AAON, Inc. (NASDAQ-AAON) has reported its fourth quarter and full-year 2025 results, carrying a record backlog into 2026. The company experienced strong sales growth in 2025, with net sales increasing by 20.1% to $1.44 billion compared to $1.20 billion in 2024. However, the gross margin decreased to 26.7% from 33.1% in 2024, and GAAP diluted EPS was $1.29 compared to $2.02 in 2024.
In the fourth quarter of 2025, AAON saw a 42.5% increase in net sales to $424.2 million compared to $297.7 million in the fourth quarter of 2024. The gross margin was 25.9%, almost the same as the 26.1% in the fourth quarter of 2024, and GAAP diluted EPS was $0.39 compared to $0.30 in the fourth quarter of 2024.
The company's record year-end backlog of $1.83 billion increased by 110.9% year-over-year, providing strong visibility entering 2026. The 2026 outlook reflects revenue growth of 18-20% and gross margins of approximately 29-31%, supported by the record backlog, expanded capacity, and improving operational execution.
AAON's President and CEO, Matt Tobolski, highlighted that 2025 represented a year of record growth for the company, driven by strong bookings and sales reflecting expanding market share and growing demand for its products and custom solutions. Investments in production expansion and ERP implementation were made to support future growth and profitability. The company's manufacturing footprint increased approximately 25%, and the production capacity for basx-branded data center equipment more than doubled following the renovation and commissioning of a new 787,000-square-foot facility in Memphis, Tennessee.
The company's total backlog increased 110.9% year-over-year to $1.83 billion, with the Basx brand more than doubling revenue and ending the year with backlog up 141.3%. AAON-branded equipment sales increased steadily throughout the year, with additional ramping planned.
Looking ahead to 2026, AAON expects sales to grow by 18%-20%, with gross margin of 29%-31%. The company also anticipates SG&A expenses as a percentage of sales to be approximately 16% and expects depreciation and amortization expenses of $95-$100 million.
In terms of segment results, the net sales for the AAON Oklahoma segment totaled $215.5 million, an increase of 11.1% year-over-year, driven by a strong starting backlog and ongoing production enhancements. The AAON Coil Products segment saw net sales totaling $102.6 million, up 93.6% compared to the same period last year. The Basx segment also experienced significant growth, with net sales increasing 109.1% to $106.1 million compared to the prior-year period.
As of December 31, 2025, the company had cash, cash equivalents, and restricted cash of $1.2 million and a balance on its revolving credit facility of $398.3 million. AAON's CFO and Treasurer, Rebecca Thompson, mentioned that the company made substantial capacity and working‑capital investments in 2025 to support its expanding backlog and ongoing market share gains.
Following these announcements, the company's shares moved 4.49%, and are now trading at a price of $94.08. For the full picture, make sure to review AAON, INC.'s 8-K report.
