March 2, 2026
2025 Highlights
BASX-branded sales up y/y 138.8% in Q4 and 143.5% in 2025
Liquid cooling equipment sales approximately 37.8% of total BASX-branded sales in 2025
BASX-branded backlog totaled $1.3 billion in 2025, up y/y 141.3%, book-to-bill ratio of 2.4x for the year
AAON-branded national accounts strategy gaining traction, orders up 76.6% in Q4, up 86.1% in 2025
In 2025, AAON-branded Alpha Class heat pump sales up 16.4%, bookings up 41.9%
3
Recent Investments Set to Create Value In 2026
People and leadership
Added/improved key leadership positions
Manufacturing capacity
Increased manufacturing square footage by 25% and focus on efficiency gains
Supply chain management
Improved reliability and meaningful opportunity to leverage buying power
Product development
Advancements in data center liquid cooling and commercial heat pumps
4
Upgrading IT systems and infrastructure
4
Disciplined ERP rollout supports execution and customer delivery
Background
Legacy ERP system was not built for scale. To support our growth, upgrade was required
Rationale
Improves visibility in operations, data quality and margin trajectory
Go-live Sequence
Principles
Strategically rolling-out in stages to minimize impact across sites
Longview Memphis Redmond
2025
Tulsa
2027
Key Takeaways
- Longview implementation largely
stabilized with production approaching full recovery
- Memphis went live November 1st and
is progressing well
- Moderating future ERP roll-outs to
focus on operational execution, customer deliveries and margin enhancement
- Redmond implementation now
scheduled for 2H 2026 and Tulsa 2027 with proven implementation framework
5
Q4 2025 Highlights
Record Sales
Y/Y growth of 42.5% BASX-branded sales up 138.8%
BASX-branded book-to-bill ratio
Record Backlog
Y/Y growth of 110.9% BASX-branded backlog up 141.3%
3.2x driven by second straight quarter of record bookings
New Products
BASX-branded liquid cooling sales up 256.4%
Alpha Class heat pump sales up 41.9%%
AAON-branded sales grew 9.5% versus a 15.6% decline in industry shipments
6
Plants Q4 Productivity Q4 Profitability Current Status
Operational Status Across Footprint
AAON Oklahoma
| Tulsa | Temporarily constrained by seasonal factors and supply chain | Combined gross margin 27.3%, Incremental gross margin 25% [AAON OK GM% = 27.5%] [BASX GM% = 27.1%] | Ramping to record levels |
Redmond | Stable | Stable | ||
Memphis | Below target but improving while aggressively ramping production | Aggressively ramping | ||
AAON Coil Products | Longview | Significant improvement, both y/y and q/q | Gross margin 21.3%, up 1030 bps q/q | Improving productivity, ramping production |
Supply chain investments will de-risk supply issues and lead to cost savings throughout the organization in 2026
Ramping throughput across Tulsa, Memphis and Longview will result in strong operating leverage
7
*Given that Memphis financials span both the AAON Oklahoma and BASX segments, analyzing the segments together provides the clearest picture of performance.
Q4 2025 Summary
Net Sales
26.1%
Gross Margin
27.8%
25.9%
$384.2
$424.2
$297.7
Q4 2024
Q3 2025
Q4 2025
Q4 2024
Q3 2025
Q4 2025
Non-GAAP Adj. EBITDA*
Non-GAAP Adj. EPS*
$64.4
$47.0
$63.6
$0.37
$0.39
$0.30
Margin
15.8%
16.5%
15.2%
Q4 2024
Q3 2025
Q4 2025
Q4 2024
Q3 2025
Q4 2025
*See appendix for additional information regarding Non-GAAP measures
Q4 2025 Highlights
Net sales increase of 42.5% driven
by 138.8% growth in BASX-branded sales and a 9.5% increase in AAON-branded sales
BASX-branded sales growth was driven by robust demand from the data center market, including $75.3 million of liquid cooling equipment
Y/Y margin contraction primarily reflects unabsorbed costs at Memphis
8
AAON Oklahoma
Net Sales
Gross Margin
Reported Memphis Impact$215.5
$194.0
$238.7
27.5%
30.7%
33.0%
1.9%
2.9%
Q4 2024 Q3 2025 Q4 2025 Q4 2024 Q3 2025 Q4 2025
*See appendix for recasted segment information.
