Revenue growth surged to 54.3% in 2026Q1, yet gross margins have contracted significantly from a 36.4% peak in 2023Q4 to 25.1% in the most recent quarter.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.62B | 1.44B | 1.2B | 1.17B | 888.79M | 534.52M | 514.55M | 469.33M | 433.95M | 405.23M | 383.98M | 358.63M | 356.32M | 321.14M | 303.11M | 266.22M | 244.55M | 245.28M | 279.73M | 262.52M | 231.46M | 185.19M | 173.27M | 148.84M | 155.07M | 157.25M | 154.98M | 131.9M | 106.78M | 81.68M | 62.84M |
| Revenue Growth % | 28.27% | 20.11% | 2.75% | 31.47% | 66.28% | 3.88% | 9.63% | 8.15% | 7.09% | 5.54% | 7.07% | 0.65% | 10.96% | 5.95% | 13.86% | 8.86% | -0.3% | -12.31% | 6.55% | 13.42% | 24.98% | 6.88% | 16.41% | -4.02% | -1.38% | 1.46% | 17.5% | 23.52% | 30.74% | 29.96% | -6.62% |
| Cost of Goods Sold | 1.19B | 1.06B | 803.53M | 769.5M | 651.22M | 396.69M | 358.7M | 349.91M | 330.41M | 281.58M | 265.9M | 249.95M | 248.06M | 231.35M | 232.62M | 219.94M | 189.36M | 177.74M | 212.55M | 205.15M | 187.57M | 149.9M | 145.81M | 112.6M | 117.19M | 118.4M | 120.23M | 98.1M | 86.95M | 68.61M | 51.8M |
| COGS % of Revenue | - | 73.25% | 66.93% | 65.85% | 73.27% | 74.21% | 69.71% | 74.55% | 76.14% | 69.49% | 69.25% | 69.7% | 69.62% | 72.04% | 76.74% | 82.62% | 77.43% | 72.46% | 75.98% | 78.15% | 81.04% | 80.94% | 84.15% | 75.65% | 75.57% | 75.29% | 77.58% | 74.37% | 81.43% | 84% | 82.42% |
| Gross Profit | 424.32M | 385.72M | 397.11M | 399.02M | 237.57M | 137.83M | 155.85M | 119.42M | 103.53M | 123.65M | 118.08M | 108.68M | 108.26M | 89.79M | 70.5M | 46.28M | 55.19M | 67.55M | 67.18M | 57.37M | 43.89M | 35.29M | 27.46M | 36.25M | 37.88M | 38.85M | 34.75M | 33.8M | 19.83M | 13.07M | 11.05M |
| Gross Margin % | 26.24% | 26.75% | 33.07% | 34.15% | 26.73% | 25.79% | 30.29% | 25.45% | 23.86% | 30.51% | 30.75% | 30.3% | 30.38% | 27.96% | 23.26% | 17.38% | 22.57% | 27.54% | 24.02% | 21.85% | 18.96% | 19.06% | 15.85% | 24.35% | 24.43% | 24.71% | 22.42% | 25.63% | 18.57% | 16% | 17.58% |
| Gross Profit Growth % | - | -2.87% | -0.48% | 67.96% | 72.37% | -11.56% | 30.5% | 15.35% | -16.27% | 4.72% | 8.65% | 0.39% | 20.57% | 27.37% | 52.33% | -16.14% | -18.29% | 0.55% | 17.09% | 30.71% | 24.37% | 28.52% | -24.25% | -4.31% | -2.5% | 11.81% | 2.81% | 70.46% | 51.7% | 18.31% | -18.16% |
| Operating Expenses | 256.09M | 233.38M | 187.99M | 171.53M | 110.81M | 68.58M | 54.01M | 52.41M | 48.18M | 49.42M | 38.49M | 37.38M | 40.26M | 33.97M | 26.26M | 24.11M | 22.47M | 67.55M | 67.18M | 57.37M | 43.89M | 35.29M | 27.46M | 36.25M | 37.88M | 38.85M | 34.75M | 33.8M | 19.83M | 13.07M | 11.05M |
| OpEx % of Revenue | - | 16.18% | 15.66% | 14.68% | 12.47% | 12.83% | 10.5% | 11.17% | 11.1% | 12.19% | 10.02% | 10.42% | 11.3% | 10.58% | 8.66% | 9.06% | 9.19% | 27.54% | 24.02% | 21.85% | 18.96% | 19.06% | 15.85% | 24.35% | 24.43% | 24.71% | 22.42% | 25.63% | 18.57% | 16% | 17.58% |
