AAON Reports Second Quarter 2025 Results
AAON (NASDAQ:AAON) reported challenging Q2 2025 results with net sales declining 0.6% to $311.6 million. The company experienced significant operational difficulties, primarily due to ERP system implementation issues and supply constraints. GAAP diluted EPS fell 69.4% to $0.19, while adjusted diluted EPS decreased 64.5% to $0.22.
The company's gross profit margin contracted to 26.6% from 36.1% year-over-year, mainly due to lower production volumes and operational inefficiencies. Despite challenges, the adjusted backlog grew 71.9% to $1.12 billion, indicating strong market demand. AAON has revised its full-year 2025 outlook downward, though management expects significant production improvements in the second half of the year.
AAON (NASDAQ:AAON) ha comunicato risultati difficili per il 2° trimestre 2025, con i ricavi netti in calo dello 0,6% a $311.6 milioni. L'azienda ha incontrato rilevanti difficoltà operative, principalmente dovute a problemi nell'implementazione del sistema ERP e a vincoli di approvvigionamento. L'EPS diluito secondo i principi GAAP è sceso del 69,4% a $0.19, mentre l'EPS diluito rettificato è diminuito del 64,5% a $0.22.
Il margine lordo si è contratto al 26.6% rispetto al 36.1% dell'anno precedente, principalmente per volumi di produzione inferiori e inefficienze operative. Nonostante ciò, l'ordine arretrato rettificato è cresciuto del 71.9% a $1.12 miliardi, segnalando una solida domanda di mercato. AAON ha rivisto al ribasso le previsioni per l'intero 2025, pur confidando che la produzione migliorerà significativamente nella seconda metà dell'anno.
AAON (NASDAQ:AAON) registró un trimestre 2T 2025 complicado, con las ventas netas cayendo un 0.6% hasta $311.6 millones. La compañía sufrió importantes dificultades operativas, principalmente por problemas en la implementación del sistema ERP y limitaciones en la cadena de suministro. El BPA diluido según GAAP se redujo un 69.4% hasta $0.19, mientras que el BPA diluido ajustado bajó un 64.5% hasta $0.22.
El margen bruto se redujo al 26.6% desde 36.1% interanual, debido sobre todo a menores volúmenes de producción e ineficiencias operativas. A pesar de las dificultades, la cartera de pedidos ajustada creció un 71.9% hasta $1.12 mil millones, lo que indica una demanda sólida del mercado. AAON ha revisado a la baja sus previsiones para 2025, aunque la dirección espera mejoras significativas en la producción en la segunda mitad del año.
AAON (NASDAQ:AAON)은 2025 회계연도 2분기에 도전적인 실적을 발표했으며, 순매출이 0.6% 감소한 $311.6 million을 기록했습니다. 회사는 주로 ERP 시스템 도입 문제와 공급 제약으로 인해 상당한 운영상의 어려움을 겪었습니다. GAAP 기준 희석 주당순이익(EPS)은 69.4% 감소한 $0.19였고, 조정된 희석 EPS는 64.5% 감소한 $0.22였습니다.
매출총이익률은 전년 동기 대비 36.1%에서 26.6%로 축소되었는데, 이는 주로 생산량 감소와 운영 비효율성 때문입니다. 그럼에도 불구하고 조정된 수주 잔고는 71.9% 증가한 $1.12 billion으로, 견조한 시장 수요를 나타냅니다. AAON은 2025년 연간 전망을 하향 조정했으나, 경영진은 하반기에 생산이 크게 개선될 것으로 기대하고 있습니다.
AAON (NASDAQ:AAON) a publié des résultats difficiles pour le 2e trimestre 2025, les ventes nettes diminuant de 0,6% pour atteindre $311.6 millions. L'entreprise a rencontré d'importantes difficultés opérationnelles, principalement en raison de problèmes lors de la mise en place du système ERP et de contraintes d'approvisionnement. Le BPA dilué selon les normes GAAP a chuté de 69,4% à $0.19, tandis que le BPA dilué ajusté a diminué de 64,5% à $0.22.
La marge brute s'est contractée à 26.6% contre 36.1% un an plus tôt, principalement en raison de volumes de production plus faibles et d'inefficacités opérationnelles. Malgré ces difficultés, le carnet de commandes ajusté a augmenté de 71.9% à $1.12 milliards, ce qui indique une forte demande sur le marché. AAON a révisé à la baisse ses perspectives pour l'ensemble de l'année 2025, mais la direction s'attend à des améliorations significatives de la production au second semestre.
