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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%.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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