings per diluted share were $0.39, an increase of 30.0% year-over-year.

Dr. Tobolski added, "During the quarter, we made meaningful progress expanding production capacity and further advanced our operational readiness for sustained long-term growth. Production at our new Memphis facility is ramping rapidly, while our Longview, Texas facility continues to scale, increasing our ability to support accelerating demand for our data center equipment. BASX-branded equipment sales increased 138.8% year-over-year in the fourth quarter, and backlog increased 141.3%, providing strong visibility as we enter 2026.

"AAON‑branded equipment sales increased 9.5% year‑over‑year, representing our strongest quarterly growth since the second quarter of 2024. Despite typical seasonal headwinds, we ended the year with backlog up 60.8%, underscoring the strength and durability of underlying demand. We have a clear and disciplined operational plan in place to continue ramping production in 2026, positioning the Company to deliver solid growth and margin expansion.

"Fourth‑quarter margins reflected mixed operating dynamics across our facilities. While production volumes in Tulsa were below plan, Memphis reached profitability earlier than expected, validating our investment strategy. Fixed‑cost under‑absorption continues to pressure consolidated margins in the near term; however, these impacts are largely transitory and directly tied to capacity ramp-up that is already underway, positioning the Company for improved operating leverage as volumes scale. With capacity in place and execution continuing to improve, we remain confident in our path toward meaningful margin expansion throughout 2026."

Backlog


December 31, 2025


September 30, 2025


December 31, 2024


(in thousands)

AAON-branded products

$                      526,350


$                      423,316


$                      327,343

BASX-branded products

1,302,145


896,824


539,747


$                   1,828,495


$                   1,320,140


$                      867,090

Total backlog increased 110.9% year-over-year to $1.83 billion, and increased 38.5% sequentially. Growth was driven primarily by the BASX-brand, with backlog increasing 141.3% from the prior year and 45.2% from the prior quarter, while AAON-branded equipment backlog increased 60.8% year-over-year. The Company's growing backlog and robust order activity demonstrate meaningful market share capture as customers prioritize high-performance, energy-efficient, and reliable infrastructure solutions. A significant portion of the BASX-branded backlog is slated for production at the Memphis facility, which will support a steady ramp in production in 2026.

2026 Outlook

Dr. Tobolski concluded, "As we enter early 2026, we are positioned to build on the investments made throughout 2025 in our people, products, manufacturing capabilities, and working capital. While these initiatives carried upfront costs and impacted near-term results, they have meaningfully strengthened AAON's operating foundation and positioned the Company to meet the growing demand in the data center market.

"Our ERP upgrade presented short-term challenges, which are now largely behind us, and is expected to deliver lasting benefits through improved production throughput, operating efficiency, and margin expansion. We begin 2026 with record backlog, allowing us to remain sharply focused on execution and customer delivery. To support a disciplined ramp in production throughput and accelerate margin improvement, we have moderated the pace of near-term ERP rollouts, enhancing returns on our recent investments while ensuring the Company remains well positioned for future IT system upgrade.

"With these actions in place, and with operational execution continuing to improve, we expect 2026 sales to grow 18%-20%, with gross margin of 29%-31%. We also anticipate SG&A expenses as a percentage of sales will be approximately 16% and expect depreciation and amortization expenses of $95-$100 million."


Current

Metric

FY26



YoY Sales Growth

18%-20%



Gross Profit Margin

29%-31%



SG&A as a % of sales

~16%



Depreciation &
Amortization

$95M-$100M

Segment Results

AAON Oklahoma


Three Months Ended 

(in thousands)

December 31,
2025

September 30,
2025

December 31,
2024

Net sales

$         215,503

$  238,748

$         193,957





Gross profit

$           59,168

$    78,803

$           59,516

Gross profit margin

27.5 %

33.0 %

30.7 %

Net sales for the AAON Oklahoma segment totaled $215.5 million, an increase of 11.1% year-over-year, driven by a strong starting backlog and ongoing production enhancements that improved backlog conversion despite a challenging industry environment. Results in the fourth quarter of 2025 also benefited from a favorable comparison to the prior-year period, which saw disruption due to the industry's refrigerant transition in the prior-year period.

Gross margin for the segment was 27.5%, compared to 30.7% in the fourth quarter of 2024. The year-over-year decrease was fully attributable to $6.4 million of incremental overhead associated with the Company's new Memphis facility, reflecting investments made to support future production growth and operating leverage.

