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AAON said on Nov. 9 that BASX data-center cooling sales rose 218.3% to $397.2M, but it also restated Q1 and Q2 and disclosed a material weakness in its financial controls.
Energy & Cooling DeskEdited by Ege Erten
3 min readAI-assisted
A BASX-branded cooling unit from the AAON Group's product pages. BASX-branded sales were $397.2M in Q3, the company said.
Image: The AAON Group
Source · Press image from The AAON Group website, used for news reporting.
AAON, Inc. said on Nov. 9, 2026 that third-quarter net sales rose 84.1% to a record $707.4 million, driven by BASX-branded data-center cooling equipment, and that it restated its first- and second-quarter results after finding a material weakness in internal control over financial reporting.
In the release, filed as Exhibit 99.1 to a Form 8-K, AAON reported gross profit of $188.5 million (26.7% margin), operating income of $100.0 million and diluted earnings per share of $0.83, up 124.3% from $0.37 a year earlier. The company raised its 2026 sales-growth outlook to 72%-75%, from 55%-60% in its August guidance.
BASX-branded sales grew 218.3% to a record $397.2 million, which is about 56% of the quarter's sales by Voltgrid's arithmetic. AAON-branded sales grew 19.6% to $310.2 million. AAON attributed the BASX growth to data-center demand, higher production output and use of newly added manufacturing capacity, including the Memphis facility.
The release breaks out liquid cooling inside one segment: AAON Coil Products' sales rose 174.2% to $192.6 million, and the company said BASX-branded liquid cooling sales of $165.5 million, up 255.6%, drove most of that growth. The separate BASX segment reported $231.3 million, up 207.4%, at a 28.7% gross margin.
Backlog is the forward indicator. BASX-branded backlog was $1.36 billion on Sept. 30, up 51.1% from a year earlier, and AAON said it expects order strength to continue in the fourth quarter. Total backlog of $1.85 billion was up 40.5% year over year but 5.9% below June 30, which the company attributed to faster conversion into revenue and the timing of large BASX project awards.
AAON said it found errors involving revenue recognition and the accounting for software subscriptions during the third-quarter reporting process. Restated figures raised first-half net sales by $10.7 million and diluted EPS by $0.09. The effect was uneven: Q1 net sales were cut by $4.4 million, to $492.5 million, while Q2 net sales rose by $15.2 million, to $642.1 million.
Q2 net income was restated from $56.7 million to $67.1 million, and Q1 net income from $39.8 million to $36.5 million. The company said it found no evidence of fraud or misconduct and that the errors do not change the business's underlying strength. It said remediation of the material weakness is continuing, with details in Item 4 of its third-quarter 10-Q.
AAON's Q2 release of Aug. 10 showed net sales up 101.2% to $627.0 million, BASX-branded sales of $345 million (up 216.2%) and backlog of $2.0 billion. Those were the figures before restatement. Compared with the restated Q2 sales of $642.1 million, Q3 sales are up about 10%, by Voltgrid's arithmetic, a slower sequential pace than the headline growth suggests.
Margin is the pressure point. Q3 gross margin of 26.7% compares with 27.8% a year earlier, though it is 60 basis points above Q2. AAON blamed a higher share of BASX revenue from newer, lower-utilization plants, and said Memphis overhead cost AAON Oklahoma $20.7 million in the quarter, against $4.5 million a year earlier.
Other cooling suppliers are also reporting data-center demand. Voltgrid News covered Modine's 95% jump in data-center sales and Vertiv's third-quarter results, which sit in the same demand cycle.
The release does not say which customers sit in the BASX backlog or give a data-center share of orders. It also does not quantify the cost of remediation. The balance sheet shows $3.7 million of cash and restricted cash against $386.7 million drawn on the revolving credit facility. AAON said it was filing the restated first- and second-quarter 10-Q reports and the third-quarter 10-Q on Nov. 9, and it scheduled a call at 5:00 p.m. EST that day.
Cooling & rack power
Cooling & rack power
Cooling & rack power
Cooling & rack power
