Loading...
•
Dec 31, 2024
Aaon Q4 2024 Earnings Report
AAON reported a decline in revenue and earnings in Q4 2024 due to industry challenges.
Key Takeaways
AAON reported a 2.9% decline in revenue for Q4 2024, with total sales reaching $297.7 million. The company faced headwinds from a regulated refrigerant transition and weaker nonresidential construction activity, impacting sales in the AAON Oklahoma segment. However, strong demand in the BASX brand for data center cooling solutions helped offset some losses. Net income dropped 47.5% year-over-year to $24.7 million, while EPS decreased to $0.30 from $0.56 in Q4 2023.
Q4 2024 revenue decreased by 2.9% year-over-year to $297.7 million.
Net income fell by 47.5% to $24.7 million due to higher costs and lower sales.
Earnings per diluted share dropped 46.4% to $0.30 from $0.56 in Q4 2023.
Backlog increased 70.0% year-over-year, signaling strong future demand.
Forward Guidance
AAON expects revenue and earnings growth in 2025, driven by strong backlog conversion and improved market conditions.
Positive Outlook
- Strong demand for BASX-branded data center cooling solutions.
- Backlog increased 70.0% year-over-year, supporting future revenue growth.
- Expect refrigerant transition headwinds to subside in Q2 2025.
- New Memphis facility expected to enhance production capacity.
- Margins expected to improve as volume growth accelerates.
Challenges Ahead
- Macroeconomic conditions remain uncertain, impacting nonresidential construction.
- Margins will be under pressure in early 2025 due to lower volumes.
- Higher costs associated with production ramp-up in Memphis facility.
- Refrigerant transition impacts likely to persist through Q1 2025.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...