AAON (NASDAQ:AAON) Posts Quarterly Earnings Results, Beats Estimates By $0.18 EPS

AAON (NASDAQ:AAON) posted its quarterly earnings data on Monday. The construction company reported $0.69 earnings per share for the quarter, beating analysts’ consensus estimates of $0.51 by $0.18, FiscalAI reports. AAON had a return on equity of 17.86% and a net margin of 8.24%.The firm had revenue of $626.98 million for the quarter, compared to analysts’ expectations of $508.82 million. During the same period in the previous year, the firm earned $0.22 EPS. The business’s quarterly revenue was up 101.2% on a year-over-year basis.

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 Price Performance

AAON traded down $1.52 during trading hours on Wednesday, hitting $84.26. The company’s stock had a trading volume of 211,797 shares, compared to its average volume of 1,039,481. The business’s 50-day moving average price is $114.25 and its 200-day moving average price is $105.84. AAON has a 12 month low of $73.19 and a 12 month high of $150.46. The stock has a market cap of $6.90 billion, a price-to-earnings ratio of 44.08, a P/E/G ratio of 2.49 and a beta of 1.45. The company has a current ratio of 2.62, a quick ratio of 1.75 and a debt-to-equity ratio of 0.46.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on AAON. Zacks Research cut shares of AAON from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 7th. Robert W. Baird decreased their price target on AAON from $150.00 to $135.00 and set an “outperform” rating on the stock in a report on Tuesday. KeyCorp assumed coverage on AAON in a research note on Thursday, July 23rd. They issued a “sector weight” rating for the company. Weiss Ratings reissued a “hold (c)” rating on shares of AAON in a research note on Tuesday, July 14th. Finally, Oppenheimer dropped their price target on AAON from $145.00 to $125.00 and set an “outperform” rating for the company in a research note on Tuesday. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $126.67.

Insider Buying and Selling at AAON

In other AAON news, Director Gary D. Fields sold 21,173 shares of AAON stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $140.34, for a total value of $2,971,418.82. Following the completion of the transaction, the director directly owned 34,252 shares of the company’s stock, valued at $4,806,925.68. This trade represents a 38.20% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CAO Rebecca Thompson sold 4,230 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $143.42, for a total transaction of $606,666.60. The SEC filing for this sale provides additional information. Insiders have sold 50,556 shares of company stock worth $7,099,115 over the last three months. 18.09% of the stock is owned by company insiders.

Institutional Trading of AAON

Several hedge funds and other institutional investors have recently bought and sold shares of AAON. EverSource Wealth Advisors LLC boosted its stake in AAON by 96.5% during the second quarter. EverSource Wealth Advisors LLC now owns 334 shares of the construction company’s stock worth $25,000 after buying an additional 164 shares during the period. Danske Bank A S bought a new stake in shares of AAON in the 3rd quarter worth about $47,000. Summit Securities Group LLC bought a new stake in shares of AAON in the 4th quarter worth about $45,000. UMB Bank n.a. boosted its stake in shares of AAON by 46.8% during the 4th quarter. UMB Bank n.a. now owns 885 shares of the construction company’s stock worth $67,000 after purchasing an additional 282 shares during the period. Finally, Wexford Capital LP bought a new position in AAON during the 3rd quarter valued at about $106,000. Hedge funds and other institutional investors own 70.81% of the company’s stock.

About AAON

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.