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The latest update is out from Aaon ( (AAON) ).
On March 2, 2026, AAON reported record full-year 2025 results, with net sales up 20.1% to $1.44 billion but lower gross margins and EPS as the company absorbed costs tied to major capacity expansions and an ERP implementation. The company ended 2025 with a record $1.83 billion backlog, highlighted by a 141.3% surge in BASX-branded orders for data center equipment, underscoring strong demand and market-share gains despite extended lead times.
Fourth-quarter 2025 sales rose 42.5% year over year to $424.2 million, with BASX-branded revenue up 138.8% and AAON-branded revenue up 9.5%, while margins were pressured by fixed-cost under-absorption during the Memphis ramp-up. AAON also announced that its board authorized up to $100 million in open-market share repurchases and introduced a 2026 outlook calling for high-teens revenue growth and margin expansion, signaling confidence that recent investments will translate into improved profitability.
Management highlighted that production at the new Memphis facility reached profitability earlier than expected, and that ERP-related disruptions at the Longview, Texas plant have largely eased, positioning operations for better efficiency in 2026. The combination of record backlog, expanding manufacturing footprint, and disciplined capital deployment through buybacks is set to strengthen AAON’s competitive position in the HVAC and data center cooling markets while offering potential upside for shareholders.
The most recent analyst rating on (AAON) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Aaon stock, see the AAON Stock Forecast page.
Spark’s Take on AAON Stock
According to Spark, TipRanks’ AI Analyst, AAON is a Neutral.
AAON scores as moderately positive overall, led by solid financial positioning but weighed down by weaker profitability and negative TTM operating/free cash flow. Technicals are the biggest near-term detractor given the stock’s downtrend and negative momentum, while valuation is also a headwind due to a high P/E and low yield. Offsetting these, the latest earnings call and recent corporate actions point to strong demand/backlog (especially BASX) and improving operational/cash-flow outlook.
To see Spark’s full report on AAON stock, click here.
More about Aaon
AAON, Inc., based in Tulsa, Okla., is a leader in high-performing, energy-efficient HVAC solutions, providing customized air-side and liquid cooling equipment under the AAON and BASX brands. The company focuses on commercial and industrial customers, with a growing presence in data center infrastructure supported by expanded manufacturing capacity, including a major new facility in Memphis, Tennessee.
Average Trading Volume: 984,169
Technical Sentiment Signal: Strong Buy
Current Market Cap: $8.26B
See more insights into AAON stock on TipRanks’ Stock Analysis page.