AAON (NASDAQ:AAON) Releases Quarterly Earnings Results, Misses Estimates By $0.06 EPS

AAON (NASDAQ:AAON) posted its earnings results on Monday. The construction company reported $0.39 EPS for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.06), FiscalAI reports. AAON had a net margin of 7.62% and a return on equity of 12.52%. The company had revenue of $424.22 million during the quarter, compared to analysts’ expectations of $374.10 million. During the same period last year, the business earned $0.30 earnings per share. The company’s quarterly revenue was up 42.5% on a year-over-year basis.

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

• BASX demand accelerated in 2025 with backlog at $1.3 billion, BASX sales up sharply (year) and a book‑to‑bill of 2.4, positioning AAON to capture AI/data‑center cooling growth.
• AAON branded business outperformed the industry despite a weak market—2025 AAON sales declined only ~8% vs. industry −16% and bookings grew ~12% (national accounts +86%), indicating market‑share gains.
• The company expanded manufacturing footprint >25% (Memphis ramped to its first profitable quarter) and says it can unlock more than the prior ~$1.5B revenue capacity as utilization improves, which should drive future margin leverage.
• Near‑term pressures weighed on margins and liquidity: ERP rollout issues and the refrigerant transition caused lower Q4 margins and unabsorbed costs, operating cash flow was only $0.5M in 2025, cash was $1.2M and debt $398.3M, raising near‑term financial risk.
• 2026 guidance calls for sales growth of 18%–20% and gross margins of 29%–31% with uneven quarterly progress as capacity ramps—outcome depends on execution of supply‑chain fixes and plant throughput.

AAON Trading Up 3.5%

Shares of AAON stock opened at $104.73 on Tuesday. AAON has a 52-week low of $62.00 and a 52-week high of $116.04. The company has a quick ratio of 2.03, a current ratio of 3.04 and a debt-to-equity ratio of 0.42. The company’s 50-day simple moving average is $91.08 and its 200-day simple moving average is $90.84. The firm has a market cap of $8.55 billion, a price-to-earnings ratio of 86.55 and a beta of 1.09.

Wall Street Analyst Weigh In

AAON has been the topic of a number of research reports. Oppenheimer restated an “outperform” rating on shares of AAON in a research report on Tuesday. William Blair reiterated an “outperform” rating on shares of AAON in a research note on Monday. Weiss Ratings restated a “hold (c)” rating on shares of AAON in a research note on Wednesday, January 21st. Wall Street Zen upgraded shares of AAON from a “sell” rating to a “hold” rating in a research note on Saturday, February 14th. Finally, DA Davidson reissued a “buy” rating and set a $120.00 price target on shares of AAON in a report on Tuesday, February 3rd. Five equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, AAON presently has a consensus rating of “Moderate Buy” and an average price target of $107.00.

Trending Headlines about AAON

Here are the key news stories impacting AAON this week:

• Positive Sentiment: Q4 revenue beat expectations — AAON reported Q4 sales of $424.2M, well above consensus, driven by strong demand across AAON- and BASX-branded equipment. AAON’s (NASDAQ:AAON) Q4 CY2025 Sales Beat Estimates
• Positive Sentiment: Record backlog and bullish 2026 targets — year-end backlog rose to ~$1.83B (up ~111%), giving strong revenue visibility; management is guiding 18–20% sales growth and gross margins near 29–31% for 2026. AAON targets 18–20% sales growth and up to 31% gross margin in 2026 as BASX backlog hits $1.3B
• Positive Sentiment: Share-repurchase plan and record full-year results — company reported record 2025 net sales ($1.44B) and announced a buyback program, a shareholder-friendly move that can support the stock. AAON Reports Record 2025 Results and Share Repurchase Plan
• Neutral Sentiment: Earnings-call color and strategy — management discussed production capacity expansion and ERP implementation to support growth; transcripts/slides are available for detail but these investments are timing-dependent in their impact. AAON (AAON) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Mixed institutional flows and analyst views — hedge funds/institutions showed both large additions and reductions; recent analyst price targets cluster near the high $100s, giving varied near-term signals. AAON ($AAON) Releases Q4 2025 Earnings
• Negative Sentiment: EPS missed estimates — GAAP diluted EPS in Q4 was $0.39, below consensus (~$0.45), which tempers the headline revenue beat. Aaon (AAON) Misses Q4 Earnings Estimates
• Negative Sentiment: Margin and EPS pressure from expansion — 2025 gross margin fell to ~26.7% (from 33.1% prior year) and FY GAAP EPS declined as the company absorbed upfront costs tied to capacity expansion and ERP rollout. AAON Reports Fourth Quarter and Full Year 2025 Results

Insider Buying and Selling

In other AAON news, EVP Stephen E. Wakefield acquired 4,141 shares of the stock in a transaction on Friday, December 12th. The shares were bought at an average price of $77.59 per share, with a total value of $321,300.19. Following the acquisition, the executive vice president owned 15,212 shares of the company’s stock, valued at $1,180,299.08. This trade represents a 37.40% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 18.55% of the stock is currently owned by insiders.

Institutional Trading of AAON

Hedge funds have recently modified their holdings of the business. Millennium Management LLC grew its holdings in AAON by 429.3% during the first quarter. Millennium Management LLC now owns 81,145 shares of the construction company’s stock worth $6,340,000 after acquiring an additional 65,813 shares during the period. NewEdge Advisors LLC lifted its holdings in AAON by 1.8% in the first quarter. NewEdge Advisors LLC now owns 16,267 shares of the construction company’s stock valued at $1,271,000 after acquiring an additional 294 shares during the period. Goldman Sachs Group Inc. boosted its position in shares of AAON by 20.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 430,936 shares of the construction company’s stock worth $33,669,000 after purchasing an additional 73,644 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of AAON by 5.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 233,002 shares of the construction company’s stock worth $18,204,000 after purchasing an additional 12,489 shares during the period. Finally, EverSource Wealth Advisors LLC increased its holdings in shares of AAON by 96.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 334 shares of the construction company’s stock valued at $25,000 after purchasing an additional 164 shares in the last quarter. 70.81% of the stock is owned by institutional investors and hedge funds.

About AAON

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.