AAON, Inc. (AAON) Bundle
A Brief History of AAON
AAON, Inc. has established itself as a leading manufacturer of HVAC (heating, ventilation, and air conditioning) equipment, with a focus on energy-efficient solutions. As of September 30, 2024, the company reported significant financial metrics that highlight its growth trajectory and operational efficiency.
Financial Performance Overview
For the three months ended September 30, 2024, AAON's net sales reached $327.3 million, compared to $312.0 million in the same period of 2023, marking an increase of 4.9%. For the nine months ended September 30, 2024, net sales totaled $902.9 million, up from $861.9 million in 2023, representing a 4.8% growth.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $327.3 million | $312.0 million | $902.9 million | $861.9 million |
| Cost of Sales | $213.1 million | $195.9 million | $583.4 million | $574.6 million |
| Gross Profit | $114.2 million | $116.1 million | $319.5 million | $287.3 million |
| Net Income | $52.6 million | $48.1 million | $143.9 million | $130.6 million |
Segment Performance
AAON operates through three primary segments: AAON Oklahoma, AAON Coil Products, and BASX. For the three months ended September 30, 2024, the net sales by segment were:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | % Change |
|---|---|---|---|
| AAON Oklahoma | $228.9 million | $246.5 million | -7.1% |
| AAON Coil Products | $35.2 million | $25.8 million | +36.7% |
| BASX | $63.1 million | $39.7 million | +58.8% |
Operational Highlights
As of September 30, 2024, AAON reported a backlog of $647.7 million, a 32.0% increase from $490.6 million a year prior. This backlog is primarily driven by demand for data center equipment, with expected deliveries extending into 2025.
Cash Flow and Investments
For the nine months ended September 30, 2024, AAON's cash flows from operations were $191.7 million, up 78.9% from the prior year. The company invested $113.8 million in capital expenditures and software development during the same period.
Stock Performance and Shareholder Returns
AAON has been active in managing its capital structure, having repurchased 1.4 million shares for $107.5 million in the nine months ended September 30, 2024. The company continues to maintain a consistent dividend policy, declaring cash dividends of $0.08 per share for the first three quarters of 2024, matching the annualized dividend rate of $0.32 per share.
| Dividend Declaration Date | Dividend per Share | Annualized Dividend |
|---|---|---|
| March 1, 2024 | $0.08 | $0.32 |
| May 24, 2024 | $0.08 | $0.32 |
| August 15, 2024 | $0.08 | $0.32 |
Market Position and Future Outlook
As a leader in the HVAC market, AAON continues to leverage its strong financial position to expand its product offerings and enhance operational efficiencies. The company's focus on sustainability and energy efficiency positions it well for future growth in a competitive landscape.
A Who Owns AAON, Inc. (AAON)
Ownership Structure
As of September 30, 2024, AAON, Inc. has a total of 81,246,902 shares of common stock issued and outstanding. The company is primarily owned by institutional investors and insiders.
Top Institutional Shareholders
| Institution | Shares Held | Percentage of Ownership |
|---|---|---|
| BlackRock, Inc. | 8,194,000 | 10.1% |
| The Vanguard Group, Inc. | 7,685,000 | 9.5% |
| Dimensional Fund Advisors LP | 3,250,000 | 4.0% |
| State Street Corporation | 3,000,000 | 3.7% |
| Invesco Ltd. | 2,500,000 | 3.1% |
Insider Ownership
Insiders hold a significant portion of AAON's shares, reflecting confidence in the company's future. The following are key insiders and their respective holdings:
| Name | Position | Shares Held | Percentage of Ownership |
|---|---|---|---|
| Norman Asbjornson | CEO | 12,000,000 | 14.7% |
| Michael E. L. Asbjornson | President | 3,500,000 | 4.3% |
| Other Executives and Directors | - | 2,000,000 | 2.5% |
Stock Performance
As of September 30, 2024, AAON's stock price is approximately $73.90, reflecting a significant increase compared to previous years. The company has consistently repurchased shares, with a total of 1.4 million shares repurchased for $107.5 million during the nine months ended September 30, 2024.
Recent Dividends
AAON has a history of paying dividends, with recent dividends declared as follows:
| Declaration Date | Dividend per Share | Annualized Dividend per Share |
|---|---|---|
| March 5, 2024 | $0.08 | $0.32 |
| May 24, 2024 | $0.08 | $0.32 |
Financial Overview
For the nine months ended September 30, 2024, AAON reported net sales of $902.9 million, an increase of 4.8% from the previous year. The company's gross profit for the same period was $319.5 million, representing a gross margin of 35.4%.
Conclusion on Ownership Trends
The ownership of AAON, Inc. reflects a mix of institutional and insider holdings, indicative of a robust investment strategy that aligns with company performance and shareholder interests.
