Track market-moving stories before they get noisy

Posted by Defense World Staff on Jul 24th, 2026

Bessemer Group Inc. cut its holdings in shares of AAON, Inc. (NASDAQ:AAON – Free Report) by 49.1% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 9,878 shares of the construction company’s stock after selling 9,510 shares during the quarter. Bessemer Group Inc.’s holdings in AAON were worth $817,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in AAON. EverSource Wealth Advisors LLC lifted its stake in shares of AAON by 96.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 334 shares of the construction company’s stock valued at $25,000 after buying an additional 164 shares in the last quarter. Danske Bank A S bought a new stake in shares of AAON during the 3rd quarter valued at $47,000. Summit Securities Group LLC bought a new stake in shares of AAON during the 4th quarter valued at $45,000. Huntington National Bank lifted its holdings in AAON by 21.1% during the 4th quarter. Huntington National Bank now owns 689 shares of the construction company’s stock worth $53,000 after purchasing an additional 120 shares in the last quarter. Finally, UMB Bank n.a. boosted its stake in AAON by 46.8% in the 4th quarter. UMB Bank n.a. now owns 885 shares of the construction company’s stock worth $67,000 after purchasing an additional 282 shares during the period. 70.81% of the stock is owned by hedge funds and other institutional investors.

AAON Trading Up 0.5% Shares of AAON stock opened at $107.68 on Friday. The company has a debt-to-equity ratio of 0.46, a current ratio of 2.62 and a quick ratio of 1.75. AAON, Inc. has a 1 year low of $62.00 and a 1 year high of $150.46. The firm has a market cap of $8.82 billion, a PE ratio of 75.30, a PEG ratio of 2.98 and a beta of 1.41. The company has a 50 day simple moving average of $125.85 and a two-hundred day simple moving average of $105.33.

AAON (NASDAQ:AAON – Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The construction company reported $0.48 EPS for the quarter, topping analysts’ consensus estimates of $0.31 by $0.17. The firm had revenue of $496.94 million for the quarter, compared to analyst estimates of $381.08 million. AAON had a net margin of 7.30% and a return on equity of 13.67%. The business’s revenue for the quarter was up 54.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.37 EPS. Analysts expect that AAON, Inc. will post 2.25 earnings per share for the current fiscal year.

AAON Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Friday, June 5th were issued a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date was Friday, June 5th. AAON’s dividend payout ratio is currently 27.97%.

Wall Street Analyst Weigh In A number of research firms recently weighed in on AAON. Oppenheimer reaffirmed an “outperform” rating on shares of AAON in a report on Friday, May 8th. Zacks Research downgraded shares of AAON from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 7th. Weiss Ratings restated a “hold (c)” rating on shares of AAON in a research report on Tuesday, July 14th. Finally, KeyCorp assumed coverage on shares of AAON in a report on Thursday. They issued a “sector weight” rating on the stock. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $112.00.

View Our Latest Stock Analysis on AAON

Insider Buying and Selling at AAON In related news, insider Casey Kidwell sold 3,153 shares of the company’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $138.30, for a total value of $436,059.90. Following the sale, the insider owned 13,463 shares in the company, valued at $1,861,932.90. This represents a 18.98% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Matthew Joseph Tobolski sold 8,000 shares of the stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $135.37, for a total transaction of $1,082,960.00. Following the sale, the chief executive officer owned 114,371 shares in the company, valued at approximately $15,482,402.27. The trade was a 6.54% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 118,980 shares of company stock worth $16,361,330 over the last three months. 18.09% of the stock is owned by corporate insiders.

AAON Company Profile (Free Report)

AAON, Inc (NASDAQ: AAON) is a U.S.-based designer and manufacturer of heating, ventilation and air conditioning (HVAC) equipment for commercial and industrial applications. The company’s product portfolio focuses on rooftop packaged units, water-source heat pumps, chillers and custom-engineered solutions that cater to a wide array of building types, from office complexes and schools to data centers and healthcare facilities.

AAON’s core offerings include rooftop units available in gas, electric and dual-fuel configurations, precision air-conditioning systems for temperature- and humidity-sensitive environments, and modular chillers suited for both indoor and outdoor installations.

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For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Aaon (AAON - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.

