Company Performance - Aaon reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.58 per share, but slightly down from $0.64 per share a year ago, representing an earnings surprise of 8.62% [1] - The company achieved revenues of $327.25 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.12% and up from $311.97 million year-over-year [2] - Over the last four quarters, Aaon has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Aaon shares have increased approximately 62.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 24.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.62 on revenues of $329.4 million, and for the current fiscal year, it is $2.28 on revenues of $1.22 billion [7] Industry Outlook - The Building Products - Air Conditioner and Heating industry, to which Aaon belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Aaon's stock performance [5]

Financial Performance - For the three months ended September 30, 2024, total net sales reached $327.252 million, a significant increase from $311.970 million in the same period of 2023, representing a growth of approximately 4.1%[26][27]. - The company reported a total of $902.917 million in net sales for the nine months ended September 30, 2024, up from $861.880 million in the same period of 2023, reflecting an increase of about 4.8%[29][31]. - Net income for the nine months ended September 30, 2024, was $143,869,000, compared to $130,574,000 for the same period in 2023, indicating an increase of approximately 10.2%[88]. - Basic earnings per share for the nine months ended September 30, 2024, was $1.77, up from $1.61 in 2023, reflecting a growth of about 9.9%[88]. - Gross profit for the quarter was $114,158,000, slightly down from $116,109,000 in the previous quarter, indicating a decrease of about 1.7%[106]. Revenue Recognition and Sales - The company recognized revenue over time for many products due to their highly customized nature, with no alternative use without significant costs[30]. - The company’s revenue recognition policy states that revenue is recognized when performance obligations are satisfied, typically at the time of shipment for manufactured equipment contracts[32]. - The revenue from Rooftop units for the nine months ended September 30, 2024, was $598.079 million, compared to $597.508 million for the same period in 2023, indicating a slight increase[29][31]. Assets and Liabilities - As of September 30, 2024, the total accounts receivable amounted to $144,944 thousand, an increase from $138,431 thousand as of December 31, 2023, with a net total of $143,806 thousand after accounting for an allowance for credit losses of $1,138 thousand[43]. - The total gross inventory as of September 30, 2024, was $185,739 thousand, down from $219,692 thousand as of December 31, 2023, resulting in a net inventory of $177,731 thousand after an allowance for excess and obsolete inventories of $8,008 thousand[46]. - The total property, plant, and equipment as of September 30, 2024, was $726,117 thousand, an increase from $653,432 thousand as of December 31, 2023, with accumulated depreciation of $298,465 thousand[47]. - The total net intangible assets as of September 30, 2024, were $76,946 thousand, up from $68,053 thousand as of December 31, 2023, with definite-lived intangible assets totaling $62,375 thousand[50]. - Total accrued liabilities rose to $96,243 thousand as of September 30, 2024, compared to $85,508 thousand at December 31, 2023, representing a 12.3% increase[58]. Expenses and Costs - The company reported a depreciation expense of $14,636 thousand for the three months ended September 30, 2024, compared to $11,301 thousand for the same period in 2023[48]. - The allowance for credit losses increased to $1,138 thousand as of September 30, 2024, from $323 thousand as of September 30, 2023, indicating a rise in expected credit losses[44]. - The profit sharing bonus plan expense for the three months ended September 30, 2024, was $6,242,000, compared to $6,954,000 for the same period in 2023, reflecting a decrease of approximately 10.2%[85]. - Medical premium payments for the three months ended September 30, 2024, increased to $5,314,000 from $4,455,000 in 2023, representing a rise of about 19.3%[87]. Taxation - The company paid $12,194 thousand in income taxes for the three months ended September 30, 2024, compared to $12,081 thousand for the same period in 2023[54]. - The income tax provision for the three months ended September 30, 2024, was $11,885 thousand, down from $15,413 thousand for the same period in 2023, a decrease of 22.0%[62]. - The effective tax rate for the three months ended September 30, 2024, was 18.4%, compared to 24.3% for the same period in 2023[63]. - The total provision for income taxes for the nine months ended September 30, 2024, was $34,456 thousand, compared to $29,447 thousand for the same period in 2023, an increase of 17.1%[62]. Financing and Debt - The company had $55.7 million outstanding under the revolving credit facility as of September 30, 2024, an increase from $38.3 million at December 31, 2023[60]. - The weighted average interest rate on borrowings under the revolving credit facility was 6.6% for the three months ended September 30, 2024, compared to 6.5% for the same period in 2023[60]. - Lease liability increased to $13,788 thousand as of September 30, 2024, from $10,201 thousand at December 31, 2023, a rise of 35.4%[59]. Stock and Shareholder Information - The company authorized a stock repurchase program totaling $150 million, with expiration dates ranging from February 27, 2024, to June 14, 2024[91]. - Cash dividends of $0.08 per share were declared for multiple dates in 2023 and 2024, maintaining an annualized dividend of $0.32 per share[93]. - The company completed a three-for-two stock split effective August 16, 2023, impacting all share and per share information[94]. - The total intrinsic value of options exercised during the nine months ended September 30, 2024, was $45.7 million, compared to $27.6 million for the same period in 2023, reflecting a 65.5% increase[70]. Employee Compensation and Benefits - The total share-based compensation expense for the nine months ended September 30, 2024, was $12.814 million, compared to $12.102 million for the same period in 2023, indicating a 5.9% increase[80]. - Contributions made to the defined contribution plan for the nine months ended September 30, 2024, were $14.646 million, up from $13.164 million in the same period of 2023, representing an 11.2% increase[83]. - The company self-insures for employee health insurance and matches 175% of contributions to health savings accounts, with BASX employees joining the plan on January 1, 2024[86]. Investments and Acquisitions - The Company received a $23.0 million NMTC allocation for both the 2019 and 2023 Projects to facilitate the expansion of its Longview, Texas manufacturing operations[97][98]. - The Company committed to $78.0 million in contingent consideration for the BASX acquisition, with shares issued contingent upon performance milestones[95]. - The Company entered into a definitive agreement to purchase a new 787,000 square foot facility in Memphis, Tennessee, for approximately $63.0 million to accommodate incremental demand from the data center market[102]. Segment Performance - The company has three reportable segments: AAON Oklahoma, AAON Coil Products, and BASX, with performance evaluated primarily on gross profit[105]. - The company reported external sales of $228,887,000 for AAON Oklahoma, down from $246,454,000 in the previous quarter, a decline of approximately 7.5%[106]. - AAON Coil Products experienced external sales growth from $25,769,000 to $35,232,000, representing an increase of about 36.5%[106]. - BASX external sales increased significantly from $39,747,000 to $63,133,000, showing a growth of approximately 58.8%[106].

