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Sep 30, 2023
Aaon Q3 2023 Earnings Report
AAON reported a strong third quarter in 2023, achieving record net sales and gross profits, driven by robust growth in AAON Oklahoma and BASX segments, and improved productivity across all segments.
Key Takeaways
AAON's third quarter of 2023 showed a significant increase in net sales, gross profit, and net income compared to the same period in 2022. The company achieved record net sales and gross profits, with all three segments performing well. Improved productivity and operational efficiencies were key factors in the company's strong performance.
AAON achieved record net sales for the seventh consecutive quarter, reaching $312.0 million, a 28.6% increase from Q3 2022.
Gross profit margin increased to 37.2%, up from 27.0% in Q3 2022, driven by incremental pricing, improved operational efficiencies, and better overhead absorption.
Net income for the quarter was $48.1 million, a 75.0% increase compared to the prior year quarter.
The company's backlog decreased to $490.6 million, down 4.7% from a year ago, as production outpaced bookings to draw down backlog to more appropriate levels.
Forward Guidance
AAON is optimistic about the fourth quarter and year-end results and anticipates upcoming new refrigerant regulations will noticeably disrupt the industry in 2024, which they view as a positive. AAON believes it is entering a more predictable manufacturing environment than it's seen in years, which will enable productivity to further increase.
Positive Outlook
- Optimistic about Q4 and year-end results.
- New refrigerant regulations in 2024 viewed as a positive.
- AAON thrives on challenges and views it as an opportunity to take market share.
- Entering a more predictable manufacturing environment.
- Expect productivity to further increase.
Challenges Ahead
- Pockets of end-markets are slowing.
- Unspecified disruptions expected in 2024.
- Dependence on market share gains.
- Reliance on increased productivity.
Historical Earnings Impact
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