AAON raises 2026 sales growth outlook to 55%-60%, up from prior 40%-45%
Company lowers 2026 gross margin outlook to 25%-26%, from previous 27%-28%
AAON expects sequential margin improvement in H2 2026 as operational actions take effect
Overview
US HVAC solutions provider's Q2 net sales more than doubled, beating analyst expectations
Adjusted EPS for Q2 surged 214% yr/yr
Company raised 2026 outlook, citing strong backlog and improved operational execution
Result Drivers
Strong demand - Co said robust demand across AAON and BASX brands drove sales growth, with BASX benefiting from data center investment activity and AAON gaining share despite soft commercial HVAC market
Expanded capacity - Co attributed accelerated backlog conversion and record sales to expanded manufacturing capacity and improved production throughput
Operating leverage - SG&A as a percent of sales declined, reflecting disciplined cost management and operating leverage as revenue growth outpaced overhead investments
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "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 $135.50, about 42.9% above its August 7 closing price of $94.83
The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 40 three months ago
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