# EDGAR Filing Document

**Accession Number:** 0000824142
**File Stem:** 0000824142-26-000003
**Filing Date:** 2026-3
**Character Count:** 47370
**Document Hash:** 63f03bb8e03e37b6046a0c8a063d2fe0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000824142-26-000003.hdr.sgml**: 20260302

**ACCESSION NUMBER**: 0000824142-26-000003

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20260302

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260302

**DATE AS OF CHANGE**: 20260302

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AAON, INC.
- **CENTRAL INDEX KEY:** 0000824142
- **STANDARD INDUSTRIAL CLASSIFICATION:** AIR COND & WARM AIR HEATING EQUIP & COMM & INDL REFRIG EQUIP [3585]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 870448736
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-18953
- **FILM NUMBER:** 26703411

**BUSINESS ADDRESS:**
- **STREET 1:** 2425 SOUTH YUKON AVE.
- **CITY:** TULSA
- **STATE:** OK
- **ZIP:** 74107
- **BUSINESS PHONE:** 9185832266

**MAIL ADDRESS:**
- **STREET 1:** 2425 SOUTH YUKON AVE.
- **CITY:** TULSA
- **STATE:** OK
- **ZIP:** 74107

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AAON INC
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DIAMOND HEAD RESOURCES INC
- **DATE OF NAME CHANGE:** 19900808

?xml version='1.0' encoding='ASCII'? aaon-20260302

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): March 2, 2026

**AAON, INC.** 

(Exact name of Registrant as Specified in Charter)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Nevada** | **Nevada** | **Nevada** | **0-18953** | **87-0448736** |
| (State or Other Jurisdiction | (State or Other Jurisdiction | (State or Other Jurisdiction | (Commission File Number:) | (IRS Employer Identification No.) |
| of Incorporation) | of Incorporation) | of Incorporation) |  |  |
| **2425 South Yukon Ave.,** | **Tulsa,** | **Oklahoma** |  | **74107** |
| (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Address of Principal Executive Offices) |  | (Zip Code) |

---

(Registrant's telephone number, including area code): **(918) 583-2266** 

**Not Applicable**

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered <br> <u>Common Stock</u> <u>AAON</u> <u>NASDAQ</u>

------

**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Conditions.**

On March 2, 2026, AAON, Inc. (the "Company") announced its financial and operating results and backlog for the fourth quarter ended December 31, 2025. A copy of the Company's press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The Company plans to host a teleconference at 9:00 A.M. (Eastern Time) on March 2, 2026 to discuss these results. The conference call will be accessible via a dial-in for those who wish to participate in Q&A as well as a listen-only webcast. The accessible dial-in is accessible at 1-800-836-8184. To access the listen-only webcast, please register at <u>https://app.webinar.net/0kBVxQBboaR</u>. On the next business day following the call, a replay of the call will be available on the Company's website at <u>https://aaon.com/Investors</u>.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item shall not be deemed "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing.

**Item 7.01&nbsp;&nbsp;&nbsp;&nbsp;Regulation FD Disclosure.**

On March 2, 2026, the Company issued the press release described above in Item 2.02 of this Current Report on Form 8-K. A copy of the press release is attached hereto as Exhibit 99.1.

All statements in the teleconference, other than historical financial information, may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", "should", "will", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Participants and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligations to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Important factors that could cause results to differ materially from those in the forward-looking statements include (1) the timing and extent of changes in raw material and component prices, (2) the effects of fluctuations in the commercial/industrial new construction market, (3) the timing and extent of changes in interest rates, as well as other competitive factors during the year, and (4) general economic, market or business conditions.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item shall not be deemed "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing.

**Item 8.01 Other Events**

The Company today announced that the Board of Directors has authorized the Company to make up to $100.0 million in purchases of shares of the Company's common stock from time to time in the open market depending on market conditions. The Board must authorize the timing and amount of these purchases and all repurchases will be made in accordance with the rules and regulations of the SEC allowing the Company to repurchase shares from the open market. Repurchased shares will be restored to the status of authorized but unissued stock.

