TULSA, Oklahoma, May 7, 2026, 13:08 CDT
- AAON bumped up its 2026 sales-growth outlook to 40%-45%, coming off a first quarter where revenue surged 54.3% to $496.9 million.
- Backlog jumped to $2.13 billion—more than twice last year’s figure—driven largely by BASX data-center cooling orders still waiting to ship.
- Shares traded at $133.92, up 36.2% as of 2:08 p.m. EDT, according to a Cboe BZX real-time quote via MarketScreener.
AAON Inc. shares jumped Thursday after the Tulsa HVAC manufacturer posted record first-quarter sales, boosted its 2026 forecast, and noted its backlog had topped $2.1 billion.
AAON’s shift is drawing attention, now that the company serves as a more direct gauge for data-center cooling activity—a sector closely connected to ongoing AI infrastructure investments. Just the day before, Johnson Controls bumped up its annual profit outlook, crediting stronger demand for thermal management, which covers heat-removal systems used in data centers.
With AAON, it wasn’t just about demand. Investors needed to see that the company’s expanded capacity could actually convert orders into shipped product—without sacrificing margins. Sales growth was clear this quarter. Margins, though, remain a bit murky.
Net sales jumped to $496.9 million, up from $322.1 million the year before. Diluted earnings per share came in at 48 cents, topping the prior year’s 35 cents. MarketBeat had pegged consensus EPS at 31 cents and looked for revenue of $381.08 million.
BASX-branded revenue jumped 72.4% to $228.6 million, with the company pointing to data-center cooling and more output from fresh capacity. AAON-branded sales came in at $268.4 million, up 41.6%, as backlog and quicker production pushed figures higher.
As of March 31, backlog hit $2.13 billion, a jump of 107.4% from the prior year. BASX-branded backlog soared even more, climbing 160% to $1.62 billion. According to the company, the bulk of those orders are linked to BASX liquid-cooling products for data centers.
Chief Executive Matt Tobolski told analysts the revised full-year view points to “roughly $1 billion” in BASX revenue for this year. As for capacity, Tobolski put BASX’s potential “above $2 billion for sure,” but stressed the product mix remains an important factor. MarketBeat
AAON lifted its 2026 sales growth target to 40%-45%, sharply higher than the 18%-20% range it had signaled earlier. But the company also revised its gross-margin estimate down to 27%-28%, from the 29%-31% it had previously suggested—growth is accelerating, but margins are feeling some pressure.
That’s the core concern. Gross margin slipped to 25.1%, down from 26.8% a year ago. CFO Andy Cheung cited higher costs tied to outsourced parts, unabsorbed fixed expenses at the Memphis site, and tariff-driven inflation. Still, he noted that pricing and mix adjustments are “embedded in the backlog.” MarketBeat
Cash flow got a boost, though pressure remains on the balance sheet. AAON reported $1.1 million in cash, cash equivalents and restricted cash as of March 31—stacked up against $425.2 million outstanding on its revolving credit line. Operating cash flow came in at $34.0 million, but capital spending totaled $52.9 million.
The company revealed in an SEC filing that its board has cleared as much as $100 million for open-market share buybacks. Timing and size will depend on market conditions and require board sign-off.
Sell-side sentiment remained upbeat. William Blair’s Ryan Merkel, according to TipRanks, stuck with his Buy rating and a $98 price target—pointing to growth from BASX and a rebound in margins. Still, he flagged some gross-margin misses, which he attributed to outsourcing and one-off costs.
AAON, which markets HVAC systems for commercial, industrial, and data-center clients through its AAON and BASX brands, now lands more directly in the industrial AI infrastructure supply chain after its latest report. But the near-term focus is sharper: move that backlog, pull back on outsourcing, and actually deliver the margin rebound management has predicted for later this year.
