Aaon 2025 Q3 Earnings Strong Revenue Beat as Earnings Decline 41.5%

Aaon (AAON) reported Q3 2025 results that exceeded revenue expectations by 15.54%, . , citing strong data center demand and operational recovery.

Revenue

Aaon’s total revenue surged 17.4% to $384.24 million in Q3 2025, outperforming the $332.53 million analyst consensus. , up 103.8% year-over-year, driven by robust demand for data center cooling solutions. BASX-branded sales, including liquid cooling equipment, , .

Earnings/Net Income

, reflecting operational inefficiencies from ERP implementation and unabsorbed fixed costs at the Memphis facility. Despite the year-over-year drop, the company has maintained profitability for over 20 years, demonstrating operational resilience.

Post-Earnings Price Action Review

Aaon’s stock surged 21.07% in pre-market trading following the earnings release, . The rally was fueled by strong data center demand and sequential production improvements, particularly at the Longview facility. Institutional investors and analysts highlighted the company’s backlog growth and capacity expansion plans as key drivers of investor confidence.

CEO Commentary

CEO emphasized sequential operational gains, including 90%+ production throughput at Longview and 28.1% sales growth for AAON-branded equipment. Strategic priorities include expanding Memphis production, optimizing ERP systems, and capturing data center market share via BASX’s liquid cooling solutions. Tobolski expressed optimism about Q4 momentum despite ERP-related margin pressures.

Guidance

Aaon expects mid-teens year-over-year sales growth for 2025, with a gross profit margin of 28.0%-28.5%. . .

Additional News

1. Institutional Investor Activity, while Oppenheimer and Allied Investment Advisors increased holdings. .

2. Insider Sales, , raising questions about insider confidence.

3. Dividend Raise & Buyback Plan, signaling financial flexibility despite recent operational challenges.

Key Takeaways

Aaon’s Q3 results highlight its ability to outperform expectations in a challenging market, driven by data center demand and production recovery. While near-term margin pressures persist due to ERP integration and Memphis facility costs, the company’s backlog growth and capacity expansion position it for long-term gains. Investors should monitor progress on operational efficiency and data center market share capture in upcoming quarters.