Q2 2026 Aaon Inc Earnings Call Transcript
Key Points
- Record Q2 sales of $627 million, up 101% year-over-year, marking the fourth consecutive quarterly revenue record.
- Basics branded sales surged 216% year-over-year, driven by strong data center cooling demand and increased production capacity.
- Aaon branded sales grew 40% year-over-year, indicating significant market share gains despite a soft commercial HVAC market.
- Adjusted EBITDA more than doubled to $94.2 million, with adjusted EPS up 213.6% to $0.69.
- Backlog remains nearly double prior year levels, providing strong visibility into future growth, and the company raised its full-year sales growth outlook to 55%-60%.
- Consolidated gross margin declined to 24.3% from 26.6% due to ramp-up costs at the Memphis facility and inflationary pressures.
- Basics branded bookings were below recent elevated levels, reflecting quarter-to-quarter lumpiness in large data center orders.
- Gross margin guidance for 2026 was lowered to 25%-26%, impacted by mix shift and price-cost timing.
- Aaon Coil Products segment margin contracted to 16.0% from 17.5% due to inflationary pressures and lagging pricing actions.
- Supply chain constraints, particularly in fans, pose potential risks to production volumes in the second half of the year.
Thank you for standing by. At this time, I would like to welcome everyone to the Aeon Incorporated Second Quarter 2026 Earnings Release Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press followed by the number 1 on your telephone keypad.
I would now like to turn the conference over to Joe Mondello, Director of Investor Relations. The floor is yours.
Thank you, operator, and good afternoon, everyone. The press release announcing our second quarter 2026 financial results was issued earlier this afternoon and can be found on our corporate website, aaon.com.
The call today is accompanied by a presentation that you can also find on our website, as well as on our listen-only webcast.
We begin with our customary forward-looking statement policy. During the call, any statement presented dealing with information
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