📊 AAON Key Takeaways
Is Aaon, Inc.. (AAON) a Good Investment?
AAON experienced massive revenue growth (+8235% YoY) likely from acquisition, but net income declined 36% and ROE remains critically low at 4.3%, indicating poor integration and inefficient capital deployment. Negative free cash flow of -$48.9M combined with CapEx exceeding operating cash flow signals unsustainable burn despite positive operating income.
AAON shows a solid underlying profitability profile, with positive gross, operating, and net margins, strong returns on capital, and a very liquid balance sheet with effectively no leverage. However, the reported revenue surge appears low quality given the sharp decline in net income, extremely weak operating cash flow relative to sales, and negative free cash flow driven by heavy capital spending. Fundamentally, this looks like a financially healthy company facing a period of weaker earnings conversion and elevated execution risk.
Aaon, Inc.. Key Strengths (AAON)
- Substantial revenue growth trajectory from business combination
- Positive operating cash flow of $34M supports operational viability
- Current ratio of 2.62x indicates adequate working capital coverage
- Minimal debt burden with 0.00 debt-to-equity ratio
- Strong balance sheet liquidity with a 2.63x current ratio and 1.84x quick ratio
- Minimal financial leverage, with 0.00x debt-to-equity and extremely high interest coverage
- Still profitable at multiple levels, including 26.7% gross margin and 10.1% operating margin
AAON Stock Risks: Aaon, Inc.. Investment Risks
- Net income declined 36% YoY despite 8235% revenue growth indicating poor acquisition integration and operational efficiency
- Negative free cash flow of -$48.9M means company burns cash; CapEx at $82.9M exceeds operating cash flow by 2.4x
- Critically low returns on equity (4.3%) and assets (2.2%) demonstrate inefficient capital utilization
- Extremely low cash position ($13K) creates liquidity vulnerability if operations deteriorate
- Negative FCF margin of -9.8% is structurally unsustainable without external capital infusions
- Revenue growth quality is questionable because earnings fell sharply despite reported top-line expansion
- Operating cash flow is exceptionally weak versus revenue, indicating poor cash conversion
- Negative free cash flow and elevated capital expenditures may pressure financial flexibility if sustained
Key Metrics to Watch
- Free cash flow trend and path to positive FCF generation
- Net income recovery relative to revenue growth post-acquisition integration
- Return on equity trajectory toward industry benchmarks (10%+)
- Cash balance rebuild and working capital management
- Capital expenditure normalization relative to operating cash generation
- Operating cash flow relative to net income and revenue
- Net margin and free cash flow trend over the next few reporting periods
Aaon, Inc.. (AAON) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.62x current ratio provides a solid financial cushion.
AAON Profit Margin, ROE & Profitability Analysis
AAON vs Market Sector: How Aaon, Inc.. Compares
How Aaon, Inc.. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Aaon, Inc.. Stock Overvalued? AAON Valuation Analysis 2026
Based on fundamental analysis, Aaon, Inc.. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Aaon, Inc.. Balance Sheet: AAON Debt, Cash & Liquidity
AAON Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Aaon, Inc..'s revenue has grown significantly by 170% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.13 reflects profitable operations.
AAON Revenue Growth, EPS Growth & YoY Performance
AAON Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $322.1M | $29.3M | $0.35 |
| Q3 2025 | $327.3M | $30.8M | $0.37 |
| Q2 2025 | $311.6M | $15.5M | $0.19 |
| Q1 2025 | $262.1M | $29.3M | $0.35 |
| Q3 2024 | $312.0M | $48.1M | $0.58 |
| Q2 2024 | $284.0M | $45.7M | $0.55 |
| Q1 2024 | $262.1M | $36.8M | $0.44 |
| Q3 2023 | $242.6M | $27.5M | $0.34 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Aaon, Inc.. Dividends, Buybacks & Capital Allocation
AAON SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Aaon, Inc.. (CIK: 0000824142)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AAON
What is the AI rating for AAON?
Aaon, Inc.. (AAON) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AAON's key strengths?
Claude: Substantial revenue growth trajectory from business combination. Positive operating cash flow of $34M supports operational viability. ChatGPT: Strong balance sheet liquidity with a 2.63x current ratio and 1.84x quick ratio. Minimal financial leverage, with 0.00x debt-to-equity and extremely high interest coverage.
What are the risks of investing in AAON?
Claude: Net income declined 36% YoY despite 8235% revenue growth indicating poor acquisition integration and operational efficiency. Negative free cash flow of -$48.9M means company burns cash; CapEx at $82.9M exceeds operating cash flow by 2.4x. ChatGPT: Revenue growth quality is questionable because earnings fell sharply despite reported top-line expansion. Operating cash flow is exceptionally weak versus revenue, indicating poor cash conversion.
What is AAON's revenue and growth?
Aaon, Inc.. reported revenue of $496.9M.
Does AAON pay dividends?
Aaon, Inc.. pays dividends, with $8.1M distributed to shareholders in the trailing twelve months.
Where can I find AAON SEC filings?
Official SEC filings for Aaon, Inc.. (CIK: 0000824142) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AAON's EPS?
Aaon, Inc.. has a diluted EPS of $0.48.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AAON's fundamental grade?
Based on our AI fundamental analysis in June 2026, Aaon, Inc.. has a C grade with 73% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is AAON stock overvalued or undervalued?
Valuation metrics for AAON: ROE of 4.3% (sector avg: 15%), net margin of 8.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is AAON's AI grade for 2026?
Our dual AI analysis gives Aaon, Inc.. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AAON's free cash flow?
Aaon, Inc..'s operating cash flow is $34.0M, with capital expenditures of $82.9M. FCF margin is -9.8%.
How does AAON compare to other Market stocks?
Vs Default sector averages: Net margin 8.0% (avg: 12%), ROE 4.3% (avg: 15%), current ratio 2.62 (avg: 1.8).