| Selling, General & Admin | 231.86M | 205.66M | 167.47M | 157.78M | 110.82M | 68.6M | 60.49M | 50.55M | 47.07M | 48.47M | 37.76M | 36.56M | 39.69M | 32.9M | 25.67M | 22.31M | 22.55M | 23.79M | 23.79M | 21.7M | 18.06M | 17.48M | 15.21M | 14.91M | 15.07M | 16.01M | 13.92M | 14.7M | 10.63M | 8.15M | 6.41M |
| SG&A % of Revenue | - | 14.26% | 13.95% | 13.5% | 12.47% | 12.83% | 11.76% | 10.77% | 10.85% | 11.96% | 9.83% | 10.19% | 11.14% | 10.24% | 8.47% | 8.38% | 9.22% | 9.7% | 8.5% | 8.27% | 7.8% | 9.44% | 8.78% | 10.02% | 9.72% | 10.18% | 8.98% | 11.14% | 9.95% | 9.97% | 10.2% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 27.71M | 20.52M | 13.75M | -12K | -21K | -6.48M | 1.86M | 1.87M | 1.49M | 1.15M | 1.32M | 572K | 1.07M | 0 | 1.8M | 0 | 43.75M | 43.39M | 35.67M | 25.83M | 17.81M | 0 | 21.34M | 22.81M | 22.84M | 20.83M | 19.1M | 9.2M | 4.92M | 4.63M |
| Operating Income | 168.23M | 152.35M | 209.12M | 227.49M | 126.76M | 69.25M | 101.84M | 67.01M | 55.35M | 74.23M | 79.59M | 71.3M | 68.01M | 55.83M | 44.24M | 22.17M | 32.7M | 41.55M | 43.39M | 35.67M | 25.83M | 17.81M | 12.25M | 21.34M | 22.81M | 22.84M | 20.83M | 16M | 9.2M | 4.92M | 4.63M |
| Operating Margin % | 10.4% | 10.56% | 17.42% | 19.47% | 14.26% | 12.96% | 19.79% | 14.28% | 12.76% | 18.32% | 20.73% | 19.88% | 19.09% | 17.38% | 14.59% | 8.33% | 13.37% | 16.94% | 15.51% | 13.59% | 11.16% | 9.62% | 7.07% | 14.34% | 14.71% | 14.53% | 13.44% | 12.13% | 8.62% | 6.03% | 7.38% |
| Operating Income Growth % | - | -27.15% | -8.08% | 79.47% | 83.04% | -32% | 51.97% | 21.07% | -25.44% | -6.73% | 11.63% | 4.85% | 21.82% | 26.19% | 99.55% | -32.21% | -21.3% | -4.23% | 21.65% | 38.07% | 45% | 45.47% | -42.61% | -6.45% | -0.14% | 9.67% | 30.17% | 73.86% | 86.86% | 6.26% | 3% |
| EBITDA | 249.56M | 231.71M | 272.04M | 274.29M | 162.19M | 99.67M | 127.47M | 89.78M | 73.01M | 89.24M | 92.63M | 83.04M | 79.56M | 68.14M | 57.65M | 33.57M | 42.59M | 50.62M | 52.8M | 45.33M | 34.98M | 26.32M | 17.98M | 26.77M | 27.73M | 27.22M | 24.29M | 19.1M | 12.05M | 7.44M | 7.13M |
| EBITDA Margin % | 15.43% | 16.07% | 22.66% | 23.47% | 18.25% | 18.65% | 24.77% | 19.13% | 16.82% | 22.02% | 24.12% | 23.16% | 22.33% | 21.22% | 19.02% | 12.61% | 17.41% | 20.64% | 18.88% | 17.27% | 15.11% | 14.21% | 10.38% | 17.99% | 17.88% | 17.31% | 15.67% | 14.48% | 11.29% | 9.11% | 11.35% |
| EBITDA Growth % | -6.07% | -14.83% | -0.82% | 69.11% | 62.73% | -21.81% | 41.99% | 22.97% | -18.19% | -3.66% | 11.54% | 4.38% | 16.76% | 18.2% | 71.74% | -21.18% | -15.86% | -4.14% | 16.48% | 29.6% | 32.91% | 46.38% | -32.86% | -3.43% | 1.85% | 12.06% | 27.18% | 58.49% | 61.93% | 4.35% | -0.94% |
| D&A (Non-Cash Add-back) | 81.33M | 79.36M | 62.92M | 46.79M | 35.43M | 30.42M | 25.63M | 22.77M | 17.66M | 15.01M | 13.04M | 11.74M | 11.55M | 12.31M | 13.41M | 11.4M | 9.89M | 9.06M | 9.41M | 9.66M | 9.15M | 8.5M | 5.73M | 5.43M | 4.92M | 4.38M | 3.46M | 3.1M | 2.85M | 2.52M | 2.5M |