AAON Coil Products


Three Months Ended 

(in thousands)

December 31,
2025

September 30,
2025

December 31,
2024

Net sales

$         102,619

$      70,246

$           53,019





Gross profit

$           21,827

$         7,758

$             8,535

Gross profit margin

21.3 %

11.0 %

16.1 %

Net sales for the AAON Coil Products segment totaled $102.6 million, up 93.6% compared to the same period last year. Growth was driven primarily by $75.3 million in BASX-branded liquid cooling sales, which increased 198.7% during the period. AAON-branded sales declined 1.8% year-over-year, but increased 15.2% sequentially, highlighting strengthening production momentum.

AAON Coil Products gross margin was 21.3%, increasing year-over-year from 16.1% and sequentially from 11.0%. The year‑over‑year margin expansion reflected improved operating leverage on higher throughput at the Longview facility, along with a favorable mix of higher-margin BASX sales.  This was partially offset by a full five‑day plant shutdown at Longview at year‑end to conduct a wall‑to‑wall inventory count.

BASX


Three Months Ended

(in thousands)

December 31,
2025

September 30,
2025

December 31,
2024

Net sales

$         106,095

$    75,244

$           50,742





Gross profit

$           28,775

$    20,300

$             9,564

Gross profit margin

27.1 %

27.0 %

18.8 %

Net sales for the BASX segment increased 109.1% to $106.1 million, compared to $50.7 million in the prior-year period. The year-over-year increase was driven by continued  strong demand for data center equipment, supported by robust order intake and elevated backlog levels. Increased production from the Company's new Memphis facility played a key role in expanding capacity and driving higher sales.

BASX segment gross margin was 27.1%, compared to 18.8% in the prior-year period. The year‑over‑year improvement reflected a favorable comparison and accelerating production at the Memphis facility.

Balance Sheet & Cash Flow

As of December 31, 2025, the company had cash, cash equivalents and restricted cash of $1.2 million and a balance on its revolving credit facility of $398.3 million. Rebecca Thompson, AAON CFO and Treasurer, commented, "In 2025, we made substantial capacity and working‑capital investments to support our expanding backlog and ongoing market share gains.  As returns on these investments begin to materialize, we expect operating cash flow to improve significantly in 2026, supported by higher earnings and improved working‑capital efficiency. This gives us flexibility to continue to focus on our investment in growth for the future with capital expenditure plans of $190.0 million in 2026."

Conference Call

The company will host a conference call and webcast this morning at 9:00 a.m. EST to discuss the fourth quarter of 2025 results and outlook. The conference call will be accessible via dial-in for those who wish to participate in Q&A as well as a listen-only webcast. The dial-in is accessible at 1-888-880-3330. To access the listen-only webcast, please register at https://app.webinar.net/X2DbRx9Pk8v. On the next business day following the call, a replay of the call will be available on the company's website at https://aaon.com/investors.

About AAON

Founded in 1988, AAON is a global leader in HVAC solutions for commercial, industrial and data center indoor environments. The company's industry-leading approach to designing and manufacturing highly configurable and custom-made equipment to meet exact needs creates a premier ownership experience with greater efficiency, performance and long-term value. Its highly engineered equipment is sold under the AAON and BASX brands. AAON is headquartered in Tulsa, Oklahoma, where its world-class innovation center and testing lab allows AAON engineers to continuously push boundaries and advance the industry. For more information, please visit www.aaon.com.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", "should", "will", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligations to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Important factors that could cause results to differ materially from those in the forward-looking statements include (1) the timing and extent of changes in raw material and component prices, (2) the effects of fluctuations in the commercial/industrial new construction market, (3) the timing and extent of changes in interest rates, as well as other competitive factors during the year, and (4) general economic, market or business conditions. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in any forward-looking statements, see "Risk Factors" and "Forward Looking Statements" in AAON's Annual Report on Form 10-K for the most recent fiscal year, as may be revised and updated by AAON's Quarterly Reports on Form 10-Q, and AAON's Current Reports on Form 8-K.