Exhibit 99.1 AAON REPORTS RECORD SALES & EARNINGS FOR THE THIRD QUARTER OF 2024 TULSA, OK, November 7, 2024 - AAON, INC. (NASDAQ-AAON), a leader in high-performing, energy-efficient HVAC solutions that bring long-term value to customers and owners, today announced its results for the third quarter of 2024. Net sales for the third quarter of 2024 increased 4.9% to a record $327.3 million from $312.0 million in the third quarter of 2023. The year-over-year increase was largely driven by the BASX and AAON Coil ...

TULSA, Okla., Nov. 7, 2024 /PRNewswire/ -- AAON, INC. (NASDAQ: AAON), a leader in high-performing, energy-efficient HVAC solutions that bring long-term value to customers and owners, today announced its results for the third quarter of 2024. Net sales for the third quarter of 2024 increased 4.9% to a record $327.3 million from $312.0 million in the third quarter of 2023. The yearover-year increase was largely driven by the BASX and AAON Coil Products segments, which realized growth of 58.8% and 36.7%, respe ...

TULSA, Okla., Nov. 4, 2024 /PRNewswire/ -- AAON, Inc. (NASDAQ: AAON) ("AAON" or the "Company"), a leader in high-performance and energy-efficient HVAC solutions, announced today that Gary Fields, CEO, and Matt Tobolski, President and COO, will participate in the Baird 2024 Global Industrials Conference in Chicago, IL, on Tuesday, November 12, 2024, and Wednesday, November 13, 2024. Management is scheduled to give a 30-minute presentation as well as host in-person one-on-one meetings throughout the event. In ...

By 2030, manufacturers will need to fill more than 4 million jobs More than half of those jobs could be left unfilled because of two issues: a skills gap and misperceptions about modern manufacturing (Research: Manufacturing Institute and Deloitte) At AAON's Tulsa, Oklahoma location, students and educators from area high schools, colleges, and career-tech schools toured our facilities to learn about the company's industry-leading products, manufacturing processes, safety, and sustainability efforts. The tou ...

Core Insights - AAON, Inc. has received orders totaling approximately $174.5 million from a data center customer for a custom-designed thermal management system [1][2] - The equipment will be manufactured under the BASX brand at the Longview, Texas facility, with production expected to commence in early 2025 [1][2] - The new facility in Texas is on schedule for completion by the end of 2024, and staffing and training have already begun [1][2] Company Overview - AAON, founded in 1988, is a leader in HVAC solutions for commercial and industrial environments, focusing on energy efficiency and long-term value [3] - The company is headquartered in Tulsa, Oklahoma, and has a world-class innovation center and testing lab [3] BASX Overview - BASX, a wholly owned subsidiary of AAON, specializes in high-efficiency data center cooling solutions and has been recognized for industry-changing innovations over the past 40 years [4] - The BASX manufacturing facility is located in Redmond, Oregon, and is committed to high-quality products and customer service [4]

TULSA, Okla., Oct. 24, 2024 /PRNewswire/ -- AAON, Inc. (NASDAQ: AAON) ("AAON" or the "Company"), a leader in high-performing, energy-efficient HVAC solutions that brings long-term value to customers and owners, announces that it has scheduled its quarterly conference call and webcast for Thursday, November 7, 2024, at 5:15 p.m. EST to discuss third quarter 2024 financial results. The results will be released immediately after the market closes on that same day. The conference call will be accessible via dia ...

Investors in AAON, Inc. (AAON) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct 18, 2024 $45.00 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean t ...

The Zacks Building Products - Air Conditioner & Heating industry is well-positioned to capitalize on key trends and opportunities, driven by the energy transition and the growing pro-environmental movement. As we move into 2024 and beyond, companies in this sector are experiencing increased demand for renewable energy solutions, unlocking significant growth potential. Despite facing inflationary challenges, major players like Comfort Systems USA, Inc. (FIX) and AAON, Inc. (AAON) are thriving by delivering c ...