On August 1, 2024, AAON Inc (AAON, Financial) released its 8-K filing for the second quarter of 2024, reporting record sales and earnings. AAON Inc is a manufacturer of air-conditioning and heating equipment, serving the commercial and industrial markets primarily in North America.
Performance Overview
AAON Inc (AAON, Financial) reported net sales of $313.6 million for Q2 2024, a 10.4% increase from $284.0 million in Q2 2023. This figure significantly surpassed the analyst estimate of $283.77 million. The company's earnings per diluted share (EPS) reached $0.62, exceeding the analyst estimate of $0.52 and marking a 12.7% increase from the previous year's $0.55.
Key Financial Achievements
The gross profit margin expanded to 36.1% from 33.1% in the same quarter last year, driven by operational efficiencies and lower material costs. Operating income rose by 22.8% to $67.2 million, and the operating margin improved to 21.4%, making it the most profitable quarter in the company's history.
| Financial Highlights | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Net Sales | $313.6 million | $284.0 million | 10.4% |
| Gross Profit | $113.1 million | $94.0 million | 20.3% |
| Operating Income | $67.2 million | $54.7 million | 22.8% |
| Net Income | $52.2 million | $45.7 million | 14.3% |
| Earnings per Diluted Share | $0.62 | $0.55 | 12.7% |
Segment Performance
The BASX segment saw a remarkable 58.3% increase in sales, primarily driven by data center equipment. Sales at the AAON Oklahoma and AAON Coil Products segments grew by 3.4% and 4.3%, respectively. The company's backlog reached a record $650.0 million, up 23.5% from $526.2 million a year ago, indicating strong future demand.
Income Statement Highlights
For the six months ended June 30, 2024, net sales were $575.7 million, a 4.7% increase from $549.9 million in the same period in 2023. Gross profit for the first half of 2024 was $205.3 million, up 20.0% from $171.2 million in the first half of 2023. Operating income for the first six months of 2024 was $114.2 million, a 15.4% increase from $98.9 million in the same period last year.
Balance Sheet and Cash Flow
As of June 30, 2024, AAON Inc (AAON, Financial) had cash, cash equivalents, and restricted cash of $12.1 million and a balance on its revolving credit facility of $85.9 million. The company completed a $100.0 million share repurchase program during the quarter, reflecting confidence in its long-term prospects.
Commentary from Management
"Our second quarter performance exceeded expectations. Production issues from the first quarter were largely resolved, leading to increased volume output and productivity across all three segments. This resulted in record quarterly sales and earnings," said Gary Fields, CEO.
Conclusion
AAON Inc (AAON, Financial) has demonstrated robust financial performance in Q2 2024, driven by strong sales in the data center market and operational efficiencies. The company's record backlog and strategic investments position it well for continued growth. For more detailed insights, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from AAON Inc for further details.
