Segments

3 Months Ended

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 sales1	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 sales1	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 sales1	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