AAON Q4 Revenue Jumps 42.5% to $424.2M with Record $1.83B Backlog
AAON's Q4 revenue rose 42.5% year-on-year to $424.2 million, smashing forecasts and driving a record order backlog of $1.83 billion, up 111% from last year. Adjusted EPS of $0.39 improved 30% year-on-year despite missing estimates, while the new Memphis facility recorded its first profitable quarter.
1. Q4 Financial Highlights
In the fourth quarter, AAON delivered revenue of $424.2 million, up 42.5% year-on-year, exceeding consensus projections. Adjusted earnings per share reached $0.39, a 30% increase over last year despite falling short of estimates, while the company amassed a record $1.83 billion order backlog, up 111%.
2. Record Sales and AI Demand
Basics branded sales surged 143% driven by rapid expansion in the AI data center market and demand for custom liquid cooling solutions. Overall branded sales declined just 8% versus a 16% industry drop, with branded bookings growing 12% led by an 86% increase in national account orders seeking total cost-of-ownership advantages.
3. Capacity Expansion and Profitability
AAON expanded its manufacturing footprint by 25% over the past 18 months, positioning itself to convert a $1.3 billion Basics backlog into future revenue. The Memphis facility achieved its first profitable quarter, even as seasonal volume declines and temporary supply constraints in Tulsa compressed margins.
4. Innovation in Cold Climate Solutions
Strategic focus on cold climate heat pumps led AAON to become the first to commercialize 40-ton units capable of operating at negative 20°F, strengthening its competitive position in extreme environment HVAC markets.