| EBIT | 168.25M | 146.48M | 209.5M | 228M | 127.16M | 69.31M | 95.36M | 67.35M | 55.51M | 74.46M | 79.53M | 71.19M | 67.7M | 55.8M | 44.24M | 23.97M | 32.74M | 43.9M | 44.14M | 35.67M | 25.83M | 17.81M | 12.25M | 21.34M | 22.81M | 22.84M | 20.83M | 16M | 9.2M | 4.92M | 4.63M |
| Net Interest Income | -9.87M | -17.73M | -2.9M | -4.84M | -2.63M | -132K | 88K | 66K | 196K | 298K | 292K | 161K | 276K | 221K | 42K | -179K | 213K | 62K | -44K | 8K | 24K | 67K | 183K | 346K | 214K | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 88K | 66K | 196K | 298K | 292K | 161K | 276K | 221K | 86K | 98K | 258K | 71K | 27K | 8K | 24K | 67K | 183K | 346K | 214K | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 9.87M | 17.73M | 2.9M | 4.84M | 2.63M | 132K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 44K | 277K | 45K | 9K | 71K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -19.88M | -23.6M | -2.53M | -4.34M | -2.23M | -71K | 139K | 20K | 149K | 389K | 397K | 37K | 240K | 469K | 79K | -656K | -8K | 2.34M | 680K | -323K | 367K | 518K | 133K | 513K | 299K | -356K | -468K | -400K | -658K | -854K | -1.24M |
| Pretax Income | 148.35M | 128.75M | 206.59M | 223.15M | 124.53M | 69.18M | 101.97M | 67.03M | 55.5M | 74.62M | 79.99M | 71.34M | 68.25M | 56.29M | 44.32M | 21.51M | 32.69M | 43.89M | 44.07M | 35.34M | 26.2M | 18.33M | 12.38M | 21.85M | 23.11M | 22.49M | 20.36M | 15.6M | 8.54M | 4.07M | 3.39M |
| Pretax Margin % | 9.17% | 8.93% | 17.21% | 19.1% | 14.01% | 12.94% | 19.82% | 14.28% | 12.79% | 18.42% | 20.83% | 19.89% | 19.15% | 17.53% | 14.62% | 8.08% | 13.37% | 17.89% | 15.75% | 13.46% | 11.32% | 9.9% | 7.14% | 14.68% | 14.9% | 14.3% | 13.14% | 11.83% | 8% | 4.98% | 5.4% |
| Income Tax | 30.23M | 21.16M | 38.03M | 45.53M | 24.16M | 10.42M | 22.97M | 13.32M | 13.17M | 20.79M | 26.61M | 25.61M | 24.09M | 18.75M | 16.87M | 7.53M | 10.8M | 16.17M | 15.48M | 12.19M | 9.06M | 6.87M | 4.86M | 7.63M | 8.5M | 8.33M | 7.57M | 5.9M | 3.31M | 1.05M | 1.32M |
| Effective Tax Rate % | 20.38% | 16.43% | 18.41% | 20.4% | 19.4% | 15.07% | 22.52% | 19.87% | 23.73% | 27.87% | 33.27% | 35.9% | 35.3% | 33.3% | 38.06% | 34.99% | 33.03% | 36.84% | 35.13% | 34.48% | 34.6% | 37.48% | 39.24% | 34.9% | 36.78% | 37.05% | 37.16% | 37.82% | 38.79% | 25.77% | 38.81% |
| Net Income | 118.12M | 107.59M | 168.56M | 177.62M | 100.38M | 58.76M | 79.01M | 53.71M | 42.33M | 54.5M | 53.38M | 45.73M | 44.16M | 37.55M | 27.45M | 13.99M | 21.89M | 27.72M | 28.59M | 23.16M | 17.13M | 11.46M | 7.52M | 14.23M | 14.61M | 14.16M | 12.79M | 9.7M | 5.23M | 3.02M | 2.08M |
| Net Margin % | 7.3% | 7.46% | 14.04% | 15.2% | 11.29% | 10.99% | 15.35% | 11.44% | 9.75% | 13.45% | 13.9% | 12.75% | 12.39% | 11.69% | 9.06% | 5.25% | 8.95% | 11.3% | 10.22% | 8.82% | 7.4% | 6.19% | 4.34% | 9.56% | 9.42% | 9% | 8.26% | 7.35% | 4.9% | 3.7% | 3.3% |
| Net Income Growth % | -25.64% | -36.17% | -5.1% | 76.96% | 70.83% | -25.63% | 47.1% | 26.89% | -22.33% | 2.1% | 16.73% | 3.56% | 17.61% | 36.79% | 96.26% | -36.12% | -21.02% | -3.04% | 23.46% | 35.15% | 49.48% | 52.4% | -47.14% | -2.63% | 3.21% | 10.65% | 31.9% | 85.47% | 73.06% | 45.64% | -1.19% |
