Financial Document Q2 - (2026 Q2 Earnings Presentation)

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.

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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

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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

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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

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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

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AAON Oklahoma

Net Sales

$262.3

Gross Profit

Reported Memphis Impact

$185.1

$53.5

Margin

28.9%

24.3%

$63.6

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

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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

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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

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2026 Outlook

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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)

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.

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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)

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

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,

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