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AAON Q2 2026 Earnings Conference Call August 10 , 2026
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2 Forward-looking Statements and Other References Certain statements and information set forth in this presentation contains “forward-looking statements” and “forward-looking information” within the meaning of the Private Securities Litigation Reform Act of 1995. Except for statements of historical fact, certain information contained herein constitutes forward- looking statements which include management’s assessment of future plans and operations and are based on current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Forward-looking statements are provided to allow potential investors the opportunity of management’s beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating an investment. Some of the forward-looking statements may be identified by words such as “may”, “plan”, “foresee”, “will”, “should”, “could”, “anticipate,” ”believe,” “expect,” “intend,” “potential,” “continue,” and similar expressions. While the Company’s management believes that these forward-looking statements are reasonable as and when made, these statements are not guarantees of future performance and undue reliance should not be placed on them. The Company’s forward-looking statements involve significant risks and uncertainties (some of which are beyond the Company’s control) and assumptions that could cause actual future results to differ materially from the Company’s historical experience and its present expectations or projections. 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 materials 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. For additional information and a discussion of such risks and uncertainties, which could cause the Company’s actual results to differ from its projected results, please see its filings with the SEC, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. The reader is cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement after they are made, whether as a result of new information, future events, or otherwise, except as required by federal securities laws. This presentation includes references to calculations that are not based on generally accepted accounting principles (“GAAP”). Reconciliations of each of those non-GAAP measures to the most directly comparable GAAP measures have been included in the Appendix. When forward-looking non-GAAP measures are provided, the Company does not provide quantitative reconciliations of forward-looking non-GAAP measures to the most directly comparable GAAP measures, because it cannot, without unreasonable effort, predict the timing and amounts of certain items taken into account in the computations of each of these measures.
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3 Sales $627.0M +101.2% Y/Y +26.2% Q/Q Gross Profit Margin 24.3% -230 bps Y/Y -70 bps Q/Q Non-GAAP Adj. EBITDA* $94.2M +102.3% Y/Y 15.0% margin Diluted Non-GAAP EPS* $0.69 +213.6% Y/Y +43.8% Q/Q Backlog $2.0B +98.0% Y/Y -7.4% Q/Q Q2 2026 sales driven by BASX-branded sales growth, up 216.2% Y/Y Strong backlog of data center orders will result in robust growth going forward Q2 2026 Overview *See appendix for additional information regarding Non-GAAP measures.
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4 4 Q2 BASX Brand Highlights Strong BASX-Branded Sales Momentum Y/Y +216.2% Robust BASX- Branded Backlog Q/Q on increased production -11.7% Leveraging Superior Engineering Liquid cooling sales Liquid cooling sales growth on a TTM basis +190.9% BASX revenue and order growth rates continue to outpace strong data center thermal management market, indicating continued market share gains BASX-branded TTM book-to-bill ratio ~2x driven by strong quarterly bookings Q/Q +66.3% $331M Y/Y +185.4% Liquid cooling sales on a TTM basis
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5 5 Q2 AAON Brand Highlights Strong AAON-Branded Sales in Soft Market Y/Y +39.3% Intentional AAON- Branded Backlog Dynamics Q/Q on increased production +6.0% Gaining Market Share +50.0% Production improvements drive record sales and meaningful share gains as 30%- plus volume growth compared to flattish industry volumes AAON-branded bookings up approximately 16% year-over-year Alpha Class heat pump bookings Y/Y Y/Y +9.4% National Accounts strategy driving new growth opportunities Q/Q +5.2%
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6 Building a world-class manufacturing organization Product Innovation — Alpha Class Heat Pump — Free Cooling Chiller Physical Infrastructure — Added 1+ million sq. ft. of manufacturing capacity since 2024 — 4x increase in data center capacity Systems Upgrades — IT and digital infrastructure enhancements — Modernizing manufacturing management systems People & Process — Two new independent directors added to Board of Directors — New CFO and General Council — Strategic finance capabilities — Professional supply chain management — Global operations and lean manufacturing expertise
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7 Gross Profit $82.7 $152.5 Q2 2025 Q2 2026 Q2 2026 Highlights — Net sales increase of 101.2% driven by 216.2% growth in BASX-branded sales and a 39.3% increase in AAON-branded sales — BASX-branded sales growth was driven by robust demand from the data center market, including $126.6M of liquid cooling equipment — Gross profit increased 84.3% Y/Y — Y/Y margin contraction reflects intentional growth investments, including Memphis ramp, outsourcing, and temporary cost absorption — Significant Y/Y bottom line improvement with Adj. EBITDA increasing 102.1% and Adj. EPS increasing 213.6% in the period Q2 2026 Summary *See appendix for additional information regarding Non-GAAP measures Net Sales $311.6 $627.0 Q2 2025 Q2 2026 Non-GAAP Adj. EBITDA* $46.6 $94.2 Q2 2025 Q2 2026 Non-GAAP Adj. EPS* $0.22 $0.69 Q2 2025 Q2 2026 Margin 14.9% 15.0% 26.6% 24.3%Margin
