Traders should watch for margin trajectory in H2 2026 as capacity utilization improves and pricing actions flow through. The $2.0B backlog provides strong near-term revenue visibility. Continued data center demand is the key driver of the BASX segment's outperformance—monitor order trends and any shifts in customer capex plans. The raised sales guidance (+55%-60%) combined with margin compression creates a growth-vs-profitability tension that will likely be the focus of conference call questions.
Price Chart
Executive Summary
AAON reported Q2 2026 results with record net sales of $627.0M (up 101.2% YoY) and diluted EPS of $0.68 (up 257.9% YoY), significantly exceeding consensus of $0.52 on EPS and $503.0M on revenue. The company raised its full-year 2026 sales growth guidance to 55%-60% (from 40%-45%), citing strong data center demand and accelerating capacity conversion. However, gross margin contracted to 24.3% (from 26.6% YoY) and was lowered for the full year to 25%-26% (from 27%-28%), reflecting near-term pressure from rapid scaling, outsourcing costs, and price-cost timing.
Key Financial Metrics
Key Facts
- Net sales increased 101.2% YoY to a record $627.0M (vs consensus $503.0M)
- GAAP diluted EPS of $0.68 increased 257.9% YoY (vs consensus $0.52)
- Operating income increased 192.1% to $68.9M; SGA as % of sales improved 570bps to 13.3%
- Total backlog increased 98.0% YoY to $2.0 billion, driven by BASX-branded data center demand (+185.4% YoY)
- Raised FY2026 sales growth guidance to 55%-60% (from 40%-45%)
- Lowered FY2026 gross margin guidance to 25%-26% (from 27%-28%)
- YTD operating cash flow improved to $55.0M vs -$31.0M a year ago
- BASX segment gross margin expanded to 30.0% (from 27.9% YoY); AAON Coil Products segment margin compressed to 16.0% (from 17.5%)
- Long-term debt of $435.0M on credit facility; cash and restricted cash of $12.7M
Financial Impact
Revenue beat consensus by $124M (24.6%); EPS beat consensus by $0.16 (30.8%). FY2026 revenue guidance raised by ~15ppts. Gross margin guidance lowered ~2ppts.
Risk Factors
- Gross margin compression from rapid capacity ramp may persist longer than guided, weighing on profitability despite top-line growth
- Elevated debt ($435M revolver) could become a constraint if working capital needs continue to grow with sales
- AAON Coil Products segment margin of 16.0% shows significant pressure from outsourcing, freight, and price-cost timing—any segment deterioration could weigh on consolidated results
- Backlog declined 7.4% sequentially ($2.13B to $2.0B) due to accelerated conversion; order replenishment pace is critical to sustaining growth
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000824142-26-000052 |
| Document: aaon-20260810.htm | 0000824142-26-000052 |
| Document: 0000824142-26-000052-index-headers.html | 0000824142-26-000052 |
| Document: 0000824142-26-000052-index.html | 0000824142-26-000052 |
| Document: 0000824142-26-000052.txt | 0000824142-26-000052 |
| 8-K Data (Synthetic) | 0000824142-26-000052 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 28, 2026 5w ago | 8-K | $75.87 $79.40 | ▲ +4.65% | ▲ +4.54% | $84.43 (+11.28%) |
Aug 13, 2026 7w ago | Press Release | $87.67 $80.84 | ▼ −7.79% | ▼ −5.83% | $84.43 (−3.70%) |
Aug 10, 2026 7w ago | 8-K | $89.24 $88.09 | ▼ −1.29% | ▼ −1.24% | $84.43 (−5.39%) |
Jul 31, 2026 9w ago | Institutional Cluster | $89.06 $94.83 | ▲ +6.48% | ▲ +2.97% | $84.43 (−5.20%) |
Jul 30, 2026 9w ago | 8-K | $87.59 $90.28 | ▲ +3.07% | ▼ −0.55% | $84.43 (−3.61%) |
Jul 23, 2026 10w ago | ANALYST-UPGRADE | $107.68 $87.59 | ▼ −18.66% | ▼ −19.13% | $84.43 (−21.59%) |
Jun 8, 2026 16w ago | 8-K | $132.05 $131.26 | ▼ −0.60% | ▼ −2.71% | $84.43 (−36.06%) |
Jun 5, 2026 17w ago | Insider Cluster | $132.62 $127.19 | ▼ −4.09% | ▼ −4.66% | $84.43 (−36.34%) |
May 27, 2026 18w ago | Insider Cluster | $139.54 $143.50 | ▲ +2.84% | ▲ +1.63% | $84.43 (−39.49%) |
May 27, 2026 18w ago | Insider Cluster | $139.54 $143.50 | ▲ +2.84% | ▲ +1.63% | $84.43 (−39.49%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access