Q4 2025 Highlights
Net sales increased y/y 11.1%
Delivered meaningful share gains with rooftop volumes up modestly against a 16.0% industry decline
Margin impacted by $6.4M of unabsorbed costs at Memphis plant
Q/Q margin contraction reflected seasonal factors and temporary supply chain constraints that led to moderating volume production
Investments made in supply chain management in 2025 will derisk supply chain constraints while creating meaningful cost savings opportunities in 2026
Backlog at year-end up y/y ~45.0%
9
AAON Coil Products
Net Sales Gross Margin
$70.2
$53.0
$102.6
Q4 2024 Q3 2025 Q4 2025
21.3%
16.1%
11.0%
Q4 2024 Q3 2025 Q4 2025
*See appendix for recasted segment information.
Q4 2025 Highlights
Net sales increased 93.6%, driven by
increased demand of BASX-branded liquid cooling sales
AAON-branded sales were flattish y/y, up 15.3% q/q
Gross margin expansion reflected improved operating leverage on higher throughput at the Longview facility, along with a favorable mix of higher-margin BASX sales
Margin expansion was tempered by a 5-day plant shutdown at year-end
BASX will continue to be a positive tailwind, but do not expect such a favorable product mix in the near-term as in Q4
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BASX
Net Sales
$106.1
Gross Margin
18.8%
27.0% 27.1%
$75.2
$50.7
Q4 2024 Q3 2025 Q4 2025 Q4 2024 Q3 2025 Q4 2025
*See appendix for additional information regarding Non-GAAP measures
Q4 2025 Highlights
Net sales growth of 109.1% driven by
strong demand from data center market
Continued progress with Memphis plant ramp-up was a key contributor to growth
Stable margins sequentially reflect the balance between productivity gains in Redmond and targeted investments to support BASX production in Longview and Memphis
11
$1.2
$-
$-
Q4 2025 Summary: Balance Sheet
2025
2024
Cash and cash equivalents
$6.5
Restricted cash
Debt
$398.3
$138.9
2024
2025
Net Working Capital
Annual Capex
$538.4
$213.2
$204.9
$313.3
$109.5
2024
2025
2023
2024
2025
*All metrics are in millions
Q4 2025 Highlights
Leverage ratio at the end of the
fourth quarter was 1.77
Debt increase driven by working capital and capex investments to support strong BASX-branded backlog and future growth
BASX-branded backlog up 141.3% y/y and 45.2% q/q
Anticipate meaningful improvement in cash flow from operations in 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 | ||||
$1.30B | +141.3% Y/Y | +45.2% Q/Q |
| |
$526.4M | +60.8% Y/Y | +24.3% Q/Q |
| |
Total Backlog | $1.83B | +110.9% Y/Y | +38.5% Q/Q |
|
13
2026 Outlook
2026 | |
YoY Sales Growth | 18%-20% |
Gross Margin | 29%-31% |
SG&A % of Sales | ~16% |
D&A Expenses | $95M-$100M |
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Appendix
Non-GAAP Financial Measures
Non-GAAP Adjusted Net IncomeThree Months Ended December 31, Years Ended December 31,
2025 | 2024 | 2025 | 2024 | |
(in thousands) | ||||
Net income, a GAAP measure | $ 32,032 | $ 24,690 | $ 107,593 | $ 168,559 |
Add: Memphis incentive fee1 | - | - | 6,105 | - |