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8 AAON Oklahoma Net Sales $185.1 $262.3 Q2 2025 Q2 2026 Gross Profit $53.5 $63.6 $3.0 $18.1 Reported Memphis Impact Q2 2025 Q2 2026 Q2 2026 Highlights — Net sales increased 41.7% Y/Y — Gross profit increased 18.9% Y/Y despite $18.1 million of unabsorbed costs at Memphis plant in 2Q26 compared to $3.0 million in 2Q25 — Unabsorbed Memphis costs resulted in 690 bps of margin pressure in 2Q26 vs. 160 bps of pressure in 2Q25; net of Memphis impact, gross margin expanded approximately 60 bps — There is a clear path back to mid-to-high 30s gross margin (ex. Memphis costs) as outsourcing normalizes and price-cost flows through — AAON-branded equipment backlog increased sequentially despite strong production throughput, and as such we will continue to ramp production through year-end — Orders of AAON equipment remained strong, implying the AAON brand continues to gain market share in a soft market environment 28.9% 24.3%Margin
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9 AAON Coil Products Net Sales $58.5 $146.7 Q2 2025 Q2 2026 Gross Profit $10.2 $23.5 Q2 2025 Q2 2026 Q2 2026 Highlights — Net sales increased 150.9%, driven by BASX-branded liquid cooling sales, which grew 208.4% to $126.6M — AAON-branded sales grew 15.1% to $20.0M — Gross profit increased 130.1% Y/Y — Gross margin performance reflected inflationary cost pressures, outsourcing-related costs, freight pressure, and price-cost timing — Margin pressure was partially offset by improved labor efficiency, better overhead absorption, and higher production volume 17.5% 16.0%Margin
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10 Q2 2026 Highlights BASX Net Sales $68.0 $218.0 Q2 2025 Q2 2026 Gross Profit $19.0 $65.3 Q2 2025 Q2 2026 — Net sales growth of 220.7% driven by strong demand from data center market — Continued progress with Memphis plant ramp-up was a meaningful contributor to growth — Gross profit increased 244.2% Y/Y — Y/Y margin improvement driven by strong volume growth, partially offset by incremental fixed costs and additional resources needed temporarily to support robust growth 27.9% 30.0%Margin
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11 Cash Flow from Operations $(31.0) $55.0 1H 2025 1H 2026 Q2 2025 Highlights — Leverage ratio at the end of Q2 was 1.48, down from 1.71 at the end of Q1 — Debt increase driven by working capital and capex investments to support strong BASX-branded backlog and future growth — YTD operating cash flow totaled $55.0 million, representing an improvement from $(31.0) million in the same period of 2025 — Anticipate continued improvement in operating cash flow throughout 2026 driven by earnings growth and improved working capital efficiency — Expect capex of approximately $190 million in 2026 *All metrics are in millions Debt $317.3 $435.0 Q2 2025 Q2 2026 Annual Capex $213.2 $209.5 $190.0 2024 2025 2026E Net Working Capital $443.4 $664.7 Q2 2025 Q2 2026 Q2 2026 Summary: Balance Sheet
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12 Backlog by Brands Backlog — Demand for data center air-side and liquid cooling solutions is robust — Large scale projects can create quarter-to-quarter bookings variability — Focused on turning over backlog with higher production throughput — Strong bookings continued in Q2 Total Backlog — Strong backlog allows us to plan production more efficiently — Anticipate continued growth and margin improvement throughout 2026 $1.43B +185.4% Y/Y -11.7% Q/Q $0.54B +9.4% Y/Y +6.0% Q/Q $1.97B +98.0% Y/Y -7.4% Q/Q 12
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13 13 2026 Outlook Current FY26 Outlook Prior FY26 Outlook YoY Sales Growth 55%-60% 40%-45% Gross Margin 25%-26% 27%-28% SG&A % of Sales 13%-14% 14%-15% D&A Expenses $95M-$100M $95M-$100M
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Appendix
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15 Non-GAAP Financial Measures Non-GAAP Adjusted Net Income Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Net income, a GAAP measure $ 56,659 $ 15,487 $ 96,474 $ 44,779 Add: Memphis incentive fee1 1,448 3,405 1,448 6,105 Profit sharing effect2 (123) (289) (123) (519) Tax effect (332) (742) (332) (1,369) Non-GAAP adjusted net income $ 57,652 $ 17,861 $ 97,467 $ 48,996 Non-GAAP adjusted earnings per diluted share $ 0.69 $ 0.21 $ 1.16 $ 0.59 1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. 2Profit sharing effect of the Memphis incentive fee in the respective period.
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16 Non-GAAP Financial Measures Non-GAAP EBITDA and Adjusted EBITDA Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) Net income, a GAAP measure $ 56,659 $ 15,487 $ 96,474 $ 44,779 Depreciation and amortization 23,813 19,936 44,716 38,879 Interest expense, net 6,195 4,009 11,250 6,811 Income tax expense 6,188 4,018 18,454 7,209 EBITDA, a non-GAAP measure $ 92,855 $ 43,450 $ 170,894 $ 97,678 Add: Memphis incentive fee1 1,448 3,405 1,448 6,105 Profit sharing effect2 (123) (289) (123) (519) Adjusted EBITDA, a non-GAAP measure $ 94,180 $ 46,566 $ 172,219 $ 103,264 Adjusted EBITDA margin 15.0 % 14.9 % 15.3 % 16.3 % 1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. 2Profit sharing effect of the Memphis incentive fee in the respective period.
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17 Non-GAAP Financial Measures Non-GAAP Adjusted SG&A Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Non-GAAP Adjusted Selling, General and Administrative Expenses SG&A, a GAAP measure $ 83,607 $ 59,147 $ 151,513 $ 110,440 Memphis Incentive Fee (1,448) (3,405) (1,448) (6,105) Profit Sharing effect 123 289 123 519 Non-GAAP adjusted SG&A expenses 82,282 56,031 150,188 104,854 As a percent of sales 13.1 % 18.0 % 13.4 % 16.5 %