AAON Q4 Sales Up 42.5%, BASX Backlog Hits $1.3 Billion; 2026 Growth
AAON net sales rose 42.5% to $424.2 million in Q4, driven by 138.8% BASX segment growth, while AAON backlog increased 61% and BASX backlog reached $1.3 billion, up 141% year-over-year. Management forecasts 18–20% revenue growth and 29–31% gross margin for 2026 despite uneven quarterly progression.
1. Fourth Quarter Financial Results
AAON reported Q4 net sales of $424.2 million, a 42.5% increase year-over-year, with non-GAAP adjusted EBITDA margin at 15.2% and diluted EPS of $0.39, up 30% from the prior year period.
2. Segment Performance and Backlog Growth
AAON-branded sales rebounded 9.5% and bookings rose 20%, lifting AAON backlog by 61%. The BASX segment delivered record bookings, driving backlog to $1.3 billion, up 141% year-over-year, with BASX sales climbing 109.1% to $106.1 million and a full-year book-to-bill ratio of 2.4.
3. Margin Pressures and Operational Dynamics
Gross margin narrowed slightly to 25.9% from 26.1%, primarily due to unabsorbed fixed costs at the new Memphis facility and temporary supply chain constraints at Tulsa. Management expects rising utilization and resumed throughput to provide operating leverage.
4. 2026 Guidance and Outlook
For 2026, AAON targets 18–20% sales growth and a 29–31% gross margin, with SG&A around 16% of sales and depreciation and amortization of $95–100 million, noting that quarterly margin progression will vary as capacity ramps and product mix normalizes.