AAON (NASDAQ:AAON) Issues Earnings Results

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

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 Up 31.5%

Shares of AAON traded up $30.95 during midday trading on Thursday, reaching $129.25. 7,695,809 shares of the stock were exchanged, compared to its average volume of 994,927. AAON has a 52 week low of $62.00 and a 52 week high of $149.00. The company has a current ratio of 2.63, a quick ratio of 1.84 and a debt-to-equity ratio of 0.45. The company’s 50 day moving average is $89.67 and its two-hundred day moving average is $90.60. The company has a market capitalization of $10.55 billion, a P/E ratio of 99.42, a PEG ratio of 2.92 and a beta of 1.24.

AAON Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 30th. Stockholders of record on Wednesday, March 18th were given a dividend of $0.10 per share. The ex-dividend date of this dividend was Wednesday, March 18th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.3%. AAON’s dividend payout ratio is presently 30.77%.

Insiders Place Their Bets

In other news, insider Casey Kidwell sold 5,225 shares of the stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $90.00, for a total transaction of $470,250.00. Following the transaction, the insider owned 12,662 shares of the company’s stock, valued at approximately $1,139,580. This represents a 29.21% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Rebecca Thompson sold 21,914 shares of the stock in a transaction on 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 directly owned 27,681 shares in the company, valued at $2,773,913.01. The trade was a 44.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 37,118 shares of company stock worth $3,665,241 in the last three months. Corporate insiders own 18.09% of the company’s stock.

Hedge Funds Weigh In On AAON

Hedge funds and other institutional investors have recently made changes to their positions in the company. EverSource Wealth Advisors LLC grew its position in shares of AAON by 96.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 334 shares of the construction company’s stock worth $25,000 after buying an additional 164 shares in the last quarter. Danske Bank A S bought a new position in shares of AAON during the 3rd quarter worth $47,000. Summit Securities Group LLC purchased a new stake in shares of AAON during the 4th quarter worth $45,000. UMB Bank n.a. lifted 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 last quarter. Finally, Wexford Capital LP purchased a new stake in shares of AAON during the 3rd quarter worth $106,000. Institutional investors own 70.81% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the company. William Blair reiterated an “outperform” rating on shares of AAON in a report on Monday, March 2nd. Weiss Ratings restated a “hold (c)” rating on shares of AAON in a report on Wednesday, January 21st. Wall Street Zen upgraded AAON from a “sell” rating to a “hold” rating in a report on Saturday, February 14th. Oppenheimer restated an “outperform” rating and set a $118.00 price objective (up from $115.00) on shares of AAON in a report on Tuesday, March 3rd. Finally, DA Davidson restated a “buy” rating and set a $120.00 price objective on shares of AAON in a report on Tuesday, February 3rd. Five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $107.75.

Key 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.