AAON AAON Inc

Total liabilities and stockholders' equity

740,498

735,224

$ 1,010,716

$ 941,436

[1]	1 Held by variable interest entities (Note 16)

Consolidated Balance Sheets (Parenthetical) $ in Thousands	Jun. 30, 2024 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares
Stockholders' equity:
Allowance for doubtful accounts \| $	$ 1,492	$ 323
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share) \| $ / shares	$ 0.004	$ 0.004
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	80,950,856	81,508,381
Common stock, shares outstanding (in shares)	80,950,856	81,508,381

Consolidated Statements of Income
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2024

USD ($)

$ / shares

Jun. 30, 2023

USD ($)

$ / shares

Jun. 30, 2024

USD ($)

$ / shares

Jun. 30, 2023

USD ($)

$ / shares

Income Statement [Abstract]

Net sales

$ 313,566

$ 283,957

$ 575,665

$ 549,910

Cost of sales

200,472

189,939

370,329

378,738

Gross profit

113,094

94,018

205,336

171,172

Selling, general and administrative expenses

45,895

39,272

91,183

72,214

(Gain) loss on disposal of assets

(16)

Income from operations

67,199

54,740

114,169

98,946

Interest expense, net

(367)

(1,543)

(606)

(2,693)

Other income, net

175

163

252

277

Income before taxes

67,007

53,360

113,815

96,530

Income tax provision

14,779

7,678

22,571

14,034

Basic (in dollars per share) | $ / shares

$ 52,228

$ 45,682

$ 91,244

^[1]

$ 82,496

Earnings per share:

^[2]

$ 0.64

$ 0.56

$ 1.12

$ 1.02

Diluted (in dollars per share) | $ / shares

^[2]

0.62

0.55

1.09

0.99

Cash dividends declared per common share (in dollars per share) | $ / shares

^[2]

$ 0.08

$ 0.16

Weighted average shares outstanding:

Basic (in shares) | shares

^[2]

81,791,792

81,439,691

81,339,153

81,263,523

Diluted (in shares) | shares

^[2]

83,786,222

83,469,581

83,527,717

83,478,498

[1]	1 Reflects three-for-two stock split effective August 16, 2023
[2]	1 Reflects three-for-two stock split effective August 16, 2023.

Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands

Total

Common Stock

Paid-in Capital

Retained Earnings

Balance (in shares) at Dec. 31, 2022

80,138

Balance at Dec. 31, 2022

$ 560,714

$ 322

$ 98,735

$ 461,657

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16) (in shares)

82,496

1,451

Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16)

23,244

$ 4

23,240

7,823

(20)

(1,162)

Balance (in shares) at Jun. 30, 2023

(13,004)

^[1]

81,569

Balance at Jun. 30, 2023

660,111

$ 326

^[1]

128,636

531,149

^[1]

Balance (in shares) at Mar. 31, 2023

^[1]

81,303

Balance at Mar. 31, 2023

609,414

$ 325

^[1]

117,077

492,012

^[1]

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16) (in shares)

45,682

^[1]

^[1]

268

Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16)

7,388

$ 1

7,387

4,304

^[1]

(2)

(132)

Balance (in shares) at Jun. 30, 2023

(6,545)

^[1]

^[1]

81,569

Balance at Jun. 30, 2023

660,111

$ 326

^[1]

128,636

531,149

^[1]

Balance (in shares) at Dec. 31, 2023

^[1]

81,508

Balance at Dec. 31, 2023

735,224

$ 326

^[1]

122,063

612,835

^[1]

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16) (in shares)

91,244

^[1]

91,244

^[1]

595

Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16)

15,821

$ 3

^[1]

15,818

Contingent shares issued (in shares)

243

6,364

$ 1

8,451

^[1]

(1,395)

(103,527)

$ (6)

^[1]

(103,521)

Balance (in shares) at Jun. 30, 2024

(13,079)

^[1]

^[1]

80,951

Balance at Jun. 30, 2024

740,498

$ 324

^[1]

49,174

691,000

^[1]

Balance (in shares) at Mar. 31, 2024

^[1]

82,118

Balance at Mar. 31, 2024

784,808

$ 329

^[1]

139,184

645,295

^[1]

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16) (in shares)

52,228

^[1]

^[1]

192

Stock options exercised, restricted stock awards granted, and contingent shares issued (Note 16)

5,977

$ 1

^[1]

5,976

6,363

4,494

^[1]

(1,359)

(100,486)

$ (6)

(100,480)

Balance (in shares) at Jun. 30, 2024

(6,523)

^[1]

^[1]

80,951

Balance at Jun. 30, 2024

$ 740,498

$ 324

^[1]

$ 49,174

$ 691,000

^[1]

[1]	1 Reflects three-for-two stock split effective August 16, 2023

Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2024

Jun. 30, 2023

Operating Activities

Adjustments to reconcile net income to net cash provided by operating activities:

$ 91,244

^[1]

$ 82,496

Depreciation and amortization

27,923

21,236

Amortization of debt issuance costs

Amortization of right of use assets

Provision for (recoveries of) credit losses on accounts receivable, net of adjustments

1,169

(171)

Provision for excess and obsolete inventories, net of write-offs

641

1,458

(Gain) loss on disposal of assets

8,451

7,823

(16)

Foreign currency transaction loss (gain)

(13)

Interest income on note receivable

(9)

(10)

Deferred

(4,438)

Changes in assets and liabilities:

Accounts receivable

(12,210)

(26,782)

Income taxes

(6,139)

(15,171)

Inventories

29,903

(17,927)

Contract assets

(22,977)

(4,711)

Prepaid expenses and other long-term assets

(2,708)

(2,502)

Accounts payable

(1,804)

(14,874)

Contract liabilities

13,105

(1,162)

Extended warranties

1,195

1,526

Accrued liabilities and other long-term liabilities

(56)

33,051

Net cash provided by operating activities

127,912

59,940

Investing Activities

Capital expenditures

(65,381)

(60,629)

Proceeds from sale of property, plant and equipment

104

Software development expenditures

(10,058)

Principal payments from note receivable

Net cash used in investing activities

(75,397)

(60,497)

Financing Activities

Proceeds from financing obligation, net of issuance costs

4,186

6,061

Payment related to financing costs

(417)

(398)

Borrowings under revolving credit facility

272,526

279,961

Payments under revolving credit facility

(224,970)

(272,429)

Stock options exercised

15,821

23,244

Repurchase of stock

100,034

Employee taxes paid by withholding shares

(3,493)

(1,162)

Cash dividends paid to stockholders

13,079

13,004

Net cash (used in) provided by financing activities

(49,460)

22,273

Net increase in cash, cash equivalents and restricted cash

3,055

21,716

Cash, cash equivalents and restricted cash, beginning of period

9,023

5,949

Cash, cash equivalents and restricted cash, end of period

$ 12,078

$ 27,665

[1]	1 Reflects three-for-two stock split effective August 16, 2023

General

6 Months Ended

Jun. 30, 2024

Basis of Presentation and Significant Accounting Policies [Abstract]

General

Basis of Presentation

Use of Estimates

Inflation and Labor Market

•In March 2023, we awarded annual merit raises for an overall 3.9% increase to wages.

•In March 2024, we awarded annual merit raises for an overall 3.3% increase to wages.

Accounting Policies

Fair Value Measurements

•Level 1: Quoted prices in active markets for identical assets and liabilities that we have the ability to access at the measurement date.

Definite-Lived Intangible Assets

useful lives of the assets. We evaluate the carrying value of our amortizable intangible assets for potential impairment when events and circumstances warrant such a review.

Amortization is computed using the straight-line method over the following estimated useful lives:


Intellectual property			6 - 30 years
Customer relationships			14 years

Software Development Costs

Goodwill and Indefinite-Lived Intangible Assets

The changes in the carrying amount of goodwill were as follows:


	Six Months Ended June 30,
	2024		2023
	(in thousands)
Balance, beginning of period	$	81,892	$	81,892
Additions (decreases) during the period	—		—
Balance, end of period	$	81,892	$	81,892

Recent Accounting Pronouncements

Revenue Recognition

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

The following tables show disaggregated net sales by reportable segment (Note 19) by major source, net of intercompany sales eliminations.


	Three Months Ended June 30, 2024
	AAON Oklahoma		AAON Coil Products		BASX		Total
	(in thousands)
Rooftop units	$	203,642	$	—	$	—	$	203,642
Condensing units	—		15,433		—		15,433
Air handlers	—		12,496		2,371		14,867

Cleanroom systems	—		—		11,227		11,227
Data center cooling solutions	—		926		41,907		42,833
Water-source heat pumps	—		1,574		—		1,574
Part sales	17,974		—		906		18,880
Other1	4,111		944		55		5,110
	$	225,727	$	31,373	$	56,466	$	313,566

	Three Months Ended June 30, 2023
	AAON Oklahoma		AAON Coil Products		BASX		Total
	(in thousands)
Rooftop units	$	196,065	$	—	$	—	$	196,065
Condensing units	61		11,329		—		11,390
Air handlers	—		12,610		2,600		15,210
Outdoor mechanical rooms	—		61		—		61
Cleanroom systems	—		—		17,086		17,086
Data center cooling solutions	—		1,794		15,877		17,671
Water-source heat pumps	398		3,086		—		3,484
Part sales	15,963		—		243		16,206
Other1	5,727		1,201		(144)		6,784
	$	218,214	$	30,081	$	35,662	$	283,957
1 Other sales include freight, extended warranties and miscellaneous revenue.



	Six Months Ended June 30, 2024
	AAON Oklahoma		AAON Coil Products		BASX		Total
	(in thousands)
Rooftop units	$	394,907	$	—	$	—	$	394,907
Condensing units	—		27,266		—		27,266
Air handlers	—		22,474		4,558		27,032

Cleanroom systems	—		—		18,540		18,540
Data center cooling solutions	—		1,132		59,580		60,712
Water-source heat pumps	—		3,155		—		3,155
Part sales	33,291		6		1,184		34,481
Other1	7,669		1,587		316		9,572
	$	435,867	$	55,620	$	84,178	$	575,665

	Six Months Ended June 30, 2023
	AAON Oklahoma		AAON Coil Products		BASX		Total
	(in thousands)
Rooftop units	$	376,091	$	—	$	—	$	376,091
Condensing units	61		26,607		—		26,668
Air handlers	—		24,831		5,638		30,469
Outdoor mechanical rooms	208		212		—		420
Cleanroom systems	—		—		29,708		29,708
Data center cooling solutions	—		3,240		30,353		33,593
Water-source heat pumps	3,128		6,166		—		9,294
Part sales	29,867		1		491		30,359
Other1	10,861		2,436		11		13,308
	$	420,216	$	63,493	$	66,201	$	549,910
1 Other sales include freight, extended warranties and miscellaneous revenue.

Sales allowances and customer incentives are treated as reductions to sales and are provided for based on historical experiences and current estimates.

