AAON, Inc. (AAON) Bundle
An Overview of AAON, Inc. (AAON)
General Summary of AAON, Inc. (AAON)
AAON, Inc., founded in 1987, is a leading manufacturer of HVAC (heating, ventilation, and air conditioning) equipment, specializing in energy-efficient solutions. The company has evolved from its original focus on rooftop units to a broader range of products, including condensing units, air handlers, and data center cooling solutions. As of 2024, AAON reported net sales of $902.9 million for the nine months ended September 30, 2024, a 4.8% increase from $861.9 million in the same period in 2023. The company's product segments include AAON Oklahoma, AAON Coil Products, and BASX, which collectively drive its sales growth.
| Segment | Net Sales (2024) | Net Sales (2023) | Percentage Change |
|---|---|---|---|
| AAON Oklahoma | $664,754,000 | $666,670,000 | -0.3% |
| AAON Coil Products | $90,852,000 | $89,262,000 | 1.8% |
| BASX | $147,311,000 | $105,948,000 | 39.0% |
| Total | $902,917,000 | $861,880,000 | 4.8% |
Company's Financial Performance in the Latest Financial Reports
In its latest financial report for the three months ended September 30, 2024, AAON achieved net sales of $327.3 million, an increase of 4.9% compared to $312.0 million in the same period in 2023. The gross profit for this quarter was $114.2 million, representing a gross margin of 34.9%. The company reported income from operations of $65.5 million, with net income reaching $52.6 million, translating to basic earnings per share of $0.65.
For the nine months ended September 30, 2024, AAON's net income was $143.9 million, up from $130.6 million in 2023, marking an increase of 10.2%. The company’s cash flows from operations surged to $191.7 million, reflecting a 78.9% increase compared to the previous year, allowing for continued investment in capital expenditures and software development totaling $113.8 million during the same period.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Sales | $902,917,000 | $861,880,000 |
| Gross Profit | $319,494,000 | $287,281,000 |
| Net Income | $143,869,000 | $130,574,000 |
| Earnings per Share (Basic) | $1.77 | $1.61 |
| Cash Flows from Operations | $191,687,000 | $107,145,000 |
Introduction to Company as a Leader in the Industry
AAON, Inc. is recognized as a leader in the HVAC industry, particularly noted for its innovative approach to energy-efficient cooling and heating solutions. The company has positioned itself strategically to meet the growing demand for sustainable and efficient products, especially in the data center market, where it has seen exceptional growth. In 2024, the BASX segment, which focuses on data center cooling solutions, reported a significant increase in sales, with a year-over-year growth of 39.0%.
With a robust backlog of $647.7 million as of September 30, 2024, up 32.0% from the previous year, AAON is well-positioned to capitalize on future opportunities. The company's commitment to quality, innovation, and customer service has solidified its reputation as a trusted provider in the HVAC market, making it an attractive option for investors looking to understand the dynamics of a successful industry leader.
Mission Statement of AAON, Inc. (AAON)
Company's Mission Statement Overview
The mission statement of AAON, Inc. (AAON) articulates the company's commitment to providing high-quality products and services in the HVAC and refrigeration industry. As of 2024, AAON emphasizes innovation, sustainability, and customer satisfaction as pivotal elements of its operational strategy. The mission statement serves as a guiding framework for the company's long-term goals and daily operations.
Core Component 1: Quality Products
AAON is dedicated to delivering high-quality products that meet or exceed industry standards. The company has a robust manufacturing process that ensures reliability and efficiency in its equipment. In 2024, AAON reported a backlog of $647.7 million, up 32.0% from $490.6 million in the previous year, indicating strong demand for its quality products.
| Product Category | Net Sales (Q3 2024) | Net Sales (Q3 2023) | % Change |
|---|---|---|---|
| AAON Oklahoma | $228,887,000 | $246,454,000 | -7.1% |
| AAON Coil Products | $35,232,000 | $25,769,000 | 36.7% |
| BASX | $63,133,000 | $39,747,000 | 58.8% |
Core Component 2: Innovation
Innovation is central to AAON's mission, with the company investing significantly in research and development. For the nine months ended September 30, 2024, AAON allocated $113.8 million towards capital expenditures and software development, reflecting its commitment to enhancing product offerings and operational efficiency.
