AAON Sales Jump 54% to $497M, Backlog Tops $2.13B, Raises FY26 Guidance
AAON reported record first-quarter net sales of $496.9 million, up 54.3% year-over-year, with GAAP diluted EPS rising 37.1% to $0.48 and total backlog surging 107.4% to $2.13 billion. The company raised its full-year outlook to 40-45% revenue growth and forecasts gross margins of 27-28%.
1. First Quarter 2026 Results
Net sales in Q1 2026 increased 54.3% to $496.9 million from $322.1 million a year earlier, driven by strong demand across AAON and BASX brands. GAAP diluted EPS rose 37.1% to $0.48, while gross profit margin was 25.1%, reflecting temporary unabsorbed fixed costs from recent capacity investments.
2. Backlog Growth and Brand Performance
Total backlog reached a record $2.13 billion, up 107.4% from $1.03 billion a year ago and 16.5% sequentially. BASX-branded backlog jumped 160% year-over-year to $1.62 billion, fueled by data center cooling demand, while AAON-branded backlog of $510 million declined 3.1% sequentially as production exceeded new orders.
3. Capacity Expansion and Operational Execution
Investments in new manufacturing capacity and improved throughput contributed to accelerated production rates, with BASX sales up 72.4% to $228.6 million and AAON sales up 41.6% to $268.4 million. SG&A expenses declined 220 basis points to 13.7% of sales, demonstrating enhanced operating leverage and disciplined cost management.
4. Updated Full-Year 2026 Outlook
AAON now expects 2026 revenue growth of 40%–45% and gross margins of approximately 27%–28%, up from prior targets of 18%–20% sales growth and 29%–31% margins. The company anticipates SG&A at 14%–15% of sales and depreciation and amortization expenses of $95–100 million.