Product Warranties

Representatives and Third Party Products

Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

The following table presents the balances by lease type:


	Balance Sheet Classification	June 30, 2024		December 31, 2023
Operating Leases
Right of use assets	Right of use assets	$	16,086	$	11,774
Lease liability, short-term	Accrued liabilities	$	2,272	$	2,021
Lease liability, long-term	Other long-term liabilities	$	14,335	$	10,201

Total undiscounted future lease payments are as follows:


	(in thousands)
2024	$	1,612
2025	3,100
2026	3,046
2027	3,136
2028	3,130
Thereafter	6,403

Accounts Receivable

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Accounts Receivable

Accounts receivable and the related allowance for credit losses are as follows:


	June 30, 2024		December 31, 2023
	(in thousands)
Accounts receivable	$	150,641	$	138,431
Less: Allowance for credit losses	(1,492)		(323)
Total, net	$	149,149	$	138,108


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Allowance for credit losses:	(in thousands)
Balance, beginning of period	$	435	$	421	$	323	$	477
Provisions for (recoveries of) expected credit	1,062		(115)		1,174		(171)
losses, net of adjustments
Accounts receivable written off, net of recoveries	(5)		—		(5)		—
Balance, end of period	$	1,492	$	306	$	1,492	$	306

Inventories

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Inventories

The components of inventories and related changes in the allowance for excess and obsolete inventories account are as follows:


	June 30, 2024		December 31, 2023
	(in thousands)
Raw materials	$	181,403	$	211,259
Work in process	5,190		5,523
Finished goods	3,196		2,910
Total, gross	189,789		219,692
Less: Allowance for excess and obsolete inventories	(6,801)		(6,160)
Total, net	$	182,988	$	213,532


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Allowance for excess and obsolete inventories:	(in thousands)
Balance, beginning of period	$	6,741	$	4,748	$	6,160	$	4,527
Provision for (recoveries of) excess and	968		794		1,928		1,458
obsolete inventories
Inventories written off	(908)		(261)		(1,287)		(704)
Balance, end of period	$	6,801	$	5,281	$	6,801	$	5,281

Intangible Assets

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible assets

Our intangible assets consist of the following:


	June 30, 2024		December 31, 2023
Definite-lived intangible assets	(in thousands)
Intellectual property	$	12,450	$	12,450
Customer relationships	47,547		47,547
Capitalized internal-use software	14,285		3,323
Less: Accumulated amortization	(13,293)		(9,838)
Total, net	60,989		53,482

Indefinite-lived intangible assets
Trademarks	14,571		14,571
Total intangible assets, net	$	75,560	$	68,053

Amortization expense recorded in selling, general and administrative expenses is as follows:


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Amortization expense	$	1,749	$	901	$	3,455	$	1,803

Total future amortization expense for finite-lived intangible assets was estimated as follows:


	(in thousands)
2024	$	4,861
2025	6,259
2026	4,743
2027	4,743
2028	4,652
Thereafter	29,117
Total future amortization expense	54,375
Internal-use software projects not in service	6,614
Total	$	60,989

Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2024

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Supplemental disclosures:	(in thousands)

Interest paid	$	153	$	1,506	$	548	$	2,627
Income taxes paid	$	28,359	$	33,471	$	28,670	$	33,643
Non-cash investing and financing activities:
Non-cash capital expenditures	$	5,356	$	1,205	$	3,278	$	1,571
Contingent shares issued (Note 15)	$	—	$	—	$	6,364	$	—

Warranties

6 Months Ended

Jun. 30, 2024

Guarantees [Abstract]

Warranties

Changes in the warranty accrual are as follows:


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Warranty accrual:	(in thousands)
Balance, beginning of period	$	21,349	$	16,209	$	20,573	$	15,682
Payments made	(3,037)		(2,435)		(5,659)		(4,316)
Warranty expense	3,320		3,126		6,718		5,534
Balance, end of period	$	21,632	$	16,900	$	21,632	$	16,900

Accrued Liabilities and Other Long-Term Liabilities

6 Months Ended

Jun. 30, 2024

Payables and Accruals [Abstract]

Accrued Liabilities and Other Long-Term Liabilities

Accrued liabilities were comprised of the following:


	June 30, 2024		December 31, 2023
	(in thousands)
Warranty	$	21,632	$	20,573
Due to representatives	19,934		14,428
Payroll	11,425		18,829
Profit sharing	6,393		7,596
Workers' compensation	545		338
Medical self-insurance	1,940		1,460
Customer prepayments	1,856		2,621
Donations, short-term	1,153		381

Accrued income taxes	—		1,170
Employee vacation time	11,042		10,315
Extended warranties, short-term	2,829		2,387
Lease liability, short-term	2,272		2,021
Property taxes	2,008		—
Other	2,470		3,389
Total	$	85,499	$	85,508

Other long-term liabilities were comprised of the following:


	June 30, 2024		December 31, 2023
	(in thousands)
Lease liability	$	14,335	$	10,201
Extended warranties	6,835		6,082
Donations and other	—		524
Total	$	21,170	$	16,807

Revolving Credit Facility	6 Months Ended
Revolving Credit Facility	Jun. 30, 2024
Debt Disclosure [Abstract]
Revolving Credit Facility	Revolving Credit Facility On May 27, 2022, we amended our $100.0 million Amended and Restated Loan Agreement dated November 24, 2021 (as amended, “Revolver”), to provide for maximum borrowings of $200.0 million. As of June 30, 2024, and December 31, 2023 we had $85.9 million and $38.3 million outstanding under the Revolver, respectively. We have two standby letters of credit totaling $2.3 million as of June 30, 2024. Borrowings available under the Revolver at June 30, 2024 were $111.8 million. The Revolver expires on May 27, 2027. We have amended the Revolver to allow for the occurrence of transactions associated with the New Markets Tax Credit transactions (Note 16). Any outstanding loans under the Revolver bear interest at the daily compounded secured overnight financing rate ("SOFR") plus the applicable margin. Applicable margin, ranging from 1.25% - 1.75%, is determined quarterly based on the Company's leverage ratio. The Company is also subject to letter of credit fees, ranging from 1.25% - 1.75%, and a commitment fee, ranging from 0.10% - 0.20%. The applicable fee percentage is determined quarterly based on the Company's leverage ratio. The weighted average interest rate on borrowings outstanding on the Revolver was 6.6% for both the three and six months ended June 30, 2024, respectively, as compared to 6.3% and 6.2% for the three and six months ended June 30, 2023, respectively. Fees associated with the unused portion of the committed amount are included in interest expense on our consolidated statements of income for the three and six months ended June 30, 2024 and 2023, respectively. If SOFR cannot be determined pursuant to the definition, as defined by the Revolver agreement, any outstanding affected loans will be deemed to have been converted into alternative base rate ("ABR") loans. ABR loans would bear interest at a rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate in effect on such day plus 0.50%, or (c) daily simple SOFR for a one-month tenor in effect on such day plus 1.00%. At June 30, 2024, we were in compliance with our covenants, as defined by the Revolver. Our financial covenants require that we meet certain parameters related to our leverage ratio. At June 30, 2024, our leverage ratio was 0.3 to 1.0, which meets the requirement of not being above 3 to 1.

Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

The provision (benefit) for income taxes consists of the following:


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Current	$	13,998	$	13,037	$	22,530	$	18,472
Deferred	781		(5,359)		41		(4,438)
Income tax provision	$	14,779	$	7,678	$	22,571	$	14,034

The provision for income taxes differs from the amount computed by applying the Federal statutory income tax rate before the provision for income taxes.

The reconciliation of the Federal statutory income tax rate to the effective income tax rate is as follows:


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Federal statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
State income taxes, net of Federal benefit	4.8		4.6		5.0		4.4


Excess tax benefits related to share-based compensation (Note 12)	(3.4)		(3.8)		(5.8)		(6.0)
Return to provision	—		—		(0.1)		(0.1)
Non-deductible executive compensation	1.5		—		1.3		—
Research and development credits	(1.2)		(1.2)		(1.2)		(1.3)
Change in valuation allowance (Oklahoma Investment Credit)	—		(5.8)		—		(3.2)
Other	(0.6)		(0.4)		(0.4)		(0.3)
Effective tax rate	22.1	%	14.4	%	19.8	%	14.5	%

Share-Based Compensation

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

As discussed in Note 15, the Company declared a three-for-two stock split effective August 16, 2023. All share and per share information has been updated to reflect the effect of this stock split.

Options


	Six months ended
	June 30, 2024	June 30, 2023
Directors and SLT1:
Expected (annual) dividend rate	$0.32	$0.32
Expected volatility	37.90%	37.89%
Risk-free interest rate	4.14%	4.39%
Expected life (in years)	4.0	4.0
Employees:
Expected (annual) dividend rate	$0.32	$0.32
Expected volatility	33.51%	38.52%
Risk-free interest rate	4.28%	4.40%
Expected life (in years)	3.0	3.0
1 SLT consists of officers and key members of management.

The following is a summary of stock options vested and exercisable as of June 30, 2024:


Range of Exercise Prices					Number of Shares	Weighted Average Remaining Contractual Life (in years)	Weighted Average Exercise Price		Intrinsic Value (in thousands)
$	13.95	-	$	27.58	1,447,345	3.86	$	24.89	$	90,236
$	28.28	-	$	37.07	653,631	6.25	31.56		36,404
$	37.09	-	$	94.48	350,308	7.21	51.11		12,658
			Total		2,451,284	4.98	$	30.42	$	139,298

A summary of stock option activity under the plans is as follows:


Stock Options	Shares	Weighted Average Exercise Price
Outstanding at December 31, 2023	3,619,585	$	33.09
Granted	405,124	79.56
Exercised	(476,686)	33.18
Forfeited or Expired	(26,288)	56.65
Outstanding at June 30, 2024	3,521,735	$	38.25
Exercisable at June 30, 2024	2,451,284	$	30.42

Restricted Stock

A summary of the unvested restricted stock awards is as follows:


	Shares	Weighted Average Grant Date Fair Value
Unvested at December 31, 2023	187,084	$	44.07
Granted	64,368	78.13
Vested	(93,572)	40.63
Forfeited	(2,704)	56.01
Unvested at June 30, 2024	155,176	$	60.07

PSUs


	Six months ended
	June 30, 2024	June 30, 2023

Expected (annual) dividend rate	$0.32	$0.32
Expected volatility	33.99%	32.71%
Risk-free interest rate	4.31%	4.66%
Expected life (in years)	2.8	2.8

A summary of the unvested PSUs is as follows:


	Shares	Weighted Average Grant Date Fair Value
Unvested at December 31, 2023	152,112	$	54.88
Granted	47,599	106.24
Additional target payout1	2,059	58.53
Vested	(21,919)	58.53
Forfeited	(2,362)	58.53
Unvested at June 30, 20242	177,489	$	68.20
1 The additional number of PSUs earned based on a 110% achievement at December 31, 2023 for awards vesting in 2024.
2 Consists of 71,760 PSUs cliff vesting December 31, 2024, 58,130 PSUs cliff vesting December 31, 2025, and 47,599 PSUs cliff vesting December 31, 2026.