Aaon is one of 93 companies in the Construction group. The Construction group currently sits at #15 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Aaon is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for AAON's full-year earnings has moved 10.6% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, AAON has returned 41.1% so far this year. Meanwhile, the Construction sector has returned an average of 13.4% on a year-to-date basis. This shows that Aaon is outperforming its peers so far this year.

Another Construction stock, which has outperformed the sector so far this year, is Cardinal (CDNL - Free Report) . The stock has returned 207.1% year-to-date.

The consensus estimate for Cardinal's current year EPS has increased 14.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Aaon is a member of the Building Products - Air Conditioner and Heating industry, which includes 9 individual companies and currently sits at #87 in the Zacks Industry Rank. On average, this group has gained an average of 39.2% so far this year, meaning that AAON is performing better in terms of year-to-date returns.

In contrast, Cardinal falls under the Engineering - R and D Services industry. Currently, this industry has 23 stocks and is ranked #105. Since the beginning of the year, the industry has moved +31.8%.

Going forward, investors interested in Construction stocks should continue to pay close attention to Aaon and Cardinal as they could maintain their solid performance.

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Shares of leading customizable HVAC (heating, ventilation, and air conditioning) equipment provider AAON (AAON +6.21%) are up 45% this week after the company delivered expectation-smashing first-quarter earnings earlier this week. Sales and earnings per share grew by 54% and 37% in Q1, far surpassing analysts' hopes. And that's just the start of the good news.

Today's Change

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Alongside these headline figures, AAON:

raised its 2026 revenue outlook to 40% to 45% growth delivered 42% growth from its core AAON-branded sales reported 72% sales growth from its booming BASX unit, which focuses on serving data centers saw its backlog grow 107% to $2.1 billion -- BASX backlog up 160% maintained a companywide book-to-bill ratio above 1 saw a book-to-bill ratio above 2 for its BASX unit projected for margins and capacity to improve in 2026 with new facilities incoming

Image source: Getty Images.

Simply put, AAON is firing on all cylinders. Its 2021 acquisition of BASX for roughly $200 million now looks like an absolute masterstroke, as the young unit just grew sales by 105% to reach $135 million in Q1 revenue. As the hyperscalers pile money into data centers for AI compute at a hard-to-fathom rate, AAON's premium, customizable HVAC equipment and solutions are becoming an indispensable part of the AI revolution's build-out.

That said, as awesome as this news is for AAON right now, investors need to beware that the hyperscaler's blistering expansion plans will likely not last forever -- or, at a minimum, will lead to brutal cyclicality at some point. However, there haven't been any hints yet that the data center build-out is slowing, so I'm not going to say AAON's good times are soon to end. It's impossible to tell how long this cycle will (or won't) last.

Trading at 61 times forward earnings, AAON's valuation isn't outrageous if its outsize sales growth continues -- which isn't a stretch given its booming backlog and BASX unit's book-to-bill ratio of over 2. I'm fascinated by AAON and will be keeping a close eye on it, as it looks like a promising picks-and-shovels play to the AI revolution.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Aaon. The Motley Fool has a disclosure policy.

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Aaon (AAON - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Aaon currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for AAON that show why this maker of air conditioning and heating equipment shows promise as a solid momentum pick.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For AAON, shares are up 49.23% over the past week while the Zacks Building Products - Air Conditioner and Heating industry is down 1.07% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 51.49% compares favorably with the industry's 6.08% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Aaon have increased 40.24% over the past quarter, and have gained 35.43% in the last year. In comparison, the S&P 500 has only moved 7.12% and 32.44%, respectively.

Investors should also take note of AAON's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now AAON is averaging 1,385,903 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with AAON.

Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost AAON's consensus estimate, increasing from $2.02 to $2.23 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that AAON is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Aaon on your short list.

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Aaon (AAON - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.

Aaon is one of 89 individual stocks in the Construction sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Aaon is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for AAON's full-year earnings has moved 12.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that AAON has returned about 75.3% since the start of the calendar year. In comparison, Construction companies have returned an average of 14.6%. This shows that Aaon is outperforming its peers so far this year.

Construction Partners (ROAD - Free Report) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 16.9%.

In Construction Partners' case, the consensus EPS estimate for the current year increased 4.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Aaon belongs to the Building Products - Air Conditioner and Heating industry, a group that includes 7 individual stocks and currently sits at #54 in the Zacks Industry Rank. Stocks in this group have gained about 44.4% so far this year, so AAON is performing better this group in terms of year-to-date returns.

