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Here are 1-2 brief analogies for AAON:

• AAON is like a focused Johnson Controls for specialized, energy-efficient commercial HVAC systems.
• AAON is the Trane Technologies for custom-engineered, high-performance commercial HVAC equipment.

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• Rooftop Units: Packaged heating, cooling, and ventilation systems designed for commercial and industrial applications.
• Air Handling Units (AHUs): Customizable units that regulate and circulate air as part of a larger HVAC system.
• Water-Source Heat Pumps: Energy-efficient systems that transfer heat to or from a water loop for heating and cooling.
• Condensers/Condensing Units: Components used in refrigeration and air conditioning systems to dissipate heat from refrigerant.
• Chillers: Equipment that removes heat from a liquid to cool facilities or processes.
• Energy Recovery Units: Systems that recover energy from exhaust air to pretreat incoming fresh air, enhancing efficiency.
• Controls: Integrated control systems and software for managing and optimizing the performance of their HVAC equipment.

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AAON (symbol: AAON) primarily sells its heating, ventilation, and air conditioning (HVAC) equipment to other companies and organizations (B2B) rather than directly to individuals.

The company does not publicly disclose specific major customers that account for a significant portion of its revenue in its financial filings, indicating a diversified customer base across various commercial, industrial, and institutional sectors.

AAON sells its products primarily through a network of independent sales representatives. The major categories of customers that purchase or specify AAON's products through this network are:

• Mechanical Contractors: These companies are responsible for the installation, maintenance, and repair of HVAC systems in commercial, industrial, and institutional buildings. They are often the direct purchasers of AAON's equipment for specific projects.
• Building Owners and Developers: This category includes owners of commercial properties (e.g., office buildings, retail centers, hotels), industrial facilities (e.g., manufacturing plants, warehouses), institutional entities (e.g., schools, universities, hospitals), and real estate developers. They purchase AAON's systems for new construction projects, expansions, or major renovations to ensure optimal climate control for their facilities.
• Consulting and Specifying Engineers: While not always the direct purchasers of equipment, these engineers play a critical role in the sales ecosystem. They design the HVAC systems for buildings and frequently specify AAON's products in their project plans and specifications due to the brand's reputation for quality, energy efficiency, and semi-custom solutions. Their specifications are key in driving the selection of AAON units by mechanical contractors.

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Matt Tobolski, Chief Executive Officer

Matt Tobolski has served as CEO of AAON since May 2025. He previously served as President and COO of AAON since January 2024. Prior to joining AAON, Mr. Tobolski co-founded BASX Solutions in 2013 and served as its President until AAON acquired BASX in December 2021. Before BASX Solutions, he was President and CEO of Tobolski Watkins Engineering, a structural and earthquake engineering firm, from 2008 to 2017, and an Executive Advisor at Structural Integrity Associates from 2017 to 2020 following the acquisition of Tobolski Watkins Engineering.

Rebecca Thompson, Vice President of Finance, Chief Financial Officer, and Treasurer

Rebecca Thompson has served as Vice President of Finance, Chief Financial Officer, and Treasurer since 2021. She was previously AAON's Chief Accounting Officer from 2012 to 2021 and also held the additional role of Treasurer starting in 2017. Before joining AAON, Ms. Thompson spent 11 years as a Senior Manager in the assurance division at Grant Thornton, LLP. She is a licensed certified public accountant.

Casey Kidwell, Chief Administrative Officer

Casey Kidwell oversees human resources, security, safety, and IT functions at AAON. He previously served as AAON's Director of Administration since 2021 and worked for almost ten years in various HR and IT roles at WPX Energy.

Stephen Wakefield, Executive Vice President & General Manager, AAON Business Unit

Stephen Wakefield has over 25 years of experience at AAON. His previous roles include Chief Operating Officer of AAON Oklahoma and AAON Coil Products from 2020 to 2024, Vice President of Engineering, Director of Engineering, and Senior Manager of Research and Development.

Matt Shaub, Executive Vice President & General Manager, BASX Business Unit

Matt Shaub leads teams in engineering, product management, and customer care for the BASX Business Unit. He previously served as AAON's Global Director of Product Management in 2024. Prior to AAON, he was Senior Vice President of Operations and Strategy at HB Global, LLC for three years and held various leadership roles at Johnson Controls for 22 years.

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The key risks to AAON (symbol: AAON) include regulatory changes related to refrigerant transitions, fluctuations in the nonresidential construction market, and margin pressure combined with accounting scrutiny within its BASX segment.

1. Regulatory Changes and Refrigerant Transition: AAON has faced significant challenges due to industry-regulated refrigerant transitions, which have created operational obstacles and negatively impacted sales and profitability, particularly in its AAON Oklahoma segment. This issue was a key headwind in 2024 and is expected to persist into the first quarter of 2025.
2. Fluctuations in the Nonresidential Construction Market: As a provider of HVAC solutions for commercial and industrial indoor environments, AAON's business is directly affected by the health of the nonresidential construction sector. Weaker macroeconomic conditions in this sector have created obstacles for the company, impacting demand for its products.
3. Margin Pressure and Accounting Scrutiny in the BASX Segment: Recent reports indicate concerns surrounding "sharply lower profitability and persistent doubts around BASX segment accounting" as well as "margin pressure and governance questions" for AAON. This suggests specific financial and operational challenges within their BASX data center segment, which is otherwise a strong growth area for the company.

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AAON (symbol: AAON) manufactures a diverse range of heating, ventilation, and air conditioning (HVAC) equipment primarily for commercial and industrial applications. Their main products include rooftop units, chillers, air handling units, condensing units, makeup air units, energy recovery units, geothermal/water-source heat pumps, and data center cooling solutions.

