The strong Q3 beat and raised guidance are overshadowed by the restatement and material weakness. Monitor the Q3 10-Q for details on the control deficiencies and remediation timeline; shareholder litigation risk is elevated. The operational momentum in data center demand (BASX) remains intact.
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Executive Summary
AAON reported record Q3 2026 results with net sales up 84.1% YoY to $707.4M and GAAP diluted EPS of $0.83 (+124.3% YoY), beating consensus EPS of $0.58 and revenue of $602.2M. The company raised its full-year 2026 outlook to 72%-75% sales growth. However, the filing also disclosed a restatement of Q1 and Q2 2026 financials due to revenue recognition errors and a material weakness in internal controls, which tempers the positive operational news.
Key Financial Metrics
Key Facts
- Q3 2026 net sales of $707.4M, up 84.1% YoY, a record
- GAAP diluted EPS of $0.83, up 124.3% YoY, beating consensus of $0.58
- Non-GAAP adjusted EPS also $0.83
- Full-year 2026 outlook raised: sales growth 72%-75% (prior 55%-60%), gross margin ~26%
- Restated Q1 and Q2 2026 financials; net impact increased first-half net sales by $10.7M and diluted EPS by $0.09
- Material weakness identified in internal control over financial reporting
- Operating cash flow YTD improved to $146.9M from a use of $18.8M a year ago
- Total backlog of $1.9B, up 40.5% YoY
Financial Impact
Q3 revenue $707.4M vs consensus $602.2M; GAAP EPS $0.83 vs consensus $0.58; raised FY guidance to 72%-75% sales growth
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| AAON Oklahoma | $283.5M | +18.7% |
| AAON Coil Products | $192.6M | +174.2% |
| BASX | $231.3M | +207.4% |
Risk Factors
- Restatement of prior period financials and material weakness in internal controls may trigger shareholder lawsuits and SEC scrutiny
- Potential for further errors or delays in financial reporting
- Gross margin pressure from capacity ramp and mix shift to BASX
- Elevated debt of $386.7M on revolver
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000824142-26-000083 |
| Document: aaon-20261109.htm | 0000824142-26-000083 |
| Document: 0000824142-26-000083-index-headers.html | 0000824142-26-000083 |
| Document: 0000824142-26-000083-index.html | 0000824142-26-000083 |
| Document: 0000824142-26-000083.txt | 0000824142-26-000083 |
| 8-K Data (Synthetic) | 0000824142-26-000083 |
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 Entry $72.00 Now $75.01 −4.18% settles Feb 8
- Nov 9, 20261d ago 8-K Mixed 7/10 Viewing 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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