AAON (AAON) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 84.1% YoY to $707.4M; operating income increased 129.3% to $100.0M and diluted EPS rose 124.3% to $0.83.

• Strong BASX demand, higher production throughput and operational improvements supported the raised FY2026 sales growth outlook of 72%–75%, up from 55%–60%.

Financial highlights

• Gross profit increased 76.4% YoY to $188.5M; gross margin was 26.7%, down 110 bps YoY and up 60 bps sequentially.

• Net income was $69.0M versus $30.8M a year ago; adjusted EBITDA doubled to $127.2M, with an 18.0% margin versus 16.5%.

• SG&A was 12.5% of sales, down 400 bps YoY; operating income margin was 14.1% versus 11.3%.

• Nine-month net sales were $1.842B, operating income was $233.9M, and diluted EPS was $2.06 versus $0.91.

• Nine-month operating cash flow was $146.9M versus an $18.8M outflow in the prior-year period.

Outlook and guidance

• FY2026 sales growth outlook rose to 72%–75% from 55%–60%; gross margin outlook is ~26%, SG&A ~13% of sales, and D&A ~ $100M.

• 2026 capital expenditures are estimated at $190M, mainly for Memphis expansion and Tulsa maintenance; spending is expected to step down meaningfully in 2027.

• Strong backlog, expanded capacity, shorter lead times and throughput gains underpin the higher outlook; continued Q4 margin progress is expected.

• Operating and free cash flow are expected to improve through 2026 and 2027; formal 2027 guidance was not issued.