NASDAQ$AAON

Aaon Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

AAON's Q1 2023 earnings were marked by record sales and backlog, driven by organic volume growth, product mix, and pricing strategies.

AAON reported a strong first quarter in 2023, with record sales of $266.0 million, a 45.5% increase year-over-year. Earnings per diluted share increased by 103.0% to $0.67. The company's backlog also reached a record $599.9 million, up 30.0% from the previous year.

  • Net sales increased by 45.5% to a record $266.0 million.
  • Earnings per diluted share increased by 103.0% to $0.67.
  • Gross profit margin improved to 29.0%, up 380 basis points from Q1 2022.
  • Backlog reached a record $599.9 million, up 30.0% year-over-year.

Headline financials

Total Revenue

$266M

Previous: $183M+45.5%
EPS (adj)

$0.45

Previous: $0.22+104.5%
Total Backlog

$600M

Previous: $461M+30.0%
Free Cash Flow

$36.8M

Previous: $18.1M+103.9%
Net Income

$36.8M

Previous: $18.1M+103.9%
Operating Income

$44.2M

Previous: $23M+92.1%
Gross Profit

$77.2M

Previous: $46.1M+67.5%
Cash & Equivalents

$2.52M

Previous: $5.63M-55.4%
Total Assets

$868M

Previous: $717M+21.0%
Stock-Based Comp

$3.52M

Previous: $3.11M+13.1%

Revenue & EPS history

Aaon · Revenue · Quarterly

$266M

Q1 2023+45.5%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

AAON remains positive on its business outlook, citing the profitability of its record backlog and continued positive trends in bookings. Investments in capacity expansion and employee benefits are expected to drive further improvements in gross profit margin throughout the year.

Tailwinds

  • Profitability of record backlog positions the company well through at least the third quarter.
  • Bookings continue to trend positively, helping to carry the company through year-end.
  • Recent closing of a New Markets Tax Credit transaction related to expansion of the Longview, Texas facility.
  • Acquisition of additional properties in Tulsa for additional production capacity, warehouse space, and office space.
  • Investments in employee benefits are paying off as demonstrated in the company's ability to hire.

Headwinds

  • Gross profit margin decreased compared to the fourth quarter of 2022.
  • One-time expenses incurred as a result of improving some employee benefits.
  • Capital expenditures were up 106.2% to $28.9 million.
  • Net borrowings of $12.7 million on the line of credit.
  • The company acknowledges risks and uncertainties that could cause results to differ materially from forward-looking statements.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.9%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+2.4%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+31.4%

Q1 2026

Best reaction

-22.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+31.4%+35.9%+34.9%
Q4 2025+3.5%-12.7%-17.3%
Q3 2025+5.4%+2.0%-12.5%
Q1 2025+5.7%+6.8%+5.5%
Q4 2024-22.9%-26.2%-23.5%
Q3 2024+15.0%+14.5%+14.1%
Q2 2024-3.1%-2.6%+7.9%
Q1 2024-17.0%-16.9%-20.6%
Q4 2023-2.1%-3.9%+2.7%
Q3 2023+1.6%+1.5%+10.5%
Q2 2023-8.0%-9.5%-7.6%
Q1 2023+5.9%-0.9%-6.1%
Q4 2022+11.7%+15.3%+16.3%
Q3 2022+13.6%+18.6%+18.8%
Q2 2022-2.9%+0.1%-6.4%
Q1 2022+4.1%+6.2%+10.7%
Q4 2021-2.3%-7.2%-4.5%
Q3 2021+1.7%+5.5%+9.5%
Q2 2021+8.3%+13.0%+8.3%
Q1 2021+4.0%+2.4%+0.9%
Q4 2020-1.0%-3.8%-7.1%
Q3 2020+6.5%+9.9%+4.7%
Q2 2020-2.3%+0.1%-5.9%
Q1 2020+4.3%+1.3%+24.4%
Q4 2019+3.6%+5.8%-12.9%
Q3 2019-1.1%+0.1%-0.6%
Q2 2019-8.3%-11.5%-5.6%
Q1 2019+3.9%-5.0%-9.0%
Q4 2018-0.7%+2.0%+11.1%
Q3 2018+13.1%+21.4%+10.0%
Q2 2018+2.1%+3.3%+7.7%
Q1 2018-12.3%-9.8%-8.1%
Q4 2017+2.8%-1.0%+9.1%
Q3 2017+0.2%+0.6%+5.7%
Q2 2017+4.3%+3.4%-3.0%
Q1 2017-2.5%-0.5%+0.3%
Q4 2016+0.3%-2.2%+5.4%
Q3 2016-3.5%-0.7%+13.8%
Q2 2016+1.3%+3.5%+10.2%
Q1 2016+9.2%
Q4 2015+11.2%
Q3 2015+11.0%
Q2 2015+3.3%
Q1 2015-5.7%
Q4 2014-2.1%
Q3 2014+2.7%
Q2 2014-1.6%
Q1 2014+6.4%
Q4 2013-5.5%
Q3 2013-8.8%
Q2 2013+5.9%
Q1 2013+5.3%
Q4 2012+2.5%
Q3 2012-4.4%
Q2 2012+4.1%
Q1 2012+0.4%
Q1 2011+0.4%
Q4 2009+5.5%
Q4 2011+5.5%
Q3 2010-2.1%
Q3 2011-2.1%
Q2 2010-14.8%
Q2 2011-14.8%
Q4 2010-14.8%
Q1 2010-4.7%

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