# AAON, INC. (AAON)

Informational only - not investment advice.

CIK: 0000824142
SIC: 3585 Air-Cond & Warm Air Heatg Equip & Comm & Indl Refrig Equip
SIC breadcrumb: [Manufacturing](/division/D/) > [Industrial And Commercial Machinery And Computer Equipment](/major-group/35/) > [SIC 3585 Air-Cond & Warm Air Heatg Equip & Comm & Indl Refrig Equip](/industry/3585/)
Latest 10-K filed: 2026-03-02
SEC page: https://www.sec.gov/edgar/browse/?CIK=824142
Filing source: https://www.sec.gov/Archives/edgar/data/824142/000082414226000005/aaon-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-02 · accession 0000824142-26-000005 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000824142.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 1,442,076,000 USD | 2025 | verified |
| Net income | 107,593,000 USD | 2025 | verified |
| Assets | 1,686,510,000 USD | 2025 | verified |
| Net margin | 7.46% | 2025 | computed |
| Operating margin | 10.14% | 2025 | computed |
| Revenue YoY | +20.11% | 2025 | computed |
| ROE | 12.02% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | AAON | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 7.5% | 7.7% | 48 | 110 |
| Operating margin | 10.1% | 13.1% | 38 | 104 |
| Revenue growth | 20.1% | 5.8% | 84 | 111 |
| ROE | 12.0% | 11.7% | 53 | 108 |
| ROA | 6.4% | 5.6% | 57 | 111 |
| Liabilities / equity | 0.88 | 1.10 | 36 | 108 |
| Current ratio | 2.63 | 2.02 | 72 | 110 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 35 Industrial And Commercial Machinery And Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 1442076000 | USD | 2025 | 2026-03-02 |
| Net income | 107593000 | USD | 2025 | 2026-03-02 |
| Assets | 1686510000 | USD | 2025 | 2026-03-02 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-02. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000824142.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2012 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 383,977,000 | 405,232,000 | 433,947,000 | 469,333,000 | 514,551,000 | 534,517,000 | 888,788,000 | 1,168,518,000 | 1,200,635,000 | 1,442,076,000 |
| Net income |  | 53,376,000 | 53,830,000 | 42,329,000 | 53,711,000 | 79,009,000 | 58,758,000 | 100,376,000 | 177,623,000 | 168,559,000 | 107,593,000 |
| Operating income |  | 79,594,000 | 74,235,000 | 55,351,000 | 67,011,000 | 101,836,000 | 69,253,000 | 126,761,000 | 227,494,000 | 209,118,000 | 146,248,000 |
| Gross profit |  | 118,080,000 | 123,651,000 | 103,533,000 | 119,425,000 | 155,849,000 | 137,830,000 | 237,572,000 | 399,020,000 | 397,109,000 | 385,724,000 |
| Diluted EPS |  | 1.00 | 1.01 | 0.80 | 1.02 | 1.49 | 0.73 | 1.24 | 2.13 | 2.02 | 1.29 |
| Operating cash flow | 51,167,000 |  | 57,994,000 | 54,856,000 | 97,925,000 | 128,814,000 | 61,183,000 | 61,318,000 | 158,895,000 | 192,532,000 | 534,000 |
| Dividends paid |  | 12,676,000 | 13,663,000 | 16,728,000 | 16,645,000 | 19,815,000 | 19,947,000 | 22,917,000 | 26,445,000 | 26,084,000 | 32,603,000 |
| Assets |  | 256,530,000 | 296,780,000 | 307,994,000 | 371,424,000 | 449,008,000 | 650,180,000 | 813,903,000 | 941,436,000 | 1,175,234,000 | 1,686,510,000 |
| Stockholders' equity |  | 208,410,000 | 238,925,000 | 249,443,000 | 290,140,000 | 350,865,000 | 466,170,000 | 560,714,000 | 735,224,000 | 824,582,000 | 894,985,000 |
| Cash and cash equivalents |  | 24,153,000 | 21,457,000 | 1,994,000 | 26,797,000 | 79,025,000 | 2,859,000 | 5,451,000 | 287,000 | 14,000 | 13,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2012 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 13.90% | 13.28% | 9.75% | 11.44% | 15.35% | 10.99% | 11.29% | 15.20% | 14.04% | 7.46% |
| Operating margin |  | 20.73% | 18.32% | 12.76% | 14.28% | 19.79% | 12.96% | 14.26% | 19.47% | 17.42% | 10.14% |
| Return on equity |  | 25.61% | 22.53% | 16.97% | 18.51% | 22.52% | 12.60% | 17.90% | 24.16% | 20.44% | 12.02% |
| Return on assets |  | 20.81% | 18.14% | 13.74% | 14.46% | 17.60% | 9.04% | 12.33% | 18.87% | 14.34% | 6.38% |
| Liabilities / equity |  | 0.23 | 0.24 | 0.23 | 0.28 | 0.28 | 0.39 | 0.45 | 0.28 | 0.43 | 0.88 |
| Current ratio |  | 3.61 | 3.07 | 2.96 | 3.35 | 3.73 | 2.51 | 2.40 | 3.23 | 2.79 | 2.63 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/AAON/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-10. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000824142.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.51 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.67 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.82 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 311,970,000 | 48,078,000 | 0.58 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 306,638,000 | 47,049,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 262,099,000 | 39,016,000 | 0.46 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 313,566,000 | 52,228,000 | 0.62 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 327,252,000 | 52,625,000 | 0.63 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 297,718,000 | 24,690,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 322,054,000 | 29,292,000 | 0.35 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 311,567,000 | 15,487,000 | 0.19 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 384,238,000 | 30,782,000 | 0.37 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 424,217,000 | 32,032,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 496,936,000 | 39,815,000 | 0.48 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 626,976,000 | 56,659,000 | 0.68 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from AAON's latest 10-K: [/company/AAON/business/](/company/AAON/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from AAON's latest 10-K: [/company/AAON/risk-factors/](/company/AAON/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/824142/000082414226000055/aaon-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-10
Report date: 2026-06-30

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the notes thereto, which are included in this report, and our audited consolidated financial statements and the notes thereto, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.

This discussion contains or incorporates by reference “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not historical facts, but rather are based on expectations, estimates, assumptions and projections about our industry, business and future financial results, based on information available at the time this report is filed with the SEC or, with respect to any document incorporated by reference, available at the time that such document was prepared. Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including those identified in the section entitled “Forward-Looking Statements” in this Item 2 of this Quarterly Report on Form 10-Q and in the section entitled “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. We do not assume any obligation to update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or circumstances or otherwise, except as required by law.

Description of the Company

AAON is a leader in HVAC solutions for commercial and industrial indoor environments. The Company’s industry-leading approach to designing and manufacturing highly configurable equipment to meet exact needs creates a premier ownership experience with greater efficiency, performance, and long-term value. AAON is headquartered in Tulsa, Oklahoma, where its world-class innovation center and testing capabilities enable continuous advancement toward a cleaner and more sustainable future.

We engineer, manufacture, and sell premium heating, ventilation, and air conditioning equipment consisting of semi-custom and custom rooftop units, data center cooling solutions, cleanroom systems, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls. These products are marketed and sold to a variety of vertical markets including retail, manufacturing, educational, lodging, supermarket, data centers, medical and pharmaceutical, industrial, and other commercial markets. We sell our products to all 50 states in the United States and certain provinces in Canada. 

Foreign sales were approximately $7.6 million and $18.8 million for the three and six months ended June 30, 2026, as compared to $7.5 million and $18.8 million for the three and six months ended June 30, 2025.