Construction Partners, however, belongs to the Building Products - Miscellaneous industry. Currently, this 33-stock industry is ranked #141. The industry has moved +2.2% so far this year.

Aaon and Construction Partners could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.

, /PRNewswire/ -- AAON, Inc. (NASDAQ:  AAON) ("AAON" or the "Company"), today announced that its Board of Directors has declared the Company's next regular quarterly cash dividend of $0.10 per share (or $0.40 annually), payable on June 26, 2026 to stockholders of record as of the close of business on June 5, 2026.

About AAON

Aerial View of AAON Tulsa (PRNewsfoto/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 Tulsa, Oklahoma, where its world-class innovation center and testing lab allows AAON engineers to continuously push boundaries and advance the industry. For more information, please visit https://aaon.com/investors.

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.

Contact Information
Joseph Mondillo
Director of Investor Relations & Corporate Strategy
Phone (617) 877-6346
Email: [email protected]

SOURCE AAON

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- AAON, Inc. (NASDAQ: AAON) a leader in high-performing, energy-efficient HVAC solutions that bring long-term value to customers and owners, announced today that Matt Tobolski, President and CEO, and Andy Cheung, CFO and Treasurer, will participate in the upcoming William Blair Growth Stock Conference.

Aerial View of AAON Tulsa (PRNewsfoto/AAON) They will speak at 11:00 a.m. EDT on Tuesday, June 2, 2026. The live audio of the event will be accessible on the AAON website at http://investors.aaon.com/events. An archive of the audio recording will also be available on the website following the event.

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 Tulsa, Oklahoma, where its world-class innovation center and testing lab allows AAON engineers to continuously push boundaries and advance the industry. For more information, please visit www.aaon.com. 

Contact Information

Joseph Mondillo
Director of Investor Relations
Phone: (617) 877-6346
Email: [email protected]

SOURCE AAON

Also from this source

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Aaon (AAON - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.

Aaon is one of 88 companies in the Construction group. The Construction group currently sits at #16 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Aaon is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for AAON's full-year earnings has moved 12.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, AAON has gained about 83.9% so far this year. Meanwhile, stocks in the Construction group have gained about 13.2% on average. This shows that Aaon is outperforming its peers so far this year.

Another Construction stock, which has outperformed the sector so far this year, is Cardinal (CDNL - Free Report) . The stock has returned 114.6% year-to-date.

For Cardinal, the consensus EPS estimate for the current year has increased 11.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Aaon is a member of the Building Products - Air Conditioner and Heating industry, which includes 7 individual companies and currently sits at #50 in the Zacks Industry Rank. On average, stocks in this group have gained 37.7% this year, meaning that AAON is performing better in terms of year-to-date returns.

Cardinal, however, belongs to the Engineering - R and D Services industry. Currently, this 22-stock industry is ranked #66. The industry has moved +37.9% so far this year.

Investors with an interest in Construction stocks should continue to track Aaon and Cardinal. These stocks will be looking to continue their solid performance.

Russell 2000 Stocks: Too Early or Finally Interesting?AAON NASDAQ: AAON executives outlined expectations for continued growth in both light commercial HVAC and data center markets during a William Blair presentation, while also addressing recent production challenges, margin pressure and ongoing efforts to scale the company’s operations.

CEO Matt Tobolski said AAON operates through two primary brands: the legacy AAON brand, focused largely on semi-custom and custom rooftop units for light commercial customers, and BASX, which serves data center customers. Both businesses are built around customized solutions intended to improve total cost of ownership, he said.

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AAON Doubles Down: Dividend Raise & Share Buyback PlanTobolski said AAON has expanded rapidly in recent years, growing from under 2 million square feet of factory space to more than 4 million square feet, and from about 2,000 employees to 7,000 employees over roughly four years. He said the company’s recent focus has been on building the operating platform needed to support that scale.

Light Commercial Market Showing Signs of Recovery Asked by William Blair’s Ryan Merkel about the light commercial outlook for 2026, Tobolski said the market is showing signs of improvement. He said AAON’s 2025 volumes were down, but not nearly as much as the broader market, which he described as evidence of outperformance.

“As we exited 2025 ... we’ve continued to see more and more conversations in our traditional transactional type business,” Tobolski said. He added that in the first quarter, those conversations began translating into stronger bookings.

