AAON(AAON)2025-02-27 12:05Business Segments and Operations - The company operates through three business segments: AAON Oklahoma, AAON Coil Products, and BASX[19] - The company employs a sales staff of 81 individuals and utilizes approximately 55 independent representatives with 132 offices primarily in the U.S. and Canada[60] - The company has entered into cancellable and non-cancellable contracts with major suppliers for raw materials, mitigating the impact of price fluctuations[72] Product Offerings and Innovation - AAON's flagship products include rooftop units (RTUs) with cooling capacities ranging from 2 to 261 tons and heating capacities from 24,000 to 4,500,000 BTUs[41] - The company utilizes a mass semi-customization strategy to produce highly configurable HVAC equipment[25] - AAON's packaged RTUs achieve an AHRI Certified performance of up to 18.0 SEER2 and 22.8 IEER[43] - The company has developed cutting-edge communication systems for its products, integrating IoT solutions and machine learning to enhance operational efficiencies[81] - The company is developing new controls leveraging machine learning to enhance product efficiency and innovation in the HVAC industry[81] Research and Development - The company emphasizes energy performance, durability, efficiency, and indoor air quality in its R&D efforts[28] - The company has a world-class research and development laboratory, the Norman Asbjornson Innovation Center, to continuously test and improve its products[21] - Research and development expenses were approximately 43.7 million, and 842.3 million, indicating firm commitments with minimal risk of cancellation[68] - The backlog as of February 1, 2025, was approximately $842.3 million, with lead times for AAON branded products generally around 10-12 weeks[68] - The company has reported a growing backlog of orders, leading to more constant sales throughout the year rather than being seasonally driven[86] - The company has increased its backlog due to rising demand, leading to more constant sales throughout the year rather than the previous seasonal peaks[86] Workforce and Employment - The company reported a total of 4,812 employees as of February 24, 2025, an increase from 3,856 in 2024 and 3,666 in 2023, reflecting a growth of approximately 24% year-over-year[94] - The company employs 4,812 individuals as of February 24, 2025, an increase from 3,856 in 2024 and 3,666 in 2023, reflecting growth in workforce[94] Regulatory Compliance and Standards - The company’s products are designed to meet regulatory and certification standards from various standard-setting bodies, including AHRI and ISO[29] - The company’s products are designed to comply with various regulatory and certification standards, including AHRI and ISO[29] - The company perceives the new DOE regulations on dedicated outdoor air units as an advantage due to its focus on energy efficiency and superior performance[57] - The company’s products exceed DOE minimum efficiency standards, with some achieving up to 18.0 SEER2 and 22.8 IEER[43] - The company’s products are designed to meet ASHRAE's recommended ambient relative humidity levels of 40%-60%, which are critical for virus inactivation[53] Energy Efficiency Initiatives - The company has increased its focus on high-performance HVAC solutions in response to market trends related to indoor air quality and energy efficiency[61] - The company is actively involved in energy efficiency programs, including a demand response program to reduce energy consumption during peak hours[91] - The company has shifted focus to a wider spectrum of the nonresidential HVAC equipment industry due to market trends related to COVID-19 and energy efficiency[61]