Tulsa – November 10, 2026 -- AAON, Inc. reported record third-quarter 2026 net sales of $707.4 million, up 84.1% from $384.2 million a year earlier, and raised its full-year outlook. The company also restated its first- and second-quarter 2026 financial statements and disclosed a material weakness in internal control over financial reporting.
BASX data center demand drives the sales surge
BASX-branded sales rose 218.3% to a record $397.2 million, on data center demand and higher utilization of newly added manufacturing capacity. AAON-branded sales grew 19.6% to a record $310.2 million.
Operating income increased 129.3% to $100.0 million from $43.6 million. Diluted EPS rose 124.3% to $0.83 from $0.37, and non-GAAP adjusted EPS was also $0.83. Year-to-date operating cash flow reached $146.9 million, against a use of $18.8 million a year ago.
Gross margin falls year over year but rises 60 basis points sequentially
Gross profit increased 76.4% to $188.5 million. Gross margin was 26.7%, down from 27.8% a year earlier, as a larger share of BASX revenue came from less mature, lower-utilization facilities. Improved price/cost and volume leverage partly offset the pressure.
Margin improved 60 basis points from the second quarter, the second consecutive sequential gain. SG&A fell 400 basis points to 12.5% of sales.
AAON Oklahoma margin drops to 25.5% from 33.0%
The AAON Oklahoma segment posted net sales of $283.5 million, up 18.7%, helped by higher pricing and backlog execution. Gross profit slipped to $72.3 million from $78.8 million, and gross margin narrowed to 25.5% from 33.0%.
Backlog reaches $1.9 billion but declines 5.9% from Q2
Total backlog rose 40.5% year over year to $1.9 billion from $1.3 billion. BASX backlog climbed 51.1% and AAON-branded backlog gained 18.0%.
Against the second quarter, total backlog fell 5.9%. The company attributed this to faster conversion into revenue and timing variability of large BASX project awards. AAON-branded backlog dropped 7.6% sequentially as higher throughput reduced elevated lead times. Management expects order strength to continue in the fourth quarter and into 2027.
Restatement lifts first-half sales by $10.7 million
Errors found during third-quarter close led the company to restate its first- and second-quarter 2026 statements. In aggregate, the corrections raised first-half net sales by $10.7 million, gross margin by 71 basis points and diluted EPS by $0.09.
Management concluded a material weakness existed in internal control over financial reporting and said remediation is under way. The company found no evidence of fraud or misconduct. CEO Matt Tobolski said, "We take that seriously." The restated 10-Q filings and the third-quarter 10-Q were filed alongside the results.
Outlook now calls for 72%-75% sales growth
The raised 2026 guidance calls for net sales growth of 72% to 75%, gross margin of about 26% and SG&A of about 13% of sales. The company cited backlog, expanded capacity and improving operational execution, and expects further gross margin progress in the fourth quarter.