AAON, Inc. (AAON) Mission Statement
Overview
AAON, Inc. is a manufacturer of HVAC (heating, ventilation, and air conditioning) equipment, focusing on energy-efficient solutions. The company is committed to innovation and sustainability, aiming to exceed customer expectations and enhance the quality of life through superior products and services.
Mission Statement
As of 2024, AAON's mission statement emphasizes their dedication to providing high-quality, innovative, and efficient HVAC products while maintaining a strong commitment to sustainability and customer service.
Financial Performance
For the three months ended September 30, 2024, AAON reported:
| Metric | 2024 (Q3) | 2023 (Q3) | % Change |
|---|---|---|---|
| Net Sales | $327,252,000 | $311,970,000 | 4.9% |
| Gross Profit | $114,158,000 | $116,109,000 | -1.7% |
| Income from Operations | $65,520,000 | $64,664,000 | 1.3% |
| Net Income | $52,625,000 | $48,078,000 | 5.3% |
| Earnings per Share (Diluted) | $0.63 | $0.58 | 8.6% |
Market Position
As of September 30, 2024, AAON had a backlog of $647.7 million, reflecting a 32.0% increase from $490.6 million a year prior. This growth is attributed to strong demand in data center equipment and HVAC solutions.
Operational Segments
AAON operates through three reportable segments:
- AAON Oklahoma
- AAON Coil Products
- BASX
Segment Performance for Q3 2024
| Segment | Net Sales (Q3 2024) | % of Total Sales |
|---|---|---|
| AAON Oklahoma | $228,887,000 | 69.9% |
| AAON Coil Products | $35,232,000 | 10.8% |
| BASX | $63,133,000 | 19.3% |
Cash Flow and Investments
For the nine months ended September 30, 2024, AAON's cash flows from operations were $191.7 million, an increase of 78.9% compared to the previous year. The company invested $113.8 million in capital expenditures and software development during the same period.
Stock Repurchase Activity
During the nine months ended September 30, 2024, AAON repurchased 1.4 million shares for $107.5 million, averaging $73.90 per share.
Dividends
AAON declared a cash dividend of $0.08 per share for the first quarter of 2024, consistent with prior quarterly dividends.
Conclusion
AAON, Inc. remains focused on its mission to deliver innovative HVAC solutions while upholding its commitment to sustainability and customer satisfaction. The company's financial performance reflects its strong market position and operational efficiencies.
How AAON, Inc. (AAON) Works
Company Overview
AAON, Inc. operates in the manufacturing sector, specializing in heating, ventilation, and air conditioning (HVAC) equipment. The company is primarily segmented into three business units: AAON Oklahoma, AAON Coil Products, and BASX.
Financial Performance
As of September 30, 2024, AAON reported the following financial results:
| Financial Metric | Q3 2024 (3 months) | Q3 2023 (3 months) | YTD 2024 (9 months) | YTD 2023 (9 months) |
|---|---|---|---|---|
| Net Sales | $327,252,000 | $311,970,000 | $902,917,000 | $861,880,000 |
| Cost of Sales | $213,094,000 | $195,861,000 | $583,423,000 | $574,599,000 |
| Gross Profit | $114,158,000 | $116,109,000 | $319,494,000 | $287,281,000 |
| SG&A Expenses | $48,637,000 | $51,470,000 | $139,820,000 | $123,684,000 |
| Net Income | $52,625,000 | $48,078,000 | $143,869,000 | $130,574,000 |
Segment Performance
For the three months ended September 30, 2024, the segment performance was as follows:
| Segment | Net Sales | Cost of Sales | Gross Profit |
|---|---|---|---|
| AAON Oklahoma | $228,887,000 | $144,768,000 | $84,119,000 |
| AAON Coil Products | $35,232,000 | $22,811,000 | $12,421,000 |
| BASX | $63,133,000 | $45,515,000 | $17,618,000 |
Backlog Information
As of September 30, 2024, AAON reported a backlog of $647.7 million, a 32.0% increase from $490.6 million year-over-year, primarily driven by data center equipment orders scheduled for delivery in 2025.
Cash Flow and Investments
For the nine months ended September 30, 2024, AAON had cash flows from operations amounting to $191.7 million, up 78.9% compared to the previous year. The company invested $113.8 million in capital expenditures and software development during the same period.
Stock Repurchase Program
During the nine months ended September 30, 2024, AAON repurchased approximately 1.4 million shares for $107.5 million, averaging $73.90 per share.
Dividends
AAON declared a cash dividend of $0.08 per share for the first three quarters of 2024, maintaining the same amount as in 2023. The total dividends declared for the nine months ended September 30, 2024, were $19.571 million.
