William Blair Upgrades AAON to Buy, Highlights 15% Revenue Growth Target

William Blair has issued a Buy rating on AAON, Inc. (AAON), reinforcing confidence in the company's long-term growth trajectory within the industrial and construction sectors. The firm highlighted AAON’s strategic focus on energy-efficient HVAC systems, which are gaining traction amid rising demand for sustainable building infrastructure in North America and parts of Latin America. The research team projected AAON’s revenue to grow by 15% in fiscal year 2026, driven by increased orders from commercial real estate developers and government infrastructure projects. This forecast is underpinned by the company’s backlog, which stands at $390 million as of the third quarter, up 12% year-over-year. Additionally, AAON reported a 9% increase in net income during the same period, reflecting improved operational efficiency and margin expansion. The upgrade comes at a time when demand for climate control systems is rising across industrial facilities, data centers, and multi-family residential developments. AAON’s modular and customizable product offerings are positioned to benefit from this trend, especially as building codes become stricter on energy performance. The firm also noted that AAON’s capital expenditures in 2025 are expected to reach $45 million, primarily for expanding manufacturing capacity in Texas and Ohio. Market participants are likely to take note, with the stock showing early signs of upward momentum following the report. Institutional investors and retail traders focused on industrial equities may view the recommendation as a catalyst to increase exposure to AAON, particularly in a low-rate environment where infrastructure-related stocks are under favorable tailwinds.