Our AAON brand can be affected by a number of economic factors, including the level of economic activity in the markets in which we operate. After the commercial and industrial new construction markets came to a standstill in 2020–2021, our core nonresidential end‑markets entered a period of robust growth, increasing by approximately 50.0% between 2022 and 2024. By late 2024, however, these markets began to contract, and the softening continued through 2025, though at a moderate rate. While leading indicators signal a stabilization in activity, we have not observed clear indications of a significant reacceleration. Furthermore, signals from general economic indicators are mixed regarding the health of the general economy. If the domestic economy were to slow or enter a recession, this could further impact our new construction markets and also weigh on the replacement market, potentially resulting in reduced sales volumes and profitability. Sales in the commercial and industrial new construction markets generally lag behind the housing market, which in turn is influenced by cyclical factors such as interest rates, inflation, consumer spending habits, employment rates, the state of the economy and other macroeconomic factors over which we have no control. Sales in the replacement markets are driven by various factors, including general economic growth, the Company's new product introductions, fluctuations in the average age of existing equipment in the market, government regulations and stimulus, change in market demand between more customized, higher performing HVAC equipment and lower priced standard equipment, as well as many other factors. When new construction is down, we emphasize the replacement market.

Our BASX brand is heavily dependent on the data center market. The growing maturity and adoption of Artificial Intelligence and high-performance compute is driving profound innovation across the data center market, resulting in increased demand for our products and solutions. Between 2022 and 2025, total put‑in‑place construction spending for data centers expanded by approximately 240.0%, and present indicators suggest continued strength with no meaningful signs of slowing in the foreseeable future. In response, we have made substantial capital investments to expand our capacity and ensure we are fully equipped to support this accelerating growth trajectory.

33

We sell our products to property owners and contractors mainly through a network of independent manufacturers’ Representatives. This go-to-market strategy is unique compared to most of our larger competitors in that most control their sales channel. We value the independent sales channel as we think it is a more effective way of increasing market share. Although we concede full control of the sales process with this strategy, the entrepreneurial aspect of the independent sales channel attracts the most talent and provides greater financial incentives for its salespeople. Further, the independent sales channel sells different types of equipment from various manufacturers, allowing it to operate with more of a solutions-based mindset, as opposed to an internal sales department of a manufacturing company that is incentivized to only sell its equipment regardless if it is the best solution for the end customer. We also have a small internal sales force that supports the relationships between the Company and our sales channel partners. BASX sells highly customized products for unique applications for a more concentrated customer base and an internal sales force is more effective for such products.

The principal components of cost of sales are labor, raw materials, component costs, factory overhead, freight out, and engineering expense. The principal high volume raw materials used in our manufacturing processes are steel, copper, and aluminum, and are obtained from domestic suppliers. We also purchase from domestic manufacturers certain components, including coils, compressors, motors, and electrical controls.

The price levels of our raw materials fluctuate due to various economic factors within the U.S. and global economy. At June 30, 2026, the price (year to date average) for copper and aluminum increased by approximately 8.2% and 20.3%, respectively, while stainless steel and galvanized steel decreased approximately 14.1% and 3.4%, respectively.

We attempt to limit the impact of price fluctuations on these materials by entering into cancellable and non-cancellable contracts with our major suppliers for periods of six to 18 months. We expect to receive delivery of raw materials from our contracts for use in our manufacturing operations.

We periodically adjust product pricing, including implementing targeted price increases, to help offset inflationary pressures, fluctuating input costs, and macroeconomic uncertainties such as international tariffs. For standard product lines, pricing is evaluated continuously and adjusted based on market conditions. For custom or job-based engineered products, pricing is generally established on a per-project basis, with contractual terms that allow for price adjustments if order fulfillment or delivery falls outside standard lead times.

Macroeconomic Conditions

Beginning in January 2025, the current United States (“U.S.”) Administration began enacting a series of tariffs affecting nearly all goods imported into the U.S. In retaliation, numerous foreign countries imposed reciprocal tariffs and restricted certain exports to the U.S. The continuous changes and uncertainty in tariff policy could impact our cost of materials, parts, or components imported into the U.S. and could impact the availability of supply from our vendors. We source raw materials domestically, but historically have seen those suppliers increase prices when tariffs are increased. Additionally, while we source most components domestically, our vendors may be impacted by tariffs if they use foreign parts and materials and often pass any additional costs as a result of tariffs through to us. Where appropriate, we attempt to mitigate these cost increases by implementing targeted price adjustments across select product lines. Although the realization of these surcharges may lag initial cost increases due to production lead times, we expect pricing actions to help offset tariff-related margin impacts over time, subject to market demand and competitive dynamics.

