AAON Stock Jumps 23% After Q3 Beat and Higher 2026 Sales Outlook

TLDR

• AAON stock rose about 23% to near $77 on Tuesday after its Q3 report.
• Adjusted EPS was 83 cents against 57 cents expected, on record revenue of $707.4 million.
• BASX data center cooling sales surged 218% to $397.2 million.
• AAON lifted its 2026 sales forecast to $2.48 billion-$2.524 billion.
• The company restated early 2026 results and flagged a material weakness in financial reporting controls.

AAON (AAON) stock climbed about 23% to roughly $77 on Tuesday after a third-quarter report that beat estimates. Monday’s close was $62.87.

AAON, Inc., AAON

Adjusted earnings came in at 83 cents a share, well above the 57 cents analysts expected. Revenue hit a record $707.4 million, up 84% from a year ago.

Analysts had been looking for about $600 million in sales. The company cleared that bar by more than $100 million.

Data Center Cooling and Core HVAC Both Deliver

BASX-branded sales surged 218% to $397.2 million. AAON-branded sales rose 20% to $310.2 million.

BASX liquid cooling sales jumped 256% to $165.5 million. Those sales reached $450 million over the past 12 months.

Total backlog rose 40.5% from a year ago to $1.85 billion. It slipped 5.9% from the prior quarter as more orders turned into sales.

BASX backlog grew 51% year over year. KeyBanc noted it fell 5% from the previous quarter.

The Oklahoma operations build rooftop systems for commercial buildings. Their sales climbed 19% to $283 million, against a 5% gain forecast by D.A. Davidson.

D.A. Davidson pointed to fewer production bottlenecks and better quality controls. The firm kept a Buy rating and a $110 price target.

Baird analyst Timothy Wojs kept an Outperform rating after the report. He trimmed his target to $104 from $110.

The Restatement and Margin Details

AAON restated its first- and second-quarter results. The changes added $10.7 million to first-half sales and 9 cents to earnings per share.

The company also found a material weakness in its financial reporting controls. It says it is still working to fix the problem.

Gross margin narrowed to 26.7% from 27.8% a year earlier. It rose 60 basis points from the previous quarter.

KeyBanc said part of the higher margin outlook could reflect the restatements. The firm also said the fast BASX expansion is holding back margin gains because of added costs.

Operating cash flow for the first nine months reached $146.9 million, compared with an outflow of $18.8 million a year earlier. AAON held $3.7 million in cash and had $386.7 million outstanding on its revolving credit facility.

AAON raised its 2026 sales forecast to $2.48 billion-$2.524 billion from $2.235 billion-$2.307 billion. That tops the $2.301 billion analyst estimate, and the company expects a gross margin near 26%.

The company declared a quarterly dividend of 10 cents a share. It is payable Dec. 17 to holders of record Nov. 25.

The post AAON Stock Jumps 23% After Q3 Beat and Higher 2026 Sales Outlook appeared first on Blockonomi.