Profit sharing effect2 | - | - | (519) | - |
Tax effect | - | - | (1,369) | - |
Non-GAAP adjusted net income | $ 32,032 | $ 24,690 | $ 111,810 | $ 168,559 |
Non-GAAP adjusted earnings per diluted share $ 0.39 $ 0.30 $ 1.35 $ 2.02
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 Combined Segment Gross ProfitThree Months Ended December 31, 2025
AAON Oklahoma BASX
Non-GAAP
Combined
(in thousands)
AAON Coil
Products Consolidated
Segment Net Sales | $ 215,503 | $ 106,095 | $ 321,598 | $ 102,619 | $ 424,217 |
Segment Gross Profit | $ 59,168 | $ 28,775 | $ 87,943 | $ 21,827 | $ 109,770 |
Segment Gross Profit Margin | 27.5 % | 27.1 % | 27.3 % | 21.3 % | 25.9 % |
Three Months Ended December 31, 2024
AAON Oklahoma BASX
Non-GAAP
Combined
AAON Coil
Products Consolidated
(in thousands)
Segment Net Sales | $ 193,957 | $ 50,742 | $ 244,699 | $ 53,019 | $ 297,718 | |
Segment Gross Profit | $ 59,516 | $ 9,564 | $ 69,080 | $ 8,535 | $ 77,615 | |
Segment Gross Profit Margin | 30.7 % | 18.8 % | 28.2 % | 16.1 % | 26.1 % | |
YoY Change in Net Sales | $ 21,546 | $ 55,353 | $ 76,899 | $ 49,600 | $ 126,499 | |
YoY Change in Gross Profit | $ (348) | $ 19,211 | $ 18,863 | $ 13,292 | $ 32,155 | |
Incremental Margin | (1.6)% | 34.7 % | 24.5 % | 26.8 % | 25.4 % | 17 |
Non-GAAP Financial Measures
Non-GAAP EBITDA and Adjusted EBITDAThree Months Ended December 31, Years Ended December 31, 2025 2024 2025 2024
(in thousands)
Net income, a GAAP measure | $ 32,032 | $ 24,690 | $ 107,593 | $ 168,559 | ||
Depreciation and amortization | 20,353 | 17,550 | 79,191 | 62,735 | ||
Interest expense, net | 5,762 | 1,208 | 17,726 | 2,905 | ||
Income tax expense | 6,290 | 3,576 | 21,159 | 38,032 | ||
EBITDA, a non-GAAP measure | $ 64,437 | $ 47,024 | $ 225,669 | $ 272,231 | ||
Add: Memphis incentive fee1 | - | - | 6,105 | - | ||
Profit sharing effect2 | - | - | (519) | - |
Adjusted EBITDA, a non-GAAP measure $ 64,437 $ 47,024 $ 231,255 $ 272,231
Adjusted EBITDA margin 15.2 % 15.8 % 16.0 % 22.7 %
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&AQ1 2024 Q2 2024 Q3 2024 Q4 2024 2024
Non-GAAP Adjusted Selling, General and Administrative Expenses
(in thousands)
Less: Memphis Incentive Fee1 - - - - -
SG&A, a GAAP measure $ 45,288 $ 45,895 $ 48,637 $ 48,194 $ 188,014
Non-GAAP adjusted SG&A expenses $ 45,288 $ 45,895 $ 48,637 $ 48,194 $ 188,014
Profit Sharing effect2 - - - - -
As a percent of sales 17.3 % 14.6 % 14.9 % 16.2 % 15.7 %
Q1 2025 Q2 2025 Q3 2025 Q4 2025 2025
(in thousands)
$ 63,230 | 65,810 | 239,480 |
- | - | 6,105 |
- | - | (519) |
$ 63,230 16.5 % | $ 65,810 15.5 % | $ 233,894 |
16.2 % |
SG&A, a GAAP measure $ 51,293 $ 59,147
Less: Memphis Incentive Fee1 2,700 3,405
Profit Sharing effect2 (230) (289)
Non-GAAP adjusted SG&A expenses | $ 48,823 | $ 56,031 |
As a percent of sales | 15.2 % | 18.0 % |
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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Recasted Quarterly Segment Disclosures
Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024
(in thousands)
