By Connor Hart

Shares of AAON fell after the company logged lower-than-expected profit and sales in the second quarter, hurt by production issues, and cut its full-year outlook.

The stock tumbled 16%, to $68, in premarket trading Monday. Through Friday's close, shares have declined 7.9% in the past year.

The manufacturer of heating, ventilation and air-conditioning equipment reported net income of $15.5 million, or 19 cents a share, compared with $52.2 million, or 62 cents a share, a year earlier.

Adjusted per-share earnings were 22 cents, below the 33 cents that analysts polled by FactSet expected.

Sales fell 0.6% to $311.6 million and missed the $325 million that Wall Street modeled.

"Our second-quarter results fell short of our expectations and do not reflect the high standards we set for ourselves as an organization," Chief Executive Matt Tobolski said.

He attributed the quarter's underperformance to poor operational execution--mainly associated with the implementation of the company's new enterprise resource planning system at its Longview, Texas, facility--which limited production.

"We are taking immediate and targeted actions to address these issues, strengthen execution and ensure we are better positioned to deliver consistent results in the future," Tobolski said. "While we are encouraged by recent improvements, we are revising our previous expectations downward for the second half of the year."

AAON expects third-quarter sales to be up in the low single digits. It now expects full-year sales to rise in the low teens, compared with a prior outlook of growth in the mid- to high-teens.

Analysts are looking for third-quarter sales of $391.2 million, up 25% from the same quarter last year, as well as full-year sales of $1.4 billion, up 17% from 2024.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

August 11, 2025 08:21 ET (12:21 GMT)

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