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Aaon (AAON) FY2025 results: revenue $1.4 billion, up 20.1% on the year

Aaon, Inc. (AAON) reported revenue of $1.4 billion for fiscal 2025, the year ended 31 December 2025, up 20.1% on the year before. Net income was $108 million, down 36.2%, and diluted earnings per share $1.29. The figures are the company's own, from the 10-K it filed with the SEC on 2 March 2026.

Revenue
$1.4 billion
+20.1% on the year
FY2018FY2025
Operating margin
10.1%
17.4% a year earlier
FY2018FY2025
Net income
$108 million
-36.2% on the year
FY2018FY2025
Diluted EPS
$1.29
-36.1% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 5 new.

  • Full-year sales up 20.1%: Full-year net sales rose 20.1% to $1.44 billion; gross margin was 26.7% against 33.1%, and GAAP diluted EPS was $1.29 against $2.02.
  • Fourth-quarter sales up 42.5%: Fourth-quarter net sales were $424.2 million, up 42.5%, and diluted EPS was $0.39 against $0.30, up 30.0%.
  • 2026 sales growth guided 18%-20%: Management expects 2026 net sales to grow 18% to 20%, with gross margin of 29% to 31%.
  • BASX brand sales more than doubled: BASX-branded sales rose 138.8% to $181.4 million, which management tied to air-side and liquid cooling demand for data center applications.
  • Full-year gross margin fell: Full-year gross margin fell to 26.7% from 33.1%, which management tied to strategic investments in production expansion and ERP implementation.
Read the Q4 FY2025 earnings call summary

From this 10-K

AAON designs and makes heating, ventilation, air conditioning and liquid cooling equipment for commercial and industrial buildings, built to order to each customer's specification. It sells mostly in the domestic market, through a network of independent sales representatives. Its customers range from office, school and hospital buildings to hyperscale data centers and cleanrooms.

Aaon, Inc., the 10-K for 2025

AAON designs and makes heating, ventilation, air conditioning and liquid cooling equipment for commercial and industrial buildings, built to order to each customer's specification. It sells mostly in the domestic market, through a network of independent sales representatives. Its customers range from office, school and hospital buildings to hyperscale data centers and cleanrooms.

Three businesses

The company reports three segments. AAON Oklahoma engineers, makes and sells configurable HVAC systems and controls, and sells aftermarket parts through retail part stores and online; it runs the factories in Tulsa, Oklahoma, Memphis, Tennessee and Parkville, Missouri. AAON Coil Products, in Longview, Texas, makes semi-custom and custom HVAC systems and the heating and cooling coils used across the group, and also produces BASX-branded products. BASX, based in Redmond, Oregon, makes custom cooling equipment for data centers, ventilation for cleanrooms and custom air handlers. The company describes its approach as mass semi-customization: flexible, computer-aided manufacturing used to build configurable equipment at production scale, with every system specified before production begins.

The AAON brand

AAON-branded equipment goes on the roofs of commercial and industrial buildings or alongside them, for new construction and for replacement. Rooftop units are the core of the range, self-contained heating and cooling systems sold in three lines: the RQ Series, the RN Series in 26 sizes and the RZ Series in 15 sizes, up to 261 tons of cooling. The filing gives a sense of scale: a 100,000 square-foot commercial building needs approximately 250 tons of cooling. Beyond rooftop units the range includes air handling units, condensing units, makeup air units, energy recovery units, geothermal and water-source heat pumps, coils and factory controls. Lead times on AAON-branded products are generally around 18 - 26 weeks.

BASX and the data center

BASX builds cooling for data centers, including AI and high-performance computing workloads: direct evaporative coolers, fan coil walls, computer room air handling units, overhead fan coil units and packaged air handling systems. In 2025 it introduced its own Coolant Distribution Unit, which sits between a facility's water system and the cooling loops that run to server cold plates, and supports rack densities exceeding 100 kilowatts. It also introduced a water-free Free Cooling Chiller for large data centers, a rooftop system that uses outside air whenever it can. For cleanrooms in pharmaceutical, biotechnology and semiconductor work, BASX supplies air handling, modular cleanroom environments, fan filter units and hospital surgical suites. The filing names Microsoft, Amazon Web Services, Google Cloud, QTS and Applied Digital as examples of companies in the data center space it serves.

Customers and orders

The top customers are in data center cooling and commercial air conditioning. In 2025 three customers each accounted for 10 percent or more of the total, and the rest of the business is thousands of customers reached through the representatives. The backlog stood at $1,828.5 million at December 31, 2025, an increase of 110.9% on a year earlier, and the filing attributes most of the increase to BASX-branded data center liquid cooling orders. Data center orders carry more risk of shifting, cancellation and re-issue than commercial air conditioning orders, which have historically been firm. Foreign sales were approximately 2.6% of net sales in 2025.

Materials, parts and people

The main materials are steel, copper and aluminum, and the company buys coils, compressors, electric motors and electrical controls from other manufacturers. It does not depend on any one source for them, and it limits price swings through contracts with its major suppliers for periods of six to 18 months. Parts are sold through the representatives' offices and two retail stores in Tulsa, and each factory has its own service organization. As of February 24, 2026 the company employed approximately 5,897 people, against 3,856 a year earlier. None are represented by unions.

From AAON's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 2 March 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue1,4421,2011,169+20.1%
Cost of revenue1,056804769+31.5%
Gross profit386397399-2.9%
Gross margin26.7%33.1%34.1%
Research and development58.247.343.7+23.0%
Selling, general and administrative239188172+27.4%
Operating income146209227-30.1%
Operating margin10.1%17.4%19.5%
Pre-tax income129207223-37.7%
Income tax21.238.045.5-44.4%
Effective tax rate16.4%18.4%20.4%
Net income108169178-36.2%
Net margin7.5%14.0%15.2%
Diluted EPS$1.29$2.02$2.13-36.1%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow0.5193159-99.7%
Capital expenditure191196104-2.6%
Free cash flow-190-3.154.6
Free cash flow margin-13.2%-0.3%4.7%
Cash from investing-192-213-109
Cash from financing18718.0-46.5+934.8%
Depreciation and amortisation79.262.746.5+26.2%
Share-based compensation18.016.716.4+7.6%
Dividends paid32.626.126.4+24.9%
Dividend per share$0.40$0.32$0.32+25.0%
Diluted shares, weighted83m84m83m-0.6%
Shares outstanding at period end82m81m82m+0.3%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity895825735+8.5%
Debt39815538.3+157.2%
Operating lease liabilities15.513.610.2+14.3%
Other liabilities378182158+107.3%
Total liabilities and equity1,6871,175941+43.5%
Fixed assets631510370+23.7%
Goodwilln/an/a81.9
Intangible assets83.978.368.1+7.2%
Cash and equivalents0.00.00.3-7.1%
Receivables314147138+113.2%
Inventory261187214+39.3%
Other assets39625269.6+57.2%
Total assets1,6871,175941+43.5%

10-K for the year ended 31 December 2025, filed 2 March 2026: the filing.