Key Employee Awards

A summary of the unvested Key Employee Awards is as follows:


	Shares	Weighted Average Grant Date Fair Value
Unvested at December 31, 2023	39,899	$	53.45
Granted	—	—
Vested	(39,899)	53.45
Forfeited	—	—
Unvested at June 30, 2024	—	$	—

Share-Based Compensation

A summary of share-based compensation is as follows:


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Grant date fair value of awards during the period:	(in thousands)
Options	$	412	$	445	$	9,120	$	5,118
PSUs	96		1,666		5,057		4,907
Restricted stock	837		1,244		5,029		4,150

Total	$	1,345	$	3,355	$	19,206	$	14,175

Share-based compensation expense:
Options	$	2,046	$	2,311	$	4,253	$	4,376
PSUs	1,227		716		1,851		1,083
Restricted stock	1,221		1,024		2,347		1,850
Key Employee Awards	—		253		—		514
Total	$	4,494	$	4,304	$	8,451	$	7,823

Income tax benefit (deficiency) related to share-based compensation:
Options	$	2,081	$	1,840	$	5,228	$	5,161
PSUs	—		—		169		—
Restricted stock	163		199		971		664
Key Employee Awards	—		—		282		—
Total	$	2,244	$	2,039	$	6,650	$	5,825

Employee Benefits

6 Months Ended

Jun. 30, 2024

Retirement Benefits [Abstract]

Employee Benefits

Defined Contribution Plan - 401(k)

The Company matches 175% up to 6% of employee contributions of eligible compensation. Additionally, Plan participant forfeitures are used to reduce the cost of the Company contributions.


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Contributions, net of forfeitures, made to the defined contribution plan	$	4,366	$	3,408	$	10,076	$	8,667

Profit Sharing Bonus Plans


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Profit sharing bonus plan and employee incentive plan expense	$	6,477	$	5,952	$	11,077	$	10,818

Employee Medical Plan


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Medical premium payments	$	3,924	$	4,132	$	7,295	$	6,800
Health saving account contributions	2,116		1,198		4,282		2,258

Earnings Per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the six months ended June 30, 2024 and 2023:


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Numerator:	(in thousands, except share and per share data)
Net income	$	52,228	$	45,682	$	91,244	$	82,496
Denominator:
Basic weighted average shares3	81,791,792		81,439,691		81,339,153		81,263,523
Effect of dilutive shares related to stock based compensation1,3	1,994,430		2,029,890		2,093,715		2,002,200
Effect of dilutive shares related to contingent consideration2 ,3	—		—		94,849		212,775
Diluted weighted average shares3	83,786,222		83,469,581		83,527,717		83,478,498
Earnings per share:
Basic3	$	0.64	$	0.56	$	1.12	$	1.02
Dilutive3	$	0.62	$	0.55	$	1.09	$	0.99
Anti-dilutive shares:
Shares3	437,997		347,370		275,357		263,905
1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 12)
2 Dilutive shares related to contingent shares issued to the former owners of BASX (Note 15)
3 Reflects three-for-two stock split effective August 16, 2023.

Stockholders' Equity

6 Months Ended

Jun. 30, 2024

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

Stock Repurchases

Our authorized open market repurchase programs during the periods presented are as follows:

Effective Date

Authorized Repurchase $

Expiration Date

November 3, 2022

$50 million1

February 27, 2024

$50 million1

June 4, 2024

$50 million2

June 14, 2024

1 Repurchases made in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.

2 Repurchases made in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

Our repurchase activity is as follows:


	Six Months Ended
	June 30, 2024					June 30, 2023
	(in thousands, except share and per share data)
Program	Shares1	Total $		$ per share1		Shares1	Total $		$ per share1
Open market	1,353,564	$	100,034	$	73.90	—	$	—	$	—

Employees	42,573	3,493		82.05		19,624	1,162		59.21
Total	1,396,137	$	103,527	$	74.15	19,624	$	1,162	$	59.21
1 Reflects three-for-two stock split effective August 16, 2023.

Cash Dividends

At the discretion of the Board, we pay cash dividends. Board approval is required to determine the date of declaration and amount for each cash dividend payment.

Our recent cash dividends are as follows:

Declaration Date

Record Date

Payment Date

Dividend

per Share1

Annualized Dividend

per Share1

March 1, 2023

March 13, 2023

March 31, 2023

$0.08

$0.32

May 18, 2023

June 9, 2023

June 30, 2023

$0.08

$0.32

August 18, 2023

September 8, 2023

September 29, 2023

$0.08

$0.32

November 10, 2023

November 29, 2023

December 18, 2023

$0.08

$0.32

March 5, 2024

March 18, 2024

March 29, 2024

$0.08

$0.32

May 24, 2024

June 7, 2024

June 28, 2024

$0.08

$0.32

1 Reflects three-for-two stock split effective August 16, 2023.

Stock Split

Contingent Shares Issued in BASX Acquisition

As discussed above, the Company declared a three-for-two stock split effective August 16, 2023. All share and per share information has been updated to reflect the effect of this stock split.

Authorized Shares Outstanding

New Market Tax Credit	6 Months Ended
New Market Tax Credit	Jun. 30, 2024
New Market Tax Credit [Abstract]
New Market Tax Credit	New Markets Tax Credit 2019 New Markets Tax Credit On October 24, 2019, the Company entered into a transaction with a subsidiary of an unrelated third-party financial institution (the “2019 Investor”) and a certified Community Development Entity under a qualified New Markets Tax Credit (“2019 NMTC”) program pursuant to Section 45D of the Internal Revenue Code of 1986, as amended, related to an investment in plant and equipment to facilitate the expansion of our Longview, Texas manufacturing operations (the “2019 Project”). In connection with the 2019 NMTC transaction, the Company received a $23.0 million NMTC allocation for the Project and secured low interest financing and the potential for future debt forgiveness related to the 2019 Project. Upon closing of the 2019 NMTC transaction, the Company provided an aggregate of approximately $15.9 million to the 2019 Investor, in the form of a loan receivable, with a term of twenty-five years, bearing an interest rate of 1.0%. This $15.9 million in proceeds plus capital contributed from the 2019 Investor was used to make an aggregate $22.5 million loan to a subsidiary of the Company. This financing arrangement is secured by equipment at the Company's Longview, Texas facilities and a guarantee from the Company, including an unconditional guarantee of the NMTCs. This transaction also includes a put/call feature either of which can be exercised at the end of the seven-year compliance period. The 2019 Investor may exercise its put option or the Company can exercise the call, both of which could serve to trigger forgiveness of a portion of the debt. The 2019 Investor's interest of $6.5 million is recorded in New market tax credit obligation on the consolidated balance sheets. The Company incurred approximately $0.3 million of debt issuance costs related to the above transactions, which are being amortized over the life of the transaction. 2023 New Markets Tax Credit On April 25, 2023, the Company entered into a transaction with a subsidiary of an unrelated third-party financial institution (the “2023 Investor”) and a certified Community Development Entity under a qualified New Markets Tax Credit (“2023 NMTC”) program pursuant to Section 45D of the Internal Revenue Code of 1986, as amended, related to an investment in plant and equipment to facilitate the expansion of our Longview, Texas manufacturing operations (the “2023 Project”). In connection with the 2023 NMTC transaction, the Company received a $23.0 million NMTC allocation for the 2023 Project and secured low interest financing and the potential for future debt forgiveness related to the expansion of its Longview, Texas facilities. Upon closing of the 2023 NMTC transaction, the Company provided an aggregate of approximately $16.7 million to the Investor, in the form of a loan receivable, with a term of twenty-five years, bearing an interest rate of 1.0%. This $16.7 million in proceeds plus capital contributed from the 2023 Investor was used to make an aggregate $23.8 million loan to a subsidiary of the Company. This financing arrangement is secured by a guarantee from the Company, including an unconditional guarantee of the NMTCs. The net proceeds from the closing of the 2023 NMTC are included in restricted cash on our consolidated balance sheets required to be used for the 2023 Project. This transaction also includes a put/call feature either of which can be exercised at the end of the seven-year compliance period. The 2023 Investor may exercise its put option or the Company can exercise the call, both of which could serve to trigger forgiveness of a portion of the debt. The 2023 Investor's interest of $5.7 million is recorded in New market tax credit obligation on the consolidated balance sheets. The Company incurred approximately $0.4 million of debt issuance costs related to the above transactions, which are being amortized over the life of the transaction. 2024 New Markets Tax Credit On February 27, 2024, the Company entered into a transaction with a subsidiary of an unrelated third-party financial institution (the “2024 Investor”) and a certified Community Development Entity under a qualified New Markets Tax Credit (“2024 NMTC”) program pursuant to Section 45D of the Internal Revenue Code of 1986, as amended, related to an investment in real estate to facilitate 2023 Project. In connection with the 2024 NMTC transaction, the Company received a $15.5 million NMTC allocation for the 2023 Project and secured low interest financing and the potential for future debt forgiveness related to the expansion of its Longview, Texas facilities. Upon closing of the 2024 NMTC transaction, the Company provided an aggregate of approximately $11.0 million to the Investor, in the form of a loan receivable, with a term of twenty-five years, bearing an interest rate of 1.0%. This $11.0 million in proceeds plus capital contributed from the Investor was used to make an aggregate $16.0 million loan to a subsidiary of the Company. This financing arrangement is secured by a guarantee from the Company, including an unconditional guarantee of the NMTCs. The net proceeds from the closing of the 2024 NMTC are included in restricted cash on our consolidated balance sheets required to be used for the 2023 Project. This transaction also includes a put/call feature that either of which can be exercised at the end of the seven-year compliance period. The Investor may exercise its put option or the Company can exercise the call, both of which could serve to trigger forgiveness of a portion of the debt. The 2024 Investor's interest of $3.8 million is recorded in New market tax credit obligations on the consolidated balance sheets. The Company incurred approximately $0.4 million of debt issuance costs related to the above transactions, which are being amortized over the life of the transaction. The 2019 Investor, 2023 Investor, and 2024 Investor are each subject to 100 percent recapture of the 2019, 2023, and 2024 NMTC, respectively, it receives for a period of seven years, as provided in the Internal Revenue Code and applicable U.S. Treasury regulations in the event that the financing facility of the Borrower under the transaction (AAON Coil Products, Inc.) becomes ineligible for NMTC treatment per the Internal Revenue Code requirements. The Company is required to be in compliance with various regulations and contractual provisions that apply to the 2019 NMTC arrangements, 2023 NMTC arrangements, and 2024 NMTC arrangements, respectively. Noncompliance with applicable requirements could result in the 2019 and/or 2023 and/or 2024 Investors' projected tax benefits not being realized and, therefore, require the Company to indemnify the 2019 Investor, 2023 Investor, and 2024 Investor for any loss or recapture of the 2019 NMTC, 2023 NMTC, and 2024 NMTC, respectively, related to the financing until such time as the recapture provisions have expired under the applicable statute of limitations. The Company does not anticipate any credit recapture will be required in connection with any of these financing arrangements. The 2019 Investor, 2023 Investor, and 2024 Investor and its majority owned community development entity are considered VIEs and the Company is the primary beneficiary of the VIEs. Because the Company is the primary beneficiary of the VIEs, they have been included in the consolidated financial statements. There are no other assets, liabilities or transactions in these VIEs outside of the financing transactions executed as part of the 2019 NMTC, 2023 NMTC, or 2024 NMTC arrangements, respectively.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Havtech Litigation On January 24, 2022, one of the Company’s former independent sales representative firms, Havtech, LLC (and its affiliate, Havtech Parts Division, LLC, collectively “Plaintiffs”), filed a complaint (the “Complaint”) in the Circuit Court for Howard County, Maryland (Havtech, LLC, et al., v. AAON, Inc., et al.). The Complaint challenged the Company’s termination of its business relationship with Plaintiffs. The Company removed the action to the United States District Court for the District of Maryland (Northern Division) and moved to dismiss the Complaint. Plaintiffs’ First Amended Complaint (“First Amended Complaint”) was entered by the court on July 28, 2022. The First Amended Complaint asserts that the Company improperly terminated Plaintiffs and seeks damages alleged to be no less than $48.6 million, plus fees and costs. The Company filed its Answer to First Amended Complaint on January 31, 2023. On September 28, 2023, the parties attended a court ordered settlement conference and agreed to resolve the case for $7.5 million. A settlement agreement was entered into on October 25, 2023 and the case has been dismissed with prejudice. The final payment was made on October 26, 2023. Other Matters The Company is involved from time to time in claims and lawsuits incidental to our business arising from various matters, including alleged violations of contract, product liability, warranty, environmental, regulatory, personal injury, intellectual property, employment, tax and other laws. We closely monitor these claims and legal actions and frequently consult with our legal counsel to determine whether they may, when resolved, have a material adverse effect on our financial position, results of operations or cash flows and we accrue and/or disclose loss contingencies as appropriate. We do not believe these matters will have a material adverse effect on our business, financial position, results of operations or cash flows. We are occasionally party to short-term and long-term, cancellable and occasionally non-cancellable, contracts with major suppliers for the purchase of raw material and component parts. We expect to receive delivery of raw material and component parts for use in our manufacturing operations. These contracts are not accounted for as derivative instruments because they meet the normal purchase and normal sales exemption. We had no material contractual purchase obligations as of June 30, 2024, except as noted below. In 2023, the Company executed a five-year purchase commitment for refrigerants. Payments made in satisfaction of the purchase commitment were approximately $3.0 million and $6.6 million the three and six months ended June 30, 2024, respectively, as compared to $2.7 million and $5.1 million for the three and six months ended June 30, 2023, respectively. Estimated minimum future payments are $5.3 million, $9.1 million, $10.5 million, and $11.2 million for 2024, 2025, 2026, and 2027, respectively. We had no other material contractual purchase obligations as of June 30, 2024.

