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Sep 30
Aaon Q3 2025 Earnings Report
AAON reported strong Q3 2025 results driven by operational improvements and market share gains.
Key Takeaways
AAON delivered solid Q3 2025 performance, achieving strong revenue growth and record backlog despite margin pressures from ERP transition costs and plant overheads.
Revenue grew 17.4% year-over-year to $384,238,000.
Adjusted EPS held at $0.37 despite ERP-related headwinds.
Backlog reached a record $1.32 billion, up 103.8% year-over-year.
BASX segment saw significant growth due to increased demand for data center solutions.
Aaon
Aaon
Aaon Revenue by Segment
Revenue by Segment
AAON Oklahoma Revenue
CapyFin.comAAON Coil Products Revenue
CapyFin.comBASX Revenue
CapyFin.com Forward Guidance
AAON expects strong demand to continue into Q4, supported by backlog and production scaling, with improvements in ERP utilization and operational efficiency.
Positive Outlook
- Backlog strength provides visibility into future demand.
- ERP integration progress improving operational throughput.
- Memphis facility ramping up to support BASX growth.
- Steady increase in production output, especially at Longview.
- Data center cooling segment gaining momentum.
Challenges Ahead
- Gross margin remains below prior-year levels.
- Operational inefficiencies from ERP still impacting costs.
- Memphis plant overhead expenses affecting profitability.
- BASX segment margins slightly compressed by labor costs.
- Working capital constraints impacted cash flow in Q3.
Revenue & Expenses
Visualization of income flow from segment revenue to net income