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Stock Market Live July 2, 2026: S&P 500 (SPY) Flat with New Jobs Data
AAON

AAON Q2 2025 Earnings

Reported Aug 11, 2025 at 7:18 AM ET · SEC Source

Q2 25 EPS

$0.22

MISS 32.52%

Est. $0.33

Q2 25 Revenue

$311.6M

MISS 7.60%

Est. $337.2M

vs S&P Since Q2 25

+47.1%

BEATING MARKET

AAON +65.2% vs S&P +18.1%

Market Reaction

Did AAON Beat Earnings? Q2 2025 Results

AAON delivered a sharply disappointing second quarter, missing on both the top and bottom lines as an ERP system rollout at its Longview, Texas facility rippled through operations and dragged results well below expectations. Adjusted diluted EPS came… Read more AAON delivered a sharply disappointing second quarter, missing on both the top and bottom lines as an ERP system rollout at its Longview, Texas facility rippled through operations and dragged results well below expectations. Adjusted diluted EPS came in at $0.22, falling 32.52% short of the $0.33 consensus estimate, while revenue of $311.57 million trailed forecasts by 7.60% and slipped 0.6% year-over-year. The Longview implementation, which went live in April, curtailed finished goods and coil production at that plant and simultaneously constrained the expected ramp at AAON's Tulsa facility, which depends on Longview for coil supply; the combined effect compressed gross margin to 26.6% from 36.1% a year ago. Shares fell sharply on the news, reflecting investor frustration with the operational stumble. Still, management pointed to a robust 71.9% year-over-year surge in adjusted backlog to $1.12 billion as evidence of durable demand, and trimmed its full-year outlook to low-teens revenue growth with gross margins of 28%-29%, while projecting a high-twenties revenue growth acceleration in the fourth quarter as Longview stabilizes.

Key Takeaways

  • • ERP system implementation at Longview, Texas facility caused significant production disruptions and operational inefficiencies
  • • Supply chain constraints from refrigerant transition limited AAON Oklahoma production early in quarter
  • • Lower production volumes at AAON Oklahoma led to sub-optimal overhead absorption
  • • Strong data center demand drove BASX segment revenue growth of 20.4%
  • • AAON Coil Products benefited from $40.1 million in BASX-branded liquid cooling data center orders
  • • New Memphis facility contributed $3.0 million in cost of sales with minimal offsetting revenue
  • • SG&A increased due to investments in people, technology, and one-time $3.4 million Memphis incentive fee
24/7 Wall St

AAON YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

AAON Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Our second quarter results fell short of our expectations and do not reflect the high standards we set for ourselves as an organization. We strive to be a best-in-class operator and these results do not reflect that. The underperformance was primarily driven by poor operational execution, mainly associated with the implementation of our new ERP system at our Longview, Tex. facility.”

— Matt Tobolski, Q2 2025 Earnings Press Release

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