Related Parties

6 Months Ended

Jun. 30, 2024

Related Parties

The following is a summary of transactions and balances with related parties:


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Sales to affiliates	$	1,625	$	2,619	$	3,821	$	3,764
Payments to affiliates	505		390		1,120		782

					June 30, 2024		December 31, 2023
					(in thousands)
Due from affiliates					$	380	$	994
Due to affiliates					—		145

The nature of our related party transactions is as follows:

•The Company purchases some supplies from entities controlled by two of the Company’s board members and a member of the Company's executive management team.

•The Company periodically makes part sales and makes payments to a board member related to a consulting agreement.

•The Company periodically rents space partially owned by the CEO for various Company meetings.

•The Company leases flight time of an aircraft partially owned by our COO and Vice President.

Segments

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segments


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Net Sales					(in thousands)
AAON Oklahoma
External sales	$	225,727	$	218,214	$	435,867	$	420,216
Inter-segment sales	1,311		1,205		2,982		2,699
AAON Coil Products
External sales	31,373		30,081		55,620		63,493
Inter-segment sales	8,942		9,499		18,273		16,816
BASX
External sales	56,466		35,662		84,178		66,201
Inter-segment sales	220		1,130		222		1,500
Eliminations	(10,473)		(11,834)		(21,477)		(21,015)
Net sales	$	313,566	$	283,957	$	575,665	$	549,910

Gross Profit
AAON Oklahoma	$	83,870	$	75,379	$	162,281	$	137,229
AAON Coil Products	13,159		7,483		21,298		14,641
BASX	16,065		11,156		21,757		19,302
Gross profit	$	113,094	$	94,018	$	205,336	$	171,172


	June 30, 2024		December 31, 2023
Long-lived assets	(in thousands)
AAON Oklahoma	$	255,382	$	248,556
AAON Coil Products	103,524		83,169
BASX	70,414		49,996
Total long-lived assets	$	429,320	$	381,721

Intangible assets and goodwill
AAON Oklahoma	$	19,592	$	10,282
AAON Coil Products	—		—
BASX	137,860		139,663
Total intangible assets and goodwill	$	157,452	$	149,945

Pay vs Performance Disclosure - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2024

Jun. 30, 2023

Jun. 30, 2024

Jun. 30, 2023

Pay vs Performance Disclosure

Rule 10b5-1 Arrangement Adopted

$ 52,228

$ 45,682

$ 91,244

^[1]

$ 82,496

[1]	1 Reflects three-for-two stock split effective August 16, 2023

Insider Trading Arrangements

3 Months Ended

6 Months Ended

Jun. 30, 2024

Trading Arrangements, by Individual

false

Non-Rule 10b5-1 Arrangement Adopted

false

Non-Rule 10b5-1 Arrangement Terminated

false

Stephen E. Wakefield [Member]

Trading Arrangements, by Individual

Material Terms of Trading Arrangement

The following table describes contracts, instructions or written plans for the purchase or sale of our securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

Name and Title of Director or Officer

Date of Adoption of Arrangement

Duration of the Arrangement

Aggregate Number of Securities to be Purchased or Sold Pursuant to the Arrangement

Stephen E. Wakefield

November 23, 2022

Terminated May 17, 2023

95,788

Vice President

Stephen E. Wakefield

September 13, 2023

Terminated December 27, 2023

181,000

Vice President

Stephen E. Wakefield

March 14, 2024

Terminated July 12, 2024

29,946

Vice President

Name

Stephen E. Wakefield

Title

Vice President

Rule 10b5-1 Arrangement Terminated

true

Termination Date

July 12, 2024

Arrangement Duration

120 days

Aggregate Available

29,946

General (Policies)

6 Months Ended

Jun. 30, 2024

Basis of Presentation and Significant Accounting Policies [Abstract]

Use of Estimates

Inflation and Labor Market

•In March 2023, we awarded annual merit raises for an overall 3.9% increase to wages.

•In March 2024, we awarded annual merit raises for an overall 3.3% increase to wages.

Fair Value Measurements

•Level 1: Quoted prices in active markets for identical assets and liabilities that we have the ability to access at the measurement date.

Intangible Assets

Definite-Lived Intangible Assets

useful lives of the assets. We evaluate the carrying value of our amortizable intangible assets for potential impairment when events and circumstances warrant such a review.

Goodwill

Goodwill and Indefinite-Lived Intangible Assets

The changes in the carrying amount of goodwill were as follows:


	Six Months Ended June 30,
	2024		2023
	(in thousands)
Balance, beginning of period	$	81,892	$	81,892
Additions (decreases) during the period	—		—
Balance, end of period	$	81,892	$	81,892

Recent Accounting Pronouncements

General (Tables)

6 Months Ended

Jun. 30, 2024

Basis of Presentation and Significant Accounting Policies [Abstract]

Schedule of Intangible Assets

Amortization is computed using the straight-line method over the following estimated useful lives:


Intellectual property			6 - 30 years
Customer relationships			14 years

Software Development Costs

Our intangible assets consist of the following:


	June 30, 2024		December 31, 2023
Definite-lived intangible assets	(in thousands)
Intellectual property	$	12,450	$	12,450
Customer relationships	47,547		47,547
Capitalized internal-use software	14,285		3,323
Less: Accumulated amortization	(13,293)		(9,838)
Total, net	60,989		53,482

Indefinite-lived intangible assets
Trademarks	14,571		14,571
Total intangible assets, net	$	75,560	$	68,053

Schedule of Goodwill

The changes in the carrying amount of goodwill were as follows:


	Six Months Ended June 30,
	2024		2023
	(in thousands)
Balance, beginning of period	$	81,892	$	81,892
Additions (decreases) during the period	—		—
Balance, end of period	$	81,892	$	81,892

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The following tables show disaggregated net sales by reportable segment (Note 19) by major source, net of intercompany sales eliminations.


	Three Months Ended June 30, 2024
	AAON Oklahoma		AAON Coil Products		BASX		Total
	(in thousands)
Rooftop units	$	203,642	$	—	$	—	$	203,642
Condensing units	—		15,433		—		15,433
Air handlers	—		12,496		2,371		14,867

Cleanroom systems	—		—		11,227		11,227
Data center cooling solutions	—		926		41,907		42,833
Water-source heat pumps	—		1,574		—		1,574
Part sales	17,974		—		906		18,880
Other1	4,111		944		55		5,110
	$	225,727	$	31,373	$	56,466	$	313,566

	Three Months Ended June 30, 2023
	AAON Oklahoma		AAON Coil Products		BASX		Total
	(in thousands)
Rooftop units	$	196,065	$	—	$	—	$	196,065
Condensing units	61		11,329		—		11,390
Air handlers	—		12,610		2,600		15,210
Outdoor mechanical rooms	—		61		—		61
Cleanroom systems	—		—		17,086		17,086
Data center cooling solutions	—		1,794		15,877		17,671
Water-source heat pumps	398		3,086		—		3,484
Part sales	15,963		—		243		16,206
Other1	5,727		1,201		(144)		6,784
	$	218,214	$	30,081	$	35,662	$	283,957
1 Other sales include freight, extended warranties and miscellaneous revenue.



	Six Months Ended June 30, 2024
	AAON Oklahoma		AAON Coil Products		BASX		Total
	(in thousands)
Rooftop units	$	394,907	$	—	$	—	$	394,907
Condensing units	—		27,266		—		27,266
Air handlers	—		22,474		4,558		27,032

Cleanroom systems	—		—		18,540		18,540
Data center cooling solutions	—		1,132		59,580		60,712
Water-source heat pumps	—		3,155		—		3,155
Part sales	33,291		6		1,184		34,481
Other1	7,669		1,587		316		9,572
	$	435,867	$	55,620	$	84,178	$	575,665

	Six Months Ended June 30, 2023
	AAON Oklahoma		AAON Coil Products		BASX		Total
	(in thousands)
Rooftop units	$	376,091	$	—	$	—	$	376,091
Condensing units	61		26,607		—		26,668
Air handlers	—		24,831		5,638		30,469
Outdoor mechanical rooms	208		212		—		420
Cleanroom systems	—		—		29,708		29,708
Data center cooling solutions	—		3,240		30,353		33,593
Water-source heat pumps	3,128		6,166		—		9,294
Part sales	29,867		1		491		30,359
Other1	10,861		2,436		11		13,308
	$	420,216	$	63,493	$	66,201	$	549,910
1 Other sales include freight, extended warranties and miscellaneous revenue.

Sales allowances and customer incentives are treated as reductions to sales and are provided for based on historical experiences and current estimates.

Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Schedule of Lessee, Operating Lease, Liability, Maturity

The following table presents the balances by lease type:


	Balance Sheet Classification	June 30, 2024		December 31, 2023
Operating Leases
Right of use assets	Right of use assets	$	16,086	$	11,774
Lease liability, short-term	Accrued liabilities	$	2,272	$	2,021
Lease liability, long-term	Other long-term liabilities	$	14,335	$	10,201

Contractual Obligation, Fiscal Year Maturity

Total undiscounted future lease payments are as follows:


	(in thousands)
2024	$	1,612
2025	3,100
2026	3,046
2027	3,136
2028	3,130
Thereafter	6,403

Accounts Receivable (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Accounts Receivable


	June 30, 2024		December 31, 2023
	(in thousands)
Accounts receivable	$	150,641	$	138,431
Less: Allowance for credit losses	(1,492)		(323)
Total, net	$	149,149	$	138,108

Allowance for Doubtful Accounts


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Allowance for credit losses:	(in thousands)
Balance, beginning of period	$	435	$	421	$	323	$	477
Provisions for (recoveries of) expected credit	1,062		(115)		1,174		(171)
losses, net of adjustments
Accounts receivable written off, net of recoveries	(5)		—		(5)		—
Balance, end of period	$	1,492	$	306	$	1,492	$	306

Inventories (Tables)

6 Months Ended

Jun. 30, 2024

Inventory Disclosure [Abstract]

Inventories

The components of inventories and related changes in the allowance for excess and obsolete inventories account are as follows:


	June 30, 2024		December 31, 2023
	(in thousands)
Raw materials	$	181,403	$	211,259
Work in process	5,190		5,523
Finished goods	3,196		2,910
Total, gross	189,789		219,692
Less: Allowance for excess and obsolete inventories	(6,801)		(6,160)
Total, net	$	182,988	$	213,532

Inventories (Allowance)


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Allowance for excess and obsolete inventories:	(in thousands)
Balance, beginning of period	$	6,741	$	4,748	$	6,160	$	4,527
Provision for (recoveries of) excess and	968		794		1,928		1,458
obsolete inventories
Inventories written off	(908)		(261)		(1,287)		(704)
Balance, end of period	$	6,801	$	5,281	$	6,801	$	5,281

Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Amortization is computed using the straight-line method over the following estimated useful lives:


Intellectual property			6 - 30 years
Customer relationships			14 years

Software Development Costs

Our intangible assets consist of the following:


	June 30, 2024		December 31, 2023
Definite-lived intangible assets	(in thousands)
Intellectual property	$	12,450	$	12,450
Customer relationships	47,547		47,547
Capitalized internal-use software	14,285		3,323
Less: Accumulated amortization	(13,293)		(9,838)
Total, net	60,989		53,482

Indefinite-lived intangible assets
Trademarks	14,571		14,571
Total intangible assets, net	$	75,560	$	68,053

Schedule of Amortization Expense

Amortization expense recorded in selling, general and administrative expenses is as follows:


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Amortization expense	$	1,749	$	901	$	3,455	$	1,803

Supplemental Cash Flow Information (Tables)

6 Months Ended

Jun. 30, 2024

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Supplemental disclosures:	(in thousands)

Interest paid	$	153	$	1,506	$	548	$	2,627
Income taxes paid	$	28,359	$	33,471	$	28,670	$	33,643
Non-cash investing and financing activities:
Non-cash capital expenditures	$	5,356	$	1,205	$	3,278	$	1,571
Contingent shares issued (Note 15)	$	—	$	—	$	6,364	$	—

Warranties (Tables)

6 Months Ended

Jun. 30, 2024

Guarantees [Abstract]

Warranty

Changes in the warranty accrual are as follows:


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Warranty accrual:	(in thousands)
Balance, beginning of period	$	21,349	$	16,209	$	20,573	$	15,682
Payments made	(3,037)		(2,435)		(5,659)		(4,316)
Warranty expense	3,320		3,126		6,718		5,534
Balance, end of period	$	21,632	$	16,900	$	21,632	$	16,900

Accrued Liabilities and Other Long-Term Liabilities (Tables)

6 Months Ended

Jun. 30, 2024

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued liabilities were comprised of the following:


	June 30, 2024		December 31, 2023
	(in thousands)
Warranty	$	21,632	$	20,573
Due to representatives	19,934		14,428
Payroll	11,425		18,829
Profit sharing	6,393		7,596
Workers' compensation	545		338
Medical self-insurance	1,940		1,460
Customer prepayments	1,856		2,621
Donations, short-term	1,153		381

Accrued income taxes	—		1,170
Employee vacation time	11,042		10,315
Extended warranties, short-term	2,829		2,387
Lease liability, short-term	2,272		2,021
Property taxes	2,008		—
Other	2,470		3,389
Total	$	85,499	$	85,508

Schedule of Other Long-Term Liabilities

Other long-term liabilities were comprised of the following:


	June 30, 2024		December 31, 2023
	(in thousands)
Lease liability	$	14,335	$	10,201
Extended warranties	6,835		6,082
Donations and other	—		524
Total	$	21,170	$	16,807

Income Taxes (Tables)

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes consists of the following:


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Current	$	13,998	$	13,037	$	22,530	$	18,472
Deferred	781		(5,359)		41		(4,438)
Income tax provision	$	14,779	$	7,678	$	22,571	$	14,034

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the Federal statutory income tax rate to the effective income tax rate is as follows:


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Federal statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
State income taxes, net of Federal benefit	4.8		4.6		5.0		4.4


Excess tax benefits related to share-based compensation (Note 12)	(3.4)		(3.8)		(5.8)		(6.0)
Return to provision	—		—		(0.1)		(0.1)
Non-deductible executive compensation	1.5		—		1.3		—
Research and development credits	(1.2)		(1.2)		(1.2)		(1.3)
Change in valuation allowance (Oklahoma Investment Credit)	—		(5.8)		—		(3.2)
Other	(0.6)		(0.4)		(0.4)		(0.3)
Effective tax rate	22.1	%	14.4	%	19.8	%	14.5	%

Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Summary of Stock Option Assumptions


	Six months ended
	June 30, 2024	June 30, 2023
Directors and SLT1:
Expected (annual) dividend rate	$0.32	$0.32
Expected volatility	37.90%	37.89%
Risk-free interest rate	4.14%	4.39%
Expected life (in years)	4.0	4.0
Employees:
Expected (annual) dividend rate	$0.32	$0.32
Expected volatility	33.51%	38.52%
Risk-free interest rate	4.28%	4.40%
Expected life (in years)	3.0	3.0
1 SLT consists of officers and key members of management.


	Six months ended
	June 30, 2024	June 30, 2023

Expected (annual) dividend rate	$0.32	$0.32
Expected volatility	33.99%	32.71%
Risk-free interest rate	4.31%	4.66%
Expected life (in years)	2.8	2.8

Summary of Stock Options Outstanding

The following is a summary of stock options vested and exercisable as of June 30, 2024:


Range of Exercise Prices					Number of Shares	Weighted Average Remaining Contractual Life (in years)	Weighted Average Exercise Price		Intrinsic Value (in thousands)
$	13.95	-	$	27.58	1,447,345	3.86	$	24.89	$	90,236
$	28.28	-	$	37.07	653,631	6.25	31.56		36,404
$	37.09	-	$	94.48	350,308	7.21	51.11		12,658
			Total		2,451,284	4.98	$	30.42	$	139,298

Summary of Stock Option Activity

A summary of stock option activity under the plans is as follows:


Stock Options	Shares	Weighted Average Exercise Price
Outstanding at December 31, 2023	3,619,585	$	33.09
Granted	405,124	79.56
Exercised	(476,686)	33.18
Forfeited or Expired	(26,288)	56.65
Outstanding at June 30, 2024	3,521,735	$	38.25
Exercisable at June 30, 2024	2,451,284	$	30.42

Summary of Unvested Restricted Stock Awards

A summary of the unvested restricted stock awards is as follows:


	Shares	Weighted Average Grant Date Fair Value
Unvested at December 31, 2023	187,084	$	44.07
Granted	64,368	78.13
Vested	(93,572)	40.63
Forfeited	(2,704)	56.01
Unvested at June 30, 2024	155,176	$	60.07

Schedule of Nonvested Key Employee Award Activity

A summary of the unvested Key Employee Awards is as follows:


	Shares	Weighted Average Grant Date Fair Value
Unvested at December 31, 2023	39,899	$	53.45
Granted	—	—
Vested	(39,899)	53.45
Forfeited	—	—
Unvested at June 30, 2024	—	$	—

Schedule of Nonvested Performance-based Units Activity

A summary of the unvested PSUs is as follows:


	Shares	Weighted Average Grant Date Fair Value
Unvested at December 31, 2023	152,112	$	54.88
Granted	47,599	106.24
Additional target payout1	2,059	58.53
Vested	(21,919)	58.53
Forfeited	(2,362)	58.53
Unvested at June 30, 20242	177,489	$	68.20
1 The additional number of PSUs earned based on a 110% achievement at December 31, 2023 for awards vesting in 2024.
2 Consists of 71,760 PSUs cliff vesting December 31, 2024, 58,130 PSUs cliff vesting December 31, 2025, and 47,599 PSUs cliff vesting December 31, 2026.

Summary of Share-Based Compensation Expense

A summary of share-based compensation is as follows:


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Grant date fair value of awards during the period:	(in thousands)
Options	$	412	$	445	$	9,120	$	5,118
PSUs	96		1,666		5,057		4,907
Restricted stock	837		1,244		5,029		4,150

Total	$	1,345	$	3,355	$	19,206	$	14,175

Share-based compensation expense:
Options	$	2,046	$	2,311	$	4,253	$	4,376
PSUs	1,227		716		1,851		1,083
Restricted stock	1,221		1,024		2,347		1,850
Key Employee Awards	—		253		—		514
Total	$	4,494	$	4,304	$	8,451	$	7,823

Income tax benefit (deficiency) related to share-based compensation:
Options	$	2,081	$	1,840	$	5,228	$	5,161
PSUs	—		—		169		—
Restricted stock	163		199		971		664
Key Employee Awards	—		—		282		—
Total	$	2,244	$	2,039	$	6,650	$	5,825

Employee Benefits (Tables)

6 Months Ended

Jun. 30, 2024

Retirement Benefits [Abstract]

Schedule of Contributions Made to Defined Contribution Plan

The Company matches 175% up to 6% of employee contributions of eligible compensation. Additionally, Plan participant forfeitures are used to reduce the cost of the Company contributions.


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Contributions, net of forfeitures, made to the defined contribution plan	$	4,366	$	3,408	$	10,076	$	8,667

Schedule of Profit Sharing Bonus Plan


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Profit sharing bonus plan and employee incentive plan expense	$	6,477	$	5,952	$	11,077	$	10,818

Schedule of Employee Medical Plan

e self-insure for our employees' health insurance, and make medical claim payments up to certain stop-loss amounts. We estimate our self-insurance liabilities using an analysis provided by our claims administrator and our historical claims experience. Eligible employees are regular full-time employees who are actively employed and working. Participants are expected to pay a portion of the premium costs for coverage of the benefits provided under the Plans. In addition, the Company matches 175% of a participating employee's allowed contributions to a qualified health saving account to assist employees with health insurance plan deductibles. BASX employees joined the Company's medical plan and benefits on January 1, 2024.


