AAON (AAON) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales reached $496.9 million, up 54.3% year-over-year, driven by strong BASX and AAON-branded demand, especially in the data center market.

• Backlog hit a record $2.13 billion, up 107.4% year-over-year, with BASX backlog up 160% and AAON backlog up 26%.

• BASX sales grew 104.5% year-over-year to $135.4 million, while AAON-branded sales rose 41.6% year-over-year.

• EPS increased 37.1% to $0.48 diluted, with net income up 36% to $39.8 million.

• Operational improvements and capacity investments, including new manufacturing space and IT upgrades, supported growth and future margin expansion.

Financial highlights

• Gross margin was 25.1%, down 170 basis points year-over-year due to temporary outsourcing and unabsorbed fixed costs.

• Adjusted EBITDA rose 44% to $78 million, with a margin of 15.7%.

• SG&A as a percentage of sales declined to 13.7%.

• Operating cash flow was $34 million, the highest since Q3 2024.

• Net income for Q1 2026 was $39.8 million, up from $29.3 million in Q1 2025.

Outlook and guidance

• Full-year 2026 sales growth expected at 40%-45%, with gross margin guidance of 27%-28%.

• SG&A projected at 14%-15% of sales; depreciation and amortization expected at $95-$100 million.

• Margin improvement anticipated as outsourcing declines and internal capacity matures.

• Capital expenditures for 2026 estimated at $190 million.

• BASX revenue for the year implied at approximately $1 billion.