------

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

(d)&nbsp;&nbsp;&nbsp;&nbsp;*Exhibits*

---

| | |
|:---|:---|
| Exhibit Number | Description |
| <u>[99.1](liveaaonpressreleaseexs.htm)</u> | Press release dated March 2, 2026 announcing financial and operating results and backlog. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | **AAON, INC.** | **AAON, INC.** |
| Date: | March 2, 2026 | By: | /s/ Luke A. Bomer |
|  |  |  | Luke A. Bomer, Secretary |

---

## Exhibit 99.1

**Exhibit 99.1**

![aaona05a.jpg](aaona05a.jpg)

**AAON Reports Fourth Quarter and Full Year 2025 Results** 

**Carries Record Backlog into 2026**

**Full Year 2025 Results**

(All comparisons are year-over-year, unless otherwise noted)

• Delivered strong sales growth in 2025, while margins and earnings reflected strategic investments in production expansion and ERP implementation to support future growth

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Net sales increased 20.1% to $1.44 billion compared to $1.20 billion in 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Gross margin was 26.7% compared to 33.1% in 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ GAAP diluted EPS was $1.29 compared to $2.02 in 2024

• Robust bookings trends of both AAON- and BASX-branded equipment support continued market share gains

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Record year-end backlog of $1.83 billion, up 110.9% year-over-year, providing strong visibility entering 2026

**Fourth Quarter 2025 Results**

(All comparisons are year-over-year, unless otherwise noted)

• Delivered strong sales growth in the quarter, while margins reflected capacity expansions and upfront fixed costs absorption associated with production ramp-up

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Net sales increased 42.5% to $424.2 million compared to $297.7 million in the fourth quarter of 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Gross margin was 25.9% compared to 26.1% in the fourth quarter of 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ GAAP diluted EPS was $0.39 compared to $0.30 in the fourth quarter of 2024<br>

**Company Introduces 2026 Outlook**

• 2026 outlook reflects revenue growth of 18-20% and gross margins of approximately 29-31%, supported by record backlog, expanded capacity, and improving operational execution

TULSA, Okla., March 2, 2026 - AAON, INC. (NASDAQ-AAON), a leader in high-performing, energy-efficient HVAC solutions that bring long-term value to customers and owners, today announced its results for the fourth quarter and full year 2025.

**Full Year 2025 Results**

"2025 represented a year of record growth for AAON, driven by strong bookings and sales reflecting expanding market share and growing demand for our products and custom solutions," said AAON President and CEO Matt Tobolski. "During the year, we executed on targeted investments to support long-term growth and profitability. These actions included strengthening our leadership team, enhancing supply chain management capabilities, and expanding manufacturing capacity. These investments have increased production throughput and expanded our ability to serve customers at scale, although lead times have remained extended as a result of strong order activity and recovery from prior production challenges.

"Our manufacturing footprint increased approximately 25%, and our production capacity for BASX-branded data center equipment more than doubled following the renovation and commissioning of our new 787,000-square-foot Memphis,

------

Tennessee facility. Together, these investments have significantly strengthened the Company's operating foundation and position us well for continued growth and margin improvement in 2026 and beyond.

"The BASX brand more than doubled revenue and ended the year with backlog up 141.3%, reflecting strong adoption of our customized air-side and liquid cooling solutions in the data center market. Demand for AAON-branded equipment also remained strong, and production increased steadily throughout the year, with additional ramping planned. We made substantial progress stabilizing and advancing the implementation of our new Enterprise Resource Planning ("ERP") system. While the ERP rollout initially impacted production at our Longview, TX facility, operating performance improved consistently over time, reinforcing our confidence in execution as we focus on continued operational improvement and meeting customer commitments."

**Fourth Quarter 2025 Results**

Net sales for the fourth quarter of 2025 increased 42.5% to $424.2 million, from $297.7 million in the fourth quarter of 2024. BASX-branded sales increased 138.8% to $181.4 million, reflecting strong demand for both air-side and liquid cooling equipment for data center applications. AAON-branded sales increased 9.5% to $242.8 million, supported by a strong backlog and favorable comparison to the prior-year period, which was adversely impacted by the industry's refrigerant transition. Booking activity remained solid across both brands, led by the BASX brand, which ended the quarter with backlog up 141.3%, while AAON-branded bookings increased approximately 20% compared to the prior-year period.

