Earnings release
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Exhibit 99.1 AAON® AAON Reports Record Second Quarter 2026 Results Driven by Strong Demand , Accelerating Throughput , and Improved Operating Execution Net sales increased 101 % , Operating income increased 192 % , Diluted EPS increased 258 % Raises Full - Year Outlook Second Quarter 2026 Highlights ( All comparisons are year - over - year , unless otherwise noted ) • • Delivered record quarterly net sales and significant earnings growth as expanded capacity and improved execution accelerated backlog conversion Net sales increased 101.2 % to a record $ 627.0 million Gross profit increased 84.3 % to $ 152.5 million Operating income increased 192.1 % to 68.9 million , reflecting strong net sales growth , improved overhead leverage , and disciplined SG & A management GAAP diluted EPS increased 257.9 % to $ 0.68 , Non - GAAP adjusted EPS increased 213.6 % to $ 0.69 Total backlog increased 98.0 % year - over - year to $ 2.0 billion , remaining nearly double the prior - year level despite record quarterly net sales and significantly higher production rates Year - to - date , operating cash flow improved to $ 55.0 million , compared with negative $ 31.0 million a year ago Raises 2026 Outlook 2026 outlook now reflects net sales growth of 55 % -60 % , gross margins of approximately 25-26 % , and SG & A as a percent of sales of 13 % -14 % , supported by strong backlog , expanded capacity , and improving operational execution TULSA , Okla . , August 10 , 2026 - AAON , INC . ( NASDAQ - AAON ) , a leader in high - performing , energy - efficient HVAC solutions that bring long - term value to customers and owners , today announced its results for the second quarter of 2026 . " Our second quarter results demonstrate the continued strength of demand for our solutions and the progress we are making scaling the company to meet that demand , " said Matt Tobolski , President and CEO of AAON . " Net sales increased 101.2 % to a fourth consecutive quarterly record , operating income increased 192.1 % , and diluted EPS increased 257.9 % , reflecting the power of higher throughput , strong backlog conversion , and continued execution across the business . " The investments we have made in capacity , leadership , supply chain , and manufacturing infrastructure are translating into measurable operating progress . Production increased across the enterprise , lead times are improving in key areas , and we are converting backlog at a much faster pace while continuing to see strong customer engagement . This is clear evidence that the operating foundation we have been building is working . " The long - term market opportunity remains compelling across both brands . The BASX brand continues to benefit from significant data center investment activity , a healthy customer pipeline , and strong engagement with strategic customers . The AAON brand continues to gain share despite a softer commercial HVAC market . Both businesses are well positioned , supported by differentiated products , highly engineered solutions , and strong customer relationships . " We are also clear - eyed about the margin work ahead . The pace of growth and capacity ramp is creating near - term margin pressure , but the drivers are known , the actions are underway , and the path to improvement is clear : higher utilization , 1
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productivity improvements, sourcing initiatives, pricing actions, and a more favorable backlog profile. We are not simply growing revenue. We are building a stronger operating company with the scale, systems, and discipline to deliver improved margins, stronger cash generation, and durable earnings power over time.” Second Quarter 2026 Results Net sales for the second quarter of 2026 increased 101.2% to a record $627.0 million, compared with $311.6 million in the second quarter of 2025. Growth reflected strong demand across both the AAON and BASX brands, improved manufacturing throughput, and increased utilization of recently added production capacity. BASX-branded sales grew 216.2% to a record $345 million, reflecting momentum in data center demand, higher production output, and greater utilization of recently added manufacturing capacity. AAON-branded sales also increased to a record level, growing 39.3% to $282.2 million, benefitting by a healthy backlog and continued progress in production throughput. Booking activity remained