The restatement corrects previously reported figures upward, but the material weakness in internal controls raises governance concerns. Monitor the company's remediation plan progress and any further control deficiencies disclosed in the Q3 2026 filing.
Price Chart
REPLAYWatch the reaction play outExecutive Summary
AAON filed an amended 10-Q/A restating Q2 2026 financials due to revenue recognition errors in the BASX-branded revenue process and improper amortization of software subscriptions. The restatement increased net sales by $15.1M and net income by $10.5M for Q2 2026, and increased net sales by $10.7M and net income by $7.1M for H1 2026. A material weakness in internal controls over financial reporting was identified.
Key Facts
- Restatement due to revenue recognition errors under ASC 606 (percent of completion method) and improper software subscription amortization
- Q2 2026 net sales restated from $627.0M to $642.1M (+$15.1M); net income from $56.7M to $67.1M (+$10.5M)
- H1 2026 net sales restated from $1,123.9M to $1,134.7M (+$10.7M); net income from $96.5M to $103.6M (+$7.1M)
- Material weakness identified in internal controls over BASX-branded revenue process and financial close process
- Errors impacted AAON Coil Products and BASX segments; concurrent restatement of Q1 2026 10-Q/A also filed
- Management concluded disclosure controls were ineffective as of June 30, 2026
Financial Impact
Q2 2026 net income increased by $10.5M (18.5% above previously reported); H1 2026 net income increased by $7.1M (7.4% above previously reported). Net sales increased by $15.1M (2.4%) in Q2 and $10.7M (1.0%) in H1.
Risk Factors
- Material weakness in internal controls over revenue recognition and financial close may persist or lead to further restatements
- Potential SEC or investor scrutiny regarding the control environment and the timeliness of the error discovery
- Remediation costs and management distraction may impact near-term operational focus
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) | 0000824142-26-000087 |
| Exhibit: exhibit4421.htm | 0000824142-26-000087 |
| Exhibit: exhibit31131.htm | 0000824142-26-000087 |
| Exhibit: exhibit31231.htm | 0000824142-26-000087 |
| Exhibit: exhibit41631.htm | 0000824142-26-000087 |
| Exhibit: exhibit32131.htm | 0000824142-26-000087 |
| Exhibit: exhibit32231.htm | 0000824142-26-000087 |
| Document: 0000824142-26-000087-index-headers.html | 0000824142-26-000087 |
| Document: 0000824142-26-000087-index.html | 0000824142-26-000087 |
| Document: 0000824142-26-000087.txt | 0000824142-26-000087 |
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 Viewing Entry $71.35 Now $75.01 −5.13% settles Feb 8
- Nov 9, 20261d ago 10-Q/A Bearish 6/10 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
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