Gross profit margin in the quarter was 25.9%, compared to 26.1% in the prior-year period. The modest year-over-year decline primarily reflected unabsorbed fixed-cost investments at the Company's new Memphis facility as production capacity was brought online to support a significant ramp of BASX-branded data center equipment, positioning the business for improved operating leverage as volume scales.

Earnings per diluted share were $0.39, an increase of 30.0% year-over-year.

Dr. Tobolski added, "During the quarter, we made meaningful progress expanding production capacity and further advanced our operational readiness for sustained long-term growth. Production at our new Memphis facility is ramping rapidly, while our Longview, Texas facility continues to scale, increasing our ability to support accelerating demand for our data center equipment. BASX-branded equipment sales increased 138.8% year-over-year in the fourth quarter, and backlog increased 141.3%, providing strong visibility as we enter 2026.

"AAON-branded equipment sales increased 9.5% year-over-year, representing our strongest quarterly growth since the second quarter of 2024. Despite typical seasonal headwinds, we ended the year with backlog up 60.8%, underscoring the strength and durability of underlying demand. We have a clear and disciplined operational plan in place to continue ramping production in 2026, positioning the Company to deliver solid growth and margin expansion.

"Fourth-quarter margins reflected mixed operating dynamics across our facilities. While production volumes in Tulsa were below plan, Memphis reached profitability earlier than expected, validating our investment strategy. Fixed-cost under-absorption continues to pressure consolidated margins in the near term; however, these impacts are largely transitory and directly tied to capacity ramp-up that is already underway, positioning the Company for improved operating leverage as volumes scale. With capacity in place and execution continuing to improve, we remain confident in our path toward meaningful margin expansion throughout 2026."

**Backlog**

---

| | | | |
|:---|:---|:---|:---|
| | **December 31, 2025** | **September 30, 2025** | **December 31, 2024** |
|  | *(in thousands)* | *(in thousands)* | *(in thousands)* |
| AAON-branded products | $526350 | $423316 | $327343 |
| BASX-branded products | 1302145 | 896824 | 539747 |
|  | $1828495 | $1320140 | $867090 |

---

Total backlog increased 110.9% year-over-year to $1.83 billion, and increased 38.5% sequentially. Growth was driven primarily by the BASX-brand, with backlog increasing 141.3% from the prior year and 45.2% from the prior quarter, while AAON-branded equipment backlog increased 60.8% year-over-year. The Company's growing backlog and robust order activity

------

demonstrate meaningful market share capture as customers prioritize high-performance, energy-efficient, and reliable infrastructure solutions. A significant portion of the BASX-branded backlog is slated for production at the Memphis facility, which will support a steady ramp in production in 2026.

**2026 Outlook**

Dr. Tobolski concluded, "As we enter early 2026, we are positioned to build on the investments made throughout 2025 in our people, products, manufacturing capabilities, and working capital. While these initiatives carried upfront costs and impacted near-term results, they have meaningfully strengthened AAON's operating foundation and positioned the Company to meet the growing demand in the data center market.

"Our ERP upgrade presented short-term challenges, which are now largely behind us, and is expected to deliver lasting benefits through improved production throughput, operating efficiency, and margin expansion. We begin 2026 with record backlog, allowing us to remain sharply focused on execution and customer delivery. To support a disciplined ramp in production throughput and accelerate margin improvement, we have moderated the pace of near-term ERP rollouts, enhancing returns on our recent investments while ensuring the Company remains well positioned for future IT system upgrade.

"With these actions in place, and with operational execution continuing to improve, we expect 2026 sales to grow 18%-20%, with gross margin of 29%-31%. We also anticipate SG&A expenses as a percentage of sales will be approximately 16% and expect depreciation and amortization expenses of $95-$100 million."

