AAON (NASDAQ:AAON) Posts Quarterly Earnings Results, Beats Estimates By $0.26 EPS

AAON (NASDAQ:AAON) posted its quarterly earnings data on Monday. The construction company reported $0.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.57 by $0.26, FiscalAI reports. AAON had a net margin of 8.75% and a return on equity of 20.97%. The business had revenue of $707.43 million during the quarter, compared to analysts’ expectations of $601.19 million. During the same period last year, the firm posted $0.37 earnings per share. The business’s revenue was up 84.1% on a year-over-year basis.

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

• AAON reported record third-quarter sales of $707 million, up 84% year over year, while operating income more than doubled and diluted EPS rose to $0.83. Adjusted EBITDA doubled to $127 million, and gross margin improved sequentially to 26.7%.
• The AAON brand grew sales 20% to a record $310 million, with orders up 10% and backlog up 18% year over year to $499 million. Management said the business is gaining share despite a soft commercial construction market.
• BASX sales rose 218% to a record $397 million, and its backlog reached approximately $1.4 billion. Management cited stronger order activity, a healthy pipeline and expectations for fourth-quarter bookings at or above the year-ago period.
• The company raised its 2026 sales-growth outlook to 72%–75%, from 55%–60% previously. Operating cash flow reached $147 million through nine months, the quarter was free-cash-flow positive, and management expects capital spending to step down meaningfully next year.
• AAON restated first-half results after identifying errors that had understated revenue by $10.7 million and diluted EPS by $0.09, and concluded a material weakness existed in internal controls over financial reporting. The company said the errors were largely timing-related and is implementing control and process improvements.

AAON Stock Performance

NASDAQ:AAON opened at $75.01 on Wednesday. AAON has a twelve month low of $53.13 and a twelve month high of $150.46. The company has a current ratio of 3.01, a quick ratio of 2.01 and a debt-to-equity ratio of 0.43. The company has a 50-day moving average of $76.71 and a 200-day moving average of $96.71. The firm has a market cap of $6.18 billion, a price-to-earnings ratio of 31.52, a price-to-earnings-growth ratio of 1.17 and a beta of 1.45.

AAON Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Shareholders of record on Wednesday, November 25th will be issued a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Wednesday, November 25th. AAON’s dividend payout ratio is presently 20.83%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. Oppenheimer reissued an “outperform” rating and set a $105.00 target price (down from $115.00) on shares of AAON in a report on Tuesday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of AAON in a research note on Monday, October 12th. DA Davidson initiated coverage on AAON in a research note on Tuesday, September 15th. They set a “buy” rating and a $110.00 price target for the company. Robert W. Baird lowered their price target on AAON from $110.00 to $104.00 and set an “outperform” rating on the stock in a research report on Tuesday. Finally, KeyCorp reissued a “sector weight” rating on shares of AAON in a research note on Thursday, August 13th. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $106.33.

AAON News Roundup

Here are the key news stories impacting AAON this week:

• Positive Sentiment: AAON reported record third-quarter revenue of $707.4 million, up 84.1% year over year, and earnings per share of $0.83—well above analysts’ $0.57 estimate. The results also included a 129.3% increase in operating income. AAON Q3 results and outlook
• Positive Sentiment: The company raised its 2026 sales-growth forecast to 72%–75%, or roughly $2.48 billion to $2.52 billion in revenue. Its backlog grew 40.5% year over year to $1.9 billion, supporting the outlook. AAON earnings beat and higher guidance
• Positive Sentiment: Data-center demand is a key growth driver: BASX data-center cooling sales reportedly surged 218% to $397.2 million. This positions AAON to benefit from investment in AI infrastructure and the need to manage heat in data centers. AAON data-center sales and outlook
• Neutral Sentiment: AAON declared its regular quarterly dividend of $0.10 per share, payable December 17 to shareholders of record November 25. AAON dividend announcement
• Negative Sentiment: The company restated its first- and second-quarter 2026 financial statements after identifying errors, including a $10.7 million increase to first-half sales, and disclosed a material weakness in internal controls. The accounting issue is a governance and reporting risk, although AAON said it is working on remediation. AAON restatement and controls disclosure

Insider Activity at AAON

In other AAON news, Director David Stewart bought 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The stock was acquired at an average cost of $74.66 per share, with a total value of $74,660.00. Following the completion of the purchase, the director directly owned 4,000 shares in the company, valued at approximately $298,640. This trade represents a 33.33% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this link. Also, EVP Matthew Shaub bought 457 shares of the business’s stock in a transaction that occurred on Friday, August 28th. The shares were acquired at an average cost of $76.42 per share, with a total value of $34,923.94. Following the completion of the purchase, the executive vice president owned 3,136 shares of the company’s stock, valued at approximately $239,653.12. The trade was a 17.06% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders own 18.09% of the company’s stock.

AAON Company Profile

AAON, Inc. designs and manufactures heating, ventilation and air-conditioning (HVAC) equipment for commercial and industrial buildings. Founded in 1988, the company is headquartered in Tulsa, Oklahoma, and sells products under the AAON and BASX brands. Its products include rooftop units, chillers, air-handling units, heat pumps and other custom HVAC systems. BASX specializes in equipment for data centers and other demanding applications, while AAON also offers controls and related services. AAON serves customers primarily in North America, with products also reaching international markets through its sales and distribution network.