Download PDF

1. Company Snapshot

1.a. Company Description

SPX Technologies, Inc.supplies infrastructure equipment serving the heating, ventilation, and cooling (HVAC); and detection and measurement markets in the United States, China, the United Kingdom, and internationally.The company operates in two segments, HVAC and Detection and Measurement.


The HVAC segment engineers, designs, manufactures, installs, and services package and process cooling products and engineered air movement solutions for the HVAC industrial and power generation markets, as well as boilers and comfort heating and ventilation products for the residential and commercial markets.It offers its products under the Marley, Recold, SGS, Cincinnati Fan, Berko, Qmark, Fahrenheat, Leading Edge, Patterson-Kelley, Weil-McLain, and Williamson-Thermoflo brands.The Detection and Measurement segment offers underground pipe and cable locators, inspection and rehabilitation equipment, and robotic systems under the Radiodetection, Pearpoint, Schonstedt, Dielectric, Riser Bond, Warren G-V, Cues, ULC Robotics, and Sensors & Software brands; and bus fare collection systems, communication technologies, and obstruction lighting products under the Genfare, TCI, Flash Technology, Sabik Marine, Sealite, Avlite, and ECS brands.


The company markets its products through independent manufacturing representatives, third-party distributors, and retailers, as well as direct to customers.The company was formerly known as SPX Corporation and changed its name to SPX Technologies, Inc.in August 2022.


SPX Technologies, Inc.was founded in 1912 and is headquartered in Charlotte, North Carolina.

Show Full description

1.b. Last Insights on SPXC

SPX Technologies' recent performance faces challenges from decreased institutional investor confidence, with Artisan Partners Limited Partnership and Channing Capital Management LLC reducing their stakes by 23.8% and 18.6%, respectively. Despite beating Q4 earnings and revenue estimates with $1.88 per share, the company's growth prospects are being evaluated by investors. With a "Moderate Buy" rating from brokerages, the company's data center cooling segment is expected to drive growth, with projected 50% annual growth in data center revenue.

1.c. Company Highlights

2. SPX Technologies Q1 2026: Strong Growth, Elevated Guidance

SPX Technologies delivered a robust first‑quarter performance, with adjusted EPS rising 22% to $1.69—exceeding the consensus estimate of $1.55—and total revenue up 17.4% YoY to $7.83 billion. Segment income climbed 22% to $135 million, and consolidated margin improved by 100 basis points, reflecting the upside from recent acquisitions and healthy organic growth in HVAC. The company’s valuation metrics—P/E of 40.96 and EV/EBITDA of 20.59—suggest a premium priced into the expected 21% EBITDA growth for the year. [Staff]

Publication Date: 07:12

📋 Highlights
  • Adjusted EPS and Revenue Growth:: Q1 2026 adjusted EPS rose 22% to $1.69, with total revenue up 17.4% YoY driven by acquisitions and 9.6% HVAC organic growth.
  • Segment Income and Margin Expansion:: Consolidated segment income jumped 22% to $135M, with a 100 bps margin increase, while Detection & Measurement saw a 410 bps margin gain despite HVAC margin pressure from start-up costs.
  • Full-Year Guidance Raised:: Adjusted EPS guidance raised to a midpoint of $7.95, reflecting $0.05–$0.10 impact from Section 232 tariffs, with EBITDA growth expected at 21%.
  • Data Center Capacity Expansion:: $550M incremental capacity planned from $200M base, with Tennessee and Mirabel expansions active and Madison set for production in late 2024, targeting ~$550M data center revenue by 2027.

HVAC Segment Momentum

The HVAC business drove 22% revenue growth, combining 11.5% inorganic expansion and a modest FX tailwind with 9.6% organic lift. Higher volumes propelled income up 20%, although a 40‑basis‑point margin dip reflected start‑up costs from capacity expansions. Management signals that operating leverage of 60‑70 bps will materialize in the second half of the year, restoring margins as expansion costs recede.

Detection & Measurement Upside

Detection & Measurement (D&M) posted 8.3% revenue growth, while income surged 28% and margin rose 410 basis points, driven by volume gains and a favorable mix. The segment’s margin lift of 75 bps stems from high‑margin software revenue on a transportation project, reinforcing the business’s resilience and pricing power.

Data Center Expansion

Data center demand remains a key growth engine, with a 70% market expansion forecast for 2026. New capacity in Tennessee, Mirabel, and Madison is expected to unlock roughly $550 million of incremental revenue, while existing facilities—Olathe, Tennessee, and Madison—are nearing full utilization by 2027. The company’s supply‑chain robustness and real‑time cost controls position it to capture rising demand from hyperscalers and colos without significant margin erosion.

M&A and Capital Discipline

Acquisitions of Air Enterprises, Rahn, and Thermolec continue to deliver synergies, with a 40‑basis‑point margin lift from accretive deals. SPX maintains a disciplined M&A pipeline focused on HVAC, D&M, and engineered air movement, while deploying capital efficiently to support organic and inorganic growth.

