Aaon, Inc.NASDAQ: AAON

Financial Document Q2 - (2026 Q2 Earnings Presentation)

· MarketScreener
Q2 2026 Earnings Conference Call

August 10, 2026



Q2 2026 Overview

$627.0M

Sales

+101.2%

Y/Y

+26.2%

Q/Q

24.3%

Gross Profit Margin

-230

bps Y/Y

-70

bps Q/Q

$94.2M

Non-GAAP Adj. EBITDA*

+102.3%

Y/Y

15.0%

margin

$0.69

Diluted Non-GAAP EPS*

+213.6%

Y/Y

+43.8%

Q/Q

$2.0B

Backlog

+98.0%

Y/Y

-7.4%

Q/Q





Q2 2026 sales driven by BASX-branded sales growth, up 216.2% Y/Y

Strong backlog of data center orders will result in robust growth going forward



*See appendix for additional information regarding Non-GAAP measures.

3

Q2 BASX Brand Highlights

Strong BASX-Branded

+216.2%

+66.3%

Sales Momentum Y/Y

Q/Q

BASX-branded TTM book-to-bill ratio ~2x driven by strong quarterly bookings

Robust BASX-Branded Backlog

Leveraging Superior Engineering

Liquid cooling sales

+185.4%

Y/Y

$331M

Liquid cooling sales on a TTM basis

-11.7%

Q/Q on increased production

+190.9%

Liquid cooling sales growth on a TTM basis

BASX revenue and order growth rates continue to outpace strong data center thermal management market, indicating continued market share gains

4



Q2 AAON Brand Highlights

Strong AAON-Branded

+39.3%

+5.2%

Sales in Soft Market Y/Y

Q/Q

AAON-branded bookings up approximately 16% year-over-year

Intentional AAON-Branded Backlog Dynamics

Gaining Market Share

+9.4%

Y/Y

+50.0%

Alpha Class heat pump bookings Y/Y

+6.0%

Q/Q on increased production

National Accounts strategy driving new growth opportunities

Production improvements drive record sales and meaningful share gains as 30%-plus volume growth compared to flattish industry volumes

5



Systems Upgrades

  • IT and digital infrastructure enhancements

  • Modernizing manufacturing management systems

    Product Innovation

  • Alpha Class Heat Pump

  • Free Cooling Chiller

    Building a world-class manufacturing organization

    People & Process

  • Two new independent directors added to Board of Directors

  • New CFO and General Council

  • Strategic finance capabilities

  • Professional supply chain management

  • Global operations and lean manufacturing expertise

    Physical Infrastructure

  • Added 1+ million sq. ft. of manufacturing capacity since 2024

  • 4x increase in data center capacity



6



Q2 2026 Summary

14.9%

$0.22

Q2 2025

$82.7

Q2 2026

Q2 2025

Q2 2026

24.3%

$46.6

26.6%

Margin

Gross Profit

$152.5

Q2 2025

Q2 2026

Q2 2025

$311.6

Non-GAAP Adj. EBITDA*

15.0%

Q2 2026

Non-GAAP Adj. EPS*

$0.69

Net Sales

$627.0

Margin

$94.2

*See appendix for additional information regarding Non-GAAP measures

Q2 2026 Highlights

  • Net sales increase of 101.2% driven by 216.2% growth in BASX-branded sales and a 39.3% increase in AAON-branded sales

  • BASX-branded sales growth was driven by robust demand from the data center market, including $126.6M of liquid cooling equipment

  • Gross profit increased 84.3% Y/Y

  • Y/Y margin contraction reflects intentional growth investments, including Memphis ramp, outsourcing, and temporary cost absorption

  • Significant Y/Y bottom line improvement with Adj. EBITDA increasing 102.1% and Adj. EPS increasing 213.6% in the period

7



AAON Oklahoma

Net Sales

$262.3

Gross Profit

Reported Memphis Impact

$185.1

$53.5

Margin

28.9%

$3.0

24.3%

$63.6

$18.1

Q2 2025 Q2 2026 Q2 2025 Q2 2026

Q2 2026 Highlights

  • Net sales increased 41.7% Y/Y

  • Gross profit increased 18.9% Y/Y despite $18.1 million of unabsorbed costs at Memphis plant in 2Q26 compared to $3.0 million in 2Q25

  • Unabsorbed Memphis costs resulted in 690 bps of margin pressure in 2Q26 vs. 160 bps of pressure in 2Q25; net of Memphis impact, gross margin expanded approximately 60 bps

  • There is a clear path back to mid-to-high 30s gross margin (ex. Memphis costs) as outsourcing normalizes and price-cost flows through

  • AAON-branded equipment backlog increased sequentially despite strong production throughput, and as such we will continue to ramp production through year-end

  • Orders of AAON equipment remained strong, implying the AAON brand continues to gain market share in a soft market environment