| Net Income (Continuing) | 118.12M | 107.59M | 168.56M | 177.62M | 100.38M | 58.76M | 79.01M | 53.71M | 42.33M | 53.83M | 53.38M | 45.73M | 44.16M | 37.55M | 27.45M | 13.99M | 21.89M | 27.72M | 28.59M | 23.16M | 17.13M | 11.46M | 7.52M | 14.23M | 14.61M | 14.16M | 12.79M | 9.7M | 5.23M | 3.02M | 2.08M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.42 | 1.29 | 2.02 | 2.13 | 1.24 | 0.73 | 0.99 | 0.68 | 0.54 | 0.69 | 0.67 | 0.56 | 0.53 | 0.68 | 0.33 | 0.37 | 0.58 | 0.32 | 0.32 | 0.24 | 0.18 | 0.12 | 0.08 | 0.21 | 0.21 | 0.14 | 0.18 | 0.13 | 0.05 | 0.03 | 0.02 |
| EPS Growth % | -25.26% | -36.14% | -5.16% | 71.77% | 69.86% | -26.26% | 45.59% | 25.93% | -21.74% | 2.99% | 19.64% | 5.66% | -22.06% | 106.06% | -10.81% | -36.21% | 81.25% | 0% | 33.33% | 33.33% | 50% | 57.07% | -63.62% | 0% | 50% | -22.22% | 38.46% | 170.83% | 70.82% | 45.6% | -33.45% |
| EPS (Basic) | - | 1.32 | 2.07 | 2.19 | 1.26 | 0.75 | 1.01 | 0.69 | 0.54 | 0.69 | 0.67 | 0.57 | 0.54 | 0.45 | 0.33 | 0.38 | 0.58 | 0.32 | 0.32 | 0.24 | 0.18 | 0.12 | 0.08 | 0.15 | 0.22 | 0.14 | 0.13 | 0.09 | 0.07 | 0.04 | 0.02 |
| Diluted Shares Outstanding | 83.18M | 83.11M | 83.63M | 83.3M | 81.15M | 80.59M | 79.59M | 78.95M | 79M | 79.62M | 80.17M | 54.48M | 83.05M | 55.59M | 83.36M | 55.98M | 38.01M | 87.63M | 90.39M | 95.82M | 64.02M | 64.55M | 98.13M | 100.62M | 104.34M | 69.06M | 105.52M | 110.38M | 72.73M | 71.68M | 71.67M |
| Basic Shares Outstanding | 81.76M | 81.53M | 81.47M | 81.16M | 79.58M | 78.61M | 78.25M | 78.12M | 79M | 79.62M | 80.06M | 81.66M | 54.81M | 82.68M | 55.24M | 37.03M | 37.8M | 58.01M | 88.9M | 94.3M | 62.29M | 93.71M | 94.43M | 64.22M | 66.61M | 98.66M | 66.77M | 106.63M | 105.97M | 105.06M | 69.59M |
| Dividend Payout Ratio | - | 30.3% | 15.47% | 14.89% | 22.83% | 33.95% | 25.08% | 30.99% | 39.52% | 25.07% | 23.75% | 25.93% | 21.87% | 19.78% | 32.21% | 42.44% | 41.87% | 21.19% | 20.26% | 21.41% | 14.46% | - | - | - | - | - | - | - | - | - | - |
Margin Compression from Inflation
According to recent financial disclosures, AAON achieved a significant revenue expansion of 54.3% in 2026Q1, marking a sharp departure from the stagnant growth observed in mid-2025 and suggesting that the company is successfully capturing increased demand within its specialized commercial HVAC and data center cooling segments.
The recent acceleration in top-line performance appears to be driven by a combination of project-based wins and potential pricing power in high-demand verticals. Investors should monitor whether this growth trajectory is sustainable or if it reflects a temporary surge in project completions that may normalize in subsequent quarters.
As reported in quarterly income statements, AAON's gross margin has contracted from a peak of 36.4% in 2023Q4 to 25.1% in 2026Q1, indicating that rising input costs or shifts in product mix are exerting meaningful pressure on the company's ability to maintain its historical premium pricing profile.
