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Segments | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
Segments | Segments The Company has determined that it has three reportable segments for financial reporting purposes. AAON Oklahoma: AAON Oklahoma engineers, manufactures and sells semi-custom and custom HVAC systems, designs and manufactures controls solutions, and sells aftermarket parts to customers through retail part stores and online. AAON Oklahoma includes the operations of our Tulsa, Oklahoma, Memphis, Tennessee and Parkville, Missouri manufacturing facilities, two retail locations, and the Norman Asbjornson Innovation Center (“NAIC”) research and development laboratory accredited by the Air Movement and Control Association International, Inc. (“AMCA”). With the NAIC, a world-class research and development (“R&D”) laboratory in Tulsa, Oklahoma, our products are continuously tested under a variety of extreme environmental conditions to ensure they deliver the ultimate performance, efficiency, and value. Also located in Tulsa, Oklahoma, our cutting-edge Exploration Center showcases the engineering, design attributes, and premium build quality of our equipment side-by-side the market alternatives. AAON Coil Products: AAON Coil Products engineers and manufactures a selection of our semi-custom, and custom HVAC systems as well as a variety of heating and cooling coils to be used in HVAC systems, mostly for the benefit of AAON Oklahoma, AAON Coil Products, and BASX. AAON Coil Products consists of operations at our Longview, Texas manufacturing facilities. BASX branded products are also manufactured in Longview. BASX: BASX engineers, manufactures, and sells an array of custom, high-performance cooling solutions for the rapidly growing hyperscale data center market, ventilation solutions for cleanroom environments in the bio-pharmaceutical, semiconductor, medical and agriculture markets, and highly custom, air handlers and modular solutions for a vast array of markets. BASX consists of operations at our Redmond, Oregon manufacturing facilities. The Company’s chief operating 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. Transactions between segments are recorded based on prices negotiated between the segments. The cost of sales and gross profit amounts shown below are presented after elimination entries.
| Three Months Ended |  |  |
| March 31, 2025 |  | March 31, 2024 |  |  |  |  |
| (in thousands) |  |  |
AAON Oklahoma |  |  |  |  |  |  |  |
External sales | $ | 161,838 |  |  | $ | 210,140 |  |  |  |  |  |
Inter-segment sales | 3,839 |  |  | 1,671 |  |  |  |  |  |
Eliminations | (3,839) |  |  | (1,671) |  |  |  |  |  |
Net sales | 161,838 |  |  | 210,140 |  |  |  |  |  |
Cost of sales 1 | 123,865 |  |  | 131,729 |  |  |  |  |  |
Gross profit | 37,973 |  |  | 78,411 |  |  |  |  |  |
AAON Coil Products |  |  |  |  |  |  |  |
External sales | $ | 94,023 |  |  | $ | 24,247 |  |  |  |  |  |
Inter-segment sales | 6,206 |  |  | 9,331 |  |  |  |  |  |
Eliminations | (6,206) |  |  | (9,331) |  |  |  |  |  |
Net sales | 94,023 |  |  | 24,247 |  |  |  |  |  |
Cost of sales 1 | 61,538 |  |  | 16,107 |  |  |  |  |  |
Gross profit | 32,485 |  |  | 8,140 |  |  |  |  |  |
BASX |  |  |  |  |  |  |  |
External sales | $ | 66,193 |  |  | $ | 27,712 |  |  |  |  |  |
Inter-segment sales | 43 |  |  | 2 |  |  |  |  |  |
Eliminations | (43) |  |  | (2) |  |  |  |  |  |
Net sales | 66,193 |  |  | 27,712 |  |  |  |  |  |
Cost of sales 1 | 50,287 |  |  | 22,021 |  |  |  |  |  |
Gross profit | 15,906 |  |  | 5,691 |  |  |  |  |  |
Consolidated gross profit | $ | 86,364 |  |  | $ | 92,242 |  |  |  |  |  |
1 Presented after intercompany eliminations. |  |  |  |  |  |  |  |
The reconciliation between consolidated gross profit to consolidated income from operations is as follows: |  |  |
Consolidated gross profit | $ | 86,364 |  |  | $ | 92,242 |  |  |  |  |  |
Less: Selling, general and administrative expenses | 51,293 |  |  | 45,288 |  |  |  |  |  |
Add: Gain on disposal of assets | (40) |  |  | (16) |  |  |  |  |  |
Consolidated income from operations | $ | 35,111 |  |  | $ | 46,970 |  |  |  |  |  |
The following table presents long-lived assets by reportable segment, which includes property and equipment, net and operating lease assets:
| March 31, 2025 |  | December 31, 2024 |
Long-lived assets | (in thousands) |
AAON Oklahoma | $ | 337,104 |  |  | $ | 321,597 |  |
AAON Coil Products | 145,046 |  |  | 122,515 |  |
BASX | 84,878 |  |  | 81,680 |  |
Total long-lived assets | $ | 567,028 |  |  | $ | 525,792 |  |
The following table presents intangible assets and goodwill, net, by reportable segment: |  |  |
Intangible assets, net and goodwill |  |  |  |
AAON Oklahoma | $ | 24,302 |  |  | $ | 22,966 |  |
AAON Coil Products | — |  |  | — |  |
BASX | 136,311 |  |  | 137,186 |  |
Total intangible assets, net and goodwill | $ | 160,613 |  |  | $ | 160,152 |  |

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- Definition The entire disclosure for reporting segments including data and tables. 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