AAON Inc

AAON Inc. reported record second-quarter 2026 net sales of $627 million, up 101% year-over-year, and raised its full-year sales growth outlook to 55% to 60%. BASX branded sales surged 216.2% to $218 million, while AAON branded sales grew 39.3% in the second quarter, driven by a healthy backlog and improved production throughput as we work to reduce lead times at both our Tulsa and Longview facilities. Non-GAAP adjusted EBITDA rose 102.3% to $94.2 million, and adjusted diluted earnings per share jumped 213.6% to $0.69. The company now expects gross margin of 25% to 26% for 2026, down from prior guidance, citing mix impact from faster-than-expected growth at the new Memphis facility and temporary price-cost pressures. Management said backlog remains nearly double prior-year levels and that margin improvement should accelerate in the fourth quarter and into 2027.

Tenax Therapeutics and Sionna Therapeutics shares plunged in premarket trading after their respective clinical trials failed, while MarineMax jumped on a reported buyout by Blackstone-owned Safe Harbor Marinas. Tenax stock fell 84.2% after its Phase 3 LEVEL trial of TNX-103 missed its primary endpoint, showing no statistically significant improvement in six-minute walk distance versus placebo with a p-value of 0.63. Sionna shares dropped 92.1% after its Phase 2a trial of SION-719 failed to demonstrate meaningful CFTR function improvement, with a placebo-adjusted sweat chloride change of just -1.0 mmol/L and a p-value of 0.7. MarineMax surged more than 34% after Reuters reported Safe Harbor is close to acquiring the boat retailer for $1.5 billion including debt, or about $53 per share in cash, a substantial premium to Friday's close of $35.68. AAON gained over 10.6% after its second-quarter results apparently beat expectations, while Silence Therapeutics rose 16.2% ahead of a conference call on its Phase 2 SANRECO trial. Dole fell 4.2% after missing second-quarter earnings and revenue estimates, and AirSculpt Technologies dropped 18.4% on weaker quarterly results with revenue down 3% year-over-year.

Conestoga Capital Advisors named AAON a material contributor in its second-quarter 2026 investor letter, citing an exceptional first-quarter earnings report. Management raised the 2026 revenue outlook for AAON's BASX division, which provides liquid-cooling solutions for data centers, to approximately $1.0 billion from a previous forecast of $715 million, reflecting accelerating demand from AI-driven data center investments. The firm noted that AAON's rooftop HVAC business also demonstrated a healthy rebound, and while gross margins declined, management intentionally prioritized growth and market share over near-term profitability. Conestoga believes this strategy is appropriate given robust demand and should strengthen AAON's competitive position over the long term.

Wasatch Global Investors highlighted AAON as a material contributor in its Small Cap Growth Strategy second-quarter 2026 investor letter. The firm noted that data-centre cooling demand amid the AI infrastructure build-out has accelerated growth for the commercial HVAC manufacturer. In AAON's latest quarterly results, year-over-year net sales grew more than 50% and the company's total backlog increased 107.4% to a record $2.1 billion. AAON shares closed at $102.67 on July 24, 2026, with a market capitalization of $8.41 billion, gaining 20.22% over the past 52 weeks despite a one-month decline of 19.75%.

Giverny Capital Asset Management highlighted AAON, Inc. as a case where emotion triggered impulsive trades, noting in its second-quarter 2026 investor letter that the stock surged 31% in a single day after reporting strong earnings, only to subsequently give back a fair amount of that gain. The firm pointed to AAON's data-center cooling systems business as a driver of demand. AAON closed at $105.61 per share on July 21, 2026, with a market capitalization of $8.65 billion, posting a one-month return of negative 19.75% and a 52-week gain of 34.11%. Giverny Capital's model portfolio returned 13.70% for the quarter versus the S&P 500's 15.20%, and 5.89% year-to-date against the index's 10.21%.

AAON has drawn investor attention as one narrative model suggests the stock is 21.3% undervalued, with a fair value estimate of $143.50 compared to a recent close of $112.93. The company is working through short-term operational disruptions from its ERP rollout, while a strong backlog and accelerating data center demand—particularly for BasX brand cooling solutions—support expectations for revenue growth and margin recovery in the second half of 2025 and into 2026. However, a simple price-to-earnings check shows AAON trading at about 78.3 times earnings, a steep premium over the US Building industry average of 22.1 times and the peer average of 23.4 times, raising valuation risk questions. The narrative model uses an 8.51% discount rate and assumes brisk revenue and earnings growth with a future P/E well above the current industry level, implying a fair value that remains meaningfully above both the recent close and the analyst consensus target.

A bullish thesis on AAON, Inc. was shared on r/GrowthStockInvesting, emphasizing the company's accelerating growth in AI-driven data center cooling. AAON's BASX division, acquired in December 2021, contributed 46 percent of revenue in Q1 2026 and grew 72.4 percent year over year, driving total revenue to $496.9 million, a 30 percent beat over consensus estimates, with earnings per share of $0.48 versus expectations near $0.30. Management raised FY2026 revenue growth guidance from 18–20 percent to 40–45 percent, supported by a record backlog of $2.1 billion that expanded 107.4 percent. The company is seen as differentiated from peers like Vertiv and Modine due to its semi-custom manufacturing model, stronger balance sheet, and more attractive valuation multiples, positioning it as a compelling long-term compounder in AI thermal infrastructure.

AAON, Inc. posted fiscal first-quarter 2026 revenue of $496.94 million, far exceeding the $383.6 million consensus, while earnings per share of $0.48 topped the $0.29 estimate. The beat was fueled by the BASX brand, where sales jumped 72.4% to $228.6 million as liquid cooling demand for AI infrastructure accelerated. The company’s order backlog surged 107.4% year-over-year to a record $2.13 billion, driven primarily by a 160% increase in BASX-branded data center cooling orders. At the William Blair Growth Stock Conference on June 2, CEO Matt Tobolski and CFO Andy Cheung outlined a dual-brand strategy supported by expanded production capacity, new product innovations, and a stronger supply chain.

The nine HVAC and water systems stocks tracked by StockStory reported a very strong first quarter, with aggregate revenues beating analysts' consensus estimates by 6.9%. CSW Industrials posted all-time record revenue of $309 million, up 34% year on year, while AAON delivered the fastest revenue growth among peers at 54.3% to $496.9 million, exceeding expectations by 29.5%. Lennox reported $1.14 billion in revenue, a 5.8% increase that topped estimates by 6.7%, and Advanced Drainage Systems raised its full-year guidance the most after revenue rose 9.9% to $676.8 million. A. O. Smith was the weakest performer, with revenue down 1.9% to $945.6 million and full-year EPS guidance missing expectations. Share prices across the group have risen 11.3% on average since the latest earnings results.