Key Takeaways:
AAON Inc. (NASDAQ:AAON) reported first-quarter earnings of $0.48 per share, beating Wall Street estimates by 55 percent and sending its stock up 29 percent year-to-date.
"First-quarter results demonstrate strong earnings growth driven by higher volume, improved execution, and continued share gains," said President and CEO Matt Tobolski.
The Tulsa-based HVAC systems manufacturer posted record revenue of $496.9 million, a 54.3 percent increase from the prior-year period. The result significantly outpaced the Zacks Consensus Estimate of $386.4 million. Net income rose to $39.8 million from $29.3 million a year earlier.
The strong performance was fueled by a 107.4 percent year-over-year increase in its total backlog to a record $2.1 billion, driven by surging demand from the data center market.
Following the strong quarter, AAON raised its full-year 2026 outlook. The company now expects revenue growth of 40 to 45 percent, a substantial increase from its prior forecast of 18 to 20 percent. Gross margin is projected to be between 27 and 28 percent for the full year.
Growth was robust across the company's brands. Sales of BASX-branded products, which are heavily used in data centers, jumped 72.4 percent to $228.6 million. The AAON-branded product sales increased 41.6 percent to $268.4 million, supported by accelerating production rates.
The company's backlog provides strong visibility for the remainder of the year. The BASX brand backlog grew 160 percent year-over-year, while the AAON-branded backlog saw a planned 3.1 percent sequential decline as the company increased production to shorten lead times.
The upgraded guidance and massive backlog growth suggest that demand for AAON's data center and commercial HVAC solutions is accelerating. Investors will be watching the second-quarter results, expected in early August, to see if the company can maintain its production ramp-up and convert its record backlog into continued earnings growth.
This article is for informational purposes only and does not constitute investment advice.
