Overview

* AAON ( AAON ) Q3 net sales up 17.4% to $384.2 mln, driven by BASX demand

* GAAP diluted EPS down 41.3% yr/yr, but up 94.7% sequentially

* Record backlog of $1.32 bln, up 103.8% yr/yr, indicating market share gains

Outlook

* AAON ( AAON ) expects FY25 sales growth in mid-teens vs low-teens earlier

* Company anticipates FY25 gross profit margin of 28.0%-28.5%

Result Drivers

* BASX DEMAND - BASX-branded sales rose 95.8% driven by increased demand for liquid cooling equipment in data centers

* ERP IMPROVEMENTS - Sequential gross margin improvement attributed to higher production volumes and ERP system optimization

* MARKET SHARE GAINS - Record backlog and strong bookings trends indicate continued market share gains

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Gross 31.50%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "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 $107.00, about 12.7% above its November 5 closing price of $93.46

* The stock recently traded at 50 times the next 12-month earnings vs. a P/E of 35 three months ago

Press Release:

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(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.)