Core Insights - The Zacks Building Products - Air Conditioner & Heating industry is well-positioned to benefit from the energy transition and pro-environmental trends, with growing demand for renewable solutions expected in 2024 and beyond [1][3] - Companies like Watsco, Comfort Systems USA, and AAON are capitalizing on maintenance and repair services, alongside effective cost management practices, despite inflationary pressures [1][4] - The industry has shown strong performance, outperforming the broader Zacks Construction sector and S&P 500 over the past year, with a 58.4% gain compared to 37.1% and 21.4% respectively [8] Industry Overview - The industry includes designers, manufacturers, and marketers of products for heating, ventilation, air conditioning, and refrigeration, covering a wide range of equipment and services [2] - Key products include rooftop units, chillers, air-handling units, and various HVAC components, serving residential, commercial, and industrial markets [2] Trends Impacting the Industry - U.S. administration's focus on reducing greenhouse gas emissions is driving demand for clean energy systems, benefiting companies involved in controlled-environment agriculture [3] - Continuous investments in technology and e-commerce are vital for enhancing customer experience and expanding market reach [4] - The industry is experiencing stable revenue from maintenance and repair services, which are less affected by fluctuations in the construction market [4] Challenges Faced - Rising raw material costs and supply chain issues have impacted profit margins, alongside increasing operating expenses [5] - The industry is subject to stringent regulations regarding energy efficiency and emissions, which pose additional challenges [5] Market Performance - The Zacks Building Products - Air Conditioner & Heating industry holds a Zacks Industry Rank of 36, indicating strong near-term prospects [6] - The industry's forward 12-month price-to-earnings ratio is currently at 29.5X, higher than the S&P 500's 19.8X and the sector's 16.4X [9] Notable Companies - **Watsco, Inc. (WSO)**: The largest distributor of HVAC equipment in North America, with a 45% stock gain over the past year and expected earnings growth of 7.8% in 2024 [12] - **Comfort Systems USA, Inc. (FIX)**: A national provider of HVAC services, with a 74.7% stock gain and projected earnings growth of 13.5% in 2024 [13] - **AAON, Inc. (AAON)**: Focused on air conditioning and heating equipment, with a 44% stock gain and expected earnings growth of 9.6% in 2024 [15]

Financial Data and Key Metrics Changes - Net sales increased by 28.6% to $312 million from $242.6 million, driven by improved operational efficiencies and pricing contributing 16.7% to growth [10][11] - Gross profit rose by 77% to $116.1 million, with gross profit margin improving to 37.2% from 27% in Q3 2022 [10][11] - Diluted earnings per share increased by 70.6% to $0.58, with non-GAAP adjusted EPS at $0.64, a year-over-year increase of approximately 90% [10][11] Business Line Data and Key Metrics Changes - The parts business saw a 14% growth, representing 5.8% of total sales, with expectations to double or triple in the next five years [8] - The AAON, Oklahoma, and BASX segments experienced robust growth, contributing to overall volume growth of 11.9% [10] Market Data and Key Metrics Changes - The market environment remains busy, with bookings and the book-to-bill ratio improving quarter-over-quarter, despite macroeconomic signals [7][14] - Industry trends favor AAON, with a focus on decarbonization, energy efficiency, and electrification driving demand for high-quality custom equipment [7] Company Strategy and Development Direction - AAON is aggressively investing in production capacity, sales and marketing, product development, and IT infrastructure to position for long-term growth [8][20] - The company anticipates continued market share gains due to new refrigerant regulations effective January 1, 2025, and expects to leverage its early readiness in this area [20][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2024, expecting another solid year of growth with a healthy backlog, particularly in strong markets like data centers and semiconductor manufacturing [17][19] - The company noted that while some macro indicators suggest a slowdown, many end markets remain strong, and independent sales representatives maintain a positive outlook [19] Other Important Information - The leadership team is undergoing changes, with Matt Tobolski becoming President and COO, focusing on day-to-day operations while Gary Fields narrows his focus to strategic objectives [22][23] - Capital expenditures for the year are expected to be approximately $100 million, reflecting a 99.3% increase from the previous year [13] Q&A Session Summary Question: Thoughts on pricing as AAON approaches 2024 - Management indicated that while gross margins are strong, they expect a new range for margins rather than a return to historical levels [29] Question: Status of Longview Coil Products business - Management acknowledged hurdles but expects continuous improvement throughout the next year as they align manufacturing processes [31][33] Question: Enhancements made that are yet to be financially recognized - Management highlighted productivity improvements and ongoing CapEx projects that have not yet fully realized their potential [35][37] Question: Competitive landscape between core rooftop and BASX - Management noted a narrowing price delta between AAON products and competitors, with BASX products maintaining a value-driven proposition [40][41] Question: Potential market share gains from refrigerant regulations - Management expressed confidence in gaining market share due to being ahead in readiness for new refrigerant regulations [46][60] Question: Factors contributing to elevated SG&A expenses - Management confirmed that elevated SG&A was due to profit sharing and investments in long-term growth, which are factored into Q4 guidance [55][56]

