AAON Q1 sales beat estimates, outlook raised

AAON

07/05/2026 12:25

Overview

U.S. HVAC maker's Q1 sales rose 54%, beating analyst expectations

Adjusted EPS for Q1 rose 37% to $0.48 on higher volume

Company raised 2026 revenue growth outlook to 40%-45% on record backlog

Outlook

AAON raises 2026 sales growth outlook to 40%-45%, up from 18%-20%

Company expects 2026 gross margin of 27%-28%, down from prior 29%-31%

AAON anticipates SG&A expenses at 14%-15% of sales and depreciation of $95-$100 mln

Result Drivers

DATA CENTER DEMAND - BASX-branded sales rose 72% on strong data center cooling demand and higher production volumes

CAPACITY INVESTMENTS - Increased production throughput and expanded capacity drove higher sales across both AAON and BASX brands

TEMPORARY MARGIN PRESSURE - Gross margin declined due to unabsorbed fixed costs from new capacity, temporary outsourcing, and price-cost timing dynamics, which the company expects to unwind as utilization improves

Company press release: ID:nPn6GKFQka

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$496.94 mln
$381.08 mln (6 Analysts)
Q1 Adjusted EPS
$0.48


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the electrical components & equipment peer group is "buy."

Wall Street's median 12-month price target for Aaon Inc is $120.00, about 22.1% above its May 6 closing price of $98.30

The stock recently traded at 43 times the next 12-month earnings vs. a P/E of 46 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)