AAON (NASDAQ:AAON) meldete schwierige Ergebnisse für das 2. Quartal 2025, wobei der Nettoumsatz um 0,6% auf $311.6 Millionen zurückging. Das Unternehmen hatte erhebliche operative Probleme, vor allem aufgrund von Problemen bei der Einführung des ERP-Systems und Lieferengpässen. Das verwässerte GAAP-Gewinn je Aktie (EPS) fiel um 69,4% auf $0.19, während das bereinigte verwässerte EPS um 64,5% auf $0.22 sank.
Die Bruttomarge schrumpfte auf 26.6% gegenüber 36.1% im Vorjahreszeitraum, hauptsächlich bedingt durch geringere Produktionsvolumina und operative Ineffizienzen. Trotz der Herausforderungen stieg der bereinigte Auftragsbestand um 71.9% auf $1.12 Milliarden, was auf eine starke Marktnachfrage hindeutet. AAON hat seine Prognose für das Gesamtjahr 2025 nach unten korrigiert, erwartet jedoch von der Geschäftsführung deutlich verbesserte Produktionsleistungen in der zweiten Jahreshälfte.
- None.
- Net sales decreased 0.6% to $311.6 million year-over-year
- GAAP diluted EPS fell 69.4% to $0.19, while adjusted EPS dropped 64.5% to $0.22
- Gross profit margin contracted significantly to 26.6% from 36.1% year-over-year
- SG&A expenses increased to 19.0% of sales from 14.6% in Q2 2024
- High debt level with $317.3 million balance on revolving credit facility
- Reduced full-year 2025 guidance due to operational challenges
Insights
AAON's Q2 results show significant operational challenges from ERP implementation causing margin compression despite strong order trends.
AAON delivered a disappointing Q2 with diluted EPS plummeting 69.4% to
Revenue was essentially flat at
Gross margin compression was severe, dropping to
SG&A expenses increased significantly to
The bright spot is AAON's backlog, which grew
Management reduced its 2025 outlook but highlighted sequential production improvements since April, with July representing their strongest production month this year. Their revised guidance projects low-teen full-year sales growth with gross margins between
The balance sheet shows only
Q2 Highlights
(All comparisons are year-over-year, unless otherwise noted)
- Operations impacted by ERP roll out and supply constraints
- Net sales down
0.6% to$311.6 million - GAAP diluted EPS of
$0.19 69.4% and Non-GAAP adjusted diluted EPS of$0.22 64.5% - Non-GAAP Adjusted EBITDA margin down 1,120 basis points to
14.9%
- Net sales down
- Strong bookings trends of both AAON- and BASX-branded equipment points to share gains continuing
- Adjusted backlog up year-over-year
71.9% to$1.12 billion
- Adjusted backlog up year-over-year
- Reducing full-year 2025 outlook
Second Quarter 2025 Results
Net sales for the second quarter of 2025 decreased
Gross profit margin in the quarter was
SG&A expenses in the quarter increased to
Earnings per diluted share were
"Our second quarter results fell short of our expectations and do not reflect the high standards we set for ourselves as an organization," said CEO Matt Tobolski. "We strive to be a best-in-class operator and these results do not reflect that. The underperformance was primarily driven by poor operational execution, mainly associated with the implementation of our new ERP system at our
Tobolski continued, "We have begun to make significant improvements at both
Tobolski concluded, "While the ERP implementation has led to temporary disruptions, the core fundamentals of the business remain sound. Bookings and backlog trends for both AAON-branded and BASX-branded equipment continued to grow throughout the second quarter, reinforcing our confidence in the brands and the custom engineered solutions we deliver. Demand from the data center market remains exceptionally strong, fueling BASX-branded orders, and despite a soft traditional nonresidential market, AAON-branded orders grew by double digits in the second quarter. Notably, our national accounts strategy has gained significant traction, with growth from these customers leading all AAON-branded order activity. To sustain this momentum and best serve our customers, our top priority is increasing production across our