Q3 2023 Earnings Conference Call November 6, 2023 Forward-Looking Statements and Other References Certain statements and information set forth in this presentation contains “forward-looking statements” and “forward-looking information” within the meaning of the Private Securities Litigation Reform Act of 1995. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include management’s assessment of future plans and operations and are based ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________________ to ____________________ Commission file number: 0-18953 AAON, INC. (Exact name of registrant as specified in its charter) Nevada 87-0448736 (Sta ...

Q2 2023 Earnings Conference Call August 3, 2023 Forward-Looking Statements and Other References Certain statements and information set forth in this presentation (some of which are beyond the Company’s control) and assumptions contains “forward-looking statements” and “forward-looking that could cause actual future results to differ materially from the information” within the meaning of the Private Securities Litigation Company’s historical experience and its present expectations or Reform Act of 1995. Exce ...

AAON, Inc. (NASDAQ:AAON) Q2 2023 Earnings Conference Call August 4, 2023 5:00 PM ET Company Participants Joseph Mondillo - Director, Investor Relations Gary Fields - President & CEO Rebecca Thompson - Chief Financial Officer & Treasurer Conference Call Participants Julio Romero - Sidoti & Company Chris Moore - CJS Securities Brent Thielman - DA Davidson Jon Braatz - Oppenheimer Operator Welcome to the AAON Inc. Second Quarter 2023 Earnings Conference Call. Our host for today's call is Joseph Mondillo, Direc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________________ to ____________________ Commission file number: 0-18953 AAON, INC. (Exact name of registrant as specified in its charter) Nevada 87-0448736 (State or ...

AAON, Inc. (NASDAQ:AAON) Q1 2023 Earnings Conference Call May 4, 2023 5:00 PM ET Company Participants Joseph Mondillo - Director, Investor Relations Gary Fields - President & CEO Rebecca Thompson - Chief Financial Officer & Treasurer Conference Call Participants Brent Thielman - DA Davidson Julio Romero - Sidoti & Company Chris Moore - CJS Securities Operator Good day, and welcome to the AAON Incorporated First Quarter 2023 Earnings Conference Call. Our host for today's call is Joseph Mondillo, Director of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________________ to ____________________ Commission file number: 0-18953 AAON, INC. (Exact name of registrant as specified in its charter) Nevada 87-0448736 (State o ...

AAON, Inc. (NASDAQ:AAON) Q4 2022 Earnings Conference Call February 27, 2023 5:15 PM ET Company Participants Joseph Mondillo - Director, Investor Relations Matt Tobolski - President & Co-Founder, BasX Solutions Rebecca Thompson - Chief Financial Officer & Treasurer Conference Call Participants Julio Romero - Sidoti & Company Jean Ramirez - D.A. Davidson Chris Moore - CJS Securities Jon Braatz - Kansas City Capital Operator Good day, and welcome to the AAON Incorporated Fourth Quarter 2022 Earnings Conference ...