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TULSA, Okla. - AAON, Inc. (NASDAQ: AAON), a manufacturer of heating, ventilation, and air conditioning (HVAC) equipment, announced today an increase in its quarterly cash dividend. The company’s Board of Directors declared a dividend of $0.10 per share, marking a 25% increase from previous dividends. This enhanced dividend is scheduled to be paid on March 28, 2025, to shareholders who are on record as of March 18, 2025. According to InvestingPro data, AAON has maintained consistent dividend payments for 19 consecutive years, with a current dividend yield of 0.43%.
Since its inception in 1988, AAON has become a prominent name in the commercial and industrial HVAC market. Now with a market capitalization of $6.1 billion and annual revenue exceeding $1.2 billion, the company is recognized for its tailored solutions that focus on efficiency, performance, and value over the long term. AAON operates out of its Tulsa-based headquarters, which houses an innovation center and testing facilities that contribute to the company’s commitment to a cleaner and more sustainable future. InvestingPro analysis shows the company maintains strong financial health with liquid assets exceeding short-term obligations.
The press release also contains forward-looking statements regarding the company’s expectations and predictions for future performance. These statements involve risks, uncertainties, and assumptions and are not guarantees of future outcomes. Factors that could influence actual results include changes in raw material costs, market fluctuations in the commercial and industrial construction sector, interest rate variations, and general economic conditions. Recent market data from InvestingPro indicates the stock has experienced significant price pressure, declining 26% in the past week, though analysts maintain positive earnings forecasts for the upcoming year.
This announcement is based on a press release statement and provides shareholders and the market with the latest financial developments from AAON. The company’s decision to increase its quarterly dividend reflects a positive stance on its financial health and commitment to delivering shareholder value. Investors are advised to consider the inherent risks and uncertainties that come with forward-looking statements in the financial sector. For deeper insights into AAON’s valuation, financial health, and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro, which offers detailed analysis of this and 1,400+ other US stocks.
In other recent news, AAON, Inc. reported fourth-quarter earnings that did not meet analyst expectations, with adjusted earnings per share at $0.30 compared to the anticipated $0.53. Revenue also fell short, reaching $297.72 million against the projected $331.02 million, marking a 2.9% decrease year-over-year. The CEO, Gary Fields, attributed these results to challenges such as a regulated refrigerant transition and a decline in nonresidential construction activity. The company’s Oklahoma segment experienced a 16.1% year-over-year sales decline, contributing to the overall revenue drop. Gross profit decreased by 30.5% to $77.6 million, with a contraction in gross margin due to lower volumes and fixed cost deleveraging. Despite these challenges, AAON’s backlog rose by 70% at the end of 2024, driven by demand for data center cooling solutions. Meanwhile, DA Davidson adjusted its price target for AAON to $125, down from $150, while maintaining a Buy rating. The firm emphasized the importance of AAON’s execution in the data center business and order acquisition as key factors for potential recovery. AAON’s board has approved a $100 million share repurchase program, focusing on organic investments to support growth.
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