Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $0.64, a nearly 7% increase compared to the prior year [12][29] - Adjusted revenue was modestly higher than the previous year, with a 2.4% reduction in organic revenue offset by acquisitions and currency tailwinds [31] - Adjusted operating income grew approximately 9% year-to-date [12] Business Line Data and Key Metrics Changes - **HVAC Segment**: Revenue increased by 10.3%, with organic growth of 4% and 6% from the Patterson-Kelley acquisition [32] - **Detection & Measurement Segment**: Revenue declined by 12.7%, with an organic decline of 16.7%, partially offset by a 3.1% increase from the ULC acquisition [36] - **Engineered Solutions Segment**: Revenue increased by 1.7%, reflecting better pricing discipline and a favorable mix [41] Market Data and Key Metrics Changes - The non-residential HVAC business showed strong performance year-to-date, but there are signs of moderating order and quote activity [53] - Locator demand has rebounded significantly, especially in China, indicating a recovery in the Detection & Measurement segment [54] Company Strategy and Development Direction - The company is focused on growth through acquisitions, with the recent acquisition of ULC Robotics enhancing its Detection & Measurement segment [10][24] - Continuous improvement initiatives, including LEAN and AD-20 programs, are expected to drive margin expansion and growth [20][68] - The company aims to leverage its expertise in product development and machine learning to enhance value and efficiency for customers [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving solid earnings and cash generation for the fourth quarter, with full-year earnings expected to be modestly above the prior year [11][49] - The ongoing pandemic has created challenges, but the company has adapted and is seeing improvements in order flow and project deliveries [14][77] - Management remains optimistic about the long-term growth potential, particularly in the HVAC and Engineered Solutions segments [56][102] Other Important Information - The company maintains a solid balance sheet with a net leverage ratio of 1.9 times, expected to decline towards the lower end of its long-term target by year-end [44] - Adjusted free cash flow was $31 million in Q3, similar to the prior year [45] Q&A Session Summary Question: HVAC segment guidance for Q4 - Management noted a mid to high single-digit decline in revenue for Q4, influenced by project pull-forwards and tougher year-over-year comparisons [61][62] Question: Operating initiatives and margin opportunities - Management highlighted that continuous improvement initiatives are essential for driving margin expansion, aiming for a 50 basis point increase annually [66][68] Question: Visibility on Detection & Measurement segment - Management indicated that while there are timing challenges, they expect a normal flow of orders and are confident in the business's fundamentals [77][110] Question: Heating business outlook - Management expressed optimism about the heating business, noting that weather patterns will be a significant driver of demand [112][114]

| --- | --- | --- | --- | |-----------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q3 2020 | | | | | Earnings Presentation | | | | | | | | | | October 29, 2020 | | | | SPX Corporation 2020 Investor Event - New York Certain statements contained in this presentation that are not historical facts, including any statements as to future market conditions, results of operations, products introductions, and financial projections, are forward-looking statements ...

SPX Corporation (NYSE:SPXC) Q2 2020 Earnings Conference Call July 30, 2020 4:45 PM ET Company Participants Paul Clegg - Vice President, Investor Relations Gene Lowe - President & Chief Executive Officer Scott Sproule - Chief Financial Officer Conference Call Participants Damian Karas - UBS Bryan Blair - Oppenheimer Brett Linzey - Vertical Research Joe Mondillo - Sidoti & Company Walter Liptak - Seaport Operator Ladies and gentlemen, thank you for standing by and welcome to the SPX Corporation Second Quarter ...

| --- | --- | --- | --- | |-----------------------|-------|-------|-------| | | | | | | | | | | | | | | | | Q2 2020 | | | | | Earnings Presentation | | | | | | | | | | July 30, 2020 | | | | SPX Corporation 2020 Investor Event - New York Certain statements contained in this presentation that are not historical facts, including any statements as to future market conditions, results of operations, products introductions, and financial projections, are forward-looking statements within the meaning of Section 27 ...