AAON, INC.AAON
AAON, INC. Segments Disclosure
Segments
The Company has determined that it has three reportable segments for financial reporting purposes.
AAON Oklahoma: AAON Oklahoma engineers, manufactures, and sells highly configurable HVAC systems, designs and manufactures controls solutions, and sells aftermarket parts to customers through retail part stores and online. AAON Oklahoma includes operations at the Company’s manufacturing facilities in Tulsa, Oklahoma; Memphis, Tennessee; and Parkville, Missouri, as well as two retail locations, the Norman Asbjornson Innovation Center (“NAIC”), and the Gary D. Fields Customer Exploration Center.
The NAIC is a world-class research and development laboratory accredited by the Air Movement and Control Association International, Inc. ("AMCA"), where our products are continuously tested under extreme environmental conditions to ensure optimal performance, efficiency, and value. The Gary D. Fields Customer Exploration Center showcases the engineering, design attributes, and premium build quality of our equipment alongside market alternatives.
AAON Coil Products: AAON Coil Products engineers and manufactures and sells semi-custom and custom HVAC systems as well as heating and cooling coils for use in HVAC systems, primarily for AAON Oklahoma, AAON Coil Products, and BASX. AAON Coil Products operates from our Longview, Texas manufacturing facilities, which also produce BASX-branded products.
BASX: BASX engineers, manufactures, and sells a wide range of custom, high-performance cooling solutions for the rapidly growing hyperscale data center market; ventilation solutions for cleanroom environments in the biopharmaceutical, semiconductor, medical, and agricultural sectors; and highly customized air handlers and modular solutions for a variety of markets. BASX operates from our manufacturing facilities in Redmond, Oregon, with additional support from facilities in Memphis, Tennessee, and Longview, Texas.
The Company’s chief decision maker (“CODM”), our CEO, allocates resources and assesses the performance of each operating segment using information about the operating segment’s net sales, cost of sales, and gross profit directly attributable to our segments. The CODM does not evaluate operating segments using asset or liability information.
Due to the integrated nature of our Company as well as the increasing production of both AAON and BASX- branded products across different segments, other costs and expenses, such as selling, general and administrative including corporate expense, are evaluated and resources allocated at a consolidated level.
The following table summarizes certain financial data related to our segments and significant segment expenses and other segment items regularly reviewed by our CODM. During the fourth quarter of 2025, the Company modified sales of coils from AAON Coil Products to AAON Oklahoma to show at cost to be consistent with our other intercompany sales between segments. The revised methodology is intended to better reflect the manner in which the CODM evaluates segment performance and makes resource allocation decisions. As a result of this change, prior period segment results have been recast to conform to the current period presentation. The change did not affect consolidated net sales, cost of sales or gross profit. The cost of sales and gross profit amounts shown below are presented after elimination entries.
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in thousands) | |||||||||||||||||
| AAON Oklahoma | |||||||||||||||||
| External sales | $ | 801,209 | $ | 858,711 | $ | 897,919 | |||||||||||
| Inter-segment sales | 48,198 | 6,336 | 4,324 | ||||||||||||||
| Eliminations | (48,198) | (6,336) | (4,324) | ||||||||||||||
| Net sales | 801,209 | 858,711 | 897,919 | ||||||||||||||
Cost of sales1 | 569,121 | 538,124 | 566,513 | ||||||||||||||
| Gross profit | 232,088 | 320,587 | 331,406 | ||||||||||||||
| AAON Coil Products | |||||||||||||||||
| External sales | $ | 325,353 | $ | 143,871 | $ | 112,320 | |||||||||||
| Inter-segment sales | 16,005 | 20,192 | 27,492 | ||||||||||||||
| Eliminations | (16,005) | (20,192) | (27,492) | ||||||||||||||
| Net sales | 325,353 | 143,871 | 112,320 | ||||||||||||||
Cost of sales1 | 255,681 | 116,287 | 94,335 | ||||||||||||||
| Gross profit | 69,672 | 27,584 | 17,985 | ||||||||||||||
| BASX | |||||||||||||||||
| External sales | $ | 315,514 | $ | 198,053 | $ | 158,279 | |||||||||||
| Inter-segment sales | 502 | 666 | 1,480 | ||||||||||||||
| Eliminations | (502) | (666) | (1,480) | ||||||||||||||
| Net sales | 315,514 | 198,053 | 158,279 | ||||||||||||||
Cost of sales1 | 231,550 | 149,115 | 108,650 | ||||||||||||||
| Gross profit | 83,964 | 48,938 | 49,629 | ||||||||||||||
| Consolidated gross profit | $ | 385,724 | $ | 397,109 | $ | 399,020 | |||||||||||
1 Presented after intercompany eliminations.
The reconciliation between consolidated gross profit to consolidated income from operations is as follows:
| Consolidated gross profit | $ | 385,724 | $ | 397,109 | $ | 399,020 | |||||||||||
| Less: Selling, general and administrative expenses | 239,480 | 188,014 | 171,539 | ||||||||||||||
| Add: gain on disposal of assets | 4 | 23 | 13 | ||||||||||||||
| Consolidated income from operations | $ | 146,248 | $ | 209,118 | $ | 227,494 | |||||||||||
The following table presents long-lived assets by reportable segment, which includes property and equipment, net and operating lease assets:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Long-lived assets | (in thousands) | ||||||||||
| AAON Oklahoma | $ | 400,316 | $ | 321,597 | |||||||
| AAON Coil Products | 157,752 | 122,515 | |||||||||
| BASX | 91,182 | 81,680 | |||||||||
| Total long-lived assets | $ | 649,250 | $ | 525,792 | |||||||
The following table presents intangible assets and goodwill, net, by reportable segment:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Intangible assets and goodwill | (in thousands) | ||||||||||
| AAON Oklahoma | $ | 25,600 | $ | 22,966 | |||||||
| AAON Coil Products | 4,235 | — | |||||||||
| BASX | 135,964 | 137,186 | |||||||||
| Total intangible assets and goodwill | $ | 165,799 | $ | 160,152 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.