AAON (NASDAQ:AAON) Releases Quarterly Earnings Results, Beats Expectations By $0.17 EPS

Key Points

• Beat expectations and raised guidance: AAON reported $0.48 EPS vs. $0.31 expected and revenue of $496.9M (+54% YoY) with a backlog of ~$2.1B, and updated its 2026 outlook to ~40–45% sales growth with a 27–28% gross margin target.
• Near‑term margin pressure but capacity-led recovery planned: Gross margin fell to 25.1% (down 170 bps) due to intentional outsourcing, unabsorbed fixed costs at the new Memphis plant and tariff/inflation impacts, while the company is investing heavily (FY CapEx ~ $190M) and expects margins to improve as internal capacity ramps.
• Strong market reaction but higher valuation and insider selling: The stock surged on the results to around $129.25 on heavy volume, but trades at a high trailing P/E (~99) and insiders sold shares recently, highlighting valuation and execution risks.

AAON (NASDAQ:AAON - Get Free Report) released its quarterly earnings data on Thursday. The construction company reported $0.48 EPS for the quarter, beating the consensus estimate of $0.31 by $0.17, FiscalAI reports. AAON had a return on equity of 13.13% and a net margin of 7.46%.The company had revenue of $496.94 million for the quarter, compared to analysts' expectations of $381.08 million. During the same period last year, the firm posted $0.37 earnings per share. AAON's revenue was up 54.3% compared to the same quarter last year.

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

• Record Q1 net sales of $496.9 million (+54% YoY) and a backlog of $2.1 billion (more than double year-ago) with BASX sales +72% and AAON sales +42%, indicating strong demand and market-share gains.
• Gross margin declined to 25.1% (down 170 bps YoY) driven by intentional outsourcing, unabsorbed fixed costs at the new Memphis facility, and tariff/inflation pressures—management characterizes these as temporary but they compressed near-term margins.
• Company updated 2026 outlook to ~40–45% sales growth with a gross margin target of 27–28% and says margins should improve through the year as internal capacity scales and reliance on outsourcing falls.
• AAON is continuing heavy capacity investment (Q1 CapEx $52.9M; full-year ~ $190M) and Memphis/Longview ramping drove higher throughput and a $34M operating cash inflow, while debt sits at $425.2M (leverage 1.71x) and the new CFO is prioritizing margin discipline and working capital.

AAON Stock Performance

NASDAQ:AAON traded up $30.95 on Thursday, hitting $129.25. The stock had a trading volume of 7,695,809 shares, compared to its average volume of 994,927. The stock has a market cap of $10.55 billion, a price-to-earnings ratio of 99.42, a price-to-earnings-growth ratio of 2.92 and a beta of 1.24. The company has a quick ratio of 1.84, a current ratio of 2.63 and a debt-to-equity ratio of 0.45. The business's 50-day simple moving average is $89.67 and its two-hundred day simple moving average is $90.60. AAON has a 52-week low of $62.00 and a 52-week high of $149.00.

AAON Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 30th. Shareholders of record on Wednesday, March 18th were given a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend was Wednesday, March 18th. AAON's dividend payout ratio (DPR) is presently 30.77%.

Insider Activity

In other news, CAO Rebecca Thompson sold 21,914 shares of the firm's stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $100.21, for a total value of $2,196,001.94. Following the transaction, the chief accounting officer owned 27,681 shares of the company's stock, valued at $2,773,913.01. This trade represents a 44.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Casey Kidwell sold 5,225 shares of the firm's stock in a transaction dated Thursday, March 12th. The stock was sold at an average price of $90.00, for a total value of $470,250.00. Following the completion of the transaction, the insider directly owned 12,662 shares in the company, valued at $1,139,580. This trade represents a 29.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 37,118 shares of company stock worth $3,665,241 in the last ninety days. Corporate insiders own 18.09% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in AAON. EverSource Wealth Advisors LLC grew its holdings in AAON by 96.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 334 shares of the construction company's stock valued at $25,000 after buying an additional 164 shares in the last quarter. Danske Bank A S bought a new stake in AAON in the 3rd quarter worth approximately $47,000. Summit Securities Group LLC bought a new stake in AAON in the 4th quarter worth approximately $45,000. UMB Bank n.a. increased its stake in AAON by 46.8% in the 4th quarter. UMB Bank n.a. now owns 885 shares of the construction company's stock worth $67,000 after acquiring an additional 282 shares during the last quarter. Finally, Wexford Capital LP bought a new stake in AAON in the 3rd quarter worth approximately $106,000. Institutional investors own 70.81% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms recently commented on AAON. William Blair reaffirmed an "outperform" rating on shares of AAON in a research report on Monday, March 2nd. Weiss Ratings reissued a "hold (c)" rating on shares of AAON in a research report on Wednesday, January 21st. Wall Street Zen raised AAON from a "sell" rating to a "hold" rating in a research report on Saturday, February 14th. DA Davidson reissued a "buy" rating and issued a $120.00 target price on shares of AAON in a research report on Tuesday, February 3rd. Finally, Oppenheimer reissued an "outperform" rating and issued a $118.00 target price (up from $115.00) on shares of AAON in a research report on Tuesday, March 3rd. Five research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $107.75.

More AAON News

Here are the key news stories impacting AAON this week:

• Positive Sentiment: Company reported record Q1 results: revenue $496.9M (+54% YoY), EPS $0.48 (beat), operating leverage beginning to show, backlog up ~107% to $2.1B, and management raised full‑year guidance (now targeting ~40–45% revenue growth and ~27–28% gross margins). This directly supports stronger near‑term cash flow and explains investor enthusiasm. PR Newswire Release
• Positive Sentiment: Market reaction and commentary emphasize surging data‑center demand as a key growth driver and the “catalyst” behind today’s move — investors are rewarding the combination of outsized beat, backlog visibility, and capacity expansion. Fool Article
• Positive Sentiment: Q1 results cleared consensus by a wide margin (Zacks/other wire coverage): EPS and revenue both beat street estimates, reinforcing the credibility of the raised outlook and improving short‑term fundamentals. Zacks
• Neutral Sentiment: Wall Street coverage: William Blair reiterated a Buy rating citing BASX-driven growth and margin recovery potential but left an unchanged $98 price target (below current market levels), indicating some analyst conservatism despite the positive results. TipRanks Analyst Note
• Neutral Sentiment: Earnings call transcript is available for detail on backlog composition, capacity expansion timing, and margin cadence — useful for investors wanting to vet management’s assumptions behind the raised guide. Earnings Call Transcript
• Negative Sentiment: Insider selling and mixed institutional moves were highlighted in coverage (multiple executive sales reported), which could raise governance/near‑term sentiment questions for some investors. Quiver Quant
• Negative Sentiment: Valuation/risk: share price now implies significantly more growth; AAON trades at a high trailing P/E and investors should weigh margin sustainability and execution risk as the company ramps capacity. MarketBeat Profile

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.

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