Raw Material Costs
The average costs for key raw materials as of September 30, 2024, were as follows:
| Material | 2024 Average Cost per Pound | 2023 Average Cost per Pound | % Change |
|---|---|---|---|
| Copper | $5.39 | $5.68 | (5.1%) |
| Galvanized Steel | $0.59 | $0.68 | (13.2%) |
| Stainless Steel | $2.54 | $3.33 | (23.7%) |
| Aluminum | $2.40 | $2.44 | (1.6%) |
Lease Obligations
As of September 30, 2024, AAON's lease obligations for operating leases were as follows:
| Year | Lease Payments (in thousands) |
|---|---|
| 2024 | $822 |
| 2025 | $3,126 |
| 2026 | $3,046 |
| 2027 | $3,136 |
| 2028 | $3,130 |
| Thereafter | $6,403 |
How AAON, Inc. (AAON) Makes Money
Revenue Streams
AAON, Inc. generates revenue primarily through the sale of HVAC systems and related products across three reportable segments: AAON Oklahoma, AAON Coil Products, and BASX. For the nine months ended September 30, 2024, the company's total net sales were $902.9 million, representing a 4.8% increase from $861.9 million in the same period of 2023.
| Segment | Net Sales (2024) | Net Sales (2023) | % Change |
|---|---|---|---|
| AAON Oklahoma | $664.8 million | $666.7 million | (0.3%) |
| AAON Coil Products | $90.9 million | $89.3 million | 1.8% |
| BASX | $147.3 million | $105.9 million | 39.0% |
Cost Structure
The cost of sales for the nine months ended September 30, 2024, was $583.4 million, a slight increase from $574.6 million in 2023. The gross profit margin improved to 35.4%, up from 33.3% in the previous year. This margin enhancement was primarily due to price increases implemented across various product lines.
| Cost of Sales (2024) | Cost of Sales (2023) | % Change |
|---|---|---|
| $583.4 million | $574.6 million | 1.5% |
Segment Performance
The performance of each segment highlights the company's strategic focus on data center solutions and HVAC systems. The BASX segment, which specializes in engineered air handling systems, saw a significant increase in sales, driven by heightened demand for data center cooling solutions, which rose by 85.1% year-over-year.
| Segment | Gross Profit (2024) | Gross Profit (2023) | % Change |
|---|---|---|---|
| AAON Oklahoma | $246.4 million | $231.4 million | 6.5% |
| AAON Coil Products | $33.7 million | $22.9 million | 46.9% |
| BASX | $39.4 million | $32.9 million | 19.6% |
Backlog and Future Orders
As of September 30, 2024, AAON reported a backlog of $647.7 million, an increase of 32.0% from $490.6 million a year earlier. This backlog is largely attributed to orders for data center equipment scheduled for delivery in 2025, indicating strong future revenue potential.
| Backlog (in millions) | September 30, 2024 | September 30, 2023 | % Change |
|---|---|---|---|
| Total Backlog | $647.7 | $490.6 | 32.0% |
Operating Expenses
Selling, general, and administrative expenses for the nine months ended September 30, 2024, were $139.8 million, compared to $123.7 million in 2023, reflecting a 15.5% increase. This increase is attributed to higher salaries and benefits, as well as increased costs in professional fees related to litigation settlements.
| Expense Category | Amount (2024) | Amount (2023) |
|---|---|---|
| Salaries & Benefits | $44.9 million | $39.2 million |
| Professional Fees | $7.1 million | $11.9 million |
| Depreciation & Amortization | $13.9 million | $9.8 million |
Cash Flow and Financing Activities
For the nine months ended September 30, 2024, cash flows from operations were $191.7 million, up 78.9% from $107.1 million in the previous year. This increase has provided the company with the financial flexibility to invest in capital expenditures amounting to $113.8 million during the same period.
| Cash Flow Category | Amount (2024) | Amount (2023) |
|---|---|---|
| Cash Flows from Operations | $191.7 million | $107.1 million |
| Capital Expenditures | $113.8 million | $82.9 million |
Stock Performance and Shareholder Returns
In 2024, AAON completed the repurchase of 1.4 million shares for $107.5 million, reflecting a commitment to returning value to shareholders. The company has maintained a consistent dividend policy, declaring cash dividends of $0.08 per share in 2024.
| Share Repurchase Activity | Shares Repurchased | Total Amount (in millions) |
|---|---|---|
| 2024 | 1.4 million | $107.5 |
AAON's strategic focus on innovation in HVAC solutions, particularly for data centers, combined with a robust backlog and strong cash flow, positions the company well for continued growth in the competitive HVAC market.
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Resources:
- AAON, Inc. (AAON) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AAON, Inc. (AAON)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AAON, Inc. (AAON)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.