AAON, Inc. reported a significant increase in financial performance for the fiscal year ending December 31, 2025, with net sales reaching $1.442 billion, a 20.1% increase from $1.201 billion in 2024. The growth was primarily driven by a 143.5% surge in sales of BASX-branded products, which accounted for $547.8 million, while AAON-branded products saw a decline of 8.3%, totaling $894.3 million. The company's gross profit decreased slightly to $385.7 million, down from $397.1 million in the previous year, reflecting a gross margin of 26.7%, compared to 33.1% in 2024. Net income also fell to $107.6 million from $168.6 million, resulting in diluted earnings per share of $1.29.
The company experienced notable operational changes, including the implementation of a new Enterprise Resource Planning (ERP) system, which went live in April 2025. This transition caused some disruptions in production, particularly affecting the AAON Coil Products segment. Additionally, AAON's backlog increased significantly to $1.828 billion, up 110.9% from $867.1 million in 2024, with BASX-branded products contributing to a backlog of $1.302 billion, a 141.3% increase. The company also expanded its workforce, employing approximately 5,897 employees as of February 2026, compared to 3,856 a year earlier.
Strategically, AAON has focused on enhancing its product offerings and expanding its market presence. The company introduced new products, including a water-free Free Cooling Chiller platform and a proprietary Coolant Distribution Unit for data centers, which are designed to meet the growing demand for energy-efficient cooling solutions. The company also reported that foreign sales accounted for approximately $38.1 million, representing 2.6% of total net sales, indicating a slight increase in international market engagement.
Looking ahead, AAON anticipates continued growth driven by the data center market and ongoing demand for customized HVAC solutions. However, the company acknowledged potential challenges, including macroeconomic factors such as inflation, interest rates, and supply chain disruptions, particularly related to raw materials and components. The company remains committed to investing in research and development, with R&D expenses increasing to $58.2 million in 2025, up from $47.3 million in 2024, to support innovation and product development.
About AAON, INC.
AAON, Inc. is a leading provider of HVAC solutions, specializing in semi-custom and custom heating, ventilation, and air conditioning systems for commercial and industrial markets. With a focus on energy efficiency and sustainability, AAON's innovative products, including rooftop units and advanced controls, cater to diverse applications, including data centers and cleanrooms. The company is well-positioned to capitalize on growing demand for high-performance HVAC systems, supported by robust R&D initiatives.
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