The following is a summary of the AAON, Inc. (AAON) Q1 2024 Earnings Call Transcript:
Financial Performance:
AAON's Q1 sales decreased by 1.4% to $262.1 million due to lower volumes in the Coil products and Basic segments.
The company experienced a 6.9% YoY increase in backlogs reflecting supply chain issues.
The gross profit experienced a significant jump of 19.6% to $92.2 million mainly driven by pricing and moderating material cost inflation.
Selling, general, and administrative expenses increased by 37.5% to $45.3 million due to lower volumes, compensation increments, and legal fees.
The diluted earnings per share were $0.46, showing a marginal increase from the previous year's quarter.
Business Progress:
AAON reported strong bookings and an increased backlog compared to a year ago.
The launch of a new refrigerant portfolio set the company up well for industry low GWP refrigerant requirements.
The launch of fully electric heat pump powered rooftop units reflects the company's technological advancements.
Investments are being made towards the data center market expecting it to increase its contribution to total revenues from 10% to 20%.
Two major capacity projects are underway aiming to expand the manufacturing square footage, expected to be completed by the year-end.
A growth of 10% in parts sales for the quarter is also reported, driven by parts demand and supply chain stabilization.
AAON is actively working on developing custom solutions and exploring growth in the liquid cooling market with acquired orders and opportunities.
More details: AAON Inc IR
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