Overview

• U.S. HVAC maker's Q1 sales rose 54%, beating analyst expectations

• Adjusted EPS for Q1 rose 37% to $0.48 on higher volume

• Company raised 2026 revenue growth outlook to 40%-45% on record backlog

Outlook

• AAON raises 2026 sales growth outlook to 40%-45%, up from 18%-20%

• Company expects 2026 gross margin of 27%-28%, down from prior 29%-31%

• AAON anticipates SG&A expenses at 14%-15% of sales and depreciation of $95-$100 mln

Result Drivers

• DATA CENTER DEMAND - BASX-branded sales rose 72% on strong data center cooling demand and higher production volumes

• CAPACITY INVESTMENTS - Increased production throughput and expanded capacity drove higher sales across both AAON and BASX brands

• TEMPORARY MARGIN PRESSURE - Gross margin declined due to unabsorbed fixed costs from new capacity, temporary outsourcing, and price-cost timing dynamics, which the company expects to unwind as utilization improves

Company press release: ID:nPn6GKFQka

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$496.94 mln	$381.08 mln (6 Analysts)
Q1 Adjusted EPS		$0.48

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy."

• Wall Street's median 12-month price target for Aaon Inc is $120.00, about 22.1% above its May 6 closing price of $98.30

• The stock recently traded at 43 times the next 12-month earnings vs. a P/E of 46 three months ago

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