The decline in gross margin suggests that the company may be struggling to pass through inflationary pressures on raw materials like steel and copper as quickly as they are incurred. This trend warrants further investigation into whether the current margin level represents a new structural baseline or a temporary cyclical trough.
Based on the provided income statement data, operating margins have compressed to 11.5% in 2026Q1 from highs exceeding 20% in 2024, suggesting that SG&A expenses are scaling at a rate that currently outpaces the company's ability to convert gross profit into meaningful operating income.
The inability to maintain operating leverage during a period of high revenue growth implies that the company is incurring significant overhead to support its expansion into new verticals like data center cooling. Analysts should evaluate if these investments will eventually yield operating efficiencies or if they represent a permanent increase in the cost of doing business.
Financial filings reveal that AAON recorded $7.7 million in stock-based compensation during 2026Q1, a figure that represents a notable portion of net income and suggests that reported EPS may be partially inflated by non-cash equity grants that dilute shareholder value over time.
The presence of recurring stock-based compensation expenses requires investors to adjust their valuation models to account for the true economic cost of employee and management incentives. This practice may mask the underlying operational performance and warrants a closer look at the company's long-term compensation strategy.
While the 54.3% revenue growth in 2026Q1 appears impressive, a critical analysis of the income statement suggests that this performance may be unsustainable if the company cannot stabilize its declining gross margins and manage the rising costs associated with its specialized manufacturing and engineering-heavy business model.
Short-term growth spikes often invite scrutiny regarding the quality of the backlog and the potential for future project delays or cost overruns. Investors should remain skeptical of the current growth rate until the company demonstrates an ability to expand margins alongside its top-line expansion.
Quick answers to the most common questions about buying AAON stock.
For fiscal year 2025, AAON, Inc. (AAON) reported total revenue of $1.44B. This represents a 2194.7% increase compared to $62.8M in 1996.
AAON, Inc. (AAON) is profitable, generating $107.6M in net income for the fiscal year ending 2025 with a net profit margin of 7.5%.
AAON, Inc. (AAON) reported an operating income of $152.3M, resulting in an operating profit margin of 10.6%. This margin reflects the operational efficiency of the business before interest and taxes.
AAON, Inc. (AAON) generated $385.7M in gross profit for the year, representing a gross profit margin of 26.7%. This demonstrates the company's core pricing power and production efficiency.