Contact Information

Joseph Mondillo
Director of Investor Relations & Corporate Strategy
Phone: (617) 877-6346
Email: [email protected]

AAON, Inc. and Subsidiaries

Consolidated Statements of Income

(Unaudited)



Three Months Ended December 31,


Years Ended December 31,


2025


2024


2025


2024


(in thousands, except per share data)

Net sales

$               424,217


$               297,718


$         1,442,076


$         1,200,635

Cost of sales

314,447


220,103


1,056,352


803,526

Gross profit

109,770


77,615


385,724


397,109

Selling, general and administrative expenses

65,810


48,194


239,480


188,014

Gain on disposal of assets

—


(8)


(4)


(23)

Income from operations

43,960


29,429


146,248


209,118

Interest expense

(5,762)


(1,208)


(17,726)


(2,905)

Other income, net

124


45


230


378

Income before taxes

38,322


28,266


128,752


206,591

Income tax provision

6,290


3,576


21,159


38,032

Net income

$                  32,032


$                  24,690


$            107,593


$            168,559

Earnings per share:








Basic EPS

$                      0.39


$                      0.30


$                   1.32


$                   2.07

Diluted EPS

$                      0.39


$                      0.30


$                   1.29


$                   2.02

Cash dividends declared per common share:

$                      0.10


$                      0.08


$                   0.40


$                   0.32

Weighted average shares outstanding:








Basic

81,657,463


81,345,236


81,529,140


81,473,131

Diluted

83,160,224


83,575,989


83,105,538


83,629,502

AAON, Inc. and Subsidiaries

Segment Net Sales and Profit

(Unaudited)



Three Months Ended December 31,


Years Ended December 31,


2025


2024


2025


2024


(in thousands)

AAON Oklahoma








External sales

$                  215,503


$          193,957


$          801,209


$            858,711

Inter-segment sales

29,304


2,116


48,198


6,336

Eliminations

(29,304)


(2,116)


(48,198)


(6,336)

     Net sales

215,503


193,957


801,209


858,711

     Cost of sales1

156,335


134,441


569,121


538,124

     Gross profit

59,168


59,516


232,088


320,587

AAON Coil Products








External sales

$                  102,619


$           53,019


$          325,353


$            143,871

Inter-segment sales

4,298


4,298


16,005


20,192

Eliminations

(4,298)


(4,298)


(16,005)


(20,192)

     Net sales

102,619


53,019


325,353


143,871

     Cost of sales1

80,792


44,484


255,681


116,287

     Gross profit

21,827


8,535


69,672


27,584

BASX








External sales

$                  106,095


$           50,742


$          315,514


$            198,053

Inter-segment sales

(74)


404


502


666

Eliminations

74


(404)


(502)


(666)

     Net sales

106,095


50,742


315,514


198,053

     Cost of sales1

77,320


41,178


231,550


149,115

     Gross profit

28,775


9,564


83,964


48,938

Consolidated gross profit

$                  109,770


$           77,615


$          385,724


$            397,109


1 Presented after intercompany eliminations.

The reconciliation between consolidated gross profit to consolidated income from operations is as follows:

Consolidated gross profit

$            109,770


$               77,615


$            385,724


$            397,109

Less: Selling, general and administrative expenses

65,810


48,194


239,480


188,014

Add: gain on disposal of assets

—


8


4


23

Consolidated income from operations

$               43,960


$               29,429


$            146,248


$            209,118

AAON, Inc. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)



December 31,
2025


December 31,
2024

Assets

(in thousands, except share and per share data)

Current assets:




Cash and cash equivalents

$                    13


$                    14

Restricted cash

1,226


6,500

Accounts receivable, net

314,387


147,434

Income tax receivable

27,445


4,115

Inventories, net

261,151


187,420

Contract assets, net

247,037


135,421

Prepaid expenses and other

17,921


7,308

Total current assets

869,180


488,212

Property, plant and equipment, net

631,262


510,356

Intangible assets, net and goodwill

165,799


160,152

Right of use assets

17,988


15,436

Other long-term assets

2,281


242

Deferred tax assets

—


836

Total assets

$       1,686,510


$       1,175,234





Liabilities and Stockholders' Equity




Current liabilities:




Debt, short-term

$                    —


$            16,000

Short-term obligations of NMTC

7,535


—

Accounts payable

110,437


44,645

Accrued liabilities

132,213


99,347

Contract liabilities

80,670


14,913

Total current liabilities

330,855


174,905

Debt, long-term

398,320


138,891

Deferred tax liabilities

30,313


—

Other long term liabilities

23,299


20,743

New market tax credit obligations1

8,738


16,113

Commitments and contingencies (Note 20)




Stockholders' equity:




Common stock, $.004 par value, 200,000,000 shares authorized, 81,691,075 and 81,436,594 issued and outstanding at December 31, 2025 and 2024, respectively

327


326

Additional paid-in capital

64,358


68,946

Retained earnings

830,300


755,310

Total stockholders' equity

894,985


824,582

Total liabilities and stockholders' equity

$       1,686,510


$       1,175,234

AAON, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)







