AAON(AAON)2025-02-27 12:08Financial Performance - Net sales for Q4 2024 decreased by 2.9% to $297.7 million compared to $306.6 million in Q4 2023, with the AAON Oklahoma segment experiencing a 16.1% decline year-over-year[3] - Gross profit for Q4 2024 decreased by 30.5% to $77.6 million, representing a gross profit margin of 26.1%, down from 36.4% in the same period last year[4] - Earnings per diluted share in Q4 2024 fell by 46.4% to $0.30, down from $0.56 in Q4 2023[5] - Operating income for Q4 2024 decreased by 53.9% to $29.4 million, with an operating margin of 9.9% compared to 20.8% in Q4 2023[7] - Net income for 2024 was $168,559, a decrease of 5% compared to $177,623 in 2023[18] - Adjusted EBITDA for 2024 was $272,231, down 3% from $281,215 in 2023, with an adjusted EBITDA margin of 22.7%[25] Backlog and Demand - The company's total backlog increased by 70.0% year-over-year to $867.1 million, driven by strong demand for BASX-branded data center liquid cooling solutions[8] - The AAON Coil Products segment saw a sales increase of 129.9%, benefiting from the production of BASX-branded liquid cooling equipment[3] Capital Expenditures and Investments - Capital expenditures in Q4 2024 increased nearly four-fold to $63.4 million due to investments in the new Memphis facility[8] - Capital expenditures for 2024 were $195,660, significantly higher than $104,294 in 2023, indicating aggressive investment[18] Cash Flow and Working Capital - Cash flows from operating activities in Q4 2024 were impacted by lower net income and increased working capital investments[8] - The company reported net cash provided by operating activities of $192,532, an increase of 21% from $158,895 in 2023[18] Balance Sheet and Financial Ratios - The company has a current ratio of 2.8 and a leverage ratio of 0.57, indicating a strong balance sheet[8] - Total assets increased to $1,175,234, up 25% from $941,436 in 2023[16] - Total current liabilities increased to $174,905, up 38% from $126,749 in 2023[16] - Long-term debt rose to $138,891, compared to $38,328 in 2023, indicating increased leverage[16] - Stockholders' equity increased to $824,582, up 12% from $735,224 in 2023[16] Inventory and Cash Management - Cash and cash equivalents decreased to $14,000 from $287,000 in 2023, reflecting a significant reduction[16] - Inventories decreased by 12% to $187,420 from $213,532 in 2023[16] Future Outlook - The company anticipates a significant improvement in margins throughout 2025 as production volumes increase and operational efficiencies are realized[8]