Core Component 3: Customer Satisfaction
Customer satisfaction is a key priority for AAON, which focuses on providing exceptional service throughout the product lifecycle. The company reported net income of $143.9 million for the nine months ended September 30, 2024, an increase from $130.6 million in the same period in 2023, highlighting its successful engagement with customers and market growth.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $143,869,000 | $130,574,000 |
| Earnings Per Share (Basic) | $1.77 | $1.61 |
| Cash Flows from Operations | $191,687,000 | $107,145,000 |
Vision Statement of AAON, Inc. (AAON)
Vision of AAON, Inc. (AAON) in 2024
AAON, Inc. envisions being a leader in energy-efficient HVAC solutions and related products. This vision is rooted in a commitment to innovation, sustainability, and customer satisfaction.
Commitment to InnovationAAON aims to continuously advance its technology and product offerings. In 2024, the company reported a significant increase in net sales, reaching approximately $902.9 million for the nine months ended September 30, 2024, up from $861.9 million in the same period of 2023, reflecting a growth of 4.8% driven by innovative data center solutions.
Sustainability InitiativesAs part of its vision, AAON is committed to sustainability. The company has implemented various energy-efficient practices across its operations. This commitment is evidenced by its substantial backlog of $647.7 million as of September 30, 2024, which is 32.0% higher than the previous year, indicating a robust demand for energy-efficient products.
Customer Satisfaction FocusAAON prioritizes customer satisfaction through quality products and services. The company’s gross profit margin for the nine months ended September 30, 2024, improved to 35.4% compared to 33.3% in the previous year, indicating better efficiency and effectiveness in meeting customer needs.
Financial Performance Overview| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Net Sales | $902.9 million | $861.9 million | 4.8% |
| Gross Profit | $319.5 million | $287.3 million | 11.2% |
| Backlog | $647.7 million | $490.6 million | 32.0% |
| Cash Flow from Operations | $191.7 million | $107.1 million | 78.9% |
AAON’s vision emphasizes not only leadership in the HVAC market but also a strong commitment to sustainable practices and customer-centric solutions, which is reflected in its financial growth and operational advancements in 2024. The company’s proactive approach positions it well to meet future challenges and opportunities in the industry.
Core Values of AAON, Inc. (AAON)
Integrity
Integrity is a foundational core value at AAON, Inc. (AAON), reflecting the company's commitment to ethical practices and transparency in all business dealings. This value is integral to building trust with customers, employees, and stakeholders.
AAON demonstrates its commitment to integrity through various initiatives, including adherence to stringent quality standards in manufacturing processes. For instance, the company achieved ISO 9001 certification, which underscores its dedication to quality management and continuous improvement. In 2024, AAON reported a net sales increase of 4.9%, attributed to maintaining high integrity and quality in its product offerings.
Innovation
Innovation is central to AAON's strategy, driving the development of cutting-edge HVAC solutions. The company invests significantly in research and development, with capital expenditures reaching $113.8 million for the nine months ended September 30, 2024.
One notable example of innovation is AAON's focus on data center cooling solutions, which saw a staggering 90.1% increase in sales for the third quarter of 2024 compared to the previous year. This reflects AAON's responsiveness to market demands and its ability to innovate in product development.
Customer Commitment
Customer commitment is a core value that drives AAON to exceed customer expectations consistently. The company actively engages with customers to understand their needs and tailor solutions accordingly.
AAON's backlog as of September 30, 2024, was approximately $647.7 million, representing a 32.0% increase year-over-year. This increase is a testament to the company's commitment to delivering high-quality products and services that meet customer requirements.
Teamwork
Teamwork is a core value that emphasizes collaboration and collective success at AAON. The company fosters a culture of teamwork, encouraging employees to work together towards common goals.
In 2024, AAON reported a significant increase in cash flows from operations, amounting to $191.7 million, which is up 78.9% from the previous year. This financial performance reflects the effectiveness of teamwork across various departments, contributing to operational efficiency and enhanced productivity.
Excellence
Excellence is a core value that drives AAON to pursue the highest standards in its products and services. The company is dedicated to achieving operational excellence in all aspects of its business.
For the nine months ended September 30, 2024, AAON's gross profit increased to $319.5 million, representing an 11.2% improvement compared to the same period in 2023. This achievement highlights the company's commitment to excellence and its ability to enhance profitability through effective management practices.
| Core Value | Key Actions | 2024 Performance Indicators |
|---|---|---|
| Integrity | ISO 9001 Certification | Net sales increased by 4.9% |
| Innovation | Investment in R&D | 90.1% increase in data center cooling solution sales |
| Customer Commitment | Engagement with customers | Backlog of $647.7 million |
| Teamwork | Collaboration across departments | Cash flows from operations of $191.7 million |
| Excellence | Pursuit of high standards | Gross profit of $319.5 million |
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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.