The restatement and material weakness in internal controls over BASX revenue recognition raise governance concerns. Monitor the Q2 2026 amendment for similar adjustments and watch for remediation progress in subsequent quarters. The strong Q3 2026 operational results (84% sales growth) may offset some negative sentiment, but the control issues could weigh on the stock until resolved.
Price Chart
REPLAYWatch the reaction play outExecutive Summary
AAON restated its Q1 2026 financials due to revenue recognition errors in the BASX-branded revenue process and improper amortization of software subscriptions. The restatement reduced net sales by $4.4M, net income by $3.4M, and EPS by $0.04, and identified a material weakness in internal controls over financial reporting. The company concurrently filed a similar amendment for Q2 2026.
Key Facts
- Restatement due to errors in revenue recognition under ASC 606 (percent-of-completion method) and software subscription amortization
- Net sales reduced by $4.4M from $496.9M to $492.5M; net income reduced by $3.4M from $39.8M to $36.5M
- Basic EPS reduced by $0.04 from $0.49 to $0.45; diluted EPS reduced by $0.04 from $0.48 to $0.44
- Material weakness identified in internal controls over BASX-branded revenue process and financial close process
- Concurrent 8-K filed disclosing the restatement; also filing Amendment No. 1 for Q2 2026
- AAON Coil Products segment external sales reduced by $16.0M; BASX segment external sales increased by $11.5M
- Total assets reduced by $12.6M; retained earnings reduced by $3.4M
Financial Impact
Net income reduced by $3.4M (8.4% of previously reported net income); net sales reduced by $4.4M (0.9% of previously reported net sales); total assets reduced by $12.6M (0.7% of previously reported total assets)
Risk Factors
- Material weakness in internal controls may lead to further restatements or delays in financial reporting
- Revenue recognition errors concentrated in high-growth BASX segment (data center cooling) could indicate systemic issues
- Restatement of multiple quarters (Q1 and Q2 2026) suggests broader control deficiencies
- Potential SEC scrutiny or shareholder litigation related to the restatement
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 10 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 10-Q/A Filing (Primary) | 0000824142-26-000086 |
| Exhibit: exhibit4411.htm | 0000824142-26-000086 |
| Exhibit: exhibit31121.htm | 0000824142-26-000086 |
| Exhibit: exhibit31221.htm | 0000824142-26-000086 |
| Exhibit: exhibit41621.htm | 0000824142-26-000086 |
| Exhibit: exhibit32121.htm | 0000824142-26-000086 |
| Exhibit: exhibit32221.htm | 0000824142-26-000086 |
| Document: 0000824142-26-000086-index-headers.html | 0000824142-26-000086 |
| Document: 0000824142-26-000086-index.html | 0000824142-26-000086 |
| Document: 0000824142-26-000086.txt | 0000824142-26-000086 |
Track record
24 reports on AAON
The track record builds as more bullish or bearish reports settle.
Filters
- Nov 10, 2026today 8-K Neutral 2/10 Entry $74.00 Now $75.01 +1.36% settles Feb 9
- Nov 10, 2026today Press Release Neutral 2/10 Entry $73.80 Now $75.01 +1.64% settles Feb 8
- Nov 9, 20261d ago 10-Q/A Bearish 6/10 Entry $71.35 Now $75.01 −5.13% settles Feb 8
- Nov 9, 20261d ago 10-Q/A Bearish 6/10 Viewing Entry $72.00 Now $75.01 −4.18% settles Feb 8
- Nov 9, 20261d ago 8-K Mixed 7/10 Entry $72.49 Now $75.01 +3.48% settles Feb 8
- Oct 21, 202620d ago Institutional Cluster Neutral 3/10 Entry $69.62 Now $75.01 +7.74% settles Jan 20
- Aug 28, 202610w ago 8-K Neutral 2/10 Entry $75.87 Now $75.01 −1.13% settles Nov 23
- Aug 13, 202612w ago Press Release Neutral 2/10 Entry $87.67 to $57.19 Now $75.01 −14.44% ▼ −34.77% −29.29% vs SPY
- Aug 10, 202613w ago 8-K Bullish 7/10 Entry $89.24 to $69.82 Now $75.01 −15.95% ▼ −21.76% −19.86% vs SPY
- Jul 31, 202614w ago Institutional Cluster Mixed 4/10 Entry $89.06 to $70.80 Now $75.01 −15.78% ▼ −20.50% −22.96% vs SPY
US Market Status
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