AAON, Inc. reported fourth‑quarter and full‑year 2025 results that included net sales of $424.2 million, a 42.5% year‑over‑year increase from $297.7 million in Q4 2024, and earnings per diluted share of $0.39, a 30% rise from the prior year. The company also posted a record backlog of $1.83 billion as of December 31, 2025, up 110.9% year‑over‑year and 38.5% sequentially.
Revenue growth was driven largely by the BASX‑branded data‑center cooling segment, which grew 138.8% to $181.4 million in the quarter, while AAON‑branded commercial HVAC sales increased 9.5% to $242.8 million. The BASX surge reflects strong demand from data‑center operators and higher utilization of the new Memphis manufacturing facility.
Gross profit margin for the quarter was 25.9%, slightly below the 26.1% margin reported a year earlier. The modest compression was primarily driven by unabsorbed fixed‑cost investments at the Memphis plant, as the company ramps production capacity. EPS missed consensus estimates of $0.45–$0.46, a shortfall of roughly 13–15%, largely because the margin squeeze offset the revenue upside.
Management reiterated its 2026 outlook, projecting sales growth of 18%‑20% and a gross margin of 29%‑31%. "For the year, we anticipate sales growth of 18%-20% at gross margin of 29%-31%, with margin progression expected to be uneven by quarter as capacity ramps and product mix normalizes," said Matt Tobolski, President and CEO. "Looking ahead, utilization and productivity at the Memphis facility continued to increase, and we are positioned for these capacity gains to provide meaningful operating leverage in 2026," added CFO Rebecca Thompson.
The record backlog and robust data‑center demand position AAON to convert bookings into revenue in the coming quarters. The company’s focus on execution, throughput improvement, and margin objectives signals confidence that the current investment cycle will yield long‑term profitability gains as the Memphis facility reaches full capacity.
"2025 represented a year of record growth for AAON, driven by strong bookings and sales reflecting expanding market share and growing demand for our products and custom solutions," said Matt Tobolski. "As we move into 2026, our focus shifts squarely to execution, leveraging that foundation, improving throughput, accelerating backlog conversion, and continuing progress towards our margin objectives."
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