Segment Results
AAON Oklahoma
Three Months Ended | ||
(in thousands) | June 30, 2025 | June 30, 2024 |
Net sales | $ 185,120 | $ 225,727 |
Gross profit | $ 50,883 | $ 83,870 |
Gross profit margin | 27.5 % | 37.2 % |
AAON Oklahoma had net sales of
Gross margin contracted 970 basis points to
AAON Coil Products
Three Months Ended | ||
(in thousands) | June 30, 2025 | June 30, 2024 |
Net sales | $ 58,465 | $ 31,373 |
Gross profit | $ 12,863 | $ 13,159 |
Gross profit margin | 22.0 % | 41.9 % |
AAON Coil Products had a challenging quarter. While sales grew year-over-year
Gross margin contracted 1,990 basis points year-over-year to
BASX
Three Months Ended | ||
(in thousands) | June 30, 2025 | June 30, 2024 |
Net sales | $ 67,982 | $ 56,466 |
Gross profit | $ 18,983 | $ 16,065 |
Gross profit margin | 27.9 % | 28.5 % |
Net sales for the second quarter of 2025 increased
BASX gross profit margin of
Balance Sheet & Cash Flow
As of June 30, 2025, the company had cash, cash equivalents and restricted cash of
Backlog
June 30, 2025* | March 31, 2025 | June 30, 2024 | |||
(in thousands) | |||||
AAON-branded products | $ 494,214 | $ 403,863 | $ 255,485 | ||
BASX-branded products* | 623,423 | 623,006 | 394,520 | ||
$ 1,117,637 | $ 1,026,869 | $ 650,005 | |||
*Adjusted for replacement purchase orders received in July related to administrative processing. | |||||
Total backlog increased year-over-year
Full-Year 2025 Outlook
Metric | Q3 | Q4 | FY25 |
YoY Sales Growth | Low Single Digits | High Twenties | Low Teens |
Gross Profit Margin | |||
Non-GAAP adjusted |
Conference Call
The company will host a conference call and webcast this morning at 9:00 a.m. EDT to discuss the second quarter of 2025 results and outlook. The conference call will be accessible via dial-in for those who wish to participate in Q&A as well as a listen-only webcast. The dial-in is accessible at 1-800-836-8184. To access the listen-only webcast, please register at https://app.webinar.net/QbZGYL16oqm. On the next business day following the call, a replay of the call will be available on the company's website at https://aaon.com/investors.
About AAON
Founded in 1988, AAON is a global leader in HVAC solutions for commercial, industrial and data center indoor environments. The company's industry-leading approach to designing and manufacturing highly configurable and custom-made equipment to meet exact needs creates a premier ownership experience with greater efficiency, performance and long-term value. Its highly engineered equipment is sold under the AAON and BASX brands. AAON is headquartered in
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", "should", "will", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligations to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Important factors that could cause results to differ materially from those in the forward-looking statements include (1) the timing and extent of changes in raw material and component prices, (2) the effects of fluctuations in the commercial/industrial new construction market, (3) the timing and extent of changes in interest rates, as well as other competitive factors during the year, and (4) general economic, market or business conditions. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in any forward-looking statements, see "Risk Factors" and "Forward Looking Statements" in AAON's Annual Report on Form 10-K for the most recent fiscal year, as may be revised and updated by AAON's Quarterly Reports on Form 10-Q, and AAON's Current Reports on Form 8-K.
