AAON (NASDAQ:AAON – Get Free Report) announced its earnings results on Thursday. The construction company reported $0.48 earnings per share (EPS) for the quarter, topping 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 business had revenue of $496.94 million during the quarter, compared to analyst estimates of $381.08 million. During the same period last year, the company earned $0.37 EPS. AAON’s revenue for the quarter 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
Shares of AAON stock opened at $129.25 on Friday. The firm has a market capitalization of $10.55 billion, a PE ratio of 99.42, a price-to-earnings-growth ratio of 3.07 and a beta of 1.24. The firm has a fifty day simple moving average of $90.23 and a two-hundred day simple moving average of $90.83. The company has a current ratio of 2.63, a quick ratio of 1.84 and a debt-to-equity ratio of 0.45. AAON has a 12 month low of $62.00 and a 12 month high of $149.00.
AAON Dividend Announcement
Analyst Ratings Changes
A number of brokerages have recently issued reports on AAON. Wall Street Zen upgraded AAON from a “sell” rating to a “hold” rating in a research report on Saturday, February 14th. William Blair restated 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 note on Wednesday, January 21st. DA Davidson restated a “buy” rating and set a $120.00 price target on shares of AAON in a report on Tuesday, February 3rd. Finally, Oppenheimer reaffirmed an “outperform” rating and set a $118.00 price objective (up from $115.00) on shares of AAON in a research report on Tuesday, March 3rd. Five equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $107.75.
Check Out Our Latest Stock Report on AAON
Insiders Place Their Bets
In other news, CAO Rebecca Thompson sold 21,914 shares of AAON stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $100.21, for a total transaction of $2,196,001.94. Following the completion of the transaction, the chief accounting officer directly owned 27,681 shares in the company, valued at $2,773,913.01. This trade represents a 44.19% decrease in their ownership of the stock. The sale 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 business’s stock in a transaction dated Thursday, March 12th. The stock was sold at an average price of $90.00, for a total transaction of $470,250.00. Following the sale, the insider directly owned 12,662 shares of the company’s stock, valued at approximately $1,139,580. The trade was a 29.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 37,118 shares of company stock worth $3,665,241 over the last ninety days. Insiders own 18.09% of the company’s stock.
Institutional Trading of AAON
Several institutional investors and hedge funds have recently modified their holdings of AAON. Toronto Dominion Bank lifted its holdings in shares of AAON by 1.7% in the fourth quarter. Toronto Dominion Bank now owns 5,889 shares of the construction company’s stock valued at $448,000 after purchasing an additional 99 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in AAON by 96.5% during the second 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. Smartleaf Asset Management LLC raised its position in AAON by 14.7% in the 2nd quarter. Smartleaf Asset Management LLC now owns 1,649 shares of the construction company’s stock valued at $121,000 after buying an additional 211 shares during the last quarter. Nicolet Advisory Services LLC lifted its stake in AAON by 2.3% during the 3rd quarter. Nicolet Advisory Services LLC now owns 9,377 shares of the construction company’s stock valued at $966,000 after acquiring an additional 214 shares in the last quarter. Finally, UMB Bank n.a. lifted its stake in AAON by 46.8% during the 4th quarter. UMB Bank n.a. now owns 885 shares of the construction company’s stock valued at $67,000 after acquiring an additional 282 shares in the last quarter. 70.81% of the stock is owned by hedge funds and other institutional investors.
Key Headlines Impacting AAON
Here are the key news stories impacting AAON this week:
- Positive Sentiment: Q1 results beat expectations — GAAP EPS $0.48 vs. consensus ~$0.31 and revenue $496.9M, up 54% year-over-year, signaling strong top-line momentum. AAON Reports First Quarter 2026 Results
- Positive Sentiment: Company raised full-year revenue and margin targets — outlook now implies roughly $2.0–$2.1B in revenue and gross margins around 27–28%, supported by a record $2.1B backlog. Guidance Rise & Backlog
- Positive Sentiment: Data-center demand and higher production drove the quarter — management cited outsized orders from the data-center market and is expanding throughput to capture demand, a key growth driver going forward. AAON surges as data center boom drives blowout quarter
- Positive Sentiment: Market reaction: shares hit multi?year/52?week highs as investors priced in stronger volume, backlog and capacity absorption. AAON Hits 52-Week High
- Neutral Sentiment: Some analysts reaffirmed Buy ratings (e.g., William Blair) but left price targets unchanged, indicating continued confidence but mixed near-term valuation views. Analyst Reiterates Buy
- Negative Sentiment: Margin pressure noted — coverage highlights a margin squeeze even as sales accelerate; management expects margins to improve with utilization, but investors should watch margin recovery vs. rising throughput. Record Sales Amid Margin Squeeze
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.
See Also
Receive News & Ratings for AAON Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AAON and related companies with MarketBeat.com's FREE daily email newsletter.
