CluenexAAON AAON
AAON scores good on business quality (6.3 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What AAON does
Aaon designs and manufactures specialized commercial heating, ventilation, and air conditioning equipment, selling directly to contractors and building owners. Commercial real estate developers and data center operators pay for custom units tailored to high-efficiency climate control.
- What it does best
Aaon excels at scaling top-line revenue, posting 20.1% revenue growth that places it in the top decile of its sector at the 92nd percentile. This elite growth is powered by specialized engineering capabilities in custom HVAC that competitors struggle to replicate quickly.
- The main risk
Heavy capital expenditure outlays of $218 million are severely pressuring free cash flow down to negative $131 million. If capacity expansion fails to convert into higher cash generation, debt obligations of $415 million will strain liquidity.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 11.1% with an FCF margin of negative 6.8%, driven down by massive capital investments. Unlike traditional software models, this heavy manufacturing business is currently seeing profitability compress as it scales capacity.
The company holds a middle-of-the-pack moat position, ranking in the 36th percentile for operating margin. While custom engineering creates some customer stickiness, low gross margins of 25.6% indicate limited pricing power against rivals.
Revenue growth surges at 20.1% year-over-year, landing in the top decile of its sector at the 92nd percentile. This growth engine is accelerating compared to historical single-digit rates from prior years.
Debt-to-equity sits at 0.5 with interest coverage at 9.6x, meaning debt costs are manageable. However, free cash flow has turned deeply negative at negative $131 million due to a heavy capex cycle, getting softer.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
2 insiders bought $110K on the open market.
Our sealed record on AAON
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
AAON scores good on the Cluenex quality check (6.3 of 10), measured against its own industry. Profitability is weak, moat fair, growth fast and financial health fair.
In the last 90 days of SEC Form 4 filings: 2 insiders bought $110K on the open market.
Nov 4, 2026.
See AAON today
- Today's verdict on AAON, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “AAON (AAON)”, https://cluenex.com/stocks/aaon/, data as of Oct 10, 2026.