AAON sales jump 84.1% to a record, lifting 2026 growth forecast to 75%
Key Facts
AAON said on November 9 that third-quarter 2026 net sales rose 84.1% year over year to a record $707.4 million, compared with $384.2 million in the same period of 2025. The company raised its forecast for fiscal 2026 sales growth to a range of 72%-75%, from 55%-60% previously. Management attributed sales growth to strong demand for the AAON and BASX brands, as well as increased manufacturing productivity and utilization of recently expanded capacity. The company said BASX momentum was tied to demand in the data-center market. The results and guidance came as the company is also restating prior financial statements because of accounting errors and weaknesses in internal controls.
BASX stood out as the largest contributor to sales growth, with brand sales rising 218.3% year over year to a record $397.2 million in the third quarter. The company said the performance reflected strong data-center-related demand momentum and higher production. This formed part of management’s broader picture, in which demand for both group brands contributed to revenue growth, alongside improved manufacturing productivity. It also cited increased utilization of recently expanded capacity. These factors link the demand the company described as strong with its ability to convert it into sales during the quarter.
Diluted earnings per share improved alongside sales growth, reaching $0.83 in the third quarter, up 124.3% from $0.37 a year earlier. But gross margin did not keep pace with the year-over-year improvement in sales and earnings, coming in at 26.7% versus 27.8% in the third quarter of 2025. On a quarterly basis, the margin rose 60 basis points from the second quarter of 2026. The company attributed the annual decline mainly to a larger contribution from less mature, lower-utilization BASX facilities. The revised forecast therefore included a modest improvement in its full-year gross margin estimate, alongside a lower expected ratio for selling and administrative expenses.
AAON raised its fiscal 2026 gross margin forecast to about 26%, from a previous range of 25%-26%. It also lowered its estimate for selling and administrative expenses to about 13% of sales, from a range of 13%-14%. These revisions accompanied the increase in its sales growth forecast to 72%-75%, reflecting a broader update to its annual performance estimates that went beyond revenue. The company maintained its indication of strong near-term orders. It said it expects orders to remain strong in the fourth quarter and into 2027, citing strong customer engagement and an active opportunity pipeline in the data-center market.
Alongside its results announcement, AAON disclosed that management decided on November 3 that the unaudited interim financial statements for the quarters ended March 31 and June 30, 2026, should no longer be relied upon and would be restated. In its filing with the Securities and Exchange Commission, the company attributed the errors to revenue recognition under the percentage-of-completion method and software subscription accounting. The company also said it had concluded that a material weakness existed in internal control over financial reporting for the periods in question. The filing added that the company would report the weakness in its quarterly report for the quarter ended September 30, 2026. Thus, the announcement of record quarterly sales coincided with the company addressing errors in two prior periods’ statements and disclosing a control issue.
Historical price data showed AAON shares closed at $57.19 on November 6 and at $78.80 on November 12. The stock posted a daily gain of 19.31% on November 10, according to Investing.com data. The cited closing prices show the stock’s movement during the sessions around the results announcement, while the price data alone do not attribute the move to any particular factor. In its results release, the company said strong orders are expected to continue in the fourth quarter. It identified the period into 2027 as the horizon for continued order strength, citing customer engagement and the opportunity pipeline in the data-center market.