AAON, Inc. (AAON) Stock Price & How to Invest
Last updated July 2026
Short answer
AAON is a premium U.S. HVAC manufacturer that has become a fast-growing data center liquid-cooling play through its BASX unit, so it trades like a high-multiple AI infrastructure name rather than a sleepy industrial. Investors typically weigh its record backlog and 40%-plus growth against a rich valuation that leaves little room for execution slips.
AAON stock price
As of 2026-07-20, AAON, Inc. (AAON) last closed at $103.88, up 37.8% over the past year. Over the past 52 weeks it has traded between $72.08 and $148.25.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or AAON, Inc.'s investor relations page. Walnut is informational, not investment advice.
What does AAON, Inc. (AAON) do?
AAON, Inc. engineers and manufactures premium commercial and industrial HVAC equipment, including semi-custom and custom rooftop units, air handlers, energy recovery units, condensing units, water-source heat pumps, and controls. Its 2021 acquisition of BASX and expansion into cleanroom systems and data center thermal management turned a niche rooftop-unit specialist into a supplier of liquid-cooling solutions for AI and cloud data centers, sold under the BASX brand alongside the flagship AAON-branded product line.
The investment picture is a growth story bolted onto a stable base. AAON's traditional rooftop business is prized for energy efficiency and durability and generates steady demand tied to nonresidential construction and equipment replacement, while BASX has become the swing factor: data center cooling orders roughly doubled the company's backlog to a record ~$2.13 billion and pushed 2026 revenue growth guidance to ~40%-45%. That upside comes with a premium valuation and heavy reliance on a handful of hyperscale customers, so the story rewards continued execution on capacity expansion and margins.
What's driving AAON, Inc. (AAON)?
1. Data center liquid cooling (BASX)
BASX-branded sales rose ~72% year over year in Q1 2026 to ~$229 million, driven by liquid-cooling demand for AI data centers. This segment is the primary growth engine, with the broader data center thermal management market growing roughly 30% annually. It has shifted AAON's revenue mix toward AI infrastructure spending.
2. Record backlog and raised guidance
Total backlog more than doubled to a record ~$2.13 billion, led by BASX data center orders, giving strong forward revenue visibility. Management raised 2026 revenue growth guidance to ~40%-45%, up sharply from an earlier ~18%-20% view. That backlog underpins near-term production planning and capacity utilization.
3. Capacity expansion and core HVAC franchise
Investments across Memphis, Longview, and Redmond facilities are lifting throughput for both BASX and AAON-branded products. The traditional rooftop-unit business remains a benchmark for efficiency and durability, with Alpha Class heat pumps representing roughly a quarter of rooftop sales. This base provides steadier replacement-driven demand alongside the data center surge.
4. Margin and operating leverage
Operating margin edged up to ~11.5% in Q1 2026 even as gross margin compressed to ~25% on ramp-up costs and mix. If AAON absorbs new capacity and normalizes production, scale could support margin recovery. Conversely, continued ramp costs are a near-term drag to watch.
What are the risks to AAON, Inc. (AAON)?
Valuation is the central risk: AAON trades at a rich multiple (trailing P/E well above 70), so any growth disappointment could compress the stock sharply. The data center growth story concentrates revenue in a small number of hyperscale customers whose capital spending can be lumpy or slow if AI infrastructure demand cools. Execution risk is elevated as the company ramps new capacity, and gross margins have compressed during the ramp. The core HVAC business remains cyclical and exposed to nonresidential construction, interest rates, and input costs. Larger, better-capitalized competitors such as Vertiv, Johnson Controls, and Carrier are investing aggressively in liquid cooling, which could pressure pricing and share over time.
How is AAON, Inc. (AAON) valued? (approximate, July 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see AAON, Inc.'s investor relations page or your broker.