We make strategic purchases of materials when we see opportunities or potential disruptions in our supply chain. We have experienced supply chain challenges related to specific manufacturing parts, which could be exacerbated by the trade conflict. We manage our supply chain challenges through strong vendor relationships as well as expanding our list of available vendors.

Backlog

34

[[GREPCENT_TABLE]]
[["Segment","Brands Produced","Brand Products"],["AAON Oklahoma","AAON","Rooftop units and aftermarket parts"],["AAON Coil Products","AAON / BASX","Condensing units, air handling products, data center cooling solutions, and geothermal/water-source heat pumps"],["BASX","BASX","Data center cooling solutions, cleanroom products, and air handling products"]]
[[/GREPCENT_TABLE]]

The following table shows our historical backlog levels:

[[GREPCENT_TABLE]]
[["","June 30, 2026","","December 31, 2025","","June 30, 2025"],["","(in thousands)"],["AAON-branded Products","$","540,465","","","$","526,350","","","$","494,214"],["BASX-branded Products","1,430,379","","","1,302,145","","","501,106"],["Total Backlog","$","1,970,844","","","$","1,828,495","","","$","995,320"]]
[[/GREPCENT_TABLE]]

At June 30, 2026, our consolidated backlog is $1,970.8 million, an increase of 98.0%, or $975.5 million, as compared to June 30, 2025. Backlog is up from a year ago for both AAON-branded products and BASX-branded products with BASX-branded products increasing 185.4%, or $929.3 million, when compared to June 30, 2025. Most of these orders were associated with the BASX-branded data center liquid cooling solutions.

Consolidated Results of Operations

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/824142/000082414226000005/aaon-20251231.htm
Complete FY 2025 MD&A: /company/AAON/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-03-02
Report date: 2025-12-31

Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Overview

The following discussion summarizes the significant factors affecting the consolidated operating results, financial condition, and liquidity of the Company for the year ended December 31, 2025. This discussion should be read in conjunction with the other sections of this Annual Report on Form 10-K, including the consolidated financial statements and related notes contained in Item 8, Financial Statements and Supplementary Data. A detailed discussion of the year-to-year changes for the years ended December 31, 2024, and 2023 is not included herein and can be found in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Description of the Company

AAON is a leader in HVAC solutions for commercial and industrial indoor environments. The Company’s industry-leading approach to designing and manufacturing highly configurable equipment to meet exact needs creates a premier ownership experience with greater efficiency, performance, and long-term value. AAON is headquartered in Tulsa, Oklahoma, where its world-class innovation center and testing capabilities enable continuous advancement toward a cleaner and more sustainable future.

We engineer, manufacture, and sell premium heating, ventilation, and air conditioning equipment consisting of semi-custom and custom rooftop units, data center cooling solutions, cleanroom systems, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls. These products are marketed and sold to a variety of vertical markets including retail, manufacturing, educational, lodging, supermarket, data centers, medical and pharmaceutical, industrial, and other commercial markets. We sell our products to all 50 states in the United States and certain provinces in Canada. 

