Aaon reaffirms FY25 outlook, sees Q2 ‘softer than what we guided to’

According to a transcript of Aaon‘s (AAON) investor day meeting, the company stated: “So we want to reaffirm our outlook that we gave at our first quarter earnings call for 2025. Sales will grow in the mid to high teens. Gross margin is expected to be consistent with 2024… I do want to take a quick moment to provide an update on Q2. We’ve talked a lot about these investments in technology and one of those investments is a new ERP. Now our strategy for going live with our ERP is to go live site by site. So on April 1, we went live with our Longview, Texas location. Now we were intentional in picking Longview, Texas because it represents a good cross section of the company and that it produces the Aon brand, the Basics brand and coils. Now while the solution is technically sound, it has caused some disruptions and slowed production at that facility. As a result, we do anticipate our Q2 will be softer than what we guided to.”