Aaon Group Q3 Net Sales Rise 84.1% to a Record $707.4 Million as EPS Jumps 124.3% to $0.83, Full Year Sales Growth Guidance Raised to 72% to 75%
The Aaon Group on November 9 in Tulsa, Oklahoma reported third quarter 2026 results. Net sales increased 84.1 percent year over year to a record $707.4 million, compared with $384.2 million in the third quarter of 2025.
Gross profit increased 76.4 percent to $188.5 million, compared with $106.9 million a year earlier. Gross margin was 26.7 percent, compared with 27.8 percent in the prior year period, but up 60 basis points sequentially, a second consecutive quarter of improvement. The company said the year over year margin was impacted primarily by a higher proportion of BASX revenue from less mature, lower utilization facilities, partially offset by improved price and cost and volume leverage.
Operating income increased 129.3 percent to $100.0 million, compared with $43.6 million a year earlier. Diluted earnings per share were $0.83, up 124.3 percent from $0.37 a year earlier. Selling, general and administrative expenses as a percent of sales declined 400 basis points to 12.5 percent.
By brand, AAON branded sales grew 19.6 percent to a record $310.2 million. BASX branded sales grew 218.3 percent to a record $397.2 million, which the company attributed to strong momentum in data center demand, continued production output gains and increased utilization of recently added manufacturing capacity.
Total backlog increased 40.5 percent year over year to $1.9 billion, compared with $1.3 billion a year earlier. BASX branded backlog was $1,355.2 million, up 51.1 percent. AAON branded backlog was $499.3 million, up 18.0 percent. Total backlog decreased 5.9 percent sequentially, which the company attributed primarily to accelerated conversion into record revenue and the timing variability of large BASX project awards.
Operating cash flow for the first nine months of 2026 was $146.9 million, compared with a use of $18.8 million a year earlier. At September 30 the company had cash, cash equivalents and restricted cash of $3.7 million and a balance on its revolving credit facility of $386.7 million.
The company raised its full year 2026 outlook. Net sales growth guidance rose to 72 percent to 75 percent, from 55 percent to 60 percent previously. Gross margin guidance is approximately 26 percent, selling, general and administrative expenses are guided to about 13 percent of sales, and depreciation and amortization to about $100 million.
On restatement, the company said that during the third quarter reporting process it identified errors in its previously reported first and second quarter financial statements and restated them. In aggregate, the restatements increased first half net sales by $10.7 million, gross margin by 71 basis points and diluted earnings per share by $0.09. Management concluded that a material weakness existed in internal control over financial reporting. The company said it has implemented corrective actions and found no evidence of fraud or misconduct.
By segment, AAON Oklahoma generated net sales of $283.5 million, up 18.7 percent. AAON Coil Products generated net sales of $192.6 million, up 174.2 percent, including BASX branded liquid cooling sales of $165.5 million, up 255.6 percent. The BASX segment generated net sales of $231.3 million, up 207.4 percent.
President and chief executive Matt Tobolski said in the release that the company delivered record net sales, more than doubled operating income and diluted earnings per share, improved gross margin 60 basis points sequentially, generated strong cash flow and raised its full year outlook, with broad based improvement across both the AAON and BASX brands.
The Aaon Group trades on Nasdaq under the ticker AAON and provides high performance HVAC and thermal management solutions, with the BASX brand serving custom engineered data center markets.
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Published by GSM · USA (original Chinese edition)
Photo: Wikipedia/Wikimedia Commons 词条主图：Sales