8



AAON Coil Products

Net Sales

$146.7

Gross Profit

$10.2

Margin

17.5%

16.0%

$23.5

$58.5

Q2 2025 Q2 2026 Q2 2025 Q2 2026

Q2 2026 Highlights

  • Net sales increased 150.9%, driven

    by BASX-branded liquid cooling sales, which grew 208.4% to $126.6M

  • AAON-branded sales grew 15.1% to

    $20.0M

  • Gross profit increased 130.1% Y/Y

  • Gross margin performance reflected inflationary cost pressures, outsourcing-related costs, freight pressure, and price-cost timing

  • Margin pressure was partially offset by improved labor efficiency, better overhead absorption, and higher production volume

9



BASX

Net Sales

$218.0

Gross Profit

$19.0

Margin

27.9%

30.0%

$65.3

$68.0

Q2 2025 Q2 2026 Q2 2025 Q2 2026

Q2 2026 Highlights

  • Net sales growth of 220.7% driven by

    strong demand from data center market

  • Continued progress with Memphis plant ramp-up was a meaningful contributor to growth

  • Gross profit increased 244.2% Y/Y

  • Y/Y margin improvement driven by strong volume growth, partially offset by incremental fixed costs and additional resources needed temporarily to support robust growth

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Q2 2026 Summary: Balance Sheet

Q2 2026

$213.2

$(31.0)

1H 2025

$55.0

1H 2026

Debt

$435.0

$317.3

Q2 2025

2026E

Net Working Capital

$664.7

Annual Capex

Cash Flow from Operations

$443.4

$209.5

$190.0

Q2 2025

Q2 2026

2024

2025

*All metrics are in millions

Q2 2025 Highlights

  • Leverage ratio at the end of Q2 was 1.48, down from 1.71 at the end of Q1

  • Debt increase driven by working capital and capex investments to support strong BASX-branded backlog and future growth

  • YTD operating cash flow totaled

    $55.0 million, representing an improvement from $(31.0) million in the same period of 2025

  • Anticipate continued improvement in operating cash flow throughout 2026 driven by earnings growth and improved working capital efficiency

  • Expect capex of approximately $190 million in 2026

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Backlog by Brands

Backlog



$1.43B

+185.4%

Y/Y

-11.7%

Q/Q

  • Demand for data center air-side and liquid cooling solutions is robust

  • Large scale projects can create quarter-to-quarter bookings variability



$0.54B

+9.4%

Y/Y

+6.0%

Q/Q

  • Focused on turning over backlog with higher production throughput

  • Strong bookings continued in Q2

Total Backlog

$1.97B

+98.0%

Y/Y

-7.4%

Q/Q

  • Strong backlog allows us to plan production more efficiently

  • Anticipate continued growth and margin improvement throughout 2026

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2026 Outlook

Current FY26 Outlook

Prior FY26 Outlook

YoY Sales Growth

55%-60% 40%-45%

Gross Margin

25%-26% 27%-28%

SG&A % of Sales

13%-14% 14%-15%

D&A Expenses

$95M-$100M

$95M-$100M

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Appendix

Non-GAAP Financial Measures

Non-GAAP Adjusted Net Income

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

(in thousands)

Net income, a GAAP measure

$ 56,659

$ 15,487

$ 96,474

$ 44,779

Add: Memphis incentive fee1

1,448

3,405

1,448

6,105

Profit sharing effect2

(123)

(289)

(123)

(519)

Tax effect

(332)

(742)

(332)

(1,369)

Non-GAAP adjusted net income

$ 57,652

$ 17,861

$ 97,467

$ 48,996

Non-GAAP adjusted earnings per diluted share $ 0.69 $ 0.21 $ 1.16 $ 0.59

1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities.

2Profit sharing effect of the Memphis incentive fee in the respective period.



15

Non-GAAP Financial Measures

Non-GAAP EBITDA and Adjusted EBITDA

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

(in thousands)

Net income, a GAAP measure

$ 56,659

$ 15,487

$ 96,474

$ 44,779

Depreciation and amortization

23,813

19,936

44,716

38,879

Interest expense, net

6,195

4,009

11,250

6,811

Income tax expense

6,188

4,018

18,454

7,209

EBITDA, a non-GAAP measure $ 92,855 $ 43,450 $ 170,894 $ 97,678

Add: Memphis incentive fee1

1,448

3,405

1,448

6,105

Profit sharing effect2

(123)

(289)

(123)

(519)

Adjusted EBITDA, a non-GAAP measure $ 94,180 $ 46,566 $ 172,219 $ 103,264

Adjusted EBITDA margin 15.0 % 14.9 % 15.3 % 16.3 %

1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities.

2Profit sharing effect of the Memphis incentive fee in the respective period.



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Non-GAAP Financial Measures

Non-GAAP Adjusted SG&A

Three Months Ended June 30, Six Months Ended June 30,

2026

2025

2026

2025

Non-GAAP Adjusted Selling, General and Administrative Expenses

SG&A, a GAAP measure

$ 83,607

$ 59,147

$ 151,513

$ 110,440

Memphis Incentive Fee

(1,448)

(3,405)

(1,448)

(6,105)

Profit Sharing effect

123

289

123

519

Non-GAAP adjusted SG&A expenses

82,282

56,031

150,188

104,854

As a percent of sales

13.1 %

18.0 %

13.4 %

16.5 %



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