AAONHIGH SIGNALFINANCIAL10-K

AAON's operating cash flow collapsed from $192.5M to just $534K while current liabilities surged 89% despite revenue-generating capacity appearing intact.

The dramatic deterioration in cash generation represents a fundamental shift in AAON's financial profile that demands immediate investor attention. While the company expanded its asset base meaningfully, the inability to convert operations into cash flow suggests significant working capital challenges or operational disruptions that could impact dividend sustainability and growth investments.

Comparing 2026-03-02 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

AAON experienced a severe cash flow crisis with operating cash flow essentially evaporating while the company substantially expanded both assets and liabilities. Despite maintaining profitability with net income of $107.6M (down 36%), the disconnect between earnings and cash generation signals serious working capital management issues, evidenced by inventory growth of 39% and current liabilities jumping 89%. The overall picture suggests a company struggling with operational efficiency despite maintaining its market position, creating significant liquidity risk despite an expanded balance sheet.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
-99.7%
$192.5M→$534K

Operating cash flow fell 99.7% — earnings quality concerns; investigate working capital changes and non-cash items.

Current Liabilities
Balance Sheet
+89.2%
$174.9M→$330.9M

Current liabilities surged 89.2% — significant near-term obligations; verify ability to meet short-term debt.

Interest Expense
P&L
-84.1%
$277K→$44K

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

Current Assets
Balance Sheet
+78%
$488.2M→$869.2M

Current assets grew 78% — improving short-term liquidity or inventory/receivables build.

Total Assets
Balance Sheet
+43.5%
$1.2B→$1.7B

Asset base grew 43.5% — expansion through organic growth, acquisitions, or capital deployment.

Inventory
Balance Sheet
+39.3%
$187.4M→$261.2M

Inventory surged 39.3% — growing faster than typical sales pace; potential demand softening or supply chain overcorrection.

Net Income
P&L
-36.2%
$168.6M→$107.6M

Net income declined 36.2% — review whether driven by operations, interest costs, or non-recurring items.

Operating Income
P&L
-30.1%
$209.1M→$146.2M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

SG&A Expense
P&L
+27.4%
$188.0M→$239.5M

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Dividends Paid
Cash Flow
+25%
$26.1M→$32.6M

Dividend payments increased 25% — management confidence in sustained cash generation.

LANGUAGE CHANGES
NEW — 2026-03-02
PRIOR — 2025-02-27
ADDED
As of February 26, 2026, registrant had an outstanding total of 81,499,853 shares of its $ .004 par value Common Stock.
Overview AAON, Inc., a Nevada corporation ("AAON Nevada"), was incorporated on August 18, 1987.
Our operating subsidiaries include AAON, Inc., an Oklahoma corporation ("AAON Oklahoma"), AAON Coil Products, Inc., a Texas corporation ("AAON Coil Products"), and BASX, Inc., an Oregon corporation ("BASX").
Unless the context otherwise requires, references in this Annual Report to "AAON", the "Company", "we", "us", "our", or "ours" refer to AAON Nevada and our subsidiaries.
AAON is a leader in heating, ventilation, air conditioning, and liquid cooling solutions for commercial and industrial indoor environments.
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REMOVED
As of February 24, 2025, registrant had an outstanding total of 81,597,289 shares of its $ .004 par value Common Stock.
Overview AAON, Inc., a Nevada corporation, ( AAON Nevada ) was incorporated on August 18, 1987.
Our operating subsidiaries include AAON, Inc., an Oklahoma corporation ( AAON Oklahoma ), AAON Coil Products, Inc., a Texas corporation ( AAON Coil Products ), and BASX, Inc., an Oregon corporation ( BASX ).
Unless the context otherwise requires, references in this Annual Report to AAON , the Company , we , us , our , or ours refer to AAON Nevada and our subsidiaries.
AAON is a leader in heating, ventilation, and air conditioning ( HVAC ) solutions for commercial and industrial indoor environments.
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