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Segments
9 Months Ended
Sep. 30, 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 EndedNine Months Ended
 September 30,
2025
September 30,
2024
September 30,
2025
September 30,
2024
(in thousands)(in thousands)
AAON Oklahoma
     External sales$238,748 $228,887 $585,706 $664,754 
     Inter-segment sales9,737 1,238 18,894 4,220 
Eliminations(9,737)(1,238)(18,894)(4,220)
     Net sales238,748 228,887 585,706 664,754 
     Cost of sales1
163,519 144,768 421,621 418,354 
     Gross profit75,229 84,119 164,085 246,400 
AAON Coil Products
     External sales$70,246 $35,232 $222,734 $90,852 
     Inter-segment sales8,263 12,292 20,542 30,565 
Eliminations(8,263)(12,292)(20,542)(30,565)
     Net sales70,246 35,232 222,734 90,852 
     Cost of sales1
58,914 22,811 166,054 57,133 
     Gross profit11,332 12,421 56,680 33,719 
BASX
     External sales$75,244 $63,133 $209,419 $147,311 
     Inter-segment sales26 40 576 262 
Eliminations(26)(40)(576)(262)
     Net sales75,244 63,133 209,419 147,311 
     Cost of sales1
54,944 45,515 154,230 107,936 
     Gross profit20,300 17,618 55,189 39,375 
Consolidated gross profit$106,861 $114,158 $275,954 $319,494 
1 Presented after intercompany eliminations.
The reconciliation between consolidated gross profit to consolidated income from operations is as follows:
Consolidated gross profit$106,861 $114,158 $275,954 $319,494 
Less: Selling, general and administrative expenses63,230 48,637 173,670 139,820 
Add: Gain on disposal of assets(36)(1)15 
Consolidated income from operations$43,595 $65,520 $102,288 $179,689 
The following table presents long-lived assets by reportable segment, which includes property and equipment, net and operating lease assets:
September 30,
2025
December 31,
2024
Long-lived assets(in thousands)
AAON Oklahoma$364,537 $321,597 
AAON Coil Products154,681 122,515 
BASX89,484 81,680 
            Total long-lived assets$608,702 $525,792 
The following table presents intangible assets and goodwill, net, by reportable segment:
Intangible assets, net and goodwill
AAON Oklahoma$23,408 $22,966 
AAON Coil Products3,663 — 
BASX136,815 137,186 
            Total intangible assets, net and goodwill$163,886 $160,152