Key Highlights

  • Net sales were USD 707.4 million, up 84.1% from the prior year quarter.
  • Net income was USD 69.0 million, compared with USD 30.8 million a year earlier.
  • BASX-branded product sales increased 218.3%, or USD 272.4 million.
  • Income from operations was USD 100.0 million, compared with USD 43.6 million.

AAON, Inc. (NASDAQ:AAON) reported third quarter 2026 net sales of USD 707.4 million, up 84.1% from USD 384.2 million a year earlier, which the company tied to Demand for and growth of its BASX-branded products. Net Income was USD 69.0 million, compared with USD 30.8 million. Reported EPS was USD 0.83, compared with estimates of EPS of USD 0.57 and Revenue of USD 601.19 million.

Sales of BASX-branded products increased 218.3%, or USD 272.4 million, and sales of AAON-branded products increased 19.6% to USD 310 million.

Segment Results

AAON Oklahoma net sales were USD 283.5 million, up 18.7%. AAON Coil Products net sales were USD 192.6 million, up 174.2%, which the company attributed primarily to BASX-branded product growth of USD 119.0 million, including a large order for liquid cooling products for data centers. BASX net sales were USD 231.3 million, up 207.4%, on continued demand for Data Center solutions and increasing production from the Memphis facility.

Gross profit was USD 188.5 million, and the Gross Profit margin was 26.7% compared with 27.8% a year earlier. Margins by segment: AAON Oklahoma 25.5% compared with 33.0%, AAON Coil Products 25.8% compared with 11.0%, and BASX 28.7% compared with 27.0%. The company tied the Coil Products margin to higher sales Volume of BASX-branded products and improved overhead absorption. The Memphis Facility contributed USD 20.7 million in cost of sales to the AAON Oklahoma segment, compared with USD 4.5 million a year earlier.

Costs, Taxes and Balance Sheet

Selling, general and administrative expenses were USD 88.6 million, an increase of USD 25.3 million, and fell as a share of sales to 12.5% from 16.5%. Profit sharing increased USD 5.9 million on better earnings, and warranty expense rose USD 2.4 million on higher historical claims.

Raw material costs per pound for the three-month average were USD 7.34 for copper compared with USD 6.41, USD 3.12 for aluminum compared with USD 2.45, USD 0.63 for galvanized steel compared with USD 0.60 and USD 1.69 for stainless steel compared with USD 1.68.

Interest expense was USD 5.8 million. The income tax provision was USD 25.3 million, an effective rate of 26.8% compared with 19.9% a year earlier. The estimated annual 2026 effective tax rate, excluding discrete events, is approximately 25.7%, and the company noted minimal Stock Compensation tax benefits in the quarter given its lower stock price. The Leverage Ratio was 1.0, and available borrowings under the revolver were USD 212.6 million.

Nine Month Results

For the nine months ended September 30, 2026, net sales were USD 1,842.1 million, compared with USD 1,017.9 million a year earlier. Gross profit was USD 476.7 million compared with USD 276.0 million. Income from operations was USD 233.9 million compared with USD 102.3 million, and net income was USD 172.5 million compared with USD 75.6 million. Selling, general and administrative expenses were USD 242.8 million compared with USD 173.7 million.

Segment Drivers and Cost Inputs

The quarter's results rest on data center solutions and liquid cooling orders, which the filing names as the main drivers of the BASX and Coil Products segments. The company also cited segment gross margins, an effective tax rate guide of approximately 25.7%, copper and aluminum cost trends, a leverage ratio of 1.0 and output from its Memphis facility.