solid across both brands, contributing to market share gains and elevated backlog levels. BASX-branded products ended the quarter with backlog up 185.4%, while AAON ‑ branded backlog increased 9.4% from the prior-year period. Gross profit increased 84.3% to $152.5 million, compared with $82.7 million in the second quarter of 2025. Gross profit margin was 24.3%, compared with 26.6% in the prior-year period. Results reflected the impact of ramping recently added manufacturing capacity, including the Memphis facility, the use of outsourced components to support accelerated growth, and inflationary cost pressures. These investments and actions supported substantially higher production levels and improved customer delivery performance during the quarter. These costs are being addressed through a combination of pricing, sourcing, productivity, and operational initiatives. Management expects margin performance to improve as production volumes increase, recently added capacity utilization increases, and backlog with improved pricing converts to revenue. Selling, general and administrative expenses as a percent of sales declined 570 basis points to 13.3%, reflecting continued operating leverage and disciplined cost management as revenue growth outpaced overhead investments. Operating income increased 192.1% to $68.9 million, compared with $23.6 million in the prior-year period. Diluted earnings per share were $0.68, an increase of 257.9% from $0.19 in the second quarter of 2025. Adjusted non-GAAP EPS increased 213.6% to $0.69, which includes a $1.4 million infrequent expense related to an incentive fee associated with our Memphis, Tenn. facility, net of the profit sharing and tax effect. Backlog June 30, 2026 March 31, 2026 June 30, 2025 (in thousands) AAON-branded products $ 540,465 $ 509,806 $ 494,214 BASX-branded products 1,430,379 1,619,649 501,106 $ 1,970,844 $ 2,129,455 $ 995,320 Total backlog increased 98.0% year-over-year to $2.0 billion, compared to $995.3 million the prior year. Backlog remained nearly double the prior-year level even as the Company converted backlog into record quarterly revenue at significantly higher production rates. BASX- branded backlog increased 185.4% year-over-year, reflecting continued customer investment activity in data center infrastructure and the value customers place on BASX's custom-engineered solutions. AAON-branded backlog increased 9.4% year-over-year, supported by strong order activity despite soft end-market conditions. Compared to the first quarter of 2026, total backlog decreased 7.4%, primarily reflecting accelerated backlog conversion into record revenue and the inherent timing variability of large BASX project awards. We continue to see strong customer engagement and a healthy pipeline of opportunities across the data center market. As is typical with large, highly engineered projects, the timing of customer awards and order conversion can vary from quarter to quarter. We remain encouraged by the volume of opportunities under discussion and our position with key customers. AAON-branded backlog increased 6.0% sequentially, reflecting strong order activity and continued share gains despite a soft commercial HVAC market backdrop. 2
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2026 Outlook Based on strong backlog, accelerating production throughput, expanded capacity, and current expectations for customer project timing, we are updating our full-year 2026 outlook as follows: Current Prior Metric FY26 FY26 YoY Sales Growth 55%-60% 40%-45% Gross Profit Margin 25%-26% 27%-28% SG&A as a % of sales 13%-14% 14%-15% Depreciation &Amortization $95M-$100M $95M-$100M “Our updated outlook reflects the strength of our backlog positions, continued customer activity across our end markets, and the significant progress we are making increasing throughput and converting backlog into revenue,” said Matt Tobolski. "At the same time, the revised gross margin outlook reflects the near-term cost of scaling rapidly while we bring new capacity to higher utilization and work through price-cost timing. “The direction is clear. We expect sequential margin improvement in the second half of the year as higher production volumes, better utilization, pricing actions, sourcing initiatives, and continued operational discipline begin to show more clearly in reported results. We remain confident in the long-term earnings power of the business and believe the progress we are making today positions AAON