AAON, Inc. (AAON)

Over the past six months, AAON's stock has gained 9.8%, tracking the S&P 500's 9.6% return. Key events include strong third-quarter 2025 results that surpassed expectations, leading to an 18% stock gain, with revenue of $384.2 million and adjusted earnings per share of $0.37. Second quarter 2025 net sales decreased by 0.6% to $311.6 million. The announcement of the new Memphis facility was a significant development. Concerns have been raised about shrinking operating margin, barely growing earnings per share, and a dropping free cash flow margin.

Historically, AAON experienced moderate seasonality in demand, but the substantial size of its backlog in recent years has largely eliminated this seasonality. Demand from data center customers, in particular, remains exceptionally strong.

AAON, Inc. specializes in designing, manufacturing, marketing, and selling configurable HVAC systems with a focus on long-term value, energy efficiency, and high performance. The company's offerings include rooftop units, custom-engineered AHUs, chillers, and VFDs. Through its BASX segment, AAON provides cooling solutions for data centers and ventilation systems for cleanroom environments, operating through three business segments: AAON Oklahoma, AAON Coil Products, and BASX.

AAON's geographical market presence is primarily in North America, with the United States accounting for over 85% of its total sales revenue. Canada is a strategic growth area, contributing approximately 8% of total sales. While its direct manufacturing and sales offices are located within North America, AAON products are occasionally specified for international projects. The company maintains manufacturing facilities in Tulsa, Oklahoma, Longview, Texas, Parkville, Missouri, and Redmond, Oregon, and plans to expand with a new facility in Memphis, Tennessee.

AAON maintains a strong brand reputation as a leader in high-performing, energy-efficient HVAC solutions. Strong demand in data centers, a focus on energy efficiency, and a record backlog have positively affected AAON's reputation. No specific events negatively impacting AAON's brand reputation in the past year were found.

AAON's ownership is primarily institutional, with major institutions holding between 74.9% and 78.94% of the shares. Individual investors hold approximately 16.3% to 17.18%. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., Wellington Management Group Llp, Champlain Investment Partners, LLC, and State Street Corp. Norman H. Asbjornson, the founder, also maintains a material insider ownership and voting alignment.