AAON Inc's stock surged 5.76% during early trading on Monday, following the release of its fourth-quarter and full-year 2025 financial results.
The HVAC solutions provider reported quarterly net sales of $424.2 million, a significant 42.5% increase year-over-year and beating analyst expectations of $372.4 million. Adjusted earnings per share came in at $0.39, up from $0.30 a year earlier, though slightly below the FactSet consensus estimate of $0.45. The company also announced the authorization of a $100 million share repurchase program.
Investors reacted positively to the company's strong outlook for fiscal 2026, which projects sales growth of 18% to 20% and gross margins between 29% and 31%. The results were driven by a 138.8% year-over-year surge in BASX-branded sales, supported by strong demand for data center equipment, including liquid cooling products. AAON ended the year with a record backlog of $1.83 billion, up 110.9% from the previous year, providing strong visibility for future growth.