AAON Posts 20.1% Sales Jump to $1.44B, Backlog Soars 110.9%
AAON’s full-year net sales rose 20.1% to $1.44 billion in 2025, while GAAP diluted EPS fell to $1.29 from $2.02 and gross margin contracted to 26.7%. Record year-end backlog jumped 110.9% to $1.83 billion, underpinning projected 18–20% revenue growth and 29–31% gross margins for 2026.
1. Robust Sales Growth and Earnings
In 2025, AAON achieved net sales of $1.44 billion, a 20.1% increase over 2024, while GAAP diluted EPS declined to $1.29 from $2.02 and gross margin narrowed to 26.7%. In the fourth quarter, net sales jumped 42.5% to $424.2 million as EPS rose 30% to $0.39, led by a 138.8% surge in BASX sales to $181.4 million.
2. Record Backlog and Capacity Expansion
Year-end backlog reached a record $1.83 billion, up 110.9% year-over-year, driven by a 141.3% surge in BASX branded orders and a 60.8% increase in AAON branded backlog. The company expanded its manufacturing footprint by 25% and doubled capacity for data-center cooling equipment with a new 787,000-square-foot Memphis facility.
3. Outlook for 2026
AAON projects 18–20% revenue growth and gross margins of 29–31% for 2026, supported by its record backlog, expanded production capacity and ongoing ERP enhancements. Management anticipates improved margin expansion as fixed-cost absorption accelerates across its scaled facilities.