for improved profitability and stronger cash generation as the year progresses.” Segment Results AAON Oklahoma Three Months Ended (in thousands) June 30, 2026 March 31, 2026 June 30, 2025 Net sales $ 262,276 $ 243,967 $ 185,120 Gross profit $ 63,617 $ 64,272 $ 53,517 Gross profitmargin 24.3 % 26.3 % 28.9 % AAON Oklahoma generated net sales of $262.3 million, an increase of 41.7% from the prior-year period. Growth was driven by stronger execution against a robust backlog, supported by ongoing production improvements that accelerated backlog conversion. Performance also benefited from favorable price realization and a more normalized operating environment relative to the prior year, when the industry refrigerant transition and company-specific operational challenges weighed on results. Gross profit increased 18.9% to $63.6 million compared with $53.5 million in the prior-year period. Gross margin was 24.3%, compared to 28.9% in the second quarter of 2025. Segment profitability was impacted by $18.1 million of overhead expenses associated with the Memphis facility, compared with $3.0 million in the prior-year period. Excluding these costs, segment margins expanded 70 basis points to 31.2%, compared to 30.5% in the prior-year period. The year-over-year improvement excluding Memphis overhead reflects higher production rates, improved throughput, and favorable pricing, partially offset by elevated outsourcing levels and inflationary cost pressures. These pressures are being addressed through pricing and operational initiatives and are not expected to change the long-term margin profile of the segment. 3
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AAON Coil Products Three Months Ended (in thousands) June 30, 2026 March 31, 2026 June 30, 2025 Net sales $ 146,680 $ 117,611 $ 58,465 Gross profit $ 23,538 $ 28,302 $ 10,229 Gross profitmargin 16.0 % 24.1 % 17.5 % AAON Coil Products generated net sales of $146.7 million, an increase of 150.9% from the prior-year period. Growth was driven primarily by BASX-branded liquid cooling sales of $126.6 million, up 208.4% during the period. Gross profit increased 130.1% to $23.5 million, compared with $10.2 million in the prior-year period. Gross margin was 16.0%, compared with 17.5% in the second quarter of 2025. Margin performance reflected inflationary cost pressures, outsourcing-related costs, freight pressure, and price-cost timing within the segment. These pressures were partially offset by improved labor efficiency, better overhead absorption, and higher production volume. Management has clear visibility into the drivers and is taking action through pricing, sourcing, productivity, and operational discipline. While these actions are not yet fully reflected in the reported results, the Company expects the benefits to build through the second half of the year. Despite the margin pressure, AAON Coil Products delivered strong profit growth supported by higher sales volumes. BASX Three Months Ended (in thousands) June 30, 2026 March 31, 2026 June 30, 2025 Net sales $ 218,020 $ 135,358 $ 67,982 Gross profit $ 65,336 $ 32,391 $ 18,983 Gross profitmargin 30.0 % 23.9 % 27.9 % BASX segment generated net sales of $218.0 million and increase of 220.7% from the prior-year period. Growth was driven by strong backlog conversion, continued data center investment activity, and increased production capacity enabled by continued ramping of the Company's manufacturing footprint, including Memphis. Gross profit increased 244.2% to $65.3 million, compared with $19.0 million in the prior-year period. Gross margin was 30.0%, up from 27.9% in the second quarter of 2025. The year-over-year margin improvement reflected substantial volume growth, partially offset by incremental resources and investments required to support future growth, customer delivery, and continued share gains. Balance Sheet & Cash Flow As of June 30, 2026, the Company had cash, cash equivalents and restricted cash of $12.7 million and a balance on its revolving credit facility of $435.0 million. Andy Cheung, CFO and Treasurer, commented, “Our strong earnings performance and disciplined working capital initiatives have driven meaningful improvement in both financial leverage and operating cash flow generation through the first half of 2026. Operating cash flow totaled $55.0 million for the six-month period, a significant improvement compared with a $31.0 million use of cash in the first six months of 2025. As we move through the second half, we remain focused on productivity, margin improvement and working capital efficiency. These actions are expected to support stronger cash flow generation and continued balance sheet improvement over the long term.” 4
