AAON, Inc. (AAON) Stock: Surging Backlog and Record Sales Set Stage for 2026 Growth

TLDR

• AAON 2025 sales jump 20% to $1.44B, driven by BASX and AAON equipment demand.
• Gross margin dips to 26.7% due to strategic production and ERP investments.
• BASX revenue doubles; backlog hits $1.83B, up 111% YoY.
• Q4 sales surge 42.5%, EPS rises 30%, Memphis & Longview expansions boost output.
• 2026 outlook: 18%-20% sales growth, higher margins, and $190M capex planned.

AAON, Inc. (AAON) reported record sales growth in 2025, driven by strong demand for both AAON- and BASX-branded equipment. The company closed the year with net sales of $1.44 billion, up 20.1% from 2024. Following the announcement, AAON shares fell to $99.00 in pre-market trading, after closing at $101.20.

The company posted a GAAP diluted EPS of $1.29 for 2025, down from $2.02 in the prior year. Gross margin declined to 26.7% from 33.1% due to strategic investments in production and ERP expansion. AAON ended the year with a record backlog of $1.83 billion, increasing 110.9% year-over-year.

Strong bookings underlined AAON’s growing market share, led by robust demand for data center and HVAC solutions. BASX-branded equipment revenue more than doubled, while AAON-branded sales grew steadily. These results reflect AAON’s ability to scale production and meet increasing customer demand efficiently.

Fourth Quarter Sales Surge and Operational Expansion

AAON posted fourth-quarter net sales of $424.2 million, a 42.5% increase from the same period in 2024. BASX-branded sales rose 138.8% to $181.4 million, reflecting higher adoption of liquid and air-side cooling equipment. AAON-branded sales increased 9.5% to $242.8 million, supported by strong backlog and stable production levels.

Gross margin for the quarter was 25.9%, slightly down from 26.1% in Q4 2024, reflecting fixed-cost absorption at new facilities. EPS rose to $0.39, up 30% from the previous year. The company advanced production capacity in Memphis, Tennessee, and improved throughput at its Longview, Texas facility.

AAON’s total backlog ended December 2025 at $1.83 billion, with BASX contributing $1.3 billion. AAON-branded backlog increased 60.8%, while BASX backlog jumped 141.3% year-over-year. These figures highlight AAON’s operational readiness for sustained 2026 growth and margin improvement.

2026 Outlook and Segment Performance

AAON forecasts 2026 net sales growth of 18%-20%, supported by a strong backlog and expanded production capacity. The company expects gross margins between 29%-31% and SG&A expenses at approximately 16% of sales. Depreciation and amortization are projected at $95-$100 million, reflecting ongoing capital investments.

The AAON Oklahoma segment achieved net sales of $215.5 million in Q4, up 11.1% year-over-year. Gross margin declined to 27.5% due to new Memphis facility overhead. AAON Coil Products net sales surged 93.6%, with gross margin improving to 21.3% from 16.1% in Q4 2024.

BASX segment net sales increased 109.1% to $106.1 million, with gross margin rising to 27.1% from 18.8%. Production ramp at Memphis contributed to higher output and stronger margin performance. AAON’s strategic investments position the company to capitalize on increasing demand for energy-efficient and data center HVAC solutions.

AAON maintains strong liquidity with $1.2 million in cash and $398.3 million drawn from its revolving credit facility. Capital expenditure plans of $190 million aim to support continued growth and operational efficiency. The company enters 2026 poised to expand sales, improve margins, and strengthen its market presence.

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