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Dec 31, 2025
Aaon Q4 2025 Earnings Report
Aaon Q4 2025 Earnings Report was released, showing significant revenue growth and record backlog levels.
Key Takeaways
Aaon delivered strong Q4 2025 results with net sales increasing 42.5% year-over-year, driven by robust demand for data center equipment under the BASX brand. While gross margins were slightly pressured by capacity expansion costs in Memphis, the company achieved a record total backlog of $1.83 billion, positioning it for continued growth in 2026.
Net sales grew 42.5% to $424.2 million in Q4 2025 compared to $297.7 million in Q4 2024.
Total backlog reached a record $1.83 billion, up 110.9% year-over-year, driven by a 141.3% increase in BASX-branded products.
GAAP diluted EPS increased 30% to $0.39 for the quarter.
The BASX segment saw a 109.1% increase in net sales and significant margin expansion to 27.1%.
Revenue by Segment
Forward Guidance
The company introduced a positive 2026 outlook based on record backlog and expanded manufacturing capacity.
Positive Outlook
- Expected 2026 sales growth of 18% to 20%.
- Anticipated gross profit margin expansion to 29%-31%.
- Record backlog of $1.83 billion provides strong visibility.
- Memphis facility reached profitability earlier than expected.
- ERP implementation challenges are largely in the past.
Challenges Ahead
- Planned capital expenditures of $190 million in 2026.
- Anticipated depreciation and amortization of $95-$100 million.
- SG&A expenses expected to remain around 16% of sales.
- Near-term pressure from fixed-cost under-absorption during capacity ramp.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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