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Medical premium payments	$	3,924	$	4,132	$	7,295	$	6,800
Health saving account contributions	2,116		1,198		4,282		2,258

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the six months ended June 30, 2024 and 2023:


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Numerator:	(in thousands, except share and per share data)
Net income	$	52,228	$	45,682	$	91,244	$	82,496
Denominator:
Basic weighted average shares3	81,791,792		81,439,691		81,339,153		81,263,523
Effect of dilutive shares related to stock based compensation1,3	1,994,430		2,029,890		2,093,715		2,002,200
Effect of dilutive shares related to contingent consideration2 ,3	—		—		94,849		212,775
Diluted weighted average shares3	83,786,222		83,469,581		83,527,717		83,478,498
Earnings per share:
Basic3	$	0.64	$	0.56	$	1.12	$	1.02
Dilutive3	$	0.62	$	0.55	$	1.09	$	0.99
Anti-dilutive shares:
Shares3	437,997		347,370		275,357		263,905
1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 12)
2 Dilutive shares related to contingent shares issued to the former owners of BASX (Note 15)
3 Reflects three-for-two stock split effective August 16, 2023.

Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2024

Stockholders' Equity Note [Abstract]

Schedule of Market Repurchase

Our authorized open market repurchase programs during the periods presented are as follows:

Effective Date

Authorized Repurchase $

Expiration Date

November 3, 2022

$50 million1

February 27, 2024

$50 million1

June 4, 2024

$50 million2

June 14, 2024

1 Repurchases made in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended.

2 Repurchases made in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

Schedule of Share Repurchases

Our repurchase activity is as follows:


	Six Months Ended
	June 30, 2024					June 30, 2023
	(in thousands, except share and per share data)
Program	Shares1	Total $		$ per share1		Shares1	Total $		$ per share1
Open market	1,353,564	$	100,034	$	73.90	—	$	—	$	—

Employees	42,573	3,493		82.05		19,624	1,162		59.21
Total	1,396,137	$	103,527	$	74.15	19,624	$	1,162	$	59.21
1 Reflects three-for-two stock split effective August 16, 2023.

Schedule of Dividends Payable

Our recent cash dividends are as follows:

Declaration Date

Record Date

Payment Date

Dividend

per Share1

Annualized Dividend

per Share1

March 1, 2023

March 13, 2023

March 31, 2023

$0.08

$0.32

May 18, 2023

June 9, 2023

June 30, 2023

$0.08

$0.32

August 18, 2023

September 8, 2023

September 29, 2023

$0.08

$0.32

November 10, 2023

November 29, 2023

December 18, 2023

$0.08

$0.32

March 5, 2024

March 18, 2024

March 29, 2024

$0.08

$0.32

May 24, 2024

June 7, 2024

June 28, 2024

$0.08

$0.32

1 Reflects three-for-two stock split effective August 16, 2023.

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the six months ended June 30, 2024 and 2023:


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Numerator:	(in thousands, except share and per share data)
Net income	$	52,228	$	45,682	$	91,244	$	82,496
Denominator:
Basic weighted average shares3	81,791,792		81,439,691		81,339,153		81,263,523
Effect of dilutive shares related to stock based compensation1,3	1,994,430		2,029,890		2,093,715		2,002,200
Effect of dilutive shares related to contingent consideration2 ,3	—		—		94,849		212,775
Diluted weighted average shares3	83,786,222		83,469,581		83,527,717		83,478,498
Earnings per share:
Basic3	$	0.64	$	0.56	$	1.12	$	1.02
Dilutive3	$	0.62	$	0.55	$	1.09	$	0.99
Anti-dilutive shares:
Shares3	437,997		347,370		275,357		263,905
1 Dilutive shares related to stock options, restricted stock, PSUs and Key Employee Awards (Note 12)
2 Dilutive shares related to contingent shares issued to the former owners of BASX (Note 15)
3 Reflects three-for-two stock split effective August 16, 2023.

Related Parties (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Related Party Transactions

The following is a summary of transactions and balances with related parties:


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(in thousands)
Sales to affiliates	$	1,625	$	2,619	$	3,821	$	3,764
Payments to affiliates	505		390		1,120		782

					June 30, 2024		December 31, 2023
					(in thousands)
Due from affiliates					$	380	$	994
Due to affiliates					—		145

The nature of our related party transactions is as follows:

•The Company purchases some supplies from entities controlled by two of the Company’s board members and a member of the Company's executive management team.

•The Company periodically makes part sales and makes payments to a board member related to a consulting agreement.

•The Company periodically rents space partially owned by the CEO for various Company meetings.

•The Company leases flight time of an aircraft partially owned by our COO and Vice President.

Segments (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment


	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Net Sales					(in thousands)
AAON Oklahoma
External sales	$	225,727	$	218,214	$	435,867	$	420,216
Inter-segment sales	1,311		1,205		2,982		2,699
AAON Coil Products
External sales	31,373		30,081		55,620		63,493
Inter-segment sales	8,942		9,499		18,273		16,816
BASX
External sales	56,466		35,662		84,178		66,201
Inter-segment sales	220		1,130		222		1,500
Eliminations	(10,473)		(11,834)		(21,477)		(21,015)
Net sales	$	313,566	$	283,957	$	575,665	$	549,910

Gross Profit
AAON Oklahoma	$	83,870	$	75,379	$	162,281	$	137,229
AAON Coil Products	13,159		7,483		21,298		14,641
BASX	16,065		11,156		21,757		19,302
Gross profit	$	113,094	$	94,018	$	205,336	$	171,172


	June 30, 2024		December 31, 2023
Long-lived assets	(in thousands)
AAON Oklahoma	$	255,382	$	248,556
AAON Coil Products	103,524		83,169
BASX	70,414		49,996
Total long-lived assets	$	429,320	$	381,721

Intangible assets and goodwill
AAON Oklahoma	$	19,592	$	10,282
AAON Coil Products	—		—
BASX	137,860		139,663
Total intangible assets and goodwill	$	157,452	$	149,945

General (Details) $ in Thousands	3 Months Ended		6 Months Ended
General (Details) $ in Thousands	Jun. 30, 2024 USD ($) numberOfVIE	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) numberOfVIE	Jun. 30, 2023 USD ($)	Mar. 31, 2024	Dec. 31, 2023 USD ($)	Mar. 31, 2023
Basis of Presentation and Significant Accounting Policies [Abstract]
Number of variable interest entities with directed activities \| numberOfVIE	8		8
Percent on overall increase in wages					3.30%		3.90%
Provision for excess and obsolete inventories, net of write-offs			$ 641	$ 1,458
Intangible assets, net	$ 75,560		75,560			$ 68,053
Amortization expense	1,749	$ 901	3,455	1,803
Goodwill	$ 81,892		81,892			$ 81,892
Finite-Lived Intangible Assets [Line Items]
Provision for excess and obsolete inventories, net of write-offs			$ 641	$ 1,458
Intellectual property \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life	30 years		30 years
Intellectual property \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life	6 years		6 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Useful life	14 years		14 years
Internal Use Software [Member] \| Maximum
Finite-Lived Intangible Assets [Line Items]
Useful life	6 years		6 years
Internal Use Software [Member] \| Minimum
Finite-Lived Intangible Assets [Line Items]
Useful life	1 year		1 year

General - Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended
General - Goodwill (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023
Goodwill [Roll Forward]
Balance, beginning of period	$ 81,892	$ 81,892
Additions (decreases) during the period	0	0
Balance, end of period	$ 81,892	$ 81,892

Revenue Recognition - Disaggregated Net Sales (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Net sales	$ 313,566	$ 283,957	$ 575,665	$ 549,910
AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	225,727	218,214	435,867	420,216
AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	31,373	30,081	55,620	63,493
BasX
Disaggregation of Revenue [Line Items]
Net sales	56,466	35,662	84,178	66,201
Rooftop units
Disaggregation of Revenue [Line Items]
Net sales	203,642	196,065	394,907	376,091
Rooftop units \| AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	203,642	196,065	394,907	376,091
Rooftop units \| AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Rooftop units \| BasX
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Condensing units
Disaggregation of Revenue [Line Items]
Net sales	15,433	11,390	27,266	26,668
Condensing units \| AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	0	61	0	61
Condensing units \| AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	15,433	11,329	27,266	26,607
Condensing units \| BasX
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Air handlers
Disaggregation of Revenue [Line Items]
Net sales	14,867	15,210	27,032	30,469
Air handlers \| AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Air handlers \| AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	12,496	12,610	22,474	24,831
Air handlers \| BasX
Disaggregation of Revenue [Line Items]
Net sales	2,371	2,600	4,558	5,638
Outdoor mechanical rooms
Disaggregation of Revenue [Line Items]
Net sales		61		420
Outdoor mechanical rooms \| AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales		0		208
Outdoor mechanical rooms \| AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales		61		212
Outdoor mechanical rooms \| BasX
Disaggregation of Revenue [Line Items]
Net sales		0		0
Cleanroom systems
Disaggregation of Revenue [Line Items]
Net sales	11,227	17,086	18,540	29,708
Cleanroom systems \| AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Cleanroom systems \| AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Cleanroom systems \| BasX
Disaggregation of Revenue [Line Items]
Net sales	11,227	17,086	18,540	29,708
Data center cooling solutions
Disaggregation of Revenue [Line Items]
Net sales	42,833	17,671	60,712	33,593
Data center cooling solutions \| AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Data center cooling solutions \| AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	926	1,794	1,132	3,240
Data center cooling solutions \| BasX
Disaggregation of Revenue [Line Items]
Net sales	41,907	15,877	59,580	30,353
Water-source heat pumps
Disaggregation of Revenue [Line Items]
Net sales	1,574	3,484	3,155	9,294
Water-source heat pumps \| AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	0	398	0	3,128
Water-source heat pumps \| AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	1,574	3,086	3,155	6,166
Water-source heat pumps \| BasX
Disaggregation of Revenue [Line Items]
Net sales	0	0	0	0
Part sales
Disaggregation of Revenue [Line Items]
Net sales	18,880	16,206	34,481	30,359
Part sales \| AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	17,974	15,963	33,291	29,867
Part sales \| AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	0	0	6	1
Part sales \| BasX
Disaggregation of Revenue [Line Items]
Net sales	906	243	1,184	491
Other
Disaggregation of Revenue [Line Items]
Net sales	5,110	6,784	9,572	13,308
Other \| AAON Oklahoma
Disaggregation of Revenue [Line Items]
Net sales	4,111	5,727	7,669	10,861
Other \| AAON Coil Products
Disaggregation of Revenue [Line Items]
Net sales	944	1,201	1,587	2,436
Other \| BasX
Disaggregation of Revenue [Line Items]
Net sales	$ 55	$ (144)	$ 316	$ 11

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Payments to representatives	$ 10.2	$ 13.0	$ 21.0	$ 26.3

Leases - Leases by Balance Sheet Classification (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Right of use assets	$ 16,086	$ 11,774
Lease liability, short-term	2,272	2,021
Lease liability, long-term	$ 14,335	$ 10,201

Leases - Additional Information (Details) - squareFoot	Jun. 30, 2024	Jan. 31, 2024	Jul. 28, 2023	Nov. 30, 2022	Oct. 31, 2022
Minimum
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Discount Rate	1.30%
Maximum
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Discount Rate	6.60%
MISSOURI
Lessee, Lease, Description [Line Items]
Number of square feet					86,000
OKLAHOMA
Lessee, Lease, Description [Line Items]
Number of square feet				198,000
OREGON
Lessee, Lease, Description [Line Items]
Number of square feet	104,500		72,000
Lease term			5 years
Industrial Property \| OKLAHOMA
Lessee, Lease, Description [Line Items]
Number of square feet		157,550