Our AAON brand can be affected by a number of economic factors, including the level of economic activity in the markets in which we operate. After the commercial and industrial new construction markets came to a standstill in 2020–2021, our core nonresidential end‑markets entered a period of robust growth, increasing by approximately 50.0% between 2022 and 2024. By late 2024, however, these markets began to contract, and the softening continued through 2025, though at a moderate rate. While leading indicators signal a stabilization in activity, we have not observed clear indications of a significant reacceleration. Furthermore, signals from general economic indicators are mixed regarding the health of the general economy. If the domestic economy were to slow or enter a recession, this could further impact our new construction markets and also weigh on the replacement market, potentially resulting in reduced sales volumes and profitability. Sales in the commercial and industrial new construction markets generally lag behind the housing market, which in turn is influenced by cyclical factors such as interest rates, inflation, consumer spending habits, employment rates, the state of the economy and other macroeconomic factors over which we have no control. Sales in the replacement markets are driven by various factors, including general economic growth, the Company's new product introductions, fluctuations in the average age of existing equipment in the market, government regulations and stimulus, change in market demand between more customized, higher performing HVAC equipment and lower priced standard equipment, as well as many other factors. When new construction is down, we emphasize the replacement market.

Our BASX brand is heavily dependent on the data center market. The growing maturity and adoption of Artificial Intelligence and high-performance compute is driving profound innovation across the data center market, resulting in increased demand for our products and solutions. Between 2022 and 2025, total put‑in‑place construction spending for data centers expanded by approximately 240.0%, and present indicators suggest continued strength with no meaningful signs of slowing in the foreseeable future. In response, we have made substantial capital investments to expand our capacity and ensure we are fully equipped to support this accelerating growth trajectory.

29

We sell our products to property owners and contractors mainly through a network of independent manufacturers’ Representatives. This go-to-market strategy is unique compared to most of our larger competitors in that most control their sales channel. We value the independent sales channel as we think it is a more effective way of increasing market share. Although we concede full control of the sales process with this strategy, the entrepreneurial aspect of the independent sales channel attracts the most talent and provides greater financial incentives for its salespeople. Further, the independent sales channel sells different types of equipment from various manufacturers, allowing it to operate with more of a solutions-based mindset, as opposed to an internal sales department of a manufacturing company that is incentivized to only sell its equipment regardless if it is the best solution for the end customer. We also have a small internal sales force that supports the relationships between the Company and our sales channel partners. BASX sells highly customized products for unique applications for a more concentrated customer base and an internal sales force is more effective for such products.

The principal components of cost of sales are labor, raw materials, component costs, factory overhead, freight out, and engineering expense. The principal high volume raw materials used in our manufacturing processes are steel, copper, and aluminum, and are obtained from domestic suppliers. We also purchase from domestic manufacturers certain components, including coils, compressors, motors, and electrical controls.

The price levels of our raw materials fluctuate due to various economic factors within the U.S. and global economy. At December 31, 2025, the price for copper increased by approximately 11.1%, while stainless steel and galvanized steel decreased approximately 13.0% and 3.4%, respectively. The price for aluminum remained relatively flat, as compared to the price at December 31, 2024.

We attempt to limit the impact of price fluctuations on these materials by entering into cancellable and non-cancellable contracts with our major suppliers for periods of six to 18 months. We expect to receive delivery of raw materials from our contracts for use in our manufacturing operations.

We occasionally increase the price of our products to help offset any inflationary headwinds. In recent years, price increases have been more frequent due to the amount of inflation the business has endured. We implemented a recurring 1.0% monthly price increase on October 1, 2023, and carried that through February 1, 2024, for AAON-branded products. On January 1, 2025, we implemented a one-time 3.0% price increase for AAON-branded products. On April 1, 2025, we implemented a 6.0% surcharge on all AAON-branded products as a result of the uncertainty of international tariffs. BASX-branded products are priced by job and in most cases, provide the ability to increase the price if the order is outside normal lead times.

Macroeconomic Conditions

Beginning in January 2025, the current United States (“U.S.”) Administration began enacting a series of tariffs affecting nearly all goods imported into the U.S. In retaliation, numerous foreign countries imposed reciprocal tariffs and restricted certain exports to the U.S. The continuous changes and uncertainty in tariff policy could impact our cost of materials, parts, or components imported into the U.S. and could impact the availability of supply from our vendors. We source raw materials domestically, but historically have seen those suppliers increase prices when tariffs are increased. Additionally, while we source most components domestically, our vendors may be impacted by tariffs if they use foreign parts and materials and often pass any additional costs as a result of tariffs through to us. We expect to continue to pass along some of these costs to our customers, but the increased price of our products could adversely affect the demand, which could have an adverse effect on our business and our earnings. The third quarter of 2025 is the first period for us to see any significant financial impact from tariffs. On April 1, 2025 we instituted a 6.0% tariff surcharge on AAON-branded orders which we began to see realization of in the third quarter of 2025. Early in 2025, the amount of surcharge realized had not covered the additional costs from the tariffs, but had changed by the end of the year as we fully realized our surcharge.

