AAON Q2 sales miss estimates, reduces full-year outlook

Overview

• Aaon Q2 2025 sales down 0.6%, missing analyst expectations, per LSEG data

• Adjusted EPS for Q2 down 64.5% yr/yr, reflecting Enterprise Resource Planning (ERP) implementation challenges

• Strong backlog growth points to potential market share gains

Outlook

• Company revises full-year 2025 outlook downward due to ERP inefficiencies

• AAON anticipates strong second half driven by robust backlog

• Company sees Q3 sales growth in low single digits

• AAON expects Q4 gross profit margin between 30% and 31%

Result Drivers

• ERP IMPLEMENTATION - Operational inefficiencies from ERP rollout impacted production and gross profit margins, per CEO Matt Tobolski

• SUPPLY CHAIN CONSTRAINTS - AAON Oklahoma segment sales fell 18% due to supply chain issues and coil shortages

• DATA CENTER DEMAND - BASX and AAON Coil Products segments benefited from strong demand for data center equipment

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electrical components & equipment peer group is "buy"

• Wall Street's median 12-month price target for Aaon Inc is $95.00, about 15.2% above its August 8 closing price of $80.52

• The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 38 three months ago

Press Release: ID:nPn6P9RFJa