Oppenheimer: 'AAON-branded backlog grew q/q despite increased production, reflecting share gains'

Oppenheimer analyst Noah Kaye III reiterated an Outperform rating on AAON Inc (NASDAQ: AAON).

The analyst comments "AAON beat 2Q26 top/bottom line consensus and raised FY26 sales/implied EBIT guidance midpoints 9%/2% above the Street. BASX sales (+216.2% y/y) paced the revenue beat, including 208.4% growth in liquid cooling sales; while BASX segment backlog declined ldd q/q on accelerated revenue conversion and orders more comparable to 1H25 run rates, management indicated strong engagement and healthy data center pipeline. Consolidated margins contracted 230bps y/y, below consensus, reflecting Memphis ramp (690bps impact to Oklahoma segment), outsourcing and temporary cost absorption. AAON-branded backlog grew q/q despite increased production, reflecting share gains, with outlook for increased production likely tabling further ERP implementation to 2027. OCF remained positive, with balance sheet metrics (+A/R q/q, -contract assets) indicative of further improvement in 2H. We look for color on accelerated revenue outlook and production run rates, drivers of expected 2H margin improvement, BASX pipeline/orders timing, and capital allocation on the earnings call (5 p.m. ET today)."

For an analyst ratings summary and ratings history on AAON Inc click here. For more ratings news on AAON Inc click here.

Shares of AAON Inc closed at $94.83 yesterday.

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