---

| | |
|:---|:---|
|<br>**Metric** | **Current**<br>**FY26** |
| **YoY Sales Growth** | 18%-20% |
| **Gross Profit Margin** | 29%-31% |
| **SG&A as a % of sales** | ~16% |
| **Depreciation & Amortization** | $95M-$100M |

---

**Segment Results**

**AAON Oklahoma**

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
|<br>***(in thousands)*** | **December 31, 2025** | **September 30, 2025** | **December 31, 2024** |
| Net sales | $215503 | $238748 | $193957 |
| Gross profit | $59168 | $78803 | $59516 |
| Gross profit margin | 27.5% | 33.0% | 30.7% |

---

Net sales for the AAON Oklahoma segment totaled $215.5 million, an increase of 11.1% year-over-year, driven by a strong starting backlog and ongoing production enhancements that improved backlog conversion despite a challenging industry environment. Results in the fourth quarter of 2025 also benefited from a favorable comparison to the prior-year period, which saw disruption due to the industry's refrigerant transition in the prior-year period.

Gross margin for the segment was 27.5%, compared to 30.7% in the fourth quarter of 2024. The year-over-year decrease was fully attributable to $6.4 million of incremental overhead associated with the Company's new Memphis facility, reflecting investments made to support future production growth and operating leverage.

------

**AAON Coil Products**

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended**  | **Three Months Ended**  | **Three Months Ended**  |
|<br>***(in thousands)*** | **December 31, 2025** | **September 30, 2025** | **December 31, 2024** |
| Net sales | $102619 | $70246 | $53019 |
| Gross profit | $21827 | $7758 | $8535 |
| Gross profit margin | 21.3% | 11.0% | 16.1% |

---

Net sales for the AAON Coil Products segment totaled $102.6 million, up 93.6% compared to the same period last year. Growth was driven primarily by $75.3 million in BASX-branded liquid cooling sales, which increased 198.7% during the period. AAON-branded sales declined 1.8% year-over-year, but increased 15.2% sequentially, highlighting strengthening production momentum.

AAON Coil Products gross margin was 21.3%, increasing year-over-year from 16.1% and sequentially from 11.0%. The year-over-year margin expansion reflected improved operating leverage on higher throughput at the Longview facility, along with a favorable mix of higher-margin BASX sales. This was partially offset by a full five-day plant shutdown at Longview at year-end to conduct a wall-to-wall inventory count.

**BASX**

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|<br>***(in thousands)*** | **December 31, 2025** | **September 30, 2025** | **December 31, 2024** |
| Net sales | $106095 | $75244 | $50742 |
| Gross profit | $28775 | $20300 | $9564 |
| Gross profit margin | 27.1% | 27.0% | 18.8% |

---

Net sales for the BASX segment increased 109.1% to $106.1 million, compared to $50.7 million in the prior-year period. The year-over-year increase was driven by continued strong demand for data center equipment, supported by robust order intake and elevated backlog levels. Increased production from the Company's new Memphis facility played a key role in expanding capacity and driving higher sales.

BASX segment gross margin was 27.1%, compared to 18.8% in the prior-year period. The year-over-year improvement reflected a favorable comparison and accelerating production at the Memphis facility.

**Balance Sheet & Cash Flow**

As of December 31, 2025, the company had cash, cash equivalents and restricted cash of $1.2 million and a balance on its revolving credit facility of $398.3 million. Rebecca Thompson, AAON CFO and Treasurer, commented, "In 2025, we made substantial capacity and working-capital investments to support our expanding backlog and ongoing market share gains. As returns on these investments begin to materialize, we expect operating cash flow to improve significantly in 2026, supported by higher earnings and improved working-capital efficiency. This gives us flexibility to continue to focus on our investment in growth for the future with capital expenditure plans of $190.0 million in 2026."

------

**Conference Call** 

The company will host a conference call and webcast this morning at 9:00 a.m. EST to discuss the fourth quarter of 2025 results and outlook. The conference call will be accessible via dial-in for those who wish to participate in Q&A as well as a listen-only webcast. The dial-in is accessible at 1-888-880-3330. To access the listen-only webcast, please register at <u>https://app.webinar.net/X2DbRx9Pk8v</u>. On the next business day following the call, a replay of the call will be available on the company's website at <u>https://aaon.com/investors</u>.

