AAON's biggest risks in the FY2024 10-K
- Concentration of operations in a single Tulsa, Oklahoma facility increases natural disaster vulnerability.
- Reliance on third-party representatives to market HVAC products creates distribution risks.
- Exposure to raw material price volatility in steel, copper, and aluminum impacts manufacturing costs.
The risks most specific to AAON
- Risks Related to Our Business
Our results of operations and financial condition could be negatively impacted by the loss of a major third-party representative
Competitors with greater financial resources could target our third-party representatives for exclusive sales channels, impairing our revenue generation.
- Risks Related to Our Business
Operations may be affected by natural disasters, especially since most of our operations are performed at a single location
The majority of our operations are concentrated at our Tulsa, Oklahoma facilities, making us vulnerable to local tornadoes, ice storms, and fires.
- Risks Related to Material Sourcing and Supply
We may be adversely affected by problems in the availability, or increases in the prices, of raw materials and components
We depend on third-party components and raw materials like steel, copper, and aluminum, whose price increases or availability issues can depress sales.
- Risks Related to Material Sourcing and Supply
We risk having losses resulting from the use of non-cancellable contracts
We risk losses from entering into non-cancellable contracts with major suppliers for periods of six to 18 months to limit commodity price fluctuations.
- Risks Related to Electronic Data Processing and Digital Information
Complications with the design or implementation of our new enterprise resource planning system could adversely impact our business and operations
Complications with the design or implementation of our new global enterprise resource planning system could adversely impact our business and operations.
- Risks Related to Governmental Regulation and Policies
Changes in legislation or government regulations or policies could adversely affect our results of operations
Changes in environmental and energy efficiency standards restricting the use of hydrofluorocarbons in refrigerants could directly impact our profitability.
All 23 risk factors
Headings as the filing states them, in filing order.
Risks Related to Our Business
- 01Our business, results of operations and financial condition may be disrupted and adversely affected by public health pandemics
- 02Our business, results of operations and financial condition may be adversely affected if a public health pandemic interferes with the ability of our employees, suppliers, and other business partners to perform their respective responsibilities and obligations relative to the operations of our business
- 03Our business can be hurt by economic conditions
- 04Our results of operations and financial condition could be negatively impacted by the loss of one or more major customers
- 05Our results of operations and financial condition could be negatively impacted by the loss of a major third-party representative
- 06We may incur material costs as a result of warranty and product liability claims that would negatively affect our profitability
- 07We depend on our officers and senior leadership team and the loss of one or more key employees or an inability to attract and retain highly skilled employees could adversely affect our business
- 08Operations may be affected by natural disasters, especially since most of our operations are performed at a single location
- 09If we are unable to hire, develop or retain employees, it could have an adverse effect on our business
- 10Variability in self-insurance liability estimates could impact our results of operations
Risks Related to Our Brand and Product Offerings
- 11We may not be able to compete favorably in the highly competitive HVAC business
- 12We may not be able to successfully develop and market new products
Risks Related to Material Sourcing and Supply
- 13We may be adversely affected by problems in the availability, or increases in the prices, of raw materials and components
- 14We risk having losses resulting from the use of non-cancellable contracts
Risks Related to Electronic Data Processing and Digital Information
- 15Our business is subject to the risks of interruptions by cybersecurity attacks
- 16We are reliant on information technology
- 17Complications with the design or implementation of our new enterprise resource planning system could adversely impact our business and operations
Risks Related to Governmental Regulation and Policies
- 18Exposure to environmental liabilities could adversely affect our results of operations
- 19We are subject to potentially extreme governmental regulations and policies
- 20We are subject to adverse changes in tax laws
- 21We are subject to international regulations that could adversely affect our business and results of operations
- 22Changes in legislation or government regulations or policies could adversely affect our results of operations
- 23Changes in U.S. or foreign trade policies, including additional tariffs or global trade conflicts, could increase the cost of our products, which could adversely impact the competitiveness of our products
Other AAON 10-Ks
- FY2025 10-K risk factors25 risks2 new2 reworded
The filing adds new risks regarding backlog realization and artificial intelligence. Trade policy risks are updated to reflect the current administration's tariffs.
Filed Mar 02, 2026
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.