Leases - Maturity Schedule (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2024	$ 1,612
2025	3,100
2026	3,046
2027	3,136
2028	3,130
Thereafter	$ 6,403

Accounts Receivable - Receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Receivables [Abstract]
Accounts receivable	$ 150,641	$ 138,431
Less: Allowance for credit losses	(1,492)	(323)
Total, net	$ 149,149	$ 138,108

Accounts Receivable - Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 435	$ 421	$ 323	$ 477
Provisions for (recoveries of) for expected credit losses, net of adjustments	1,062	(115)	1,174	(171)
Accounts receivable written off, net of recoveries	5	0	5	0
Balance, end of period	$ 1,492	$ 306	$ 1,492	$ 306

Inventories - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Mar. 31, 2024	Dec. 31, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 181,403		$ 211,259
Work in process	5,190		5,523
Finished goods	3,196		2,910
Total, gross	189,789		219,692
Less: Allowance for excess and obsolete inventories	(6,801)	$ (6,741)	(6,160)	$ (5,281)	$ (4,748)	$ (4,527)
Total, net	$ 182,988		$ 213,532

Inventories - Allowance (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Inventories - Allowance (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Inventory Valuation Reserves [Roll Forward]
Balance, beginning of period	$ 6,741	$ 4,748	$ 6,160	$ 4,527
Provision (recovery of) for excess and obsolete inventories	968	794	1,928	1,458
Inventories written off	(908)	(261)	(1,287)	(704)
Balance, end of period	$ 6,801	$ 5,281	$ 6,801	$ 5,281

Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets	$ 54,375		$ 54,375
Less: Accumulated amortization	(13,293)		(13,293)		$ (9,838)
Total, net	60,989		60,989		53,482
Indefinite-lived intangible assets	14,571		14,571		14,571
Total intangible assets, net	75,560		75,560		68,053
Amortization expense	1,749	$ 901	3,455	$ 1,803
2024	4,861		4,861
2025	6,259		6,259
2026	4,743		4,743
2027	4,743		4,743
2028	4,652		4,652
Thereafter	29,117		29,117
Total future amortization expense	54,375		54,375
Internal-use software projects not in service	6,614		6,614
Intellectual property
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets	12,450		12,450		12,450
Total future amortization expense	12,450		12,450		12,450
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets	47,547		47,547		47,547
Total future amortization expense	47,547		47,547		47,547
Capitalized internal-use software
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets	14,285		14,285		3,323
Total future amortization expense	$ 14,285		$ 14,285		$ 3,323

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Supplemental disclosure:
Interest paid	$ 153	$ 1,506	$ 548	$ 2,627
Income taxes paid	28,359	33,471	28,670	33,643
Non-cash investing and financing activities:
Non-cash capital expenditures	5,356	1,205	3,278	1,571
Contingent shares issued (Note 15)	$ 0	$ 0	$ 6,364	$ 0

Warranties - Additional Information (Details)	6 Months Ended
Warranties - Additional Information (Details)	Jun. 30, 2024
Product Information [Line Items]
Product warranty accrual, minimum length	1 year
Product warranty accrual, maximum length	25 years
Parts
Product Information [Line Items]
Product warranty accrual, minimum length	18 months

Warranties - Change in Accruals (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance, beginning of period	$ 21,349	$ 16,209	$ 20,573	$ 15,682
Payments made	(3,037)	(2,435)	(5,659)	(4,316)
Provisions	3,320	3,126	6,718	5,534
Balance, end of period	$ 21,632	$ 16,900	$ 21,632	$ 16,900

Accrued Liabilities and Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accrued Liabilities
Warranty	$ 21,632	$ 20,573
Due to representatives	19,934	14,428
Payroll	11,425	18,829
Profit sharing	6,393	7,596
Workers' compensation	545	338
Medical self-insurance	1,940	1,460
Customer prepayments	1,856	2,621
Donations, short-term	1,153	381
Accrued income taxes	0	1,170
Employee vacation time	11,042	10,315
Lease liability, short-term		2,021
Property taxes	2,008	0
Extended warranties, short-term	2,829	2,387
Other	2,470	3,389
Accrued liabilities	85,499	85,508
Other Long-Term Liabilities
Lease liability	14,335	10,201
Extended warranties	6,835	6,082
Donations and other	0	524
Total	$ 21,170	$ 16,807

Revolving Credit Facility (Details)	3 Months Ended		6 Months Ended
Revolving Credit Facility (Details)	Jun. 30, 2024 USD ($) letterOfCredit	Jun. 30, 2023	Jun. 30, 2024 USD ($) letterOfCredit	Jun. 30, 2023	Feb. 27, 2024 USD ($)	Dec. 31, 2023 USD ($)	Apr. 25, 2023 USD ($)	May 27, 2022 USD ($)	Nov. 24, 2021 USD ($)	Oct. 24, 2019 USD ($)
Line of Credit Facility [Line Items]
Revolving credit facility, long-term	$ 85,884,000		$ 85,884,000			$ 38,328,000
Number of standby letters of credit \| letterOfCredit	2		2
Ratio of total liability to net worth	0.3		0.3
Maximum ratio of total liability to net worth for compliance	3		3
Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility maximum borrowings					$ 15,500,000		$ 23,000,000		$ 100,000,000	$ 23,000,000
Option to increase maximum borrowing capacity								$ 200,000,000
Standby letter of credit	$ 2,300,000		$ 2,300,000
Borrowings available under the revolving credit facility	$ 111,800,000		$ 111,800,000
Debt, weighted average interest rate,	6.60%	6.30%		6.20%
Revolving Credit Facility \| Base Rate
Line of Credit Facility [Line Items]
Stated percentage	0.50%		0.50%
Revolving Credit Facility \| SOFR
Line of Credit Facility [Line Items]
Stated percentage	1.00%		1.00%
Revolving Credit Facility \| Minimum
Line of Credit Facility [Line Items]
Applicable margin	1.25%		1.25%
Commitment fee percentage			0.10%
Revolving Credit Facility \| Maximum
Line of Credit Facility [Line Items]
Applicable margin	1.75%		1.75%
Commitment fee percentage			0.20%
Letter of Credit \| Minimum
Line of Credit Facility [Line Items]
Commitment fee percentage			1.25%
Letter of Credit \| Maximum
Line of Credit Facility [Line Items]
Commitment fee percentage			1.75%

Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Current	$ 13,998	$ 13,037	$ 22,530	$ 18,472
Deferred	781	(5,359)	41	(4,438)
Income tax provision	$ 14,779	$ 7,678	$ 22,571	$ 14,034

Income Taxes - Reconciliation of Federal Statutory Income Tax Rate (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Federal statutory rate	21.00%	21.00%	21.00%	21.00%
State income taxes, net of Federal benefit	4.80%	4.60%	5.00%	4.40%
Excess tax benefits related to share-based compensation (Note 12)	(3.40%)	(3.80%)	(5.80%)	(6.00%)
Return to provision	0.00%	0.00%	(0.10%)	(0.10%)
Non-deductible executive compensation	1.50%	0.00%	1.30%	0.00%
Research and development credits	(1.20%)	(1.20%)	(1.20%)	(1.30%)
Change in valuation allowance (Oklahoma Investment Credit)	0.00%	(5.80%)	0.00%	(3.20%)
Other	(0.60%)	(0.40%)	(0.40%)	(0.30%)
Effective tax rate	22.10%	14.40%	19.80%	14.50%

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Tax Credit Carryforward [Line Items]
Share-based payment arrangement, expense, tax benefit	$ 2,244	$ 2,039	$ 6,650	$ 5,825
Income tax provision, increase (decrease), stock option exercises	1,000		1,500
Income tax benefit	(14,779)	(7,678)	$ (22,571)	(14,034)
Expected effective income tax rate for the year			25.20%
Investment Tax Credit Carryforward
Tax Credit Carryforward [Line Items]
Income tax benefit		$ (3,100)		$ (3,100)
Tax credit carryforward	$ 1,100		$ 1,100

Share-Based Compensation - Additional Information (Details) $ in Thousands				3 Months Ended	6 Months Ended
	Aug. 16, 2023	May 24, 2016 shares	May 22, 2007 shares	Mar. 31, 2024	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	May 21, 2024 shares	May 12, 2020 shares	May 15, 2018 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock split, conversion ratio	1.5
Stock authorized to be issued under plan (in shares) \| shares		13,400,000
Total intrinsic value of options exercised during period					$ 23,800	$ 25,300
Cash received from options exercised during period					$ 15,821	$ 23,244
Award requisite service period					1 year
2007 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock authorized to be issued under plan (in shares) \| shares		600,000	5,000,000.0
Exercise price of shares granted may not be less than fair market value (percentage)			100.00%
2016 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock authorized to be issued under plan (in shares) \| shares		5,100,000					3,700,000	3,800,000	3,900,000
Exercise price of shares granted may not be less than fair market value (percentage)		100.00%
Long-Term Incentive Plan 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock authorized to be issued under plan (in shares) \| shares							2,700,000
Performance Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost					$ 7,400
Weighted average recognition period (in years)					1 year 9 months 18 days
Performance Award \| 2016 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period					3 years
Performance Award \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award, percent of conversion in common stock					0.00%
Performance Award \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award, percent of conversion in common stock					200.00%
Equity Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost					$ 12,800
Weighted average recognition period (in years)					2 years 1 month 6 days
Restricted Stock \| 2007 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized pre-tax compensation cost					$ 7,200
Weighted average recognition period (in years)					2 years
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage				20.00%	33.30%

Share-Based Compensation - Summary of Assumptions (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Performance Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected (annual) dividend rate	$ 0.32	$ 0.32
Expected volatility	33.99%	32.71%
Risk-free interest rate	4.31%	4.66%
Expected life	2 years 9 months 18 days	2 years 9 months 18 days
Directors and Senior Leadership Team
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected (annual) dividend rate	$ 0.32	$ 0.32
Expected volatility	37.90%	37.89%
Risk-free interest rate	4.14%	4.39%
Expected life	4 years	4 years
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected (annual) dividend rate	$ 0.32	$ 0.32
Expected volatility	33.51%	38.52%
Risk-free interest rate	4.28%	4.40%
Expected life	3 years	3 years

Share-Based Compensation - Summary of Stock Options Outstanding (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($) $ / shares shares
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares vested and exercisable (in shares) \| shares	2,451,284
Options vested and exercisable weighted average remaining contractual life	4 years 11 months 23 days
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 30.42
Options vested and exercisable intrinsic value \| $	$ 139,298
$8.17 - $41.37
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)	$ 13.95
Range of exercise prices, upper range (in dollars per share)	$ 27.58
Number of shares vested and exercisable (in shares) \| shares	1,447,345
Options vested and exercisable weighted average remaining contractual life	3 years 10 months 9 days
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 24.89
Options vested and exercisable intrinsic value \| $	$ 90,236
$42.42 - $65.24
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)	$ 28.28
Range of exercise prices, upper range (in dollars per share)	$ 37.07
Number of shares vested and exercisable (in shares) \| shares	653,631
Options vested and exercisable weighted average remaining contractual life	6 years 3 months
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 31.56
Options vested and exercisable intrinsic value \| $	$ 36,404
$65.29 - $79.81
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices, lower range (in dollars per share)	$ 37.09
Range of exercise prices, upper range (in dollars per share)	$ 94.48
Number of shares vested and exercisable (in shares) \| shares	350,308
Options vested and exercisable weighted average remaining contractual life	7 years 2 months 15 days
Options vested and exercisable weighted average exercise price (in dollars per share)	$ 51.11
Options vested and exercisable intrinsic value \| $	$ 12,658