**About AAON**

Founded in 1988, AAON is a global leader in HVAC solutions for commercial, industrial and data center indoor environments. The company's industry-leading approach to designing and manufacturing highly configurable and custom-made equipment to meet exact needs creates a premier ownership experience with greater efficiency, performance and long-term value. Its highly engineered equipment is sold under the AAON and BASX brands. AAON is headquartered in Tulsa, Oklahoma, where its world-class innovation center and testing lab allows AAON engineers to continuously push boundaries and advance the industry. For more information, please visit www.aaon.com.

**Forward-Looking Statements**

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", "estimates", "should", "will", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligations to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Important factors that could cause results to differ materially from those in the forward-looking statements include (1) the timing and extent of changes in raw material and component prices, (2) the effects of fluctuations in the commercial/industrial new construction market, (3) the timing and extent of changes in interest rates, as well as other competitive factors during the year, and (4) general economic, market or business conditions. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in any forward-looking statements, see "Risk Factors" and "Forward Looking Statements" in AAON's Annual Report on Form 10-K for the most recent fiscal year, as may be revised and updated by AAON's Quarterly Reports on Form 10-Q, and AAON's Current Reports on Form 8-K.

**Contact Information**

Joseph Mondillo

Director of Investor Relations & Corporate Strategy

Phone: (617) 877-6346

Email: joseph.mondillo@aaon.com

------

**AAON, Inc. and Subsidiaries**

**Consolidated Statements of Income**

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2025** | **2024** | **2025** | **2024** |
|  | *(in thousands, except per share data)* | *(in thousands, except per share data)* | *(in thousands, except per share data)* | *(in thousands, except per share data)* |
| Net sales | $424217 | $297718 | $1442076 | $1200635 |
| Cost of sales | 314447 | 220103 | 1056352 | 803526 |
| Gross profit | 109770 | 77615 | 385724 | 397109 |
| Selling, general and administrative expenses | 65810 | 48194 | 239480 | 188014 |
| Gain on disposal of assets |  | (8) | (4) | (23) |
| Income from operations | 43960 | 29429 | 146248 | 209118 |
| Interest expense | (5762) | (1208) | (17726) | (2905) |
| Other income, net | 124 | 45 | 230 | 378 |
| Income before taxes | 38322 | 28266 | 128752 | 206591 |
| Income tax provision | 6290 | 3576 | 21159 | 38032 |
| Net income | $32032 | $24690 | $107593 | $168559 |
| Earnings per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic EPS | $0.39 | $0.30 | $1.32 | $2.07 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted EPS | $0.39 | $0.30 | $1.29 | $2.02 |
| Cash dividends declared per common share: | $0.10 | $0.08 | $0.40 | $0.32 |
| Weighted average shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 81657463 | 81345236 | 81529140 | 81473131 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 83160224 | 83575989 | 83105538 | 83629502 |

---

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**AAON, Inc. and Subsidiaries**

**Segment Net Sales and Profit**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2025** | **2024** | **2025** | **2024** |
|  | *(in thousands)* | *(in thousands)* | *(in thousands)* | *(in thousands)* |
| **AAON Oklahoma** |  |  |  |  |
| External sales | $215503 | $193957 | $801209 | $858711 |
| Inter-segment sales | 29304 | 2116 | 48198 | 6336 |
| &nbsp;&nbsp;&nbsp;&nbsp;Eliminations | (29304) | (2116) | (48198) | (6336) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net sales | 215503 | 193957 | 801209 | 858711 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of sales<sup>1</sup> | 156335 | 134441 | 569121 | 538124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit | 59168 | 59516 | 232088 | 320587 |
| **AAON Coil Products** |  |  |  |  |
| External sales | $102619 | $53019 | $325353 | $143871 |
| Inter-segment sales | 4298 | 4298 | 16005 | 20192 |
| &nbsp;&nbsp;&nbsp;&nbsp;Eliminations | (4298) | (4298) | (16005) | (20192) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net sales | 102619 | 53019 | 325353 | 143871 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of sales<sup>1</sup> | 80792 | 44484 | 255681 | 116287 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit | 21827 | 8535 | 69672 | 27584 |
| **BASX** |  |  |  |  |
| External sales | $106095 | $50742 | $315514 | $198053 |
| Inter-segment sales | (74) | 404 | 502 | 666 |
| &nbsp;&nbsp;&nbsp;&nbsp;Eliminations | 74 | (404) | (502) | (666) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net sales | 106095 | 50742 | 315514 | 198053 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of sales<sup>1</sup> | 77320 | 41178 | 231550 | 149115 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit | 28775 | 9564 | 83964 | 48938 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated gross profit | $109770 | $77615 | $385724 | $397109 |

---

<sup>1</sup> Presented after intercompany eliminations.

