AAON reported challenging 4Q24 due to HVAC industry transition to new refrigerant

From Yahoo Finance: 2025-04-29 10:04:00

Conestoga Capital Advisors released its first-quarter 2025 investor letter, noting a sharp decline in equities due to concerns over slowing earnings, geopolitical tensions, and upcoming tariff announcements. The Conestoga Small Cap Composite returned -11.35%, the SMid Cap Composite -5.73%, the Micro-Cap Composite -8.24%, and the Mid Cap Composite 0.96% (net) in Q1.

In its Q1 2025 investor letter, Conestoga Capital Advisors highlighted AAON, Inc. (NASDAQ:AAON), a company with a market cap of $7.22 billion that manufactures air conditioning and heating equipment. AAON, Inc. (NASDAQ:AAON) had a one-month return of 13.64% and closed at $88.79 per share on April 28, 2025.

Conestoga Capital Advisors noted in its Q1 2025 investor letter that AAON, Inc. (NASDAQ:AAON) experienced challenges in 4Q24 due to the HVAC industry’s transition to a new refrigerant. Manufacturing inefficiencies and expansion expenses impacted results, but the company’s medium and long-term prospects are solid.

AAON, Inc. (NASDAQ:AAON) is not among the 30 most popular stocks among hedge funds, with 29 portfolios holding the stock at the end of Q4. While AAON, Inc. (NASDAQ:AAON) has potential, hedge funds prefer AI stocks like NVIDIA for higher returns in a shorter timeframe. Check out our report on the cheapest AI stock for promising investments.

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