Share-Based Compensation - Summary of Stock Option Activity (Details)	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Shares [Roll Forward]
Outstanding, beginning of period (in shares) \| shares	3,619,585
Granted (in shares) \| shares	405,124
Exercised (in shares) \| shares	(476,686)
Forfeited or Expired (in shares) \| shares	(26,288)
Outstanding, end of period (in shares) \| shares	3,521,735
Exercisable, end of period (in shares) \| shares	2,451,284
Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning of period (weighted average exercise price) \| $ / shares	$ 33.09
Granted (weighted average exercise price) \| $ / shares	79.56
Exercised (weighted average exercise price) \| $ / shares	33.18
Forfeited or Expired (weighted average exercise price) \| $ / shares	56.65
Outstanding, end of period (weighted average exercise price) \| $ / shares	38.25
Exercisable, end of period (weighted average exercise price) \| $ / shares	$ 30.42

Share-Based Compensation - Summary of Unvested Awards (Details) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024
Restricted Stock
Shares [Roll Forward]
Unvested, beginning of period (in shares)		187,084
Granted (in shares)		64,368
Vested (in shares)		(93,572)
Forfeited (in shares)		(2,704)
Unvested, end of period (in shares)	155,176	155,176
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (in dollars per share)		$ 44.07
Granted (in dollars per share)		78.13
Vested (in dollars per share)		40.63
Forfeited (in dollars per share)		56.01
Unvested, end of period (in dollars per share)	$ 60.07	$ 60.07
Performance Award
Shares [Roll Forward]
Unvested, beginning of period (in shares)		152,112
Granted (in shares)		47,599
Additional target payout (in shares)	2,059
Vested (in shares)		(21,919)
Forfeited (in shares)		(2,362)
Unvested, end of period (in shares)	177,489	177,489
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (in dollars per share)		$ 54.88
Granted (in dollars per share)		106.24
Additional target payout (in dollars per share)	$ 58.53
Vested (in dollars per share)		58.53
Forfeited (in dollars per share)		58.53
Unvested, end of period (in dollars per share)	$ 68.20	$ 68.20
Performance Award \| Cliff Vesting December 31, 2023
Shares [Roll Forward]
Vested (in shares)		(71,760)
Performance Award \| Cliff Vesting December 31, 2024
Shares [Roll Forward]
Vested (in shares)		(58,130)
Performance Award \| Cliff Vesting December 31, 2025
Shares [Roll Forward]
Vested (in shares)		(47,599)
Key Employee Awards
Shares [Roll Forward]
Unvested, beginning of period (in shares)		39,899
Granted (in shares)		0
Vested (in shares)		(39,899)
Forfeited (in shares)		0
Unvested, end of period (in shares)	0	0
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (in dollars per share)		$ 53.45
Granted (in dollars per share)		0
Vested (in dollars per share)		53.45
Forfeited (in dollars per share)		0
Unvested, end of period (in dollars per share)	$ 0	$ 0

Share-Based Compensation - Summary of Unvested Restricted Stock Awards (Details) - Restricted Stock	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Shares [Roll Forward]
Unvested, beginning of period (in shares) \| shares	187,084
Granted (in shares) \| shares	64,368
Vested (in shares) \| shares	(93,572)
Forfeited (in shares) \| shares	(2,704)
Unvested, end of period (in shares) \| shares	155,176
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning of period (in dollars per share) \| $ / shares	$ 44.07
Granted (in dollars per share) \| $ / shares	78.13
Vested (in dollars per share) \| $ / shares	40.63
Forfeited (in dollars per share) \| $ / shares	56.01
Unvested, end of period (in dollars per share) \| $ / shares	$ 60.07

Share-Based Compensation - Summary of Grant Date Fair Value of Awards (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Grant date fair value of awards during the period:
Options	$ 412	$ 445	$ 9,120	$ 5,118
Performance Awards	96	1,666	5,057	4,907
Restricted stock	837	1,244	5,029	4,150
Total	1,345	3,355	19,206	14,175
Share-based compensation expense:
Options	2,046	2,311	4,253	4,376
PSUs	1,227	716	1,851	1,083
Restricted stock	1,221	1,024	2,347	1,850
Key Employee Awards	0	253	0	514
Total	4,494	4,304	8,451	7,823
Income tax benefit (deficiency) related to share-based compensation:
Options	2,081	1,840	5,228	5,161
Employee Service Share Based Compensation Tax Benefit From Compensation Expense, Performance Awards	169	0
Restricted stock	163	199	971	664
Employee Service Share Based Compensation Tax Benefit From Compensation Expense, Key Employee Awards	282	0
Total	$ 2,244	$ 2,039	$ 6,650	$ 5,825

Employee Benefits (Details) - USD ($)	3 Months Ended		6 Months Ended
Employee Benefits (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Defined Benefit Plan Disclosure [Line Items]
Defined contribution employee automatic contribution, percent			6.00%
Administrative expense			$ 0	$ 0
Contributions, net of forfeitures, made to the defined contribution plan	$ 4,366,000	$ 3,408,000	$ 10,076,000	8,667,000
Profit sharing, percent of pre-tax profit paid to eligible employees on quarterly basis			8.50%
Profit sharing bonus plan and employee incentive plan expense	6,477,000	5,952,000	$ 11,077,000	10,818,000
Medical premium payments	3,924,000	4,132,000	7,295,000	6,800,000
Health saving account contributions	$ 2,116,000	$ 1,198,000	$ 4,282,000	$ 2,258,000
BasX
Defined Benefit Plan Disclosure [Line Items]
Profit sharing, percent of pre-tax profit paid to eligible employees on quarterly basis			5.00%
Effective January 1, 2016
Defined Benefit Plan Disclosure [Line Items]
Percent of match			175.00%
Defined contribution employer, maximum match percent			6.00%

Earnings Per Share (Details)
$ / shares in Units, $ in Thousands

3 Months Ended

6 Months Ended

Aug. 16, 2023

Jun. 30, 2024

USD ($)

$ / shares

Jun. 30, 2023

USD ($)

$ / shares

Jun. 30, 2024

USD ($)

$ / shares

Jun. 30, 2023

USD ($)

$ / shares

Earnings Per Share [Abstract]

Net income | $

$ 52,228

$ 45,682

$ 91,244

^[1]

$ 82,496

Basic weighted average shares (in shares)

^[2]

81,791,792

81,439,691

81,339,153

81,263,523

Effect of dilutive stock options and restricted stock (in shares)

1,994,430

2,029,890

2,093,715

2,002,200

Effect of dilutive shares related to contingent consideration (in shares)

94,849

212,775

Diluted weighted average shares (in shares)

^[2]

83,786,222

83,469,581

83,527,717

83,478,498

Basic (in dollars per share) | $ / shares

^[2]

$ 0.64

$ 0.56

$ 1.12

$ 1.02

Diluted (in dollars per share) | $ / shares

^[2]

$ 0.62

$ 0.55

$ 1.09

$ 0.99

Anti-dilutive shares (in shares)

437,997

347,370

275,357

263,905

Stock split, conversion ratio

1.5

[1]	1 Reflects three-for-two stock split effective August 16, 2023
[2]	1 Reflects three-for-two stock split effective August 16, 2023.

Stockholders' Equity - Narrative (Details)

3 Months Ended

6 Months Ended

May 24, 2024

$ / shares

Mar. 05, 2024

$ / shares

Nov. 10, 2023

$ / shares

Aug. 18, 2023

$ / shares

Aug. 16, 2023

USD ($)

May 18, 2023

$ / shares

Mar. 01, 2023

$ / shares

Dec. 10, 2021

USD ($)

$ / shares

Jun. 30, 2024

USD ($)

$ / shares

Jun. 30, 2023

USD ($)

$ / shares

Jun. 30, 2024

USD ($)

$ / shares

Jun. 30, 2023

USD ($)

$ / shares

Jun. 04, 2024

USD ($)

May 21, 2024

May 20, 2024

Mar. 31, 2024

USD ($)

Feb. 27, 2024

USD ($)

Dec. 31, 2023

USD ($)

Mar. 31, 2023

USD ($)

Dec. 31, 2022

USD ($)

Nov. 03, 2022

USD ($)

Stock repurchase program, authorized amount

$ 50,000,000

Stock repurchased during period (in shares) | shares

1,396,137

19,624

Aggregate price of shares repurchased since inception

$ 103,527,000

$ 1,162,000

Average price of shares repurchased since inception (per share) | $ / shares

$ 74.15

$ 59.21

Cash dividends declared per common share (in dollars per share) | $ / shares

^[1]

$ 0.08

$ 0.16

Annualized dividends paid per common share (in dollars per share) | $ / shares

$ 0.32

Stock split, conversion ratio

1.5

Stock split, additional shares issued (in shares) | shares

Stock split, original number of shares held (in shares) | shares

Cash paid in lieu of fractional shares

$ 500,000

$ 740,498,000

$ 660,111,000

$ 740,498,000

$ 660,111,000

$ 784,808,000

$ 735,224,000

$ 609,414,000

$ 560,714,000

Stock split, common stock value reclass

6,364,000

324,000

326,000

Stock split, retained earnings reclass

$ 691,000,000

$ 612,835,000

Common stock, shares authorized (in shares) | shares

100,000,000

200,000,000

100,000,000

Common Stock

Contingent shares issued (in shares) | shares

$ 324,000

^[2]

326,000

^[2]

$ 324,000

^[2]

326,000

^[2]

329,000

^[2]

$ 326,000

^[2]

325,000

^[2]

322,000

243,000

Common Stock | Revision of Prior Period, Adjustment

$ 1,000

(100,000)

Retained Earnings

Retained Earnings | Revision of Prior Period, Adjustment

$ 691,000,000

^[2]

$ 531,149,000

^[2]

691,000,000

^[2]

$ 531,149,000

^[2]

$ 645,295,000

^[2]

612,835,000

^[2]

$ 492,012,000

^[2]

$ 461,657,000

$ 100,000

BasX, LLC

Equity interest issued (in shares) | shares

Contingent Consideration

$ 78,000,000

1,560,000

Contingent shares issued (in shares) | shares

580,000

Equity interests issuable (in dollars per share) | $ / shares

$ 6,400,000

$ 0.004

BasX, LLC | Common Stock

Contingent shares issued (in shares) | shares

240,000

Dividend Declared

Cash dividends declared per common share (in dollars per share) | $ / shares

$ 0.08

Open market

Stock repurchased during period (in shares) | shares

1,353,564

Aggregate price of shares repurchased since inception

$ 100,034,000

$ 0

Average price of shares repurchased since inception (per share) | $ / shares

$ 73.90

$ 0

Employees