The reconciliation between consolidated gross profit to consolidated income from operations is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Consolidated gross profit | $109770 | $77615 | $385724 | $397109 |
| &nbsp;&nbsp;Less: Selling, general and administrative expenses | 65810 | 48194 | 239480 | 188014 |
| &nbsp;&nbsp;Add: gain on disposal of assets |  | 8 | 4 | 23 |
| Consolidated income from operations | $43960 | $29429 | $146248 | $209118 |

---

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**AAON, Inc. and Subsidiaries**

**Consolidated Balance Sheets**

(Unaudited)

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| | | |
|:---|:---|:---|
| | **December 31, 2025** | **December 31, 2024** |
| **Assets** | *(in thousands, except share and per share data)* | *(in thousands, except share and per share data)* |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $13 | $14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 1226 | 6500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 314387 | 147434 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax receivable | 27445 | 4115 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | 261151 | 187420 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract assets, net | 247037 | 135421 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other | 17921 | 7308 |
| Total current assets | 869180 | 488212 |
| Property, plant and equipment, net | 631262 | 510356 |
| Intangible assets, net and goodwill | 165799 | 160152 |
| Right of use assets | 17988 | 15436 |
| Other long-term assets | 2281 | 242 |
| Deferred tax assets |  | 836 |
| Total assets | $1686510 | $1175234 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt, short-term | $— | $16000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term obligations of NMTC | 7535 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 110437 | 44645 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 132213 | 99347 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | 80670 | 14913 |
| Total current liabilities | 330855 | 174905 |
| Debt, long-term | 398320 | 138891 |
| Deferred tax liabilities | 30313 |  |
| Other long term liabilities | 23299 | 20743 |
| New market tax credit obligations<sup>1</sup> | 8738 | 16113 |
| Commitments and contingencies (Note 20) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $.004 par value, 200,000,000 shares authorized, 81,691,075 and 81,436,594 issued and outstanding at December 31, 2025 and 2024, respectively | 327 | 326 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 64358 | 68946 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 830300 | 755310 |
| Total stockholders' equity | 894985 | 824582 |
| Total liabilities and stockholders' equity | $1686510 | $1175234 |

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**AAON, Inc. and Subsidiaries**

**Consolidated Statements of Cash Flows**

**(Unaudited)** 

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| | | |
|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2025** | **2024** |
| **Operating Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $107593 | $168559 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 79191 | 62735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 394 | 154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of right of use assets | 166 | 189 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for (recoveries of) losses on accounts receivable, net of adjustments | 70 | 715 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for losses on contract assets, net of adjustments | 200 | 399 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for (recoveries of) excess and obsolete inventories, net of write-offs | 152 | (968) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 17994 | 16729 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | (15) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 31149 | (6606) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (167023) | (10041) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax receivable | (23330) | (5285) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (73883) | 27080 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract assets | (111816) | (90626) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other long-term assets | (11673) | (3707) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 52904 | 16959 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | 65757 | 1156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extended warranties | 831 | 1835 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities and other long-term liabilities | 31873 | 13259 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 534 | 192532 |
| **Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (190563) | (195660) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from government incentive grant | 12000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of property, plant and equipment | 40 | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of intangible assets | (14329) | (17491) |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal payments from note receivable | 435 | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (192417) | (213075) |
| **Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings of debt | 915391 | 717897 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments of debt | (672204) | (601091) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from financing obligation, net of issuance costs |  | 4186 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment related to financing costs | (1395) | (664) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock options exercised | 17144 | 31861 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of stock - open market | (29995) | (100034) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchases of stock - LTIP plans (Note 18) | (9730) | (8037) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash dividends paid to stockholders | (32603) | (26084) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 186608 | 18034 |
| Net (decrease) increase in cash, cash equivalents, and restricted cash | (5275) | (2509) |
| Cash, cash equivalents, and restricted cash, beginning of year | 6514 | 9023 |
| Cash, cash equivalents, and restricted cash, end of year | $1239 | $6514 |

