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AAON +25.34% on Nov 10 · Analysis updated Nov 10, 2026, 10:34 AM ET
Why is AAON, Inc. (AAON) stock up?
AAON reported record third-quarter sales of $707.4 million, up 84% and well above the roughly $600 million analysts expected, with adjusted earnings of $0.83 a share against about $0.56 expected. Sales of its BASX data-center cooling systems rose 218% to $397.2 million, and its traditional AAON-branded equipment grew about 20% in a weak construction market. Total backlog reached about $1.9 billion, up 40.5%. It raised its 2026 sales-growth outlook to 72-75% from 55-60%. The company also restated its first-half results (adding $10.7 million of revenue) and disclosed a material weakness in its financial controls. At about 10:25 AM ET the stock was $78.80, up 25.3%.
News behind the analysis
- The Aaon Group Reports Record Third Quarter 2026 Results, Restates First and Second Quarter 2026 Financial Statements and Raises Full-Year OutlookSales +84% to $707.4 million; BASX +218%; backlog $1.9 billion (+40.5%); 2026 sales growth outlook 72-75%; restatement and control weakness disclosed.
- Why is AAON stock surging today?Shares up about 21.5% premarket; Oppenheimer raises target to $118; peers had no comparable news.
- AAON Q3 Earnings Call HighlightsBASX orders up 116% sequentially; less than a third of backlog in states with data-center pushback; over 80% of backlog with strong-balance-sheet customers.
- AAON Q3 2026 deep dive: margin gains and backlog growth driven by data center demandBacklog $1.85 billion, up 40.5%; results well above Wall Street's expectations.
About Aaon Inc
AAON is a Tulsa, Oklahoma-based maker of semi-custom heating, ventilation and air-conditioning (HVAC) equipment for commercial buildings, sold under the AAON and BASX brands. It stands out for its fast-growing BASX business, which makes liquid and air cooling systems for data centers. That business has pushed AAON's order backlog to about $2 billion in 2026.
How it makes money
AAON sells HVAC equipment it builds itself. The AAON brand covers rooftop units, heat pumps, chillers and air handlers for offices, schools, stores and other commercial buildings. The BASX brand covers custom cooling and clean-room equipment, mostly for data centers, and it has become the main source of growth. AAON also sells building controls through its WattMaster/AAON Controls unit. In Q2 2026, sales roughly doubled from a year earlier to about $627 million, and management raised its full-year 2026 sales growth outlook to about 55–60%.
What usually moves AAON
- Data-center and AI construction spending (BASX orders)
- Commercial construction and replacement demand for HVAC
- Backlog growth and conversion into sales
- Gross margins as new factory capacity ramps up
- Refrigerant and energy-efficiency rules, plus the shift to electric heat pumps
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