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Aaon Q1 2025 Earnings Report
AAON reported a decrease in net income and EPS, despite an increase in total net sales, driven by strong growth in BASX branded products.
Key Takeaways
AAON, Inc. reported a mixed financial performance for the first quarter of 2025. While total net sales increased by 22.9% to $322.054 million, net income decreased to $29.292 million from $39.016 million in the prior year. Diluted EPS also saw a decline to $0.35 from $0.46 in the same period last year. The growth in sales was primarily driven by a significant increase in BASX branded products, which offset a decrease in AAON branded products.
Total net sales increased by 22.9% to $322.054 million in Q1 2025, up from $262.099 million in Q1 2024.
Net income for Q1 2025 was $29.292 million, a decrease from $39.016 million in Q1 2024.
Diluted earnings per share (EPS) for Q1 2025 were $0.35, down from $0.46 in Q1 2024.
BASX branded products sales surged by 374.8%, contributing significantly to the overall sales growth, while AAON branded products sales decreased by 19.1%.
Aaon
Aaon
Aaon Revenue by Segment
Revenue by Segment
AAON Oklahoma Revenue
CapyFin.comAAON Coil Products Revenue
CapyFin.comBASX Revenue
CapyFin.com Forward Guidance
AAON anticipates continued challenges from trade conflicts, supply chain disruptions, and a tight labor market, which could negatively impact financial results. However, the company is well-positioned to manage these challenges due to its favorable liquidity and strategic purchasing.
Positive Outlook
- Favorable liquidity position allows for strategic purchases of materials.
- Strong vendor relationships help manage supply chain challenges.
- Expanding list of available vendors diversifies supply chain.
- Human resource initiatives aim to retain and attract labor, increasing production capacity.
- Ability to pass along increased costs to customers helps mitigate impact on earnings.
Challenges Ahead
- Continuous changes and uncertainty in tariff policy could impact cost of materials and parts.
- Reciprocal tariffs and restricted exports by foreign countries could affect supply availability.
- Increased product prices due to cost pass-through could adversely affect demand.
- Tight labor market, especially for skilled and unskilled production labor, continues to be a challenge.
- Future increases in material, parts, components, or labor costs could negatively impact consolidated financial position and results of operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income