AAON (NASDAQ:AAON) Announces Quarterly Earnings Results

AAON (NASDAQ:AAON) issued its quarterly earnings data on Monday. The construction company reported $0.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.57 by $0.26, FiscalAI reports. The firm had revenue of $707.43 million during the quarter, compared to the consensus estimate of $601.19 million. AAON had a net margin of 8.24% and a return on equity of 17.32%. The business’s revenue for the quarter was up 84.1% compared to the same quarter last year. During the same period last year, the business posted $0.37 earnings per share.

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 Up 9.9%

Shares of AAON opened at $62.87 on Tuesday. AAON has a 12 month low of $53.13 and a 12 month high of $150.46. The firm’s 50 day moving average is $76.73 and its 200-day moving average is $96.81. The stock has a market capitalization of $5.18 billion, a PE ratio of 30.18, a P/E/G ratio of 1.08 and a beta of 1.45. The company has a current ratio of 3.01, a quick ratio of 2.01 and a debt-to-equity ratio of 0.43.

AAON Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, September 25th. Stockholders of record on Friday, September 4th were issued a dividend of $0.10 per share. The ex-dividend date of this dividend was Friday, September 4th. This represents a $0.40 annualized dividend and a dividend yield of 0.6%. AAON’s dividend payout ratio (DPR) is currently 20.83%.

Insiders Place Their Bets

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

More AAON News

Here are the key news stories impacting AAON this week:

• Positive Sentiment: Third-quarter revenue surged 84.1% year over year to $707.4 million, versus analyst estimates of about $601 million. EPS of $0.83 also beat the $0.57 consensus and more than doubled from $0.37 a year earlier. Article: AAON Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Management raised its 2026 sales-growth outlook to 72%–75%, with revenue guidance of about $2.5 billion, above the roughly $2.3 billion analyst estimate. The company cited strong execution and demand, including from data-center customers. Article: AAON Q3 2026 Earnings
• Positive Sentiment: Backlog grew 40.5% year over year to $1.9 billion, while operating cash flow improved to $146.9 million for the first nine months, supporting visibility into demand and cash generation. Article: AAON Reports Third-Quarter Results and Raises Outlook
• Negative Sentiment: AAON restated its first- and second-quarter 2026 financial statements after identifying errors involving revenue recognition and software subscriptions. Although the restatement increased first-half reported sales and EPS, the company also disclosed a material weakness in internal controls and said remediation is ongoing—a governance and reporting risk for investors. Article: AAON Reports Third-Quarter Results and Raises Outlook

Analyst Ratings Changes

Several equities analysts have recently commented on the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of AAON in a research report on Monday, October 12th. Robert W. Baird dropped their price target on AAON from $150.00 to $135.00 and set an “outperform” rating for the company in a report on Tuesday, August 11th. DA Davidson initiated coverage on AAON in a research note on Tuesday, September 15th. They issued a “buy” rating and a $110.00 price target for the company. KeyCorp restated a “sector weight” rating on shares of AAON in a research note on Thursday, August 13th. Finally, Oppenheimer reaffirmed an “outperform” rating and issued a $115.00 price objective (down from $125.00) on shares of AAON in a report on Wednesday, October 14th. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $120.00.

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.