10-Q · May 7, 2026
AAON reported impressive Q1 2026 results with revenue of $496.9 million, beating estimates of $384.2 million, and EPS of $0.48, significantly above the expected $0.30. The company attributed the strong performance to…
Earnings analysis · 10-Q
AAON earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
AAON delivered a strong Q2, with revenue of $626.976 million and diluted EPS of $0.69, materially above both prior periods and consensus estimates of $505.34 million and $0.50. The company also raised FY2026…
Read full summary
AAON delivered a strong Q2, with revenue of $626.976 million and diluted EPS of $0.69, materially above both prior periods and consensus estimates of $505.34 million and $0.50. The company also raised FY2026 sales-growth expectations to 55%-60% from 40%-45%, but lowered gross-margin expectations to 25%-26% from 27%-28%. The principal balance-sheet risk is $435.0 million of debt, with a 1-percentage-point rate increase estimated to reduce annual pretax income by $4.4 million; the filing states there were no material changes to the prior annual report’s risk factors.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.69
What stood out
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Record revenue and major estimate beat
Q2 revenue was $626.976 million, up 100.9% from $312 million in Q2 2025 and 26.1% from $497 million in Q1 2026. Revenue exceeded the $505.34 million consensus estimate by $121.636 million, or 24.1%.
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EPS sharply outperformed expectations
Diluted EPS was $0.69 versus $0.19 in Q2 2025 and $0.48 in Q1 2026, increases of 263.2% and 43.8%, respectively. EPS exceeded the $0.50 estimate by $0.19, or 38%.
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FY2026 sales outlook raised
Management’s FY2026 sales-growth outlook was raised to 55%-60% from 40%-45%, indicating stronger expected demand despite lower margin expectations.
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No control deficiencies identified
Disclosure controls were evaluated as effective as of the end of the quarter, and the company reported no changes in internal control that materially affected or were reasonably likely to materially affect reporting.
What to watch
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Debt creates interest-rate sensitivity
AAON reported $435.0 million of outstanding debt as of June 30, 2026. A 1-percentage-point increase in the applicable interest rate would reduce annual income before taxes by approximately $4.4 million.
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Commodity-cost volatility remains
The company remains exposed to commodity-price volatility and uses cancellable and non-cancellable supplier contracts with terms of 6 to 18 months to manage the exposure. The filing states there were no material changes to the risk factors in the 2025 Annual Report.
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Higher growth comes with margin pressure
The previously disclosed FY2026 gross-margin outlook was lowered to 25%-26% from 27%-28%, despite the sales-growth outlook increasing to 55%-60% from 40%-45%; this implies a material near-term profitability headwind from rapid expansion and ramp costs.
Management's outlook
The 10-Q does not provide numeric EPS or revenue-dollar guidance. The previously disclosed FY2026 sales-growth outlook was raised to 55%-60% from 40%-45%; gross-margin guidance was lowered to 25%-26% from 27%-28%, and SG&A guidance improved to 13%-14% from 14%-15%.
Earlier filings 4
10-K · March 2, 2026
AAON reported record 2025 net sales of $1,442.1 million (up 20.1% YoY) driven by strong BASX/data‑center demand and a materially larger backlog of $1,828.5 million (up 110.9%). Revenue growth was offset by margin…
10-Q · November 6, 2025
AAON reported a Q3 2025 revenue beat with net sales of $384,238,000, up $56,986,000 or 17.4% versus Q3 2024, driven by strong BASX/data-center demand and a backlog surge. Despite top-line strength and an EPS beat ($0.37…
10-Q · May 1, 2025
AAON reported Q1 net sales of $322,054,000, up 22.9% year-over-year, driven by strong BASX and AAON Coil Products demand, while consolidated gross margin compressed to 26.8% from 35.2% and operating income fell to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.