TULSA, Okla. - AAON , Inc. (NASDAQ: NASDAQ:AAON), a provider of high-performance and energy-efficient HVAC solutions, has announced its ongoing commitment to the U.S. Department of Energy's Better Buildings Commercial Building Heat Pump Technology Challenge. The company is collaborating with industry leaders to develop advanced technologies that align with the DOE's new regulations.
Copeland, recognized for its sustainable heating and cooling solutions, continues its over 30-year partnership with AAON, supplying compressor technology and engineering support essential to the DOE challenge. Mark Bills, Copeland's vice president and general manager of commercial HVAC, emphasized the strength of their collaboration in pushing the boundaries of HVAC technology.
Oklahoma State University, Montana State University, and the University of Maryland are contributing research and development support. OSU's expertise is focused on low global warming potential refrigerants and heat pump components, while Montana State assists with prototype development, including fan blade design and performance testing. The University of Maryland has developed coil technology and software programs that aid AAON's R&D efforts, particularly in creating cold climate air-source heat pumps.
Kevin Teakell, AAON's senior manager of government and industry affairs, expressed confidence in overcoming the challenges ahead with the support of these partnerships. The combined research and development initiatives are aimed at producing innovative solutions to meet the DOE's objectives.
Founded in 1988 and headquartered in Tulsa, Oklahoma, AAON has established itself as a leader in the HVAC industry, known for its configurable equipment designed to meet specific needs. The company's innovation center and testing lab in Tulsa enable continuous advancement in the field.
This collaboration positions AAON to potentially lead in energy efficiency and sustainability, as the company and its partners work to meet the DOE's heat pump technology challenge. The information for this article is based on a press release statement.
In other recent news, AAON has reported a growth and expansion in its Q3 2024 financial results. The company reported a 4.9% increase in revenue to $327.3 million and an 8.6% rise in diluted earnings per share to $0.63. Despite a decrease in gross margin to 34.9%, AAON achieved a 25.3% adjusted EBITDA margin, marking one of its strongest quarters. The company also reported a significant demand surge, particularly for data center equipment, leading to a 27% year-to-date increase in bookings and a 32% increase in total backlog from the previous year. AAON is currently expanding its production capacity and anticipates a softening demand in the short term but remains optimistic for recovery and growth into 2025. The company plans to focus on long-term growth and efficiency, restructuring to manage operational risks. These recent developments indicate a company navigating industry shifts while capitalizing on growing market segments.
InvestingPro Insights
AAON's commitment to the U.S. Department of Energy's Better Buildings Commercial Building Heat Pump Technology Challenge aligns well with its strong market position and financial performance. According to InvestingPro data, AAON boasts a market capitalization of $10.82 billion, reflecting its significant presence in the HVAC industry.
The company's focus on innovation and energy-efficient solutions is paying off, as evidenced by its impressive revenue growth. InvestingPro data shows that AAON's revenue for the last twelve months as of Q3 2024 stood at $1.21 billion, with a revenue growth rate of 8.34%. This growth trajectory supports the company's ability to invest in research and development initiatives, crucial for meeting the DOE's objectives.
AAON's profitability is also noteworthy, with an operating income margin of 20.24% for the same period. This strong profitability provides the company with the financial flexibility to pursue technological advancements and maintain its industry leadership.
InvestingPro Tips highlight AAON's financial strength and market performance. One tip notes that the company "has maintained dividend payments for 19 consecutive years," demonstrating its commitment to shareholder returns while investing in growth. Another tip indicates that AAON has shown a "high return over the last year," with the stock price total return over the past year reaching an impressive 109.77%.
These insights suggest that AAON is well-positioned to capitalize on the opportunities presented by the DOE's heat pump technology challenge. Investors interested in learning more about AAON's potential can find additional insights on InvestingPro, which offers 18 more tips for a comprehensive analysis of the company's prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.