AAON (NASDAQ:AAON) Announces Quarterly Earnings Results

AAON (NASDAQ:AAON) issued its earnings results on Monday. The construction company reported $0.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.51 by $0.18, FiscalAI reports. The business had revenue of $626.98 million during the quarter, compared to analysts’ expectations of $508.82 million. AAON had a net margin of 7.30% and a return on equity of 13.67%. The business’s revenue for the quarter was up 101.2% compared to the same quarter last year. During the same period in the previous year, the company earned $0.22 earnings per share.

Here are the key takeaways from AAON’s conference call:

• Record Q2 performance: Revenue rose 101% year over year to $627 million, adjusted EBITDA more than doubled to $94.2 million, and adjusted diluted EPS increased 214% to $0.69, supported by higher production throughput and faster backlog conversion.
• Strong demand and market-share gains continued across both brands. BASX sales increased 216% year over year on data-center demand, while AAON sales grew 39% despite a soft commercial HVAC market; Alpha Class heat-pump orders rose 50% in the quarter.
• Gross margin declined to 24.3% from 26.6% a year ago, prompting the company to lower its 2026 gross-margin outlook to 25%–26%. Management cited the ramp-up of Memphis capacity, outsourcing, inflation, unfavorable mix, and delayed price-cost recovery, with more meaningful improvement expected in Q4.
• BASX bookings were below unusually elevated recent levels, although management attributed this to timing and lumpiness rather than weaker demand. The company said its pipeline is the strongest it has been, with substantial visibility into potential 2027–2028 orders.
• Management raised its 2026 sales-growth outlook to 55%–60% and highlighted improving cash generation, including $55 million of operating cash flow in the first half versus a $31 million use of cash a year earlier. The company expects higher utilization, pricing actions, productivity gains, and working-capital improvements to support stronger margins and cash flow into 2027.

AAON Stock Down 5.9%

AAON stock opened at $89.24 on Tuesday. The stock has a fifty day moving average of $115.40 and a 200 day moving average of $105.91. The stock has a market cap of $7.31 billion, a PE ratio of 62.41, a price-to-earnings-growth ratio of 2.64 and a beta of 1.45. AAON has a one year low of $62.00 and a one year high of $150.46. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.75 and a current ratio of 2.62.

Insider Activity

In other AAON news, CEO Matthew Joseph Tobolski sold 8,000 shares of the company’s stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $135.37, for a total value of $1,082,960.00. Following the completion of the sale, the chief executive officer owned 114,371 shares in the company, valued at $15,482,402.27. This represents a 6.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CAO Rebecca Thompson sold 4,230 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $143.42, for a total value of $606,666.60. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 77,637 shares of company stock worth $10,807,621. Company insiders own 18.09% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Shelton Capital Management bought a new stake in AAON in the 3rd quarter valued at $224,000. iSAM Funds UK Ltd purchased a new stake in AAON in the 3rd quarter worth $198,000. Schroder Investment Management Group bought a new position in shares of AAON during the 3rd quarter valued at about $219,000. Tower Research Capital LLC TRC boosted its holdings in shares of AAON by 33.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 1,969 shares of the construction company’s stock valued at $145,000 after purchasing an additional 492 shares during the last quarter. Finally, Smartleaf Asset Management LLC grew its position in shares of AAON by 14.7% during the second quarter. Smartleaf Asset Management LLC now owns 1,649 shares of the construction company’s stock valued at $121,000 after purchasing an additional 211 shares in the last quarter. 70.81% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on AAON shares. Zacks Research lowered shares of AAON from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 7th. Weiss Ratings reiterated a “hold (c)” rating on shares of AAON in a research note on Tuesday, July 14th. Oppenheimer reiterated an “outperform” rating on shares of AAON in a research note on Friday, May 8th. KeyCorp assumed coverage on AAON in a report on Thursday, July 23rd. They issued a “sector weight” rating for the company. Finally, Robert W. Baird decreased their price target on AAON from $150.00 to $135.00 and set an “outperform” rating for the company in a research note on Tuesday. Four investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $124.33.

More AAON News

Here are the key news stories impacting AAON this week:

• Positive Sentiment: Record Q2 performance: Net sales more than doubled year over year to $627.0 million, while operating income rose 192% to $68.9 million. Diluted EPS reached $0.68–$0.69, substantially exceeding analyst estimates near $0.51–$0.52. AAON Reports Record Second Quarter 2026 Results
• Positive Sentiment: Strong demand and backlog: Demand for AAON and BASX equipment, including data-center cooling systems, helped accelerate production and backlog conversion. Backlog remained near $2.0 billion, approximately 98% above the prior-year level. AAON Earnings and Data-Center Cooling Demand
• Positive Sentiment: Raised sales outlook: AAON now expects 2026 revenue growth of 55%–60%, supported by expanded capacity, improving throughput and its substantial backlog. First-half operating cash flow improved to $55 million from a $31 million use of cash in the prior-year period. AAON Reports Record Q2 Sales and Raises Outlook
• Neutral Sentiment: Execution remains central: Management highlighted improving factory throughput and operating leverage, but investors are focused on whether rapid capacity expansion can produce sustained profitability as demand continues to surge. AAON Q2 2026 Earnings Call Transcript
• Negative Sentiment: Lower margin outlook: Full-year gross-margin guidance was reduced to approximately 25%–26%, below the previous outlook of roughly 27%–28%. The cut suggests that ramp-up expenses, outsourcing and other production costs may persist despite strong revenue growth. AAON Reports Strong Q2 Results but Lowers Margin Guidance
• Negative Sentiment: High expectations and insider selling: With AAON trading at a high earnings multiple, investors appear to be taking profits and demanding cleaner margin expansion. Recent disclosures also show 17 open-market insider sales and no purchases over six months, adding a cautionary signal.

AAON Company Profile

AAON, Inc (NASDAQ: AAON) is a U.S.-based designer and manufacturer of heating, ventilation and air conditioning (HVAC) equipment for commercial and industrial applications. The company’s product portfolio focuses on rooftop packaged units, water-source heat pumps, chillers and custom-engineered solutions that cater to a wide array of building types, from office complexes and schools to data centers and healthcare facilities.

AAON’s core offerings include rooftop units available in gas, electric and dual-fuel configurations, precision air-conditioning systems for temperature- and humidity-sensitive environments, and modular chillers suited for both indoor and outdoor installations.