Financial Performance - SPX Technologies achieved strong Q2 2025 performance with revenue growth of 10%[12] - Adjusted EBITDA grew by 16%, with a margin expansion of 120 bps primarily driven by HVAC[17] - Adjusted EPS increased by 16%[11], reaching $1.65 in Q2 2025[23] compared to $1.42 in Q2 2024[22] - Consolidated Segment Income increased by $18 million year-over-year[27], with HVAC being the primary driver of the margin increase of +110 bps[27] Segment Results - HVAC revenue increased by 5.7% year-over-year[33], with a segment income increase of $12 million and margin increase of 190 bps[33] - Detection & Measurement revenue increased by 21.3% year-over-year[39], with a segment income increase of $6 million[39] Financial Position & Guidance - The company is raising its 2025 guidance, implying +18% growth at midpoint for Adjusted EBITDA[9] - Full-year revenue guidance is $2.225-$2.275 billion[46] - Adjusted EBITDA guidance is $485-$510 million[46] - Adjusted EPS guidance is $6.35-$6.65[46]

[SPX Q2 2025 Earnings Release](index=1&type=section&id=SPX%20Reports%20Second%20Quarter%202025%20Results) [Executive Summary](index=1&type=section&id=Executive%20Summary) SPX Technologies reported strong Q2 2025 results with significant profit growth and margin expansion, leading to raised full-year guidance - The company achieved significant year-over-year profit growth in both HVAC and Detection & Measurement segments, with particularly **strong margin performance in HVAC**[1](index=1&type=chunk) - SPX is advancing its strategy to expand production capacity for its Engineered Air Movement businesses to support growth in 2026 and beyond[1](index=1&type=chunk) - A new product, the **OlympusV Max cooling solution**, has been introduced to meet the large-scale needs of data center customers, receiving positive feedback[1](index=1&type=chunk) - Due to strong Q2 performance and a positive outlook, the company raised its full-year 2025 guidance for Adjusted EBITDA to a range of **$485 to $510 million**, an **18% YoY increase** at the midpoint[1](index=1&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) SPX delivered robust Q2 2025 financial results with double-digit growth across key metrics including revenue, Adjusted EBITDA, and Adjusted EPS Q2 2025 Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $552.4M | $501.3M | +10.2% | | GAAP EPS | $1.10 | $0.96 | +14.6% | | Adjusted EPS* | $1.65 | $1.42 | +16.2% | | Adjusted EBITDA* | $126.7M | $108.9M | +16.3% | | Adjusted EBITDA %* | 22.9% | 21.7% | +120 bps | Year-to-Date 2025 Financial Highlights (vs. YTD 2024) | Metric | 2025 YTD | 2024 YTD | % Change | | :--- | :--- | :--- | :--- | | Revenue | $1,035.0M | $966.5M | +7.1% | | Operating Income | $153.2M | $139.2M | +10.1% | | Adjusted EBITDA* | $229.3M | $200.9M | +14.1% | | Adjusted EBITDA %* | 22.2% | 20.8% | +140 bps | [Full-Year 2025 Guidance](index=1&type=section&id=Full-Year%202025%20Guidance) SPX raised its full-year 2025 guidance, reflecting confidence in continued customer demand and operational momentum Updated Full-Year 2025 Guidance | Metric | New 2025 Guidance | Prior 2025 Guidance | YoY Growth (Midpoint) | