AAON Reports Record Q3 2024 Sales and Earnings

Aaon Inc ( (AAON) ) has released its Q3 earnings. Here is a breakdown of the information Aaon Inc presented to its investors.

AAON, Inc., a leading manufacturer of energy-efficient HVAC solutions, has reported its financial results for the third quarter of 2024, showcasing record sales and earnings figures. The company, renowned for its advanced engineering and innovation in HVAC systems, serves a diverse range of commercial and industrial markets.

The third quarter of 2024 witnessed AAON achieving a record net sales figure of $327.3 million, marking a 4.9% increase from the previous year. This growth was primarily driven by significant performance in the BASX and AAON Coil Products segments, which saw sales growth of 58.8% and 36.7%, respectively. However, the AAON Oklahoma segment experienced a decline of 7.1% in sales. Despite the challenges of decreasing gross profit margins from inefficiencies and lower volumes in certain segments, AAON maintained its earnings per diluted share at $0.63, consistent with the prior year.

Key financial metrics reveal a mixed performance with gross profit declining by 1.7% to $114.2 million, while operating income saw a modest increase of 1.3% to $65.5 million. The company also reported a net income rise of 9.5% to $52.6 million. The backlog at the end of the quarter was robust at $647.7 million, indicating strong demand, particularly for data center equipment, which is anticipated to be a growth driver moving forward.

Looking ahead, AAON is positioned for transformative growth, fueled by demand in the data center market and strategic expansion plans, including a new facility in Memphis, Tennessee. The company’s management remains optimistic about leveraging high-growth opportunities with its innovative HVAC solutions, which are increasingly gaining competitiveness in the market. With a strong balance sheet and ongoing investments in technology and infrastructure, AAON is well-prepared to sustain long-term growth.