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Conference Call The Company will host a conference call and webcast this afternoon at 5:00 p.m. EDT to discuss the second quarter of 2026 results and outlook. The conference call will be accessible via dial-in for those who wish to participate in Q&A as well as a listen-only webcast. The dial-in is accessible at 1-888-880-3330. To access the listen-only webcast, please register at https://app.webinar.net/8K3oQEbJrgq. On the next business day following the call, a replay of the call will be available on the company’s website at https://aaon.com/investors. About AAON Founded in 1988, AAON is a global leader in HVAC solutions for commercial, industrial and data center indoor environments. The company's industry-leading approach to designing and manufacturing highly configurable and custom-made equipment to meet exact needs creates a premier ownership experience with greater efficiency, performance and long-term value. Its highly engineered equipment is sold under the AAON and BASX brands. AAON is headquartered in Tulsa, Oklahoma, where its world-class innovation center and testing lab allows AAON engineers to continuously push boundaries and advance the industry. For more information, please visit www.aaon.com. Forward-Looking Statements This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “should”, “will”, and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligations to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. 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 material 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 a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in any forward- looking statements, see “Risk Factors” and “Forward Looking Statements” in AAON’s Annual Report on Form 10-K for the most recent fiscal year, as may be revised and updated by AAON’s Quarterly Reports on Form 10-Q, and AAON’s Current Reports on Form 8-K. Contact Information Joseph Mondillo Director of Investor Relations & Corporate Strategy Phone: (617) 877-6346 Email: joseph.mondillo@aaon.com 5
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AAON, Inc. and Subsidiaries Consolidated Statements of Income (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands, except per share data) Net sales $ 626,976 $ 311,567 $ 1,123,912 $ 633,621 Cost of sales 474,485 228,838 846,456 464,528 Gross profit 152,491 82,729 277,456 169,093 Selling, general and administrative expenses 83,607 59,147 151,513 110,440 Gain on disposal of assets — — — (40) Income from operations 68,884 23,582 125,943 58,693 Interest expense (6,195) (4,009) (11,250) (6,811) Other income (expense), net 158 (68) 235 106 Income before taxes 62,847 19,505 114,928 51,988 Income tax provision 6,188 4,018 18,454 7,209 Net income $ 56,659 $ 15,487 $ 96,474 $ 44,779 Earnings per share: Basic EPS $ 0.69 $ 0.19 $ 1.17 $ 0.55 Diluted EPS $ 0.68 $ 0.19 $ 1.15 $ 0.54 Cash dividends declared per common share: $ 0.10 $ 0.10 $ 0.20 $ 0.20 Weighted average shares outstanding: Basic 82,189,734 81,441,511 82,213,148 81,456,845 Diluted 83,721,199 82,956,213 83,690,556 83,153,788 6
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AAON, Inc. and Subsidiaries Segment Net Sales and Profit (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in thousands) AAON Oklahoma External sales $ 262,276 $ 185,120 $ 506,243 $ 346,958 Inter-segment sales 91,359 5,318 135,868 9,157 Eliminations (91,359) (5,318) (135,868) (9,157) Net sales 262,276 185,120 506,243 346,958 Cost of sales 198,659 131,603 378,354 252,841 Gross profit 63,617 53,517 127,889 94,117 AAON Coil Products External sales $ 146,680 $ 58,465 $ 264,291 $ 152,488 Inter-segment sales 7,660 3,439 14,478 7,018 Eliminations (7,660) (3,439) (14,478) (7,018) Net sales 146,680 58,465 264,291 152,488 Cost of sales 123,142 48,236 212,451 112,401 Gross profit 23,538 10,229 51,840 40,087 BASX External sales $ 218,020 $ 67,982 $ 353,378 $ 134,175 Inter-segment sales 558 507 556 550 Eliminations (558) (507) (556) (550) Net sales 218,020 67,982 353,378 134,175 Cost of sales 152,684 48,999 255,651 99,286 Gross profit 65,336 18,983 97,727 34,889 Consolidated gross profit $ 152,491 $ 82,729 $ 277,456 $ 169,093 Presented after intercompany eliminations. The reconciliation between consolidated gross profit to consolidated income from operations is as follows: Consolidated gross profit $ 152,491 $ 82,729 $ 277,456 $ 169,093 Less: Selling, general and administrative expenses 83,607 59,147 151,513 110,440 Add: loss on disposal of assets — — — 40 Consolidated income from operations $ 68,884 $ 23,582 $ 125,943 $ 58,693 1 1 1 1 7