Tobolski said he expects 2026 to be “a good, strong recovery year” for the AAON brand and said the company is continuing to gain share in light commercial markets. He highlighted national account opportunities in healthcare, big-box retail, warehouse and distribution centers as areas where AAON has invested over the past two years.

Production Issues Eased, but Outsourcing Still Weighs on Margins Tobolski also addressed production issues that affected AAON in 2025 and into early 2026. He said 2025 included “a lot of noise,” including the EPA-mandated refrigerant transition, supply chain constraints related to new components and disruption from an ERP implementation that affected coil production at the company’s Longview site.

He said those issues affected Longview and also reduced throughput in Tulsa because Tulsa relies on Longview for internal coil supply. By the first quarter of 2026, however, Tobolski said AAON’s Oklahoma operations were running at record rates.

Margin pressure remains a focus. Tobolski said about 200 basis points of margin pressure in the first quarter came from outsourcing coil production. He said AAON prioritized internal coil capacity for BASX products because data center customers have tighter quality requirements and qualifying additional vendors takes time.

Tobolski said pricing actions have already been put in place to address price-cost dynamics identified late last year. However, he said coil outsourcing will continue in the near term because the company’s consolidated growth rate is expected to be 40% year over year, and internal coil capacity is not ramping as quickly as demand.

For the long term, Tobolski said AAON is targeting gross margins in the mid- to high-30% range for the AAON business, while the BASX business has a target margin profile around 30%. He said BASX margins are being pressured by the pace of growth, with the business doubling last year, expected to double this year and having doubled the year before that.

Data Center Demand Remains Broad-Based On data centers, Tobolski said demand remains strong and that AAON has raised its data center outlook to $1 billion. He emphasized that the company has been careful not to overcommit capacity as it brings new production online, particularly at its Memphis facility.

The Memphis site added 800,000 square feet under roof and represents a major step-up in AAON’s manufacturing footprint, Tobolski said. He said management waited to gain more runtime and confidence in the ramp before taking on more orders.

Tobolski said demand is not limited to liquid cooling. He said AAON continues to see strong demand for traditional airside products, which are used in both cloud and AI data centers. Even liquid-cooled data centers still require 30% to 40% of capacity through air, he said.

For the first quarter, Tobolski said backlog growth was relatively balanced among airside products, chiller products and liquid cooling products, “kind of in that order.”

He also said BASX has more than $2 billion of revenue capacity across its manufacturing fleet, though he cautioned that capacity is not available “like a light switch” and must be ramped. Oregon is close to capacity at roughly $300 million, Longview still has lines and shifts that can be added, and Memphis has four production lines currently vacant that can be turned on over time, he said.

On liquid cooling competition, Tobolski said AAON is not focused on commoditized 500-kilowatt coolant distribution units. Instead, he said the company targets customized, large-capacity systems for hyperscale customers, including 2-, 4-, 5- and 6-megawatt CDUs. He named Motivair, Modine and Vertiv as companies AAON sees in parts of that market.

ERP Rollout Paused as Growth Accelerates Tobolski said AAON is pausing additional ERP go-lives because of the company’s higher growth outlook. Longview and Memphis are currently live on the system, while Oregon would be the next intended site, followed by Tulsa. However, he said no dates have been assigned for those locations.

The company is instead focusing on making sure the system supports higher velocity at Longview and Memphis and adding enhancements that management now views as essential to how AAON wants to operate.

Rooftop Business, Heat Pumps and Operational Discipline In the rooftop business, Tobolski said AAON’s price premium is about 10% relative to closer competitors with more comparable catalog products, though some lower-featured products may be 20% to 30% cheaper. He said AAON sells against competitors based on energy efficiency, cabinet durability, indoor air quality configuration and product life cycle.

Tobolski also discussed AAON’s Alpha Class heat pump platform, which includes ECO, PRO and EXTREME series products. He said the ECO series provides heat pump heating down to about 37 degrees Fahrenheit, the PRO series down to zero degrees and the EXTREME series down to negative 20 degrees. That range allows national account customers with locations across different climates to use a right-sized platform rather than a single product for all sites, he said.

Management also emphasized internal changes designed to support AAON’s growth. Tobolski said AAON has built a professional supply chain organization, added strategic sourcing and vendor scorecards, and increased its focus on lean manufacturing. He said a series of eight Kaizen events on the company’s high-volume 30-ton line in Tulsa increased volume by 20% while reducing work on the line.