Guidance and Outlook

Full‑year 2026 guidance has been raised, with adjusted EPS now projected at a midpoint of $7.95—a $0.15 increase—reflecting the Q1 upside and a $0.05–$0.10 tariff impact that the firm expects to be neutral in 2027. The company forecasts 8% revenue growth for 2027, bolstered by continued demand in data centers, healthcare, pharma, power, and heavy industry. With a leverage ratio of 0.9x and $158 million in cash, SPX is well‑positioned to sustain earnings momentum and invest in high‑return opportunities while maintaining financial flexibility.

3. NewsRoom

Card image cap

SPX Technologies, Inc. (SPXC) Q1 2026 Earnings Call Transcript

May -01

Source: seekingalpha.com

Card image cap

Compared to Estimates, SPX Technologies (SPXC) Q1 Earnings: A Look at Key Metrics

Apr -30

Source: zacks.com

Card image cap

SPX Technologies (SPXC) Q1 Earnings and Revenues Beat Estimates

Apr -30

Source: zacks.com

Card image cap

SPX Reports First Quarter 2026 Results

Apr -30

Source: globenewswire.com

Card image cap

Charts to Watch: SPX, QBTS, FSLR

Apr -22

Source: youtube.com

Card image cap

Strength Seen in SPX Technologies (SPXC): Can Its 3.8% Jump Turn into More Strength?

Apr -20

Source: zacks.com

Card image cap

SPX Technologies: Data Center Part Of The Business Is Attractive

Apr -16

Source: seekingalpha.com

Card image cap

Charts to Watch: SPX Record High, XOM, NFLX

Apr -15

Source: youtube.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.02%)

6. Segments

Heating, Ventilation and Cooling

Expected Growth: 4.65%

Strong demand for energy-efficient HVAC systems, increasing adoption of IoT-enabled solutions, and growing need for indoor air quality improvement drive the 4.65% growth in Heating, Ventilation and Cooling segment of SPX Technologies, Inc.

Detection and Measurement

Expected Growth: 8.5%

Detection and Measurement segment's 8.5% growth is driven by increasing demand for industrial automation, expansion in emerging markets, and strategic acquisitions. Additionally, growing need for process optimization, safety, and environmental monitoring in industries such as oil and gas, chemical, and power generation also contribute to the segment's growth.

7. Detailed Products

Heat Exchangers

SPX Technologies offers a range of heat exchangers, including shell and tube, plate, and air-cooled heat exchangers, used in various industries such as power generation, oil and gas, and chemical processing.

Pumps

SPX Technologies provides a variety of pumps, including centrifugal, positive displacement, and metering pumps, used in industries such as oil and gas, chemical processing, and water treatment.

Valves

SPX Technologies offers a range of valves, including gate, globe, and check valves, used in industries such as oil and gas, chemical processing, and power generation.

Mixing and Blending Systems

SPX Technologies provides mixing and blending systems, including batch mixers, continuous mixers, and blenders, used in industries such as food and beverage, pharmaceutical, and chemical processing.

Drying and Evaporation Systems

SPX Technologies offers drying and evaporation systems, including spray dryers, fluid bed dryers, and evaporators, used in industries such as food and beverage, pharmaceutical, and chemical processing.

Aeration and Mixing Systems

SPX Technologies provides aeration and mixing systems, including aerators, mixers, and reactors, used in industries such as water and wastewater treatment, and chemical processing.

8. SPX Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for SPX Technologies, Inc. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for SPX Technologies, Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for SPX Technologies, Inc. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for SPX Technologies, Inc. is high due to the low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for SPX Technologies, Inc. is high due to the presence of several competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.85%
Debt Cost 6.27%
Equity Weight 68.15%
Equity Cost 10.15%
WACC 8.91%
Leverage 46.74%

11. Quality Control: SPX Technologies, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Mueller Water Products

A-Score: 5.4/10

Value: 4.0

Growth: 6.9

Quality: 7.3

Yield: 2.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Gates Industrial

A-Score: 4.9/10

Value: 5.5

Growth: 4.7

Quality: 6.6

Yield: 0.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
SPX Technologies

A-Score: 4.8/10

Value: 1.7

Growth: 6.0

Quality: 7.0

Yield: 0.0

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
EnPro

A-Score: 4.7/10

Value: 2.6

Growth: 4.6

Quality: 6.1

Yield: 2.0

Momentum: 7.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Parsons

A-Score: 4.5/10

Value: 5.6

Growth: 6.8

Quality: 5.7

Yield: 0.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Middleby

A-Score: 3.8/10

Value: 5.0

Growth: 6.1

Quality: 2.8

Yield: 0.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

208.13$

Current Price

208.13$

Potential

-0.00%

Expected Cash-Flows