AAON (AAON) investor relations material

Executive summary

• Achieved record Q2 2026 net sales of $627 million, up 101.2% year-over-year, driven by explosive BASX-branded growth, strong AAON-branded performance, and robust data center demand.

• EBITDA and net income more than doubled year-over-year, with adjusted EBITDA at $94.2 million and net income at $56.7 million, reflecting significant operational leverage.

• Gross profit rose 84.3% to $152.5 million, though gross margin declined to 24.3% from 26.6% due to ramping new capacity and inflationary pressures.

• Backlog nearly doubled year-over-year to $2.0 billion, with BASX-branded backlog up 185.4%, providing strong visibility into future growth.

• Operating cash flow for the first half improved to $55 million from a $31 million use of cash last year.

Financial highlights

• Gross profit margin was 24.3%, down from 26.6% year-over-year, impacted by capacity ramp and inflation.

• SG&A as a percent of sales declined to 13.3%, reflecting operating leverage.

• Adjusted EBITDA margin was 15.0%; adjusted diluted EPS grew 213.6% to $0.69.

• Net income for Q2 2026 was $56.7 million, with diluted EPS at $0.68.

• Operating cash flow for the first half was $55 million, a significant improvement from the prior year.

Outlook and guidance

• Full-year 2026 outlook raised: net sales growth of 55%-60%, gross margin of 25%-26%, and SG&A as a percent of sales of 13%-14%.

• Margin improvement anticipated in the second half, especially Q4, driven by better price-cost realization, productivity gains, and higher facility utilization.

• Entering 2027 with a higher margin profile, with further improvements expected from increased scale, pricing actions, and operational efficiencies.

• Capital expenditure program for 2026 is estimated at $190 million, focused on capacity expansion and technology investments.

• Estimated annual 2026 effective tax rate, excluding discrete events, is approximately 25.0%.