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**Use of Non-GAAP Financial Measures**

To supplement the company's consolidated financial statements presented in accordance with generally accepted accounting principles ("GAAP"), additional non-GAAP financial measures are provided and reconciled in the following tables. The company believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results. The company believes that this non-GAAP financial measure enhances the ability of investors to analyze the company's business trends and operating performance as they are used by management to better understand operating performance. Since adjusted net income, adjusted net income per diluted share, EBITDA, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures and are susceptible to varying calculations, adjusted net income, adjusted net income per diluted share, EBITDA, adjusted EBITDA, and adjusted EBITDA margin, as presented, may not be directly comparable with other similarly titled measures used by other companies.

**Non-GAAP Adjusted Net Income**

The company defines non-GAAP adjusted net income as net income adjusted for any infrequent events, such as litigation settlements, net of profit sharing and tax effect, in the periods presented.

The following table provides a reconciliation of net income (GAAP) to non-GAAP adjusted net income for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2025** | **2024** | **2025** | **2024** |
|  | *(in thousands)* | *(in thousands)* | *(in thousands)* | *(in thousands)* |
| Net income, a GAAP measure | $32032 | $24690 | $107593 | $168559 |
| Add: Memphis incentive fee<sup>1</sup> |  |  | 6105 |  |
| Profit sharing effect<sup>2</sup> |  |  | (519) |  |
| Tax effect |  |  | (1369) |  |
| Non-GAAP adjusted net income | $32032 | $24690 | $111810 | $168559 |
| Non-GAAP adjusted earnings per diluted share | $0.39 | $0.30 | $1.35 | $2.02 |
| <sup>1</sup>The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. | <sup>1</sup>The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. | <sup>1</sup>The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. | <sup>1</sup>The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. | <sup>1</sup>The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. |
| <sup>2</sup>Profit sharing effect of the Memphis incentive fee in the respective period. | <sup>2</sup>Profit sharing effect of the Memphis incentive fee in the respective period. | <sup>2</sup>Profit sharing effect of the Memphis incentive fee in the respective period. |  |  |

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**EBITDA**

EBITDA (as defined below) is presented herein and reconciled from the GAAP measure of net income because of its wide acceptance by the investment community as a financial indicator of a company's ability to internally fund operations. The company defines EBITDA as net income, plus (1) depreciation and amortization, (2) interest expense (income), net and (3) income tax expense. EBITDA is not a measure of net income or cash flows as determined by GAAP. EBITDA margin is defined as EBITDA as a percentage of net sales.

The company's EBITDA measure provides additional information which may be used to better understand the company's operations. EBITDA is one of several metrics that the company uses as a supplemental financial measurement in the evaluation of its business and should not be considered as an alternative to, or more meaningful than, net income, as an indicator of operating performance. Certain items excluded from EBITDA are significant components in understanding and assessing a company's financial performance. EBITDA, as used by the company, may not be comparable to similarly titled measures reported by other companies. The company believes that EBITDA is a widely followed measure of operating performance and is one of many metrics used by the company's management team and by other users of the company's consolidated financial statements.

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Adjusted EBITDA is calculated as EBITDA adjusted by items in non-GAAP adjusted net income, above, except for taxes, as taxes are already excluded from EBITDA.

