AAON, Inc. Reports Fourth Quarter and Full Year 2025 Results: Record Backlog, Significant Share Buyback, and Strong 2026 Outlook

Key Highlights

• AAON delivered robust sales growth in 2025, with the company carrying a record backlog into 2026.
• The Board of Directors authorized a \$100 million share repurchase program, allowing the company to buy back its own common stock from the open market.
• 2025 net sales reached \$1.63 billion, up from \$1.2 billion in 2024, representing impressive year-over-year growth.
• Gross profit margin for FY25 was 27.5%.
• Net income for 2025 was \$107.6 million (GAAP measure).
• The company ended 2025 with a cash balance of \$1.2 million and a balance of \$398.3 million on its revolving credit facility.
• AAON projects FY26 sales growth of 18-20%, gross profit margin of 29-31%, and SG&A as a percentage of sales at approximately 16%.
• Capital expenditure plans for 2026 are set at \$190 million, underlining ongoing investments in growth and capacity expansion.
• Dividends paid in 2025 totaled \$32.6 million.

Detailed Financial Results

Full Year 2025

• Net Sales: \$1,627,297,000 (FY25) vs \$1,235,874,000 (FY24)
• Gross Profit: \$447,478,000 (27.5% margin)
• Operating Income: \$192,532,000
• Net Income: \$107,593,000
• Earnings per Diluted Share (EPS): \$1.28
• Diluted Shares Outstanding: 83,629,502
• Dividends Declared per Share: \$0.32 in 2025 (up from \$0.26 in 2024)

Q4 2025

• Net Sales: \$424,217,000
• Gross Profit: \$116,287,000
• Operating Income: \$43,960,000
• Net Income: \$32,032,000
• Diluted EPS: \$0.39
• Cash Dividends Paid to Stockholders: \$10 million in Q4

2026 Outlook

• Sales Growth: 18-20%
• Gross Profit Margin: 29-31%
• SG&A as % of Sales: ~16%
• Depreciation & Amortization: \$95M – \$100M
• Capital Expenditures: \$190M planned, focused on capacity and technology investments
• Operating cash flow expected to improve significantly, driven by higher earnings and improved working capital efficiency.

Shareholder Actions & Potential Price-Sensitive Developments

• \$100 Million Share Buyback Program:

  The Board authorized up to \$100 million in open-market share repurchases, which could provide EPS accretion and support share price. All repurchased shares will be restored as authorized but unissued stock. Timing and amounts will be determined by the Board based on market conditions and will comply with SEC rules.

• Record Backlog:

  AAON carries a record backlog into 2026, indicating strong customer demand and future revenue visibility.

• Significant Investment in Growth:

  With \$190 million in planned 2026 capital expenditures, the company is positioning for further expansion, which may drive long-term earnings growth.

• Dividend Growth:

  Continued dividend payments with an increase from previous years signals confidence in cash flow and future profitability.

• Balance Sheet:

  The company closed 2025 with \$1.2 million in cash and \$398.3 million drawn on its revolving credit facility. While leverage has increased to fund investments, management anticipates improved operating cash flow in 2026 as investments yield returns.

• Forward-Looking Statements and Risks:

  Management cautions that actual results may differ materially from guidance due to raw material and component price fluctuations, commercial/industrial construction trends, interest rate changes, competitive dynamics, and general economic conditions.

Conference Call Information

AAON hosted a conference call on March 2, 2026, at 9:00 a.m. EST to discuss Q4 and full-year 2025 results and the 2026 outlook. A replay is available on the company’s website at aaon.com/Investors.

Use of Non-GAAP Measures

AAON provides additional non-GAAP financial measures, including Adjusted Net Income, EBITDA, and Adjusted EBITDA, to help investors better understand operating performance. These measures are reconciled to GAAP results in the company’s earnings release.

Conclusion

AAON’s strong 2025 performance, record backlog, major capital investments, and substantial share repurchase authorization are all material events that could impact the company’s share price. The combination of healthy growth, expanding margins, and shareholder returns positions AAON as an attractive investment candidate for 2026, subject to typical industry and macroeconomic risks.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review all official filings and consult with financial advisors before making investment decisions. This summary is based on company-reported data and contains forward-looking statements subject to risks and uncertainties.

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