AAON Reports Sales & Earnings for the First Quarter of 2025

Core Viewpoint - AAON, Inc. reported strong first-quarter results for 2025, with significant year-over-year growth in net sales and backlog, driven primarily by BASX-branded products and improvements in operational efficiency despite some supply chain challenges [2][3][6]. Financial Performance - Net sales increased by 22.9% to $322.1 million compared to $262.1 million in Q1 2024, with BASX-branded products seeing a remarkable growth of 374.8% [2][5]. - Gross profit margin for the quarter was 26.8%, down from 35.2% in Q1 2024, attributed to lower production volumes at the AAON Oklahoma segment [3][5]. - Earnings per diluted share decreased by 23.9% to $0.35 from $0.46 in the same quarter last year [4][5]. Backlog and Orders - Total backlog reached a record $1.0 billion, up 83.9% year-over-year, with AAON-branded equipment backlog increasing by 44.9% [2][6]. - Bookings for BASX-branded equipment were strong, driven by demand for air-side and liquid cooling data center equipment [2][6]. Operational Insights - The company is experiencing improvements in production rates as supply chain issues related to the new R454B refrigerant components begin to resolve [2][6]. - Operational efficiencies are being enhanced at the Longview, Texas and Redmond, Oregon facilities, contributing positively to margins [2][3][6]. Cash and Investments - As of March 31, 2025, the company had cash and cash equivalents of $2.4 million and a revolving credit facility balance of $178.0 million [6]. - The company plans to invest $220.0 million in 2025 for the new Memphis plant and improvements in existing facilities [6]. Shareholder Returns - The company increased its dividend by 25.0% to $0.10 per quarter, reflecting confidence in future growth [6]. - During the quarter, the company repurchased 371,139 shares for $30.0 million at an average price of $80.81 per share [6].