We make strategic purchases of materials when we see opportunities or potential disruptions in our supply chain. We have experienced supply chain challenges related to specific manufacturing parts, which could be exacerbated by the trade conflict. We manage our supply chain challenges through strong vendor relationships as well as expanding our list of available vendors.

Additionally, we continue to experience challenges in a tight labor market, especially the hiring of production labor. We continue to implement human resource initiatives to retain and attract labor to further increase production capacity. We have implemented the following wage increases to remain competitive and to attract and retain employees:

•In March 2024, we awarded annual merit raises for an overall 3.3% increase to wages.

30

•In March 2025, we awarded annual merit raises for an overall 4.0% increase to wages.

Despite efforts to mitigate the potential business impacts of trade conflict, supply chain challenges, and a tight labor market, future increases in the cost of materials, parts, components, or labor, in addition to supply chain disruptions, while temporary, could negatively impact our consolidated financial position, results of operations, and cash flows.

Backlog

[[GREPCENT_TABLE]]
[["Segment","Brands Produced","Brand Products"],["AAON Oklahoma","AAON","Rooftop units and aftermarket parts"],["AAON Coil Products","AAON / BASX","Condensing units, air handling products, data center cooling solutions, and geothermal/water-source heat pumps"],["BASX","BASX","Data center cooling solutions, cleanroom products, and air handling products"]]
[[/GREPCENT_TABLE]]

The following table shows our historical backlog levels:

[[GREPCENT_TABLE]]
[["","December 31, 2025","","December 31, 2024"],["","(in thousands)"],["AAON-branded Products","$","526,350","","","$","327,343"],["BASX-branded Products","1,302,145","","","539,747"],["Total Backlog","$","1,828,495","","","$","867,090"]]
[[/GREPCENT_TABLE]]

At December 31, 2025, our consolidated backlog is $1,828.5 million, an increase of 110.9%, or $961.4 million, as compared to December 31, 2024. Backlog was up from a year ago for both AAON-branded products and BASX-branded products with BASX-branded products increasing 141.3%, or $762.4 million, when compared to December 31, 2024. Most of these orders were associated with the BASX-branded data center liquid cooling solutions.

Consolidated Results of Operations

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/AAON/mda/fy2025/
All MD&A years: /company/AAON/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/AAON/mda/fy2024/): filed 2025-02-27; accession 0000824142-25-000039 (https://www.sec.gov/Archives/edgar/data/824142/000082414225000039/aaon-20241231.htm)
- [FY 2023 MD&A](/company/AAON/mda/fy2023/): filed 2024-02-28; accession 0000824142-24-000030 (https://www.sec.gov/Archives/edgar/data/824142/000082414224000030/aaon-20231231.htm)
- [FY 2022 MD&A](/company/AAON/mda/fy2022/): filed 2023-02-27; accession 0000824142-23-000019 (https://www.sec.gov/Archives/edgar/data/824142/000082414223000019/aaon-20221231.htm)
- [FY 2021 MD&A](/company/AAON/mda/fy2021/): filed 2022-02-28; accession 0000824142-22-000034 (https://www.sec.gov/Archives/edgar/data/824142/000082414222000034/aaon-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3585 Air-Cond & Warm Air Heatg Equip & Comm & Indl Refrig Equip) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/AAON.md · JSON record: /company/AAON.json · verified financials: /company/AAON/financials.json / /company/AAON/financials.csv · machine TOC for the whole site: /llms.txt