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AAON, Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited) June 30, 2026 December 31,2025 Assets (in thousands, except share and pershare data) Current assets: Cash and cash equivalents $ 13 $ 13 Restricted cash 12,714 1,226 Accounts receivable, net 360,763 314,387 Income tax receivable 19,212 27,445 Inventories, net 331,328 261,151 Contract assets, net 258,873 247,037 Prepaid expenses and other 12,117 17,921 Total current assets 995,020 869,180 Property, plant and equipment, net 682,779 631,262 Intangible assets, net and goodwill 167,893 165,799 Right of use assets 16,190 17,988 Other long-term assets 1,801 2,281 Total assets $ 1,863,683 $ 1,686,510 Liabilities and Stockholders' Equity Current liabilities: Short-term obligations of NMTC 7,535 7,535 Accounts payable 171,717 110,437 Accrued liabilities 138,267 132,213 Contract liabilities 12,752 80,670 Total current liabilities 330,271 330,855 Debt, long-term 435,000 398,320 Deferred tax liabilities 38,136 30,313 Other long-term liabilities 28,529 23,299 New markets tax credit obligations 21,331 8,738 Commitments and contingencies (Note 19) Stockholders' equity: Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued — — Common stock, $.004 par value, 200,000,000 shares authorized, 82,448,037 and 81,691,075 issuedand outstanding at June 30, 2026 and December 31, 2025, respectively 330 327 Additional paid-in capital 99,689 64,358 Retained earnings 910,397 830,300 Total stockholders' equity 1,010,416 894,985 Total liabilities and stockholders' equity $ 1,863,683 $ 1,686,510 Held by variable interest entities 1 1 1 8
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AAON, Inc. and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, 2026 2025 Operating Activities (in thousands) Net income $ 96,474 $ 44,779 Adjustments to reconcile net income to net cash provided by (used in) operating activities Depreciation and amortization 44,716 38,879 Amortization of debt issuance costs 84 128 Amortization of right of use assets 91 69 (Recoveries of) Provision for losses on accounts receivable, net of adjustments (62) 270 Provision for losses on contract assets, net of adjustments — 200 Provision for excess and obsolete inventories, net of write-offs 1,225 288 Share-based compensation 10,702 8,795 Other — (71) Deferred income taxes 7,823 (2,423) Changes in assets and liabilities: Accounts receivable (46,314) (23,409) Income tax receivable 8,233 (3,187) Inventories (71,402) (47,848) Contract assets (11,836) (97,963) Prepaid expenses and other long-term assets 6,284 (68) Accounts payable 63,877 36,397 Contract liabilities (67,918) 18,839 Extended warranties 7,075 (148) Accrued liabilities and other long-term liabilities 5,916 (4,567) Net cash provided by (used in) operating activities 54,968 (31,040) Investing Activities Capital expenditures (97,282) (82,515) Grant proceeds received 1,650 — Proceeds from sale of property, plant and equipment — 40 Acquisition of intangible assets (5,292) (7,042) Principal payments from note receivable — 25 Net cash used in investing activities (100,924) (89,492) Financing Activities Borrowings of debt 597,485 415,126 Payments of debt (560,805) (252,982) Proceeds from financing obligation, net of issuance costs 12,908 — Payment related to financing costs (399) (1,395) Stock options exercised 29,100 10,025 Repurchase of stock - open market — (29,992) Repurchases of stock - LTIP plans (Note 17) (4,468) (9,167) Cash dividends paid to stockholders (16,377) (16,276) Net cash provided by financing activities 57,444 115,339 Net increase (decrease) in cash, cash equivalents, and restricted cash 11,488 (5,193) Cash, cash equivalents, and restricted cash, beginning of period 1,239 6,514 Cash, cash equivalents, and restricted cash, end of period $ 12,727 $ 1,321 9
