AAON, Inc. announced that its Board of Directors has approved a 25% increase in its regular quarterly cash dividend to $0.10 per share, or $0.40 annually. The dividend will be payable on March 28, 2025, to shareholders of record as of March 18, 2025. The company disclosed this information in a press release, which is included as an exhibit in the filing.

AAON reported its fourth-quarter and full-year 2024 results, highlighting both achievements and challenges.

Net sales for the fourth quarter declined 2.9% year-over-year to $297.7 million, primarily due to a 16.1% sales drop in the AAON Oklahoma segment, affected by weak macro conditions and the industry's refrigerant transition. However, the AAON Coil Products segment saw a significant 129.9% sales increase, driven by demand for BASX-branded liquid cooling data center equipment and AAON-branded split systems.

Gross profit for the quarter fell 30.5% to $77.6 million, with margins contracting due to lower volumes, fixed cost inefficiencies, and investments in data center product growth. Net income dropped 47.5% to $24.7 million, and earnings per diluted share declined 46.4% to $0.30.

For the full year, net sales increased 2.7% to $1.2 billion, though gross profit remained flat. Net income declined 5.1% to $168.6 million, with full-year earnings per diluted share at $2.02, down from $2.13 in 2023.

Backlog surged 70% year-over-year to $867 million, reflecting strong data center demand. Despite near-term pressures from refrigerant transitions and startup costs at its new Memphis facility, the company expects improved margins and accelerating demand in 2025.

AAON remains financially strong, with a 2.8 current ratio and a leverage ratio of 0.57. The company’s board approved a new $100 million share repurchase program, while near-term priorities include ramping up production at the Memphis facility.

AAON, Inc. announced that its Chief Executive Officer, Gary D. Fields, will transition to the role of special advisor to the Board, effective May 13, 2025. Fields, who has over 40 years of experience in the HVAC industry, has served as CEO since 2020 and was a member of the Board of Directors since 2015.

Matt J. Tobolski, PhD, will assume the role of Chief Executive Officer while continuing as President, effective the same date. Tobolski has been President and Chief Operating Officer since January 2024 and previously co-founded and led BASX, Inc., a wholly owned subsidiary of AAON.

Both Fields and Tobolski will be eligible to participate in AAON’s executive compensation package, and no new employment agreements were made in connection with their appointments.