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Sep 30, 2024
Aaon Q3 2024 Earnings Report
Aaon achieved record sales and earnings, driven by growth in BASX and AAON Coil Products segments, while managing margin pressures and investing in future growth.
Key Takeaways
AAON reported record net sales of $327.3 million for Q3 2024, a 4.9% increase year-over-year. Earnings per diluted share were $0.63, consistent with the adjusted earnings per diluted share in Q3 2023. The company's growth was primarily driven by the BASX and AAON Coil Products segments, while the AAON Oklahoma segment experienced a decline in sales.
Net sales increased by 4.9% to a record $327.3 million compared to Q3 2023.
BASX and AAON Coil Products segments drove the majority of the year-over-year sales growth.
Earnings per diluted share remained flat at $0.63 compared to the adjusted earnings per diluted share in the same quarter last year.
Backlog at the end of the quarter was $647.7 million, up 32% from the previous year.
Revenue by Segment
Forward Guidance
AAON is positioned for accelerated growth in the next 12 months, driven by increasing demand for high-quality HVAC equipment, the data center market, and the company's competitive advantages.
Positive Outlook
- AAON is becoming increasingly competitive as demand for higher quality HVAC equipment and solutions increases.
- The vast build-out of data center capacity in North America presents a massive opportunity for the company.
- AAON's superior innovation and engineering capabilities position it well to capitalize on market opportunities.
- Highly productive operations contribute to AAON's ability to meet growing demand.
- AAON's world-class sales channel enhances its market reach and customer engagement.
Challenges Ahead
- Anticipate a softening in overall rooftop demand in the near-term mainly due to the slower economic backdrop.
- Gross profit margin in the quarter was down from the comparable quarter in 2023.
- The contraction in gross margin was a result of lower volumes at the AAON Oklahoma segment.
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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