Aaon Lifts 2026 Sales Outlook to 72%-75% After Record Quarter

The Tip Desk · November 9, 2026 · 3 min read

Third-quarter net sales reached a record $707.4 million, up 84.1%, as BASX liquid-cooling demand and higher throughput more than doubled operating income.

The Aaon Group (AAON), a maker of high-performance HVAC and thermal management equipment, reported record third-quarter 2026 net sales of $707.4 million, up 84.1% from $384.2 million a year earlier, and raised its full-year 2026 sales-growth outlook to 72%–75% from 55%–60%.

Operating income increased 129.3% to $100.0 million, and GAAP diluted earnings were $0.83 a share, up 124.3% from $0.37. Non-GAAP adjusted EPS matched the GAAP figure.

Growth was driven by both brands, higher manufacturing throughput, and greater use of recently expanded capacity. AAON-branded sales rose 19.6% to a record $310.2 million. BASX-branded sales grew 218.3% to a record $397.2 million, which the company attributed to data-center demand, production output gains, and utilization of added plants.

Gross profit increased 76.4% to $188.5 million. Gross margin was 26.7%, down from 27.8% a year earlier but up 60 basis points sequentially, the second consecutive quarter of improvement. The company said the year-over-year decline reflected a higher share of BASX revenue from less mature, lower-utilization facilities, partly offset by price/cost and volume leverage. Selling, general and administrative expenses fell to 12.5% of sales, down 400 basis points.

AAON Oklahoma generated net sales of $283.5 million, up 18.7%. Gross profit was $72.3 million and gross margin 25.5%, compared with 33.0% a year earlier. Segment profitability included $20.7 million of Memphis-facility overhead, versus $4.5 million a year earlier. Excluding those costs, adjusted gross margin improved 160 basis points sequentially.

AAON Coil Products net sales were $192.6 million, up 174.2%, led by BASX-branded liquid cooling of $165.5 million, up 255.6%. Gross profit rose 541.8% to $49.8 million; gross margin was 25.8%, versus 11.0% a year earlier. The company cited repricing of existing backlog, labor efficiency, overhead absorption, and higher volume.

The BASX segment generated net sales of $231.3 million, up 207.4%, with gross profit of $66.4 million and gross margin of 28.7%, up from 27.0%. The company said the year-over-year margin gain reflected substantial volume growth, partly offset by incremental resources for future growth, delivery, and share gains.

Total backlog was $1.9 billion at Sept. 30, 2026, up 40.5% from $1.3 billion a year earlier. BASX-branded backlog rose 51.1% to $1.36 billion; AAON-branded backlog rose 18.0% to $499.3 million. Versus June 30, total backlog fell 5.9%, which the company attributed to accelerated conversion into record revenue and timing of large BASX awards. AAON-branded backlog declined 7.6% sequentially on higher production and shorter lead times. The company said it continues to see a healthy data-center pipeline and expects order strength to continue in the fourth quarter and into 2027.

For the nine months ended Sept. 30, 2026, operating cash flow was $146.9 million, compared with a use of $18.8 million a year earlier. Cash, cash equivalents and restricted cash were $3.7 million; the revolving credit facility balance was $386.7 million.

The company restated first- and second-quarter 2026 results after identifying errors in revenue recognition and software-subscription accounting. In aggregate, the restatements increased first-half net sales by $10.7 million, gross margin by 71 basis points, and GAAP diluted EPS by $0.09. Management concluded a material weakness existed in internal control over financial reporting and said it is continuing remediation. The company said it found no evidence of fraud or misconduct.

The raised 2026 outlook now also reflects gross margins of approximately 26%, SG&A of about 13% of sales, and depreciation and amortization of about $100 million. President and CEO Matt Tobolski said the outlook reflects third-quarter performance, customer activity, and progress converting backlog into revenue.