Aaon Q1 2023 Earnings Report
Key Takeaways
AAON reported a strong first quarter in 2023, with record sales of $266.0 million, a 45.5% increase year-over-year. Earnings per diluted share increased by 103.0% to $0.67. The company's backlog also reached a record $599.9 million, up 30.0% from the previous year.
Net sales increased by 45.5% to a record $266.0 million.
Earnings per diluted share increased by 103.0% to $0.67.
Gross profit margin improved to 29.0%, up 380 basis points from Q1 2022.
Backlog reached a record $599.9 million, up 30.0% year-over-year.
Aaon
Aaon
Forward Guidance
AAON remains positive on its business outlook, citing the profitability of its record backlog and continued positive trends in bookings. Investments in capacity expansion and employee benefits are expected to drive further improvements in gross profit margin throughout the year.
Positive Outlook
- Profitability of record backlog positions the company well through at least the third quarter.
- Bookings continue to trend positively, helping to carry the company through year-end.
- Recent closing of a New Markets Tax Credit transaction related to expansion of the Longview, Texas facility.
- Acquisition of additional properties in Tulsa for additional production capacity, warehouse space, and office space.
- Investments in employee benefits are paying off as demonstrated in the company's ability to hire.
Challenges Ahead
- Gross profit margin decreased compared to the fourth quarter of 2022.
- One-time expenses incurred as a result of improving some employee benefits.
- Capital expenditures were up 106.2% to $28.9 million.
- Net borrowings of $12.7 million on the line of credit.
- The company acknowledges risks and uncertainties that could cause results to differ materially from forward-looking statements.