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Jun 30, 2022
Aaon Q2 2022 Earnings Report
AAON's Q2 2022 earnings were reported, revealing record sales and backlog.
Key Takeaways
AAON reported a 45.1% increase in net sales for Q2 2022, reaching $208.8 million. However, earnings per diluted share declined by 21.1% to $0.30 due to a contraction in gross profit. The company finished the quarter with a record backlog of $464.0 million.
Net sales increased 45.1% to $208.8 million compared to Q2 2021.
Earnings per diluted share decreased 21.1% to $0.30 from $0.38 in the prior year.
The company achieved a record backlog of $464.0 million, up 235.9% from the previous year.
Gross profit margin decreased due to increased material, component, labor, and freight costs, but improved materially throughout the quarter.
Aaon
Aaon
Aaon Revenue by Segment
Revenue by Segment
BASX Revenue
CapyFin.com Forward Guidance
AAON anticipates improved financial results in the second half of the year, driven by a robust backlog with an improving margin profile and increased production headcount. The company remains optimistic about its long-term outlook, citing innovations in its product offering, advanced manufacturing processes, and a strong independent sales channel.
Positive Outlook
- Robust backlog with an improving margin profile.
- Increased production headcount.
- Innovations in premier product offering.
- Advanced manufacturing process.
- Strong independent sales channel.
Challenges Ahead
- Supply chain constraints remain a week-to-week issue, resulting in inefficiencies and larger than normal inventory.
- Second quarter was impacted by lower priced orders in our backlog.
- Increased material, component, labor and freight costs.
- Net borrowings of $41.2 million from our line of credit to finance the purchase of the BasX building and meet our working capital needs.
- Decline in earnings was primarily due to the contraction in gross profit.