Aaon, Inc. Q3 2025 results

Rebecca will then follow with a walkthrough of the quarterly results, and Matt will finish with our outlook for the rest of the year and some closing remarks. We saw substantial improvement in production throughput at both the Tulsa and Longview facilities, which drove meaningful sequential sales growth, while continued strength in bookings contributed to further backlog growth. Demand for both our airside and liquid cooling products remains strong, reflecting how well our custom solutions align with customer needs. To meet this growing demand, we remain laser-focused on ramping up production capacity at our new Memphis facility.

This facility adds nearly 800,000 sq ft of state-of-the-art manufacturing capacity, which provides considerable growth to our BASX production capabilities and positions us well for continued growth. With a strong backlog and significant increase in capacity, we expect the BASX brand to deliver meaningful growth in 2026. AAON-branded sales grew 28.1% sequentially, driven by over 20% production increases at both the Tulsa and Longview facilities and improved utilization of the ERP system, enabling us to better meet demand. Enhanced production output of AAON-branded equipment resulted in a book-to-bill ratio for the brand below one, successfully helping bring backlog and lead times of AAON-branded equipment closer to normalized levels.

While backlog for the brand remains higher than desired, we are making steady progress in reducing it. While flat year-over-year due to a challenging comparison, bookings were up 15% on a 2-year stack, reflecting continued strength in underlying demand. We view these as temporary and expect meaningful margin improvement in the coming quarters. The increase was driven by a 95.8% rise in BASX-branded sales due to continued demand for data center solutions and increasing production out of our Memphis facility.