AAON · AAON, Inc.

AAON, Inc. delivered exceptional first-quarter 2026 results, with net sales surging 54.3% year-over-year to a record $496.9 million, fueled by robust demand across AAON and BASX brands. BASX sales jumped 72.4% to $228.6 million on data center cooling strength and new capacity utilization, while AAON sales grew 41.6% to $268.4 million amid solid bookings. Despite a gross margin dip to 25.1% from 26.8% due to unabsorbed fixed costs from capacity investments, temporary outsourcing, and price-cost timing, SG&A leverage improved sharply to 13.7% of sales. This drove GAAP diluted EPS up 37.1% to $0.48. Total backlog ballooned 107.4% YoY to $2.13 billion, with BASX up 160%, providing strong visibility. Segmentally, AAON Oklahoma sales rose 50.7% with margins at 26.3% (29.6% excluding Memphis overhead), AAON Coil Products grew 25.1% with 24.1% margins on BASX mix, and BASX sales doubled to $135.4 million. Management, led by President and CEO Matt Tobolski, emphasized execution on throughput, backlog conversion, and margin progression as capacity scales. The company raised its full-year 2026 outlook to 40-45% sales growth (from 18-20%) and 27-28% gross margins (from 29-31%), with SG&A at 14-15% and D&A at $95-100 million, reflecting confidence in demand and operations. Cash flow strengthened with $34 million operating cash flow, offsetting $52.9 million capex, while balance sheet shows $425.2 million revolver draw amid $1.1 million cash. Additionally, the Board authorized a $100 million open-market share repurchase program, signaling commitment to shareholder returns amid growth.