AAON, Inc.

How AAON makes money

AAON makes heating, ventilation, air-conditioning and thermal-management equipment. Its AAON and BASX brands serve commercial buildings, industrial customers and data centers. BASX-branded products are manufactured in more than one reporting segment.

Quarterly financial record

The quarters ended March 31, June 30 and September 30. Year-earlier Q3 sales were $384.238 million and net income was $30.782 million. Q3 2026 gross margin was 26.65%, compared with 26.11% in the restated Q2 and 27.8% a year earlier.

Restatement and financial controls

On November 9, AAON corrected its first two quarters of 2026 for project-cost allocation errors affecting revenue recognized as work progressed and for software-subscription accounting. Restated first-half sales increased by $10.740 million to $1,134.652 million, and net income increased by $7.101 million to $103.575 million. First-half operating cash flow stayed at $54.968 million.

The material weakness in financial-reporting controls remained at September 30. AAON describes work on project-cost tracking, review procedures, control design and training.

Outlook and order book

On November 9, AAON raised its 2026 sales-growth forecast to 72% to 75% from August's 55% to 60%. It expects gross margin of about 26% and selling, general and administrative expenses of about 13% of sales. August's ranges were 25% to 26% and 13% to 14%, respectively.

The September order backlog was $1.854 billion, compared with the revised June balance of $1.960 billion and $1.320 billion a year earlier. BASX-branded Q3 sales were $397.2 million, up 218%, supported by expanded manufacturing and data-center demand.

Cash and borrowing

For the first nine months, operating cash flow was $146.892 million and capital spending was $138.097 million. Revolving-credit borrowing was $386.709 million at September 30. Cash and restricted cash together were $3.671 million, of which unrestricted cash was $0.013 million. AAON applies available cash against its revolving credit line and had $212.637 million of unused borrowing capacity at September 30.

Our analysis of the growth, corrected accounts and margin trend explains how the restatement changes the comparison while the factory expansion continues.