Overview

* Aaon Q2 2025 sales down 0.6%, missing analyst expectations, per LSEG data

* Adjusted EPS for Q2 down 64.5% yr/yr, reflecting Enterprise Resource Planning (ERP) implementation challenges

* Strong backlog growth points to potential market share gains

Outlook

* Company revises full-year 2025 outlook downward due to ERP inefficiencies

* AAON ( AAON ) anticipates strong second half driven by robust backlog

* Company sees Q3 sales growth in low single digits

* AAON ( AAON ) expects Q4 gross profit margin between 30% and 31%

Result Drivers

* ERP IMPLEMENTATION - Operational inefficiencies from ERP rollout impacted production and gross profit margins, per CEO Matt Tobolski

* SUPPLY CHAIN CONSTRAINTS - AAON Oklahoma segment sales fell 18% due to supply chain issues and coil shortages

* DATA CENTER DEMAND - BASX and AAON Coil Products segments benefited from strong demand for data center equipment

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $311.6 $325 mln

mln (6

Analysts

)

Q2 $0.22

Adjusted

EPS

Q2 Gross 27.5%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the electrical components & equipment peer group is "buy"

* Wall Street's median 12-month price target for Aaon Inc ( AAON ) is $95.00, about 15.2% above its August 8 closing price of $80.52

* The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 38 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)