AAON's Q2 2025 Earnings Call: Contradictions on ERP Implementation, Data Center Growth, and Supply Chain Challenges

Challenges with ERP Implementation:
- AAON's second quarter results fell short of expectations due to issues related to their ERP implementation.
- The ERP implementation at the Longview facility caused a prolonged impact on AAON branded equipment production and coil supply shortages at the Tulsa plant, contributing to production slowdowns.

Strong Performance of BasX Brand:
- BasX branded data center sales increased 127% in Q2 and 269% year-to-date.
- The growth was driven by strong demand for liquid cooling solutions and strategic partnerships like the one with Applied Digital.

National Account Strategy Success:
- National accounts orders grew 163% in Q2 and are up 90% year-to-date, composing approximately 35% of total AAON branded orders.
- This success is attributed to the company's targeted approach and the value proposition of its high-performance equipment.

Impact of Price Dynamics:
- Recent price increases and tariff surcharges were minimally reflected in the second quarter results, but their impacts are expected to contribute positively to sales in the third and fourth quarters.
- The delayed impact of these pricing strategies is due to orders received before these changes were implemented.