AAON(AAON)2025-05-01 11:10Financial Performance - Net sales for Q1 2025 increased 22.9% to $322.1 million, up from $262.1 million in Q1 2024, driven by BASX and AAON Coil Products segments with growth of 138.9% and 287.8% respectively[3][6] - BASX-branded products net sales surged 374.8% year-over-year to $132.6 million, while AAON-branded products net sales declined 19.1% to $189.5 million[6] - Earnings per diluted share decreased 23.9% to $0.35 compared to $0.46 in Q1 2024[5][6] - Net income for Q1 2025 decreased to $29,292,000 from $39,016,000 in Q1 2024, representing a decline of approximately 25.0%[17] - Adjusted EBITDA for Q1 2025 was $56,698,000, down from $60,484,000 in Q1 2024, resulting in a decrease of about 6.0%[24] - Adjusted EBITDA margin for Q1 2025 was 17.6%, compared to 23.1% in Q1 2024, indicating a decline of approximately 5.5 percentage points[24] Backlog and Growth - Total backlog reached a record $1.0 billion, up 83.9% year-over-year, with AAON-branded backlog increasing 44.9% and BASX-branded backlog up 122.0%[3][7] - The COO expressed optimism about production volume increases and backlog conversion rates in the upcoming quarters despite macroeconomic uncertainties[7] Expenses and Profitability - Gross profit margin for Q1 2025 was 26.8%, down from 35.2% in Q1 2024, attributed to lower production volumes at the AAON Oklahoma segment[4][6] - SG&A expenses rose due to higher depreciation and technology-related consulting costs, impacting overall profitability[5][6] Cash and Assets - Cash and cash equivalents stood at $2.4 million with a revolving credit facility balance of $178.0 million as of March 31, 2025[7] - Total current assets increased to $571,744,000 as of March 31, 2025, up from $488,212,000 at the end of 2024, reflecting a growth of about 17.1%[15] - Total assets rose to $1,300,193,000 in Q1 2025, compared to $1,175,234,000 in Q4 2024, marking an increase of approximately 10.6%[15] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 totaled $2,383,000, down from $28,367,000 at the end of Q1 2024, a decrease of about 91.6%[17] - Long-term debt increased to $236,417,000 in Q1 2025 from $138,891,000 in Q4 2024, reflecting a rise of approximately 70.3%[15] - The company reported a net cash used in operating activities of $9,214,000 for Q1 2025, a significant decrease from $92,370,000 provided in Q1 2024[17] - Accounts receivable increased to $164,977,000 in Q1 2025 from $147,434,000 in Q4 2024, representing a growth of about 11.9%[15] Capital Expenditures and Investments - The company plans to invest $220.0 million in 2025 for the new Memphis facility and improvements in existing operations[7] - The company incurred capital expenditures of $46,723,000 in Q1 2025, compared to $34,688,000 in Q1 2024, an increase of approximately 34.7%[17] Dividends - The company increased its dividend by 25.0% to $0.10 per share, reflecting confidence in future growth[7]