Years Ended December 31,


2025


2024

Operating Activities


Net income

$         107,593


$         168,559

Adjustments to reconcile net income to net cash provided by operating activities




Depreciation and amortization

79,191


62,735

Amortization of debt issuance costs

394


154

Amortization of right of use assets

166


189

Provision for (recoveries of) losses on accounts receivable, net of adjustments

70


715

Provision for losses on contract assets, net of adjustments

200


399

Provision for (recoveries of) excess and obsolete inventories, net of write-offs

152


(968)

Share-based compensation

17,994


16,729

Other

(15)


(4)

Deferred income taxes

31,149


(6,606)

Changes in assets and liabilities:




Accounts receivable

(167,023)


(10,041)

Income tax receivable

(23,330)


(5,285)

Inventories

(73,883)


27,080

Contract assets

(111,816)


(90,626)

Prepaid expenses and other long-term assets

(11,673)


(3,707)

Accounts payable

52,904


16,959

Contract liabilities

65,757


1,156

Extended warranties

831


1,835

Accrued liabilities and other long-term liabilities

31,873


13,259

Net cash provided by operating activities

534


192,532

Investing Activities




Capital expenditures

(190,563)


(195,660)

Proceeds from government incentive grant

12,000


—

Proceeds from sale of property, plant and equipment

40


25

Acquisition of intangible assets

(14,329)


(17,491)

Principal payments from note receivable

435


51

Net cash used in investing activities

(192,417)


(213,075)

Financing Activities




Borrowings of debt

915,391


717,897

Payments of debt

(672,204)


(601,091)

Proceeds from financing obligation, net of issuance costs

—


4,186

Payment related to financing costs

(1,395)


(664)

Stock options exercised

17,144


31,861

Repurchase of stock - open market

(29,995)


(100,034)

Repurchases of stock - LTIP plans (Note 18)

(9,730)


(8,037)

Cash dividends paid to stockholders

(32,603)


(26,084)

Net cash provided by (used in) financing activities

186,608


18,034

Net (decrease) increase in cash, cash equivalents, and restricted cash

(5,275)


(2,509)

Cash, cash equivalents, and restricted cash, beginning of year

6,514


9,023

Cash, cash equivalents, and restricted cash, end of year

$             1,239


$             6,514

Use of Non-GAAP Financial Measures

To supplement the company's consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), additional non-GAAP financial measures are provided and reconciled in the following tables. The company believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results. The company believes that this non-GAAP financial measure enhances the ability of investors to analyze the company's business trends and operating performance as they are used by management to better understand operating performance. Since adjusted net income, adjusted net income per diluted share, EBITDA, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures and are susceptible to varying calculations, adjusted net income, adjusted net income per diluted share, EBITDA, adjusted EBITDA, and adjusted EBITDA margin, as presented, may not be directly comparable with other similarly titled measures used by other companies.

Non-GAAP Adjusted Net Income

The company defines non-GAAP adjusted net income as net income adjusted for any infrequent events, such as litigation settlements, net of profit sharing and tax effect, in the periods presented.

The following table provides a reconciliation of net income (GAAP) to non-GAAP adjusted net income for the periods indicated:


Three Months Ended December 31,


Years Ended December 31,


2025


2024


2025


2024


(in thousands)

Net income, a GAAP measure

$                   32,032


$                   24,690


$          107,593


$          168,559

Add: Memphis incentive fee1

—


—


6,105


—

Profit sharing effect2

—


—


(519)


—

Tax effect

—


—


(1,369)


—

Non-GAAP adjusted net income

$                   32,032


$                   24,690


$          111,810


$          168,559

Non-GAAP adjusted earnings per diluted share

$                       0.39


$                       0.30


$                1.35


$                2.02


1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities.

2Profit sharing effect of the Memphis incentive fee in the respective period.





EBITDA

EBITDA (as defined below) is presented herein and reconciled from the GAAP measure of net income because of its wide acceptance by the investment community as a financial indicator of a company's ability to internally fund operations. The company defines EBITDA as net income, plus (1) depreciation and amortization, (2) interest expense (income), net and (3) income tax expense. EBITDA is not a measure of net income or cash flows as determined by GAAP. EBITDA margin is defined as EBITDA as a percentage of net sales.