In the finance discussion, management said AAON is investing in people, training and processes to improve efficiency, optimization, cash generation and risk management as the company scales.

About AAON NASDAQ: AAONAAON, Inc NASDAQ: AAON is a U.S.-based designer and manufacturer of heating, ventilation and air conditioning (HVAC) equipment for commercial and industrial applications. The company's product portfolio focuses on rooftop packaged units, water-source heat pumps, chillers and custom-engineered solutions that cater to a wide array of building types, from office complexes and schools to data centers and healthcare facilities.

AAON's core offerings include rooftop units available in gas, electric and dual-fuel configurations, precision air-conditioning systems for temperature- and humidity-sensitive environments, and modular chillers suited for both indoor and outdoor installations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in AAON Right Now?Before you consider AAON, you'll want to hear this.

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Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:

AAON, Inc. (AAON - Free Report) : This air conditioning and heating equipment company has seen the Zacks Consensus Estimate for its current year earnings increasing 10.4% over the last 60 days.

The Gorman-Rupp Company (GRC - Free Report) : This pumps and pump systems company has seen the Zacks Consensus Estimate for its current year earnings increasing 12.1% over the last 60 days.

ARKO Petroleum Corp. (APC - Free Report) : This fuel distributor in North America has seen the Zacks Consensus Estimate for its current year earnings increasing 7% over the last 60 days.

Dell Technologies Inc. (DELL - Free Report) : This information technology solutions, products and services company has seen the Zacks Consensus Estimate for its current year earnings increasing 8.7% over the last 60 days.

National Bankshares, Inc. (NKSH - Free Report) : This bank holding company for the National Bank of Blacksburg has seen the Zacks Consensus Estimate for its current year earnings increasing 15.3% over the last 60 days.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Building Products - Air Conditioner & Heating industry remains supported by strong secular growth drivers, including data-center-focused cooling solutions, rising demand for energy-efficient HVAC systems and advanced climate-control technologies. Sustainability initiatives, electrification trends and policy incentives continue to encourage investments in retrofits and smart building solutions. Companies such as Comfort Systems USA (FIX - Free Report) , AAON, Inc. (AAON - Free Report) , SPX Technologies (SPXC - Free Report) and Tecogen Inc. (TGEN - Free Report) are also expanding their opportunities through acquisitions, digital capabilities and service-oriented business models, while growing demand for indoor air quality and mission-critical cooling supports recurring revenue streams.

At the same time, the industry faces near-term headwinds from housing market softness, elevated interest rates and tariff-related cost pressures. These factors may affect residential construction activity, project timelines and customer spending decisions, creating some demand volatility. Nevertheless, expanding data center investments, green infrastructure development and the ongoing replacement cycle for aging HVAC systems are expected to drive sustained demand. Strong exposure to commercial, industrial and service markets positions the industry to benefit from durable growth opportunities in the years ahead.

Industry Description The Zacks Building Products - Air Conditioner & Heating industry comprises designers, manufacturers, and marketers of a broad range of products for heating, ventilation, air conditioning, and refrigeration markets. The products include rooftop units, chillers, air-handling units, condensing units and coils. The industry players also supply thermostats, insulation materials, refrigerants, grills, registers, sheet metal, tools, concrete pads, tape and adhesives. Air conditioning and heating equipment are sold in residential replacement, commercial and industrial HVAC (heating, ventilation and air conditioning), as well as residential new construction markets.

4 Trends Shaping the Future of the Air Conditioner & Heating Industry Data Centers & Specialized Cooling Needs: The data center boom, driven by AI, cloud computing and high-performance computing, is fueling demand for specialized HVAC solutions. Cooling systems for these facilities must deliver precise, reliable performance, which has spurred investment in advanced technologies like liquid cooling and modular units. This segment is becoming a major growth driver for HVAC companies, offering high-margin opportunities and attracting M&A activity. HVAC firms with capabilities in precision cooling and energy-efficient infrastructure are well-positioned to capture share in this fast-expanding niche.

