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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Aaon, Inc. · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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Commodity Price Risk
We are exposed to volatility in the prices of commodities used in some of our products and, occasionally, we use cancellable and non-cancellable contracts with our major suppliers for periods of six to 18 months to manage this exposure.
Interest Rate Risk
We are exposed to changes in interest rates related to our outstanding debt. As of June 30, 2026, we had an outstanding balance of $435.0 million. For each one percentage point increase in the interest rate applicable to our outstanding debt, our annual income before taxes would decrease by approximately $4.4 million.