Contact Information
Joseph Mondillo
Director of Investor Relations & Corporate Strategy
Phone: (617) 877-6346
Email: joseph.mondillo@aaon.com
AAON, Inc. and Subsidiaries | |||||||
Consolidated Statements of Income | |||||||
(Unaudited) | |||||||
Three Months Ended | Six Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(in thousands, except share and per share data) | |||||||
Net sales | $ 311,567 | $ 313,566 | $ 633,621 | $ 575,665 | |||
Cost of sales | 228,838 | 200,472 | 464,528 | 370,329 | |||
Gross profit | 82,729 | 113,094 | 169,093 | 205,336 | |||
Selling, general and administrative expenses | 59,147 | 45,895 | 110,440 | 91,183 | |||
Gain on disposal of assets | — | — | (40) | (16) | |||
Income from operations | 23,582 | 67,199 | 58,693 | 114,169 | |||
Interest expense, net | (4,009) | (367) | (6,811) | (606) | |||
Other income, net | (68) | 175 | 106 | 252 | |||
Income before taxes | 19,505 | 67,007 | 51,988 | 113,815 | |||
Income tax provision | 4,018 | 14,779 | 7,209 | 22,571 | |||
Net income | $ 15,487 | $ 52,228 | $ 44,779 | $ 91,244 | |||
Earnings per share: | |||||||
Basic | $ 0.19 | $ 0.64 | $ 0.55 | $ 1.12 | |||
Diluted | $ 0.19 | $ 0.62 | $ 0.54 | $ 1.09 | |||
Cash dividends declared per common share: | $ 0.10 | $ 0.08 | $ 0.20 | $ 0.16 | |||
Weighted average shares outstanding: | |||||||
Basic | 81,441,511 | 81,791,792 | 81,456,845 | 81,339,153 | |||
Diluted | 82,956,213 | 83,786,222 | 83,153,788 | 83,527,717 | |||
AAON, Inc. and Subsidiaries | |||||||
Segment Net Sales and Profit | |||||||
(Unaudited) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | June 30, | June 30, | ||||
(in thousands) | (in thousands) | ||||||
AAON Oklahoma | |||||||
External sales | $ 185,120 | $ 225,727 | $ 346,958 | $ 435,867 | |||
Inter-segment sales | 5,318 | 1,311 | 9,157 | 2,982 | |||
Eliminations | (5,318) | (1,311) | (9,157) | (2,982) | |||
Net sales | 185,120 | 225,727 | 346,958 | 435,867 | |||
Cost of sales1 | 134,237 | 141,857 | 258,102 | 273,586 | |||
Gross profit | 50,883 | 83,870 | 88,856 | 162,281 | |||
AAON Coil Products | |||||||
External sales | $ 58,465 | $ 31,373 | $ 152,488 | $ 55,620 | |||
Inter-segment sales | 6,073 | 8,942 | 12,279 | 18,273 | |||
Eliminations | (6,073) | (8,942) | (12,279) | (18,273) | |||
Net sales | 58,465 | 31,373 | 152,488 | 55,620 | |||
Cost of sales1 | 45,602 | 18,214 | 107,140 | 34,322 | |||
Gross profit | 12,863 | 13,159 | 45,348 | 21,298 | |||
BASX | |||||||
External sales | $ 67,982 | $ 56,466 | $ 134,175 | $ 84,178 | |||
Inter-segment sales | 507 | 220 | 550 | 222 | |||
Eliminations | (507) | (220) | (550) | (222) | |||
Net sales | 67,982 | 56,466 | 134,175 | 84,178 | |||
Cost of sales1 | 48,999 | 40,401 | 99,286 | 62,421 | |||
Gross profit | 18,983 | 16,065 | 34,889 | 21,757 | |||
Consolidated gross profit | $ 82,729 | $ 113,094 | $ 169,093 | $ 205,336 | |||
1 Presented after intercompany eliminations. | |||||||
The reconciliation between consolidated gross profit to consolidated income from operations is as follows: | |||||||
Consolidated gross profit | $ 82,729 | $ 113,094 | $ 169,093 | $ 205,336 | |||
Less: Selling, general and administrative expenses | 59,147 | 45,895 | 110,440 | 91,183 | |||
Add: Gain on disposal of assets | — | — | 40 | 16 | |||
Consolidated income from operations | $ 23,582 | $ 67,199 | $ 58,613 | $ 114,137 | |||
AAON, Inc. and Subsidiaries | |||
Consolidated Balance Sheets | |||
(Unaudited) | |||
June 30, 2025 | December 31, 2024 | ||
Assets | (in thousands, except share and per share data) | ||
Current assets: | |||
Cash and cash equivalents | $ 14 | $ 14 | |
Restricted cash | 1,307 | 6,500 | |
Accounts receivable, net | 170,573 | 147,434 | |
Income tax receivable | 7,302 | 4,115 | |
Inventories, net | 234,980 | 187,420 | |
Contract assets, net | 233,184 | 135,421 | |
Prepaid expenses and other | 6,791 | 7,308 | |
Total current assets | 654,151 | 488,212 | |
Property, plant and equipment, net | 559,479 | 510,356 | |
Intangible assets, net and goodwill | 162,307 | 160,152 | |
Right of use assets | 17,795 | 15,436 | |
Deferred tax assets | 3,259 | 836 | |
Other long-term assets | 2,422 | 242 | |
Total assets | $ 1,399,413 | $ 1,175,234 | |
Liabilities and Stockholders' Equity | |||