Meanwhile, technology upgrades and strategic acquisitions are driving growth across the industry. Companies are enhancing customer experience through digital platforms and investing in R&D, distribution, and marketing. Acquisitions are expanding product lines and geographic reach. Meanwhile, service-related revenues—such as maintenance and repair—offer steady income, cushioning against construction market volatility. Also, electrification remains one of the most powerful structural tailwinds for the industry in 2026. Heat pumps continue to gain share versus traditional gas furnaces as performance in colder climates improves and total lifecycle economics become more attractive.

Regulatory-Driven Efficiency Upgrades and Premiumization: Stricter efficiency standards and the transition to low-global-warming-potential refrigerants are driving a new upgrade cycle.  Aging equipment and higher efficiency standards are prompting homeowners to upgrade to high-SEER air conditioners, advanced heat pumps and smart thermostats that cut energy use while meeting stricter emissions rules. Federal and state incentives and rebates are further accelerating this trend by offsetting the cost of high-efficiency units. The commercial HVAC market has been experiencing a rebound and transformation, thereby driving fresh HVAC needs. Overall, the HVAC replacement activity remains resilient.

Housing Market Volatility, Tariff and Trade Policy Risks: The broader housing and remodeling market remains uncertain. Higher interest rates, economic fluctuations and shifts in consumer spending patterns can impact renovation and construction activity.

Proposed and evolving U.S. tariff policies have emerged as a growing concern for the air conditioning and heating industry, particularly for refrigerants and imported HVAC components. One area of concern is refrigerants such as R-32, which have become increasingly important following the industry's transition to lower-global-warming-potential refrigerants. Additional tariffs on refrigerants or related supply-chain inputs could raise equipment and servicing costs, potentially leading to higher prices for contractors and end users. While manufacturers are implementing pricing actions and supply-chain adjustments to offset these impacts, the industry expects tariff-related cost pressures to remain a headwind throughout 2026.

Labor Shortages, Supply Chain Constraints, Regulations: The U.S. HVAC industry has been grappling with labor shortages, ongoing supply chain bottlenecks and rising regulatory costs. Limited technician availability is pushing up wages and slowing project timelines, while material shortages and tariffs are driving equipment prices higher. Compliance with low-GWP refrigerant rules and tougher SEER2 standards is adding further manufacturing and training expenses. These pressures are tightening margins and complicating execution, while competition and seasonal demand swings add to overall risk.

Zacks Industry Rank Indicates Bright Prospects The Zacks Building Products - Air Conditioner & Heating industry is a nine-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #31, which places it in the top 13% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates optimistic near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since March 2026, the industry’s earnings estimates for 2026 have increased to $4.90 per share (from $4.67).

We highlight a few stocks that investors may consider adding to their portfolios. First, we examine the industry’s shareholder returns and current valuation backdrop.

Industry Outperforms Sector & S&P 500 The Zacks Air Conditioner & Heating industry has outperformed the broader Zacks Construction sector and the Zacks S&P 500 Composite over the past year.

In the same time frame, the industry has gained 34.6% compared with the broader sector’s 20.4% rise. Meanwhile, the Zacks S&P 500 Composite has gained 31.7% during the period.

One-Year Price Performance

Industry's Current Valuation On the basis of the forward 12-month price to earnings, which is a commonly used multiple for valuing Air Conditioner and Heating stocks, the industry is currently trading at 29.14X compared with the S&P 500’s 22.17X and the sector’s 21.53.

Over the past five years, the industry has traded as high as 30.37X, as low as 15.87X and at a median of 24.02X, as the chart below shows.

Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500

Industry’s P/E Ratio (Forward 12-Month) Versus Sector

4 Air Conditioner and Heating Stocks to Buy Now Below, we have discussed four stocks from the Zacks Air Conditioner & Heating universe with solid growth potential.

Comfort Systems: Based in Houston, TX, the company is a national provider of comprehensive heating, ventilation and air conditioning installation, along with maintenance, repair and replacement services. Comfort Systems has been benefiting from robust demand across data centers, semiconductor manufacturing, life sciences, healthcare, and advanced manufacturing projects. The company continues to benefit from AI-driven digital infrastructure investments, with technology projects remaining its largest source of pipeline activity and backlog. Onshoring trends are creating additional opportunities in industrial construction, while expanding modular construction capabilities improve efficiency, productivity and project execution. A broad national footprint, skilled workforce and growing service operations further strengthen its competitive position. The company is also investing in capacity expansion and pursuing disciplined acquisitions, which should support sustained growth and reinforce its leadership in large-scale mechanical and electrical contracting markets.

