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Jun 30, 2021
Aaon Q2 2021 Earnings Report
AAON achieved record sales and a robust increase in backlog.
Key Takeaways
AAON reported a 14.6% increase in net sales, reaching an all-time record high of $143.9 million. Diluted EPS increased by 11.8% to $0.38. The company's backlog grew to $138.1 million, driven by strong demand and new bookings.
Net sales increased by 14.6% to a record $143.9 million.
Diluted EPS rose by 11.8% to $0.38.
Backlog increased to $138.1 million, up 33.4% year-over-year.
New bookings increased approximately 70% compared to the same period last year.
Aaon
Aaon
Forward Guidance
AAON anticipates sales and earnings growth to accelerate in the second half of the year, driven by a strong backlog and robust order trends. Gross profit is expected to improve through disciplined pricing and productivity improvements. The company maintains a positive outlook on its long-term fundamentals.
Positive Outlook
- Sales and earnings growth is expected to accelerate.
- Backlog is up 33.4% from a year ago and 42.8% from the end of the first quarter.
- Order trends are robust and show no sign of slowing.
- New construction market is showing early signs of a strong recovery.
- Disciplined pricing strategy combined with expected productivity improvements should drive higher gross and operating profits.
Challenges Ahead
- Inflationary challenges from tight labor markets.
- Increased raw material costs.
- The effects of fluctuations in the commercial/industrial new construction market.
- The timing and extent of changes in interest rates, as well as other competitive factors during the year.
- General economic, market or business conditions.