NASDAQ$AAON

Aaon Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

AAON reported a strong third quarter in 2023, achieving record net sales and gross profits, driven by robust growth in AAON Oklahoma and BASX segments, and improved productivity across all segments.

AAON's third quarter of 2023 showed a significant increase in net sales, gross profit, and net income compared to the same period in 2022. The company achieved record net sales and gross profits, with all three segments performing well. Improved productivity and operational efficiencies were key factors in the company's strong performance.

  • AAON achieved record net sales for the seventh consecutive quarter, reaching $312.0 million, a 28.6% increase from Q3 2022.
  • Gross profit margin increased to 37.2%, up from 27.0% in Q3 2022, driven by incremental pricing, improved operational efficiencies, and better overhead absorption.
  • Net income for the quarter was $48.1 million, a 75.0% increase compared to the prior year quarter.
  • The company's backlog decreased to $490.6 million, down 4.7% from a year ago, as production outpaced bookings to draw down backlog to more appropriate levels.

Headline financials

Total Revenue

$312M

Previous: $243M+28.6%
EPS (adj)

$0.64

Previous: $0.34+88.2%
Total Backlog

$491M

Previous: $515M-4.7%
Capital Expenditures

$0.00

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

$48.1M

Previous: $5.47M+778.5%
Net Income

$48.1M

Previous: $27.5M+75.0%
Operating Income

$64.7M

Previous: $36.7M+76.2%
Gross Profit

$116M

Previous: $65.6M+77.0%
Cash & Equivalents

$212K

Previous: $10.7M-98.0%
Total Assets

$945M

Previous: $786M+20.2%
Stock-Based Comp

$4.28M

Previous: $3.32M+28.8%

Revenue & EPS history

Aaon · Revenue · Quarterly

$312M

Q3 2023+28.6%vs Q3 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

AAON is optimistic about the fourth quarter and year-end results and anticipates upcoming new refrigerant regulations will noticeably disrupt the industry in 2024, which they view as a positive. AAON believes it is entering a more predictable manufacturing environment than it's seen in years, which will enable productivity to further increase.

Tailwinds

  • Optimistic about Q4 and year-end results.
  • New refrigerant regulations in 2024 viewed as a positive.
  • AAON thrives on challenges and views it as an opportunity to take market share.
  • Entering a more predictable manufacturing environment.
  • Expect productivity to further increase.

Headwinds

  • Pockets of end-markets are slowing.
  • Unspecified disruptions expected in 2024.
  • Dependence on market share gains.
  • Reliance on increased productivity.
  • Uncertainty in financial recognition of recent enhancements.

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 Q3 2023

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro