AAON Declares Significant Gains in Sales and Backlog for 2025 Report

AAON’s Impressive Growth Report for 2025

Introduction
On March 2, 2026, AAON, Inc. (NASDAQ: AAON), renowned for its energy-efficient HVAC products, announced its significant financial outcomes for the fourth quarter and the entire year of 2025. This period has been marked by extraordinary sales growth and a record backlog, underscoring the company's strategic enhancements and market responsiveness.

Sales Growth and Financial Highlights
For the full year of 2025, AAON achieved net sales of $1.44 billion, representing an increase of 20.1% from $1.20 billion in 2024. This robust growth reflects both the rising demand in the HVAC sector and AAON's strategic investments. Notably, the company reported a GAAP diluted earnings per share (EPS) of $1.29, down from $2.02 in 2024, primarily due to increased production expansion costs and the implementation of an enterprise resource planning (ERP) system intended to bolster future growth.

In their fourth quarter alone, the company saw net sales soar by 42.5%, reaching $424.2 million compared to $297.7 million during the same period in the previous year. The gross margin for this quarter was slightly reduced to 25.9% compared to 26.1% year-over-year, due to costs tied to capacity expansions.

Record Backlog and Market Share Gains
AAON's year-end backlog reached an unprecedented $1.83 billion, a substantial increase of 110.9% from the year prior. This backlog not only enhances the company's visibility but solidifies its position within the HVAC market as it enters 2026. The AAON and BASX brands contributed to robust booking trends, which bolstered market share growth.

Executive Insights
Matt Tobolski, President and CEO of AAON, emphasized, “2025 was a landmark year for our company, characterized by unyielding growth and strategic investments that reinforced our operational foundation. We expanded our leadership team, improved supply chain management, and significantly increased our manufacturing capability.” He noted that they increased their manufacturing footprint by about 25%, and their new Memphis facility more than doubled production capacity for BASX-branded data center equipment.

Operational Enhancements and Future Outlook
Looking ahead, the outlook for 2026 anticipates continued revenue growth between 18% and 20%, with gross margins projected around 29% to 31%. The demand for AAON's products in the data center market remains strong, particularly for customized cooling solutions. Recent operational advancements position the company to effectively manage demand increases and streamline production processes further.

The company also confronted significant challenges, particularly during the rollout of the ERP system, which initially impacted production efficiencies. However, as these issues were resolved, the execution and operational performance showed noticeable improvement.

Conclusion
As concluded by Dr. Tobolski, AAON enters 2026 with a formidable backlog and enhanced manufacturing capabilities that allow for disciplined production increases aimed at capturing further market share. With initiatives in place for continuous operational improvements, AAON is poised for further growth and enhanced profitability in the coming year. The ongoing commitment to innovation and customer satisfaction underscores AAON’s position as a leader in high-performance HVAC solutions.