Slide 1: Q1 2025 Earnings Conference Call
Q1 2025 Earnings Conference Call May 1, 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: Strategic pillars
Strategic pillars Drive Innovation & Be A Best-In- Sustainable Customization Class Operator Organic Growth | 3
Slide 4: Q1 2025 overview
Q1 2025 overview $322.1M 26.8% $56.7M $0.37 $1.0B Sales Gross Profit Margin Adj. EBITDA Adj. Diluted EPS Backlog -840 bps Y/Y -6.3% Y/Y +83.9% Y/Y +22.9% Y/Y -20.0% Y/Y +75 bps Q/Q 17.6% margin +18.4% Q/Q Q1 sales and earnings Strong backlog will result in improved from Q4 a steep recovery in 2H 202
Slide 5: Q1 2025 summary: revenue
Q1 2025 summary: revenue Q1 Highlights $400 The year-over-year increase was driven $327.3 $322.1 by a 374.8% increase in sales of $312.2 $306.6 $313.6 $297.7 BASX-branded equipment, largely $300 $284.0 $266.0 $262.1 spurred by data center equipment demand. (in millions) $200 This was partially offse
Slide 6: Q1 2025 summary: gross margin
Q1 2025 summary: gross margin Q1 Highlights Year-over-year contraction largely 40% 37.2% 36.4% reflects lower volumes and the 35.2% 36.1% 34.9% 33.1% related reduced absorption of fixed 29.0% costs at the AAON Oklahoma 30% 26.1% 26.8% segment 20% Right sizing capacity to meet growing demand at AAON
Slide 7: Q1 2025 summary: SG&A
Q1 2025 summary: SG&A Q1 Highlights $60 18% As a percent of sales, SG&A decreased to 15.9% $50 16% $40 Included in SG&A was a $2.7 million (in millions) fee related to tax incentives for the $30 14% new Memphis facility $20 12% $10 $32.9 $39.3 $51.5 $47.9 $45.3 $45.9 $48.6 $48.2 $51.3 $0 10% Q1 2023
Slide 8: Q1 2025 summary: EPS
Q1 2025 summary: EPS Q1 Highlights The y/y decline is largely associated $0.70 with the lower gross margin, partially $0.62 $0.63 offset by an excess tax benefit $0.60 $0.58 $0.55 $0.56 related to stock compensation $0.50 $0.46 $0.44 $0.40 Included in EPS was a $2.7 million fee $0.35 $0.30 related t
Slide 9: Q1 2025 summary: balance sheet
Q1 2025 summary: balance sheet Q1 Highlights Balance sheet remains strong Restricted Cash, Cash & Cash Equivalents Debt $400 $40 $252.4 Leverage ratio at the $20.0 $20 $8.4 $200 end of the first quarter was 0.95 $1.0 $1.4 $0 Q1 2024 Q1 2025 $— $0 Cash and cash equivalents Restricted cash Q1 2024 Q1
Slide 10: Net Sales by branded products and Segments
Net Sales by branded products (All percentages on this slide represent year-over-year changes) Sales $189.5M Production was slower than anticipated AAON brand due to temporary supply chain issues Down 19.1% BASX brand $132.6M Strong demand of data center equipment Segments Up 374.8% at the Oregon an
Slide 11: Backlog by brands
Backlog by brands (All percentages on this slide represent year-over-year changes) Backlog Backlog is the highest level since $403.9M the first quarter of 2023 AAON brand Up 44.9% With supply chain issues abating, expect production to increase Demand of air-side and liquid cooling solutions for data
Slide 12: 2025 outlook
2025 outlook Reaffirmed Q2 Outlook Sales Sales growth in the mid- to high-teens Sales and EPS will be up modestly from the first Gross margin at similar levels quarter we realized in 2024 Expenses SG&A as a percent of sales to Tariffs decline 25-50 basis points Inclusive in our outlook is a 6% surch
Slide 13: Appendix
Appendix | 13 | 13
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Adjusted Net Income Non-GAAP EBITDA and Adjusted EBITDA Three Months Ended Three Months Ended March 31, March 31, 2025 2024 2025 2024 (in thousands) (in thousands) Net income, a GAAP measure $ 29,292 $ 39,016 Net income, a GAAP measure $ 29,292 $ 39,016 Depreciat
Slide 15: Net Sales and backlog by branded products
Net Sales and backlog by branded products | 15 | 15