- Revenue (TTM): ~$1.6B
- Q1 2026 revenue: ~$497M (+54% YoY)
- Backlog: ~$2.13B (record)
- Market cap: ~$11B
- Trailing P/E: ~90x-plus
- 2026 revenue growth guidance: ~40%-45%
AAON carries a premium growth valuation, with a trailing P/E well into the double digits and a forward multiple that assumes the data center cooling ramp continues. The record backlog and raised guidance frame the bull case, while the elevated multiple leaves limited margin for error. Gross margin near ~25% reflects ongoing capacity ramp costs.
Who competes with AAON, Inc. (AAON)?
Diversified HVAC majors
Carrier, Trane Technologies, Lennox, and Johnson Controls are far larger, broad-line HVAC manufacturers that compete with AAON's core rooftop and commercial equipment business and increasingly across data center cooling.
Data center cooling specialists
Vertiv, STULZ, Schneider Electric, Modine, and Delta Electronics compete directly with BASX in liquid and precision cooling for AI data centers, a fast-growing but crowded segment where several rivals have made recent liquid-cooling acquisitions and investments.
Custom and semi-custom air handling
Niche and regional makers of custom air handlers, energy recovery units, and cleanroom systems compete on engineering flexibility, the traditional differentiator for AAON-branded and BASX products.
How to invest in AAON, Inc. (AAON)
There are three common ways to get AAON exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so AAON sits alongside other stocks that express the same thesis.
Walnut takes the basket route. Describe a thesis where AAON fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
The bottom line on AAON, Inc. (AAON)
AAON pairs a durable specialty-HVAC franchise with an AI-driven data center cooling surge, and the debate is whether that growth justifies a premium multiple.
More on AAON, Inc. (AAON)
Whether AAON is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is AAON a buy?, and where the stock could go from here in the AAON stock forecast.
For income investors, whether AAON pays a dividend and how the payout looks is covered in does AAON pay a dividend?
Build a basket around AAON with Walnut
Use AAON, Inc. as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What does AAON do?
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AAON, Inc. designs and manufactures premium commercial and industrial HVAC equipment, including rooftop units, air handlers, energy recovery units, and heat pumps. Through its BASX brand it also builds data center liquid-cooling and cleanroom systems for AI and cloud infrastructure.
Why is AAON considered a data center stock?
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Its BASX segment supplies liquid-cooling solutions for AI data centers, and that demand has roughly doubled AAON's backlog to a record ~$2.13 billion. BASX sales grew rapidly through 2025 and 2026, shifting the company's revenue mix toward AI infrastructure spending.
How fast is AAON growing?
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Q1 2026 revenue rose ~54% year over year to ~$497 million, and management raised full-year 2026 revenue growth guidance to roughly 40%-45%. The record backlog gives the company strong forward visibility into that growth.
Is AAON expensive?
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AAON trades at a premium valuation, with a trailing P/E well above 70 and a market cap around $11 billion as of July 2026. The multiple reflects high growth expectations, which raises the stakes on continued execution.
Who are AAON's main competitors?
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In core HVAC, AAON competes with Carrier, Trane Technologies, Lennox, and Johnson Controls. In data center cooling, it faces specialists such as Vertiv, STULZ, Schneider Electric, and Modine, several of which are investing heavily in liquid cooling.
What are the biggest risks for AAON?
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Key risks include its high valuation, concentration in a small set of hyperscale data center customers, execution risk from rapid capacity expansion, margin pressure during the ramp, and cyclicality in its core nonresidential HVAC business.
Does AAON pay a dividend?
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AAON has historically paid a modest dividend, though the yield is small because the stock trades at a growth-oriented valuation. Most of the investment case rests on revenue and earnings growth rather than income.
How does AAON make money beyond data centers?
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Its long-standing AAON-branded rooftop units, condensing units, and heat pumps serve commercial and industrial buildings and generate steadier, replacement-driven demand. This core franchise is prized for energy efficiency and durability and provides a base underneath the faster-growing BASX data center segment.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with AAON, Inc.'s investor relations page or your broker before making investment decisions.