Aaon, Inc. · NASDAQ:AAON
Aaon — Q4 2024 Earnings Presentation
13 slides from Aaon's earnings presentation, Feb 27, 2025
Slide 1: Q4 2024 Earnings Conference Call
Q4 2024 Earnings Conference Call February 27, 2025
Slide 2: Forward-looking statements and other references
Forward-looking statements and other references Certain statements and information set forth in this presentation contains “forward-looking statements” and “forward-looking information” within the meaning of the Private Securities Litigation Reform Act of 1995. Except for statements of historical fa
Slide 3: 2024 review
2024 review 01. 02. 03. Organic revenue flattish, BASX Brand: The AAON Brand: Headwinds in line with projections industry’s first large- from the refrigerant scale development and transition and weaker sale of a custom- nonresidential designed liquid cooling construction activity solution | 3
Slide 4: Q4 2024 overview
Q4 2024 overview $297.7M 26.1% $47.0M $0.30 $867.1M Sales Gross Profit Margin EBITDA Diluted EPS Backlog -1030 bps Y/Y • -39.0% Y/Y • +70.0% Y/Y • -2.9% Y/Y -46.4% Y/Y -880 bps Q/Q 15.8% margin +33.9% Q/Q Q4 sales and earnings Temporary slowdown should softer than anticipated result in a steeper rec
Slide 5: Q4 2024 summary: revenue
Q4 2024 summary: revenue Q4 Highlights $350 $327.3 $312.0 $306.6 $313.6 $297.7 $300 $284.0 $266.0 $262.1 The year-over-year decline was largely $254.6 $250 driven by the AAON Oklahoma segment, partially offset by strong gains in the $200 AAON Coil Products segment (in millions) $150 $100 $50 $— Q4 2
Slide 6: Q4 2024 summary: gross margin
Q4 2024 summary: gross margin Q4 Highlights Year-over-year contraction largely 40% 37.2% reflects lower volumes and the 36.4% 36.1% 35.2% 34.9% related deleveraging of fixed costs 33.1% 30.8% at the AAON Oklahoma segment 30% 29.0% 26.1% Right sizing capacity to meet 20% growing demand at AAON Coil P
Slide 7: Q4 2024 summary: SG&A
Q4 2024 summary: SG&A Q4 Highlights $60 18% As a percent of sales, $50 SG&A increased to 16.2% 16% $40 The increase in SG&A as a percent of (in millions) $30 14% sales was largely due to an increase in depreciation $20 expenses and costs associated with 12% long-term growth investments $10 $31.9 $32
Slide 8: Q4 2024 summary: EPS
Q4 2024 summary: EPS Q4 Highlights $0.70 $0.62 $0.63 $0.60 $0.58 $0.55 $0.56 The decline is largely associated with the lower gross margin, partially offset $0.50 $0.47 $0.46 $0.44 by an excess tax benefit related to $0.40 stock compensation $0.30 $0.30 $0.20 $0.10 $— Q4 2022 Q1 2023 Q2 2023 Q3 2023
Slide 9: Q4 2024 summary: balance sheet
Q4 2024 summary: balance sheet Q4 Highlights Balance sheet remains strong Restricted Cash, Cash & Cash Equivalents Debt $8.7 $200 $10 $154.9 Leverage ratio at the $6.5 $100 end of 2024 was 0.57 $0.3 $— $38.3 $0 Q4 2023 Q4 2024 $0 Cash and cash equivalents Restricted cash Q4 2023 Q4 2024 Expect capex
Slide 10: Segments
Segments Sales Gross Profits Production was slower than AAON Down 16.1% Down 36.8% we anticipated As we enter Q2, refrigerant Oklahoma transition disruptions will abate and demand will begin to improve Strength driven by the new BASX branded data center liquid cooling product AAON Up 129.9% Up 88.9%
Slide 11: Strategic pillars
Strategic pillars Drive Innovation & Be A Best-In- Sustainable Customization Class Operator Organic Growth | 11
Slide 12: 2020-2024 business cycle
2020-2024 business cycle Exceptional Phenomenal 2020 2021 2022-23 2024 2020-2024 CAGR Flattish Flattish 17% | 12
Slide 13: 2025 outlook
2025 outlook Sales Sales growth in the mid- to Q1 Guidance high-teens Sales and earnings will Gross margin at similar levels be modestly down we realized in 2024 sequentially from the fourth Expenses SG&A as a percent of sales to quarter, due to general decline 25-50 basis points seasonality, lastin