AAON, Inc.

Second quarter net sales were a record $627 million, up 101% year over year. Gross profit increased 84.3% to $152.5 million, while gross margin was 24.3% versus 26.6% in Q2 2025. Adjusted EBITDA rose 102.3% to $94.2 million, adjusted EBITDA margin was 15.0% versus 14.9%, and adjusted diluted EPS grew 213.6% to $0.69. By segment, AAON Oklahoma sales increased 42% to $262.3 million, AAON Coil Products sales were $146.7 million, and BASX segment sales grew 221% to $218 million. For 2026, management now expects sales growth of 55% to 60%, gross margin of 25% to 26%, SG&A expense of 13% to 14% of sales, and depreciation and amortization of $95 million to $100 million.

Matt Tobolski framed the quarter as evidence that AAON’s investments in capacity, supply chain, lean manufacturing, and leadership are starting to show up in results. He emphasized that throughput improved across all four major facilities, backlog conversion accelerated, and both AAON and BASX are gaining share. His tone was confident but realistic: he repeatedly said the business is growing quickly, but margin recovery will take time and should become more visible in Q4 and into 2027.

Andy Cheung highlighted record Q2 sales of $627 million, gross profit of $152.5 million, gross margin of 24.3%, adjusted EBITDA of $94.2 million, and adjusted diluted EPS of $0.69. He said SG&A as a percentage of sales fell 570 basis points to 13.3% even as SG&A dollars increased to $83.6 million, showing operating leverage. On the balance sheet, cash, cash equivalents and restricted cash were $12.7 million, debt was $435 million, leverage improved to 1.48 from 1.71 on March 31, operating cash flow was positive $55 million in the first half versus a $31 million use of cash a year ago, and capital expenditures were $102.6 million year to date.

Analysts focused heavily on weaker-than-expected BASX/data center orders, asking whether a large order slipped and whether July/August trends improved. Management said there was no specific order pushout; the weakness was just normal lumpiness in large orders, and the pipeline is the strongest it has ever been, with visibility into 2027 and 2028 orders. Questions on margin pressure drew a detailed response that the main issue is Memphis ramp and mix, plus some price-cost lag in ACP; management said Q3 should show modest improvement, with more noticeable margin improvement in Q4.