Comfort Systems currently carries a Zacks Rank #1 (Strong Buy). The stock has gained 270.6% over the past year. FIX has seen an upward estimate revision for 2026 earnings per share (EPS) to $43.05 from $42.74 over the past seven days. The estimated figure indicates 49.1% year-over-year growth in 2026. Comfort Systems surpassed earnings estimates in all the trailing four quarters, with the average surprise being 39.3%. Again, Comfort Systems’ trailing 12-month return on equity of 51.7% is better than its peer group average of 16.2%. You can see the complete list of today’s Zacks #1 Rank stocks here. .

Price and Consensus: FIX

AAON: Headquartered in Tulsa, OK, AAON designs, manufactures and sells commercial air conditioning, heating and ventilation equipment across the United States and Canada. The company is benefiting from strong demand across both its traditional HVAC and data-center cooling businesses. AAON continues to gain market share through its highly engineered, customizable solutions, while expanding production capacity across multiple facilities to meet rising customer demand. The data-center thermal management market remains a major growth catalyst, driving robust order activity and a growing backlog. AAON is also benefiting from increased adoption of its heat-pump offerings and improving demand in its transactional rooftop HVAC business. Management expects ongoing investments in manufacturing capacity, supply-chain capabilities and operational efficiency to support higher production throughput, stronger execution and long-term margin expansion, positioning the company for sustained growth.

AAON currently sports a Zacks Rank #1. The stock has surged 56.3% over the past year. AAON has seen an upward estimate revision for 2026 EPS to $2.23 from $2.00 over the past 30 days. The estimated figure indicates 65.2% year-over-year growth in 2026. AAON surpassed earnings estimates in two of the trailing four quarters and missed on the other two, with the average surprise being 6.2%. Again, AAON’s trailing 12-month return on equity is 13.7%.

Price and Consensus: AAON

SPX Technologies: Headquartered in Charlotte, NC, SPX Technologies supplies infrastructure equipment for global HVAC and detection and measurement markets. SPX Technologies has been benefiting from strong demand across its HVAC and Detection & Measurement businesses. The company is benefiting from accelerating data center investments, which are driving demand for advanced cooling, air-handling and air-movement solutions. Ongoing capacity expansions are expected to enhance its ability to serve customers and support future growth. Beyond data centers, healthy demand from healthcare, pharmaceuticals, power, industrial and aftermarket markets provides additional momentum. SPX Technologies is also advancing innovative software and utility-location solutions that improve customer efficiency and safety. Furthermore, recent acquisitions, a robust acquisition pipeline and continued new product introductions position the company for sustained organic and inorganic growth in the coming years.

SPX Technologies currently carries a Zacks Rank #2 (Buy). The stock has surged 49.8% over the past year. SPXC has seen an upward estimate revision for 2026 EPS to $7.98 from $7.95 over the past 30 days. The estimated figure indicates 18.1% year-over-year growth in 2026. SPXC surpassed earnings estimates in all the trailing four quarters, with the average surprise being 9.7%. Again, SPXC’s trailing 12-month return on equity is 17%.

Price and Consensus: SPXC

Tecogen: Based in North Billerica, MA, Tecogen designs, manufactures and services cogeneration and clean energy systems for residential, commercial and industrial customers across the United States. Tecogen’s growth prospects are increasingly tied to rising demand for its dual-power-source chiller technology, which is gaining traction in both data center and non-data-center markets. The company is benefiting from growing concerns around power constraints, grid reliability and the need for uninterrupted cooling, making its hybrid cooling solutions more attractive. Management highlighted expanding engagement with major data center operators, ongoing product demonstrations and a strengthening relationship with Vertiv, which could support broader market adoption. Beyond data centers, demand from healthcare and commercial customers is accelerating as energy and infrastructure challenges intensify. Tecogen is also investing in manufacturing capacity, product development and operational efficiency to support future growth and scalability.

Tecogen currently carries a Zacks Rank #2. The stock has gained 28.2% over the past year. Loss per share estimate for TGEN’s 2026 bottom line has narrowed to 25 cents from 27 cents over the past 30 days. The estimated figure for 2026 indicates a year-over-year improvement from the year-ago loss of 26 cents per share.

Price and Consensus: TGEN