AAON (AAON) Shares Fell After Its Investor Day. Here’s Why

Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Small Cap Composite returned 4.76% in the quarter compared to 11.97% for the Russell 2000 Growth Index. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as AAON, Inc. (NASDAQ:AAON). AAON, Inc. (NASDAQ:AAON), with a market capitalization of $6.311 billion, engages in engineering, manufacturing, marketing, and selling air conditioning and heating equipment. The one-month return of AAON, Inc. (NASDAQ:AAON) was 5.39%, and its shares lost 11.45% of their value over the last 52 weeks. On July 24, 2025, AAON, Inc. (NASDAQ:AAON) stock closed at $77.56 per share.

Conestoga Capital Advisors stated the following regarding AAON, Inc. (NASDAQ:AAON) in its second quarter 2025 investor letter:

“At the end of April, AAON, Inc. (NASDAQ:AAON) posted 1Q results that were above estimates despite continued challenges with its core rooftop business. The strength in the quarter was driven by the BASX’s revenues which was up 375%. The stock responded favorably to these results, but the company’s Investor Day held later in the quarter (June 10th) disappointed investors. The two most significant issues weighing on the stock from the Investor Day are: 1) the company’s long-term revenue guidance came in below investor expectations and, 2) the company announced that an ERP implementation in its Longview, TX office disrupted operations for the quarter. The company maintained 2025 guidance, but the ERP implementation heightened investor angst about its ability to achieve its stated goals.”

Why AAON Inc (AAON) Is Plunging in 2025?

A technician surrounded by complex chillers and data center cooling solutions.

AAON, Inc. (NASDAQ:AAON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held AAON, Inc. (NASDAQ:AAON) at the end of the first quarter, which was 29 in the previous quarter. AAON, Inc.’s (NASDAQ:AAON) net sales for the first quarter of 2025 increased 22.9% year-over-year to $322.1 million. While we acknowledge the risk and potential of AAON, Inc. (NASDAQ:AAON) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAON, Inc. (NASDAQ:AAON) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered AAON, Inc. (NASDAQ:AAON) and shared the list of growth stocks that could double by 2027. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.