AAON Oklahoma | ||||||||||
External sales | $ | 210,140 | $ | 225,727 | $ | 228,887 | $ | 193,957 $ | 858,711 | |
Inter-segment sales | 1,671 | 1,311 | 1,238 | 2,116 | 6,336 | |||||
Eliminations | (1,671) | (1,311) | (1,238) | (2,116) (6,336) | ||||||
Net sales | 210,140 | 225,727 | 228,887 | 193,957 | 858,711 | |||||
Cost of sales1 | 127,027 | 137,372 | 139,284 | 134,441 | 538,124 | |||||
Gross profit | 83,113 | 88,355 | 89,603 | 59,516 | 320,587 | |||||
AAON Coil Products | ||||||||||
External sales | $ | 24,247 | $ | 31,373 | $ | 35,232 | $ | 53,019 | $ | 143,871 |
Inter-segment sales | 4,629 | 4,457 | 6,808 | 4,298 | 20,192 | |||||
Eliminations | (4,629) | (4,457) | (6,808) | (4,298) | (20,192) | |||||
Net sales | 24,247 | 31,373 | 35,232 | 53,019 | 143,871 | |||||
Cost of sales1 | 20,809 | 22,699 | 28,295 | 44,484 | 116,287 | |||||
Gross profit | 3,438 | 8,674 | 6,937 | 8,535 | 27,584 | |||||
BASX | ||||||||||
External sales | $ | 27,712 | $ | 56,466 | $ | 63,133 | $ | 50,742 | $ | 198,053 |
Inter-segment sales | 2 | 220 | 40 | 404 | 666 | |||||
Eliminations | (2) | (220) | (40) | (404) | (666) | |||||
Net sales | 27,712 | 56,466 | 63,133 | 50,742 | 198,053 | |||||
Cost of sales1 | 22,021 | 40,401 | 45,515 | 41,178 | 149,115 | |||||
Gross profit | 5,691 | 16,065 | 17,618 | 9,564 | 48,938 | |||||
Consolidated gross profit | $ 92,242 | $ 113,094 | $ 114,158 | $ 77,615 $ 397,109 | ||||||
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Recasted Quarterly Segment Disclosures
Q1 2025 Q2 2025 Q3 2025 Q4 2025 2025
(in thousands)
AAON Oklahoma | ||||||||||
External sales | $ | 161,838 | $ | 185,120 | $ | 238,748 | $ | 215,503 $ | 801,209 | |
Inter-segment sales | 3,839 | 5,318 | 9,737 | 29,304 | 48,198 | |||||
Eliminations | (3,839) | (5,318) | (9,737) | (29,304) (48,198) | ||||||
Net sales | 161,838 | 185,120 | 238,748 | 215,503 | 801,209 | |||||
Cost of sales1 | 121,238 | 131,603 | 159,945 | 156,335 | 569,121 | |||||
Gross profit | 40,600 | 53,517 | 78,803 | 59,168 | 232,088 | |||||
AAON Coil Products | ||||||||||
External sales | $ | 94,023 | $ | 58,465 | $ | 70,246 | $ | 102,619 | $ | 325,353 |
Inter-segment sales | 3,579 | 3,439 | 4,689 | 4,298 | 16,005 | |||||
Eliminations | (3,579) | (3,439) | (4,689) | (4,298) | (16,005) | |||||
Net sales | 94,023 | 58,465 | 70,246 | 102,619 | 325,353 | |||||
Cost of sales1 | 64,165 | 48,236 | 62,488 | 80,792 | 255,681 | |||||
Gross profit | 29,858 | 10,229 | 7,758 | 21,827 | 69,672 | |||||
BASX | ||||||||||
External sales | $ | 66,193 | $ | 67,982 | $ | 75,244 | $ | 106,095 | $ | 315,514 |
Inter-segment sales | 43 | 507 | 26 | (74) | 502 | |||||
Eliminations | (43) | (507) | (26) | 74 | (502) | |||||
Net sales | 66,193 | 67,982 | 75,244 | 106,095 | 315,514 | |||||
Cost of sales1 | 50,287 | 48,999 | 54,944 | 77,320 | 231,550 | |||||
Gross profit | 15,906 | 18,983 | 20,300 | 28,775 | 83,964 | |||||
Consolidated gross profit | $ 86,364 | $ 82,729 | $ 106,861 | $ 109,770 $ 385,724 | ||||||
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