AAON Doubles Sales, Raises Outlook as BASX Takes Lead
Second-quarter net sales reached a record $627.0 million as data-center demand reshaped the business.
AAON Inc. (AAON), the commercial heating and cooling equipment maker, more than doubled second-quarter sales and posted its fourth consecutive quarterly revenue record. Growth accelerated to 101.2% from 54.3% in the first quarter as production expanded to meet data-center demand.
BASX became AAON’s largest brand by quarterly revenue, marking a shift in the company’s sales mix. BASX-branded sales rose 216.2% from a year earlier and 50.9% sequentially to $345.0 million, while AAON-branded sales increased 39.3% year over year and 5.1% sequentially to $282.2 million.
Total revenue increased 26.2% from the first quarter. Diluted earnings rose 257.9% from a year earlier to $0.68 a share and advanced 41.7% sequentially, as operating income grew faster than sales.
The BASX segment supplied the strongest combination of growth and profitability. Segment sales climbed 220.7% to $218.0 million, while gross margin expanded to 30.0% from 23.9% in the first quarter. AAON Coil Products sales increased 150.9% to $146.7 million, driven by $126.6 million of BASX liquid-cooling sales, while that segment’s gross margin fell to 16.0% from 24.1% sequentially.
Companywide gross profit rose 84.3% to $152.5 million, while gross margin narrowed 230 basis points to 24.3% as capacity-ramp costs, outsourcing and inflation offset higher volume. Lower overhead provided a counterweight: selling, general and administrative expenses declined to 13.3% of sales from 19.0% a year earlier, helping operating income rise 192.1% to $68.9 million.
Backlog remained 98.0% above the prior-year level at $1.97 billion, though it declined 7.4% from the first-quarter record as production and order conversion accelerated. BASX backlog fell 11.7% sequentially to $1.43 billion, while AAON-branded backlog rose 6.0% to $540.5 million. Data-center projects remained the principal growth driver, with BASX backlog up 185.4% from a year earlier.
AAON raised its 2026 sales-growth outlook to 55% to 60% from 40% to 45%, well above its initial forecast of 18% to 20%. The company now expects gross margin of 25% to 26%, down from its previous 27% to 28% range, while its SG&A forecast improved to 13% to 14% of sales.
Operating cash flow turned positive at $55.0 million for the first half from an outflow of $31.0 million a year earlier, despite an inventory build and lower contract liabilities. The outlook paired faster growth with thinner gross margins as AAON continued scaling capacity around its expanding data-center business.