The following table provides a reconciliation of net income (GAAP) to EBITDA (non-GAAP) and Adjusted EBITDA (non-GAAP) for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| | **2025** | **2024** | **2025** | **2024** |
|  | *(in thousands)* | *(in thousands)* | *(in thousands)* | *(in thousands)* |
| Net income, a GAAP measure | $32032 | $24690 | $107593 | $168559 |
| &nbsp;&nbsp;Depreciation and amortization | 20353 | 17550 | 79191 | 62735 |
| &nbsp;&nbsp;Interest expense, net | 5762 | 1208 | 17726 | 2905 |
| &nbsp;&nbsp;Income tax expense | 6290 | 3576 | 21159 | 38032 |
| EBITDA, a non-GAAP measure | $64437 | $47024 | $225669 | $272231 |
| &nbsp;&nbsp;Add: Memphis incentive fee<sup>1</sup> |  |  | 6105 |  |
| &nbsp;&nbsp;Profit sharing effect<sup>2</sup> |  |  | (519) |  |
| Adjusted EBITDA, a non-GAAP measure | $64437 | $47024 | $231255 | $272231 |
| &nbsp;&nbsp;Adjusted EBITDA margin | 15.2% | 15.8% | 16.0% | 22.7% |
| <sup>1</sup>The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. | <sup>1</sup>The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. | <sup>1</sup>The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. | <sup>1</sup>The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. | <sup>1</sup>The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. |
| <sup>2</sup>Profit sharing effect of the Memphis incentive fee in the respective period. | <sup>2</sup>Profit sharing effect of the Memphis incentive fee in the respective period. | <sup>2</sup>Profit sharing effect of the Memphis incentive fee in the respective period. | <sup>2</sup>Profit sharing effect of the Memphis incentive fee in the respective period. | <sup>2</sup>Profit sharing effect of the Memphis incentive fee in the respective period. |

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**Non-GAAP Adjusted Selling, General and Administrative Expenses**

The following table provides a reconciliation of selling, general and administrative expenses (GAAP) to adjusted selling, general and administrative expenses (non-GAAP) for the periods indicated:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Q1 2024** | **Q2 2024** | **Q3 2024** | **Q4 2024** | **2024** |
|  | *(in thousands)* | *(in thousands)* | *(in thousands)* | *(in thousands)* | *(in thousands)* |
| **Non-GAAP Adjusted Selling, General and Administrative Expenses** | **Non-GAAP Adjusted Selling, General and Administrative Expenses** | **Non-GAAP Adjusted Selling, General and Administrative Expenses** | **Non-GAAP Adjusted Selling, General and Administrative Expenses** | **Non-GAAP Adjusted Selling, General and Administrative Expenses** | **Non-GAAP Adjusted Selling, General and Administrative Expenses** |
| SG&A, a GAAP measure | $45288 | $45895 | $48637 | $48194 | $188014 |
| Less: Memphis Incentive Fee<sup>1</sup> |  |  |  |  |  |
| Profit Sharing effect<sup>2</sup> |  |  |  |  |  |
| Non-GAAP adjusted SG&A expenses | $45288 | $45895 | $48637 | $48194 | $188014 |
| As a percent of sales | 17.3% | 14.6% | 14.9% | 16.2% | 15.7% |
|  | **Q1 2025** | **Q2 2025** | **Q3 2025** | **Q4 2025** | **2025** |
|  | *(in thousands)* | *(in thousands)* | *(in thousands)* | *(in thousands)* | *(in thousands)* |
| SG&A, a GAAP measure | $51293 | $59147 | $63230 | 65810 | 239480 |
| Less: Memphis Incentive Fee<sup>1</sup> | 2700 | 3405 |  |  | 6105 |
| Profit Sharing effect<sup>2</sup> | (230) | (289) |  |  | (519) |
| Non-GAAP adjusted SG&A expenses | $48823 | $56031 | $63230 | $65810 | $233894 |
| As a percent of sales | 15.2% | 18.0% | 16.5% | 15.5% | 16.2% |
| <sup>1</sup>The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. | <sup>1</sup>The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. | <sup>1</sup>The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. | <sup>1</sup>The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. | <sup>1</sup>The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. | <sup>1</sup>The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities. |
| <sup>2</sup>Profit sharing effect of the Memphis incentive fee in the respective period. | <sup>2</sup>Profit sharing effect of the Memphis incentive fee in the respective period. | <sup>2</sup>Profit sharing effect of the Memphis incentive fee in the respective period. | <sup>2</sup>Profit sharing effect of the Memphis incentive fee in the respective period. | <sup>2</sup>Profit sharing effect of the Memphis incentive fee in the respective period. | <sup>2</sup>Profit sharing effect of the Memphis incentive fee in the respective period. |

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