AAON(US:AAON) Prnewswireยท2025-11-06 12:00Core Insights - AAON, Inc. reported strong demand and significant growth in backlog, reaching a record $1.32 billion, up 103.8% year-over-year and 18.1% sequentially, driven by data center applications [2][19] - Net sales for Q3 2025 increased by 17.4% to $384.2 million, with BASX-branded sales rising 95.8% to $124.8 million, while AAON-branded sales decreased by 1.5% to $259.5 million [3][14] - Gross profit margin decreased to 27.8% from 34.9% year-over-year but improved sequentially from 26.6%, primarily due to operational inefficiencies related to ERP implementation [4][14] Financial Performance - Earnings per diluted share were $0.37, down 41.3% year-over-year but up 94.7% sequentially [5][14] - The company anticipates cash flow from operations to turn significantly positive in Q4 2025, with capital expenditure plans of $180 million for the year [17][14] Operational Highlights - Production throughput improved significantly at the Longview, Texas facility, reaching 90% of target in September and exceeding that level in October [6][8] - The BASX brand is expanding its presence in the data center market, with substantial increases in production of liquid cooling equipment [7][8] Segment Performance - AAON Oklahoma segment net sales increased by 4.3% year-over-year to $238.7 million, while gross profit margin was 31.5%, down from 36.8% [9][10] - AAON Coil Products segment net sales surged by 99.4% to $70.2 million, driven by BASX-branded liquid cooling product sales [11][12] - BASX segment net sales increased by 19.2% to $75.2 million, with a gross margin of 27.0% [15][16] Backlog and Market Position - Total backlog increased to $1.32 billion, with BASX-branded backlog growing by 119.5% year-over-year [19][14] - AAON-branded equipment backlog increased by 77.1% year-over-year but declined sequentially by 14.3% [19][14] 2025 Outlook - The company expects mid-teens sales growth for FY25, with gross profit margin projected between 28.0% and 28.5% [20][14]