Current liabilities: | |||
Debt, short-term | $ — | $ 16,000 | |
Accounts payable | 81,642 | 44,645 | |
Accrued liabilities | 95,332 | 99,347 | |
Contract liabilities | 33,752 | 14,913 | |
Total current liabilities | 210,726 | 174,905 | |
Debt, long-term | 317,277 | 138,891 | |
Other long-term liabilities | 22,471 | 20,743 | |
New market tax credit obligation | 16,193 | 16,113 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred stock, | — | — | |
Common stock, | 326 | 326 | |
Additional paid-in capital | 48,607 | 68,946 | |
Retained earnings | 783,813 | 755,310 | |
Total stockholders' equity | 832,746 | 824,582 | |
Total liabilities and stockholders' equity | $ 1,399,413 | $ 1,175,234 | |
AAON, Inc. and Subsidiaries | |||
Consolidated Statements of Cash Flows | |||
(Unaudited) | |||
Six Months Ended | |||
2025 | 2024 | ||
Operating Activities | (in thousands) | ||
Net income | $ 44,779 | $ 91,244 | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 38,879 | 27,923 | |
Amortization of debt issuance costs | 128 | 71 | |
Amortization of right of use assets | 69 | 73 | |
Provision for credit losses on accounts receivable, net of adjustments | 270 | 1,169 | |
Provision for credit losses on contract assets, net of adjustments | 200 | — | |
Provision for excess and obsolete inventories, net of write-offs | 288 | 641 | |
Share-based compensation | 8,795 | 8,451 | |
Other | (71) | (10) | |
Deferred income taxes | (2,423) | 41 | |
Changes in assets and liabilities: | |||
Accounts receivable | (23,409) | (12,210) | |
Income taxes | (3,187) | (6,139) | |
Inventories | (47,848) | 29,903 | |
Contract assets | (97,963) | (22,977) | |
Prepaid expenses and other long-term assets | (68) | (2,708) | |
Accounts payable | 36,397 | (1,804) | |
Contract liabilities | 18,839 | 13,105 | |
Extended warranties | (148) | 1,195 | |
Accrued liabilities and other long-term liabilities | (4,567) | (56) | |
Net cash (used in) provided by operating activities | (31,040) | 127,912 | |
Investing Activities | |||
Capital expenditures | (82,515) | (65,381) | |
Proceeds from sale of property, plant and equipment | 40 | 16 | |
Acquisition of intangible assets | (7,042) | (10,058) | |
Principal payments from note receivable | 25 | 26 | |
Net cash used in investing activities | (89,492) | (75,397) | |
Financing Activities | |||
Borrowings of debt | 415,126 | 272,526 | |
Payments of debt | (252,982) | (224,970) | |
Proceeds from financing obligation, net of issuance costs | — | 4,186 | |
Payment related to financing costs | (1,395) | (417) | |
Stock options exercised | 10,025 | 15,821 | |
Repurchases of stock - open market | (29,992) | (100,034) | |
Repurchases of stock - LTIP plans | (9,167) | (3,493) | |
Cash dividends paid to stockholders | (16,276) | (13,079) | |
Net cash provided by (used in) financing activities | 115,339 | (49,460) | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (5,193) | 3,055 | |
Cash, cash equivalents and restricted cash, beginning of period | 6,514 | 9,023 | |
Cash, cash equivalents and restricted cash, end of period | $ 1,321 | $ 12,078 | |
Use of Non-GAAP Financial Measures
To supplement the company's consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), additional non-GAAP financial measures are provided and reconciled in the following tables. The company believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results. The company believes that this non-GAAP financial measure enhances the ability of investors to analyze the company's business trends and operating performance as they are used by management to better understand operating performance. Since adjusted net income, adjusted net income per diluted share, EBITDA, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures and are susceptible to varying calculations, adjusted net income, adjusted net income per diluted share, EBITDA, adjusted EBITDA, and adjusted EBITDA margin, as presented, may not be directly comparable with other similarly titled measures used by other companies.
Non-GAAP Adjusted Net Income
The company defines non-GAAP adjusted net income as net income adjusted for any infrequent events, such as litigation settlements, net of profit sharing and tax effect, in the periods presented.
