NASDAQ$AAON

Aaon Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported record sales and earnings due to volume growth and pricing strategies.

AAON reported record sales and earnings for the second quarter of 2023. Net sales increased by 36.0% to $284.0 million, driven by organic volume growth and pricing. Earnings per diluted share increased by 173.3% to $0.82.

  • Net sales increased 36.0% to a record $284.0 million compared to the second quarter of 2022.
  • Earnings per diluted share increased 173.3% to $0.82 compared to the second quarter of 2022.
  • Gross profit margin increased to 33.1%, up 1,040 basis points from the comparable quarter in 2022.
  • Backlog finished at $526.2 million, up 13.4% from a year ago.

Headline financials

Total Revenue

$284M

Previous: $209M+36.0%
EPS (adj)

$0.55

Previous: $0.20+175.0%
Total Backlog

$526M

Previous: $464M+13.4%
Capital Expenditures

$0.00

Previous: -$22M+100.0%
Free Cash Flow

$45.7M

Previous: -$6.05M+854.6%
Net Income

$45.7M

Previous: $15.9M+186.5%
Operating Income

$54.7M

Previous: $20.5M+167.6%
Gross Profit

$94M

Previous: $47.4M+98.5%
Cash & Equivalents

$5.24M

Previous: $17.6M-70.3%
Total Assets

$930M

Previous: $777M+19.7%
Stock-Based Comp

$4.3M

Previous: $3.8M+13.4%

Revenue & EPS history

Aaon · Revenue · Quarterly

$284M

Q2 2023+36%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

The sales channel has never been stronger and new marketing efforts will help continue to strengthen market penetration. In the third quarter of this year, we anticipate the sales and marketing roll out of our industry-leading class of air-source heat pumps, appropriately referred to as ALPHA Class.

Tailwinds

  • AAON has been very successful in hiring and retaining employees.
  • We've added the additional employees needed to increase our run rate.
  • We anticipate continued margin improvement created from a fully trained, more experienced workforce.
  • We anticipate continued margin improvement created from better overhead absorption from additional production volume.
  • The sales channel has never been stronger and our new marketing efforts will help continue to strengthen market penetration.

Headwinds

  • There are pockets of softness amongst some of our end-markets.
  • Backlog size and lead times are still higher than we would like them to be.
  • Capital expenditures in the quarter were $31.7 million due to our continuous investment at all locations.
  • SG&A expenses increased 90 basis points to 13.8%.
  • We recognized a one-time income tax benefit of $3.1 million from the change in our valuation allowance during the current quarter that contributed to the increase to net income for the period.

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 Q2 2023

Historical avgQ2 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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