AAON Posts Record Q3 Sales, Restates First-Half Results and Discloses Material Weakness
AAON said Monday its third-quarter net sales jumped 84.1% to a record $707.4 million, but the HVAC maker also restated its first- and second-quarter 2026 results and disclosed a material weakness in its financial controls, according to an 8-K.
Management and the board's audit committee concluded on Nov. 3 that the company's quarterly reports for the periods ended March 31 and June 30 should no longer be relied on. The errors involved how AAON calculated revenue under the percent-of-completion method and how it accounted for software subscriptions, the filing said.
In aggregate, the restatements raised first-half net sales by $10.7 million and diluted earnings by 9 cents a share. First-quarter net income was cut to $36.5 million from $39.8 million, while six-month net income rose to $103.6 million from $96.5 million.
"We take that seriously," President and Chief Executive Matt Tobolski said in the release, adding that the company is "moving with urgency to remediate the material weakness."
The quarter
Operating income rose 129.3% to $100.0 million, and diluted earnings per share climbed 124.3% to 83 cents. Gross profit increased 76.4% to $188.5 million, with a gross margin of 26.7%, up 60 basis points from the second quarter.
Total backlog rose 40.5% from a year earlier to $1.9 billion. Year-to-date operating cash flow was $146.9 million, compared with a use of $18.8 million a year ago.
Tobolski said both the AAON brand and its BASX unit delivered strong growth, and that BASX continues to strengthen its position with data center customers.
Raised outlook
AAON raised its 2026 outlook and now expects net sales growth of 72% to 75%, the company said.
By the numbers
- Q3 net sales: $707.4 million, up 84.1%
- Diluted EPS: $0.83, up 124.3%
- Operating income: $100.0 million
- Backlog: $1.9 billion, up 40.5%
- Restatement impact on first-half net sales: up $10.7 million
- 2026 net sales growth outlook: 72% to 75%
Sources
- Form 8-K (Items 2.02, 4.02 and 7.01) with earnings release, AAON, Inc., filed Nov. 9, 2026, accession 0000824142-26-000083
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