The HVAC manufacturer forecasts strong growth in light commercial and data center markets despite near-term margin pressures.
AAON increased its data center market outlook to $1 billion, citing broad-based demand across cooling products. The company also expects a recovery in its light commercial HVAC business by 2026, driven by improving bookings and share gains in healthcare, retail, and warehousing sectors.
Margins face pressure from production challenges, including coil outsourcing and earlier disruptions from refrigerant transitions and supply chain constraints. Operations have stabilized, but outsourcing will continue until internal capacity aligns with growth.
The company operates two primary brands: AAON, serving light commercial customers, and BASX, focused on data centers, with over $2 billion in revenue capacity across its manufacturing base.