The addressable markets for AAON's main products and services are sized as follows:

• Global HVAC Systems Market: The global HVAC systems market size was estimated at approximately USD 241.52 billion in 2024 and is projected to reach USD 445.73 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 7.0% from 2025 to 2033. Another estimate places the global HVAC market at USD 289.99 billion in 2024, projected to increase to USD 407.77 billion in 2030 at a CAGR of 6.4% from 2025 to 2030.
• U.S. HVAC Systems Market: The U.S. HVAC systems market size was estimated at USD 29.89 billion in 2024 and is projected to reach USD 54.02 billion by 2033, growing at a CAGR of 6.9% from 2025 to 2033.
• Global Rooftop HVAC Unit Market: The global rooftop HVAC units market size was valued at USD 12.45 billion in 2024 and is expected to increase to USD 24.85 billion by 2035, exhibiting a CAGR of 6.4% from 2025 to 2035.
• U.S. HVAC Rooftop Units Market: The U.S. HVAC rooftop units market size was estimated at USD 9,031.7 million (or USD 9.03 billion) in 2023 and is projected to grow at a CAGR of 4.8% from 2024 to 2030, reaching USD 12,632.7 million (or USD 12.63 billion) by 2030.
• Global Chiller Market: The global chiller market size was valued at USD 11.1 billion in 2024 and is expected to reach USD 15.2 billion by 2033, exhibiting a CAGR of 3.53% during 2025-2033.
• Global Data Center Cooling Market: The global data center cooling market size was estimated at USD 22.13 billion in 2024 and is projected to reach USD 56.15 billion by 2030, growing at a CAGR of 16.4% from 2025 to 2030. Another report indicates the global market for data center cooling was valued at USD 19.8 billion in 2024 and is projected to reach USD 50.9 billion by 2030, growing at a CAGR of 17% from 2024 to 2030.

AAON's investor information further highlights specific addressable market insights:

• The addressable market for AAON's core packaged rooftop product is estimated to be approximately nine times the size of the company's rooftop sales.
• AAON estimates its addressable global data center market to be approximately 20 times the size of its data center sales. In 2023, AAON's data center revenue totaled $101 million, implying an addressable global data center market of approximately $2.02 billion for their specific offerings. This market is growing approximately 20% annually.

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AAON (NASDAQ: AAON) is poised for future revenue growth over the next two to three years, driven by several key factors:

1. Robust Demand for Data Center Cooling Solutions: The company's BASX brand, which specializes in high-efficiency data center cooling solutions, including liquid cooling and air-side systems, is experiencing significant growth. This is evident from a substantial increase in BASX-branded sales and a rapidly expanding backlog, particularly for data center applications.

2. Increased Production Capacity and New Memphis Facility: AAON is expanding its manufacturing capabilities, notably with a new 787,000-square-foot facility in Memphis, Tennessee. This expansion is designed to meet the escalating demand from the data center market and is expected to become fully operational within approximately 12 months, enabling the company to convert its growing backlog into sales more efficiently.

3. Operational Efficiencies and ERP System Optimization: While the implementation of a new Enterprise Resource Planning (ERP) system initially presented challenges, AAON has reported sequential improvements in production throughput and gross margins. Ongoing optimization of the ERP system at facilities like Tulsa and Longview is expected to continue enhancing operational efficiency and driving profitability.

4. Growth in AAON-Branded Equipment and National Account Bookings: Despite a softer non-residential construction market, AAON's core branded equipment has demonstrated sequential sales growth. Furthermore, national account bookings have seen a significant increase, indicating the company's ability to gain market share.

5. New Product Innovations, particularly Alpha Class Heat Pumps: The introduction of new products, such as the Alpha Class heat pump series, is contributing to the company's revenue growth, with bookings for this equipment showing a strong quarter-over-quarter increase.

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Share Repurchases

• In 2024, AAON repurchased approximately 1.4 million shares for $108.1 million.
• As of September 30, 2025, $30.0 million in shares have been repurchased year-to-date, with $70.0 million remaining under the current board authorization.
• In March 2025, the Board of Directors approved $30.0 million of share repurchases as part of a previously disclosed $100 million share repurchase program.

Share Issuance

• As part of the December 2021 BasX acquisition, AAON committed to issuing approximately 1.6 million shares of common stock as contingent consideration.
• In March 2024, AAON issued 0.2 million shares related to the 2023 earn-out milestone for the BasX acquisition.
• Previously, in March 2023, 0.6 million shares were issued for the 2022 earn-out milestone of the BasX acquisition.

Outbound Investments

• In December 2021, AAON acquired BasX Solutions, a manufacturer of data center cooling and HVAC equipment, for a total of $180 million.
• The acquisition terms included an upfront payment of $100 million and an additional $80 million in payments through 2023.
• An additional $22 million was paid to the co-founders of BasX for real estate, financed through revolving credit and equity.

Capital Expenditures

• Capital expenditures totaled $213.2 million in 2024, marking an 87.6% increase compared to 2023.
• The company's planned capital expenditure program for 2025 is approximately $180.0 million.
• These investments are primarily focused on expanding production capabilities, including a 237,500 square foot addition to the Longview, Texas facility for BASX branded data center products, a new Weld Shop in Redmond, Oregon, and the purchase of a 787,000 square foot facility in Memphis, Tennessee, in December 2024, for approximately $63.4 million, to support future demand and geographic diversification, particularly for the data center market.