Can AAON Capitalize On The Data Center Boom With Game-Changing $1 Billion Expansion Plan?

AAON, Inc.’s recent earnings for the fourth quarter of 2024 provided investors with a detailed overview of the company’s financial performance, strategic initiatives, and outlook. The company, which boasts a strong position in the heating and cooling industry, highlighted both its achievements and challenges during the year. On the positive side, AAON reported a substantial increase in bookings and backlog, signaling strong future demand. Bookings were up approximately 62% in the fourth quarter, leading to the year-end backlog rising by 70% to $867.1 million. This was largely driven by robust demand for data center equipment, including a significant $200 million liquid cooling equipment order. The company expects these bookings to convert into revenue primarily in 2025, setting the stage for accelerated growth. In particular, the BASX brand saw significant growth, with net sales increasing by 35.1% during the year and data center equipment sales soaring by approximately 85%. The company’s ongoing efforts to innovate and customize its offerings, particularly in the data center arena, have positioned it for continued growth in this rapidly evolving market.