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Use of Non-GAAP Financial Measures To supplement the Company’s consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), additional non-GAAP financial measures are provided and reconciled in the following tables. The Company believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results. The Company believes that this non-GAAP financial measure enhances the ability of investors to analyze the Company’s business trends and operating performance as they are used by management to better understand operating performance. Since adjusted net income, adjusted net income per diluted share, EBITDA, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures and are susceptible to varying calculations, adjusted net income, adjusted net income per diluted share, EBITDA, adjusted EBITDA, and adjusted EBITDA margin, as presented, may not be directly comparable with other similarly titled measures used by other companies. Non-GAAP Adjusted Net Income The Company defines non-GAAP adjusted net income as net income adjusted for any infrequent events, such as litigation settlements, net of profit sharing and tax effect, in the periods presented. The following table provides a reconciliation of net income (GAAP) to non-GAAP adjusted net income for the periods indicated: 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 fee 1,448 3,405 1,448 6,105 Profit sharing effect (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 The 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 tous by various entities. Profit sharing effect of the Memphis incentive fee in the respective period. EBITDA EBITDA (as defined below) is presented herein and reconciled from the GAAP measure of net income because of its wide acceptance by the investment community as a financial indicator of a company's ability to internally fund operations. The Company defines EBITDA as net income, plus (1) depreciation and amortization, (2) interest expense (income), net and (3) income tax expense. EBITDA is not a measure of net income or cash flows as determined by GAAP. EBITDA margin is defined as EBITDA as a percentage of net sales. The Company’s EBITDA measure provides additional information which may be used to better understand the Company’s operations. EBITDA is one of several metrics that the Company uses as a supplemental financial measurement in the evaluation of its business and should not be considered as an alternative to, or more meaningful than, net income, as an indicator of operating performance. Certain items excluded from EBITDA are significant components in understanding and assessing a Company's financial performance. EBITDA, as used by the Company, may not be comparable to similarly titled measures reported by other companies. The Company believes that EBITDA is a widely followed measure of operating performance and is one of many metrics used by the Company’s management team and by other users of the Company’s consolidated financial statements. 1 2 1 2 10
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Adjusted EBITDA is calculated as EBITDA adjusted by items in non-GAAP adjusted net income, above, except for taxes, as taxes are already excluded from EBITDA. The following table provides a reconciliation of net income (GAAP) to EBITDA (non-GAAP) and Adjusted EBITDA (non-GAAP) for the periods indicated: 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 fee 1,448 3,405 1,448 6,105 Profit sharing effect (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 % The 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 tous by various entities. Profit sharing effect of the Memphis incentive fee in the respective period. Non-GAAP Adjusted Selling, General and Administrative Expenses The following table provides a reconciliation of selling, general and administrative expenses (GAAP) to adjusted selling, general and administrative expenses (non-GAAP) for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Non-GAAP Adjusted Selling, General andAdministrative 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 % 1 2 1 2 11
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Non-GAAP Adjusted AAON Oklahoma Gross Profit The following table provides a reconciliation of AAON Oklahoma gross profit (GAAP) to adjusted gross profit (non-GAAP) for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Non-GAAP Adjusted AAON Oklahoma Gross profit AAON Oklahoma Net sales $ 262,276 $ 185,120 $ 506,243 $ 346,958 AAON Oklahoma Gross profit $ 63,617 $ 53,517 $ 127,889 $ 94,117 Memphis facility overhead costs 18,122 3,000 27,967 5,300 Adjusted AAON Oklahoma Gross profit $ 81,739 $ 56,517 $ 155,856 $ 99,417 Adjusted AAON Oklahoma Gross profit margin 31.2% 30.5% 30.8% 28.7% 12