The company's EBITDA measure provides additional information which may be used to better understand the company's operations. EBITDA is one of several metrics that the company uses as a supplemental financial measurement in the evaluation of its business and should not be considered as an alternative to, or more meaningful than, net income, as an indicator of operating performance. Certain items excluded from EBITDA are significant components in understanding and assessing a company's financial performance. EBITDA, as used by the company, may not be comparable to similarly titled measures reported by other companies. The company believes that EBITDA is a widely followed measure of operating performance and is one of many metrics used by the company's management team and by other users of the company's consolidated financial statements.

Adjusted EBITDA is calculated as EBITDA adjusted by items in non-GAAP adjusted net income, above, except for taxes, as taxes are already excluded from EBITDA.

The following table provides a reconciliation of net income (GAAP) to EBITDA (non-GAAP) and Adjusted EBITDA (non-GAAP) for the periods indicated:


Three Months Ended December 31,


Years Ended December 31,


2025


2024


2025


2024


(in thousands)

Net income, a GAAP measure

$             32,032


$             24,690


$        107,593


$        168,559

Depreciation and amortization

20,353


17,550


79,191


62,735

Interest expense, net

5,762


1,208


17,726


2,905

Income tax expense

6,290


3,576


21,159


38,032

EBITDA, a non-GAAP measure

$             64,437


$             47,024


$        225,669


$        272,231

Add: Memphis incentive fee1

—


—


6,105


—

Profit sharing effect2

—


—


(519)


—

Adjusted EBITDA, a non-GAAP measure

$             64,437


$             47,024


$        231,255


$        272,231

Adjusted EBITDA margin

15.2 %


15.8 %


16.0 %


22.7 %


1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities.

2Profit sharing effect of the Memphis incentive fee in the respective period.

Non-GAAP Adjusted Selling, General and Administrative Expenses

The following table provides a reconciliation of selling, general and administrative expenses (GAAP) to adjusted selling, general and administrative expenses (non-GAAP) for the periods indicated:


Q1 2024


Q2 2024


Q3 2024


Q4 2024


2024


(in thousands)

Non-GAAP Adjusted Selling, General and Administrative Expenses

SG&A, a GAAP measure

$          45,288


$          45,895


$          48,637


$          48,194


$        188,014

Less: Memphis Incentive Fee1

—


—


—


—


—

Profit Sharing effect2

—


—


—


—


—

Non-GAAP adjusted SG&A expenses

$          45,288


$          45,895


$          48,637


$          48,194


$        188,014

As a percent of sales

17.3 %


14.6 %


14.9 %


16.2 %


15.7 %












Q1 2025


Q2 2025


Q3 2025


Q4 2025


2025


(in thousands)

SG&A, a GAAP measure

$          51,293


$          59,147


$           63,230


65,810


239,480

Less: Memphis Incentive Fee1

2,700


3,405


—


—


6,105

Profit Sharing effect2

(230)


(289)


—


—


(519)

Non-GAAP adjusted SG&A expenses

$          48,823


$          56,031


$          63,230


$          65,810


$        233,894

As a percent of sales

15.2 %


18.0 %


16.5 %


15.5 %


16.2 %


1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities.

2Profit sharing effect of the Memphis incentive fee in the respective period.

SOURCE AAON

21%

more press release views with 
Request a Demo

Modal title

Also from this source

AAON Announces Fourth Quarter and Full Year 2025 Conference Call and Webcast

AAON Announces Fourth Quarter and Full Year 2025 Conference Call and Webcast

AAON, Inc. (NASDAQ: AAON) ("AAON" or the "Company"), a leader in high-performing, energy-efficient HVAC solutions that brings long-term value to...

AAON Activates Accordion Feature on Credit Facility to Support Growth

AAON Activates Accordion Feature on Credit Facility to Support Growth

AAON, Inc. (NASDAQ: AAON) ("AAON" or the "Company"), a leader in high-performing, energy-efficient HVAC solutions that bring long-term value to...

More Releases From This Source

Explore

HVAC (Heating, Ventilation and Air-Conditioning)

HVAC (Heating, Ventilation and Air-Conditioning)

Household, Consumer & Cosmetics

Household, Consumer & Cosmetics

Construction & Building

Construction & Building

Earnings

Earnings

News Releases in Similar Topics

Contact PR Newswire

  • Call PR Newswire at 888-776-0942
    from 8 AM - 9 PM ET
  • Chat with an Expert
  • General Inquiries
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Italy
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom
  • Vietnam

My Services

  • All New Releases
  • Platform Login
  • ProfNet
  • Data Privacy

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Platform Login
  • ProfNet
Call PR Newswire at
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookies
Copyright © 2026 Cision US Inc.