The following table provides a reconciliation of net income (GAAP) to non-GAAP adjusted net income for the periods indicated:
Three Months Ended | Six Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(in thousands) | |||||||
Net income, a GAAP measure | $ 15,487 | $ 52,228 | $ 44,779 | $ 91,244 | |||
3,405 | — | 6,105 | — | ||||
Profit sharing effect2 | (289) | — | (519) | — | |||
Tax effect | (742) | — | (1,369) | — | |||
Non-GAAP adjusted net income | $ 17,861 | $ 52,228 | $ 48,996 | $ 91,244 | |||
Non-GAAP adjusted earnings per diluted share | $ 0.22 | $ 0.62 | $ 0.59 | $ 1.09 | |||
1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our | |||||||
2Profit sharing effect of the | |||||||
EBITDA
EBITDA (as defined below) is presented herein and reconciled from the GAAP measure of net income because of its wide acceptance by the investment community as a financial indicator of a company's ability to internally fund operations. The company defines EBITDA as net income, plus (1) depreciation and amortization, (2) interest expense (income), net and (3) income tax expense. EBITDA is not a measure of net income or cash flows as determined by GAAP. EBITDA margin is defined as EBITDA as a percentage of net sales.
The company's EBITDA measure provides additional information which may be used to better understand the company's operations. EBITDA is one of several metrics that the company uses as a supplemental financial measurement in the evaluation of its business and should not be considered as an alternative to, or more meaningful than, net income, as an indicator of operating performance. Certain items excluded from EBITDA are significant components in understanding and assessing a company's financial performance. EBITDA, as used by the company, may not be comparable to similarly titled measures reported by other companies. The company believes that EBITDA is a widely followed measure of operating performance and is one of many metrics used by the company's management team and by other users of the company's consolidated financial statements.
Adjusted EBITDA is calculated as EBITDA adjusted by items in non-GAAP adjusted net income, above, except for taxes, as taxes are already excluded from EBITDA.
The following table provides a reconciliation of net income (GAAP) to EBITDA (non-GAAP) and Adjusted EBITDA (non-GAAP) for the periods indicated:
Three Months Ended | Six Months Ended | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(in thousands) | |||||||
Net income, a GAAP measure | $ 15,487 | $ 52,228 | $ 44,779 | $ 91,244 | |||
Depreciation and amortization | 19,936 | 14,486 | 38,879 | 27,923 | |||
Interest expense, net | 4,009 | 367 | 6,811 | 606 | |||
Income tax expense | 4,018 | 14,779 | 7,209 | 22,571 | |||
EBITDA, a non-GAAP measure | $ 43,450 | $ 81,860 | $ 97,678 | $ 142,344 | |||
3,405 | — | 6,105 | — | ||||
Profit sharing effect2 | (289) | — | (519) | — | |||
Adjusted EBITDA, a non-GAAP measure | $ 46,566 | $ 81,860 | $ 103,264 | $ 142,344 | |||
Adjusted EBITDA margin | 14.9 % | 26.1 % | 16.3 % | 24.7 % | |||
1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our | |||||||
2Profit sharing effect of the | |||||||
Non-GAAP Adjusted Selling, General and Administrative Expenses
The following table provides a reconciliation of selling, general and administrative expenses (GAAP) to adjusted selling, general and administrative expenses (non-GAAP) for the periods indicated:
Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | 2024 | |||||
(in thousands) | |||||||||
Non-GAAP Adjusted Selling, General and Administrative Expenses | |||||||||
SG&A, a GAAP measure | $ 45,288 | $ 45,895 | $ 48,637 | $ 48,194 | $ 188,014 | ||||
Memphis Incentive Fee | — | — | — | — | — | ||||
Profit Sharing effect | — | — | — | — | — | ||||
Non-GAAP adjusted SG&A expenses | $ 45,288 | $ 45,895 | $ 48,637 | $ 48,194 | $ 188,014 | ||||
As a percent of sales | 17.3 % | 14.6 % | 14.9 % | 16.2 % | 15.7 % | ||||
Q1 2025 | Q2 2025 | ||||||||
(in thousands) | |||||||||
SG&A, a GAAP measure | $ 51,293 | $ 59,147 | |||||||
Memphis Incentive Fee | 2,700 | 3,405 | |||||||
Profit Sharing effect | (230) | (289) | |||||||
Non-GAAP adjusted SG&A expenses | $ 48,823 | $ 56,031 | |||||||
As a percent of sales | 15.2 % | 18.0 % | |||||||
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SOURCE AAON
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