AAON added $315.4 million of revenue in three months, almost exactly the size of the entire comparable period a year earlier. Sales reached $627.0 million, up 101.2% from $311.6 million, as the company pushed more cooling equipment through its factories.
The income statement followed, at least partway. Net income rose to $56.7 million from $15.5 million, while operating cash flow swung from a $31.0 million outflow to a $55.0 million inflow. Operating margin expanded to 11.0% from 7.6%.
The less tidy part is gross profit. It rose 84.3%, well short of the sales increase, pulling gross margin down to 24.3% from 26.6%. AAON is growing quickly, but the first dollars of that growth are not carrying the same percentage of profit.
Management ties the surge to a combination of backlog and production ramp-up. Major contributions came from BASX, AAON's data-center line, and AAON Coil Products, where liquid-cooling orders supplied a substantial portion of the increase.
"Sales were up 150.9% at AAON Coil Products, primarily driven by growth in BASX-branded products of $85.6 million for a large liquid cooling data center."
AAON, Form 10-Q, Aug. 10, 2026
That accounts for a portion of the increase. BASX sales rose 220.7% to $218.0 million, while AAON Coil Products reached $146.7 million. The filing also says AAON Oklahoma added $159.3 million in sales as Tulsa production increased and backlog entered 2026 at a stronger level.
The cash story brings the operating exposure into view. Accounts receivable rose 111.5% to $360.8 million, faster than sales, and inventory increased 41.0% to $331.3 million. The company ended the period with only $13.0 thousand of cash, despite the improved operating cash flow.
AAON says it used its revolving credit facility to fund working capital, strategic inventory purchases, and some capital expenditures, then repaid borrowings as operating results allowed.
"The change in cash from financing activities in 2026 is primarily related to borrowings under our revolving credit facility to manage our working capital needs, especially strategic purchases of inventory to avoid supply chain delays and the funding of certain capital expenditures, offset by repayments we were able to make due to our operating results and financial condition."
AAON, Form 10-Q, Aug. 10, 2026
The balance-sheet detail matters because the growth is arriving with more money tied up before collection. The filing does not say why receivables grew faster than revenue. It does say tariff-related surcharges may lag initial cost increases, with pricing actions expected to offset those effects over time, subject to demand and competition.
AAON's annual results add some history to the margin question: operating margin was 19.5% in 2023, then 10.1% in 2025. At the latest close, the shares were $94.85, with the stock up 5.1% on Aug. 7. The current valuation is 73.3 times earnings, so the market context leaves room for both the data-center growth and the margin slippage to matter at once.
AAON's next quarterly report will put the same three measurements back on the page: gross margin, accounts receivable, and the amount of borrowing used to support inventory and capital spending. For now, the filing's trade-off is simple enough: AAON is selling twice as much, and carrying more of the sale.
AAON's latest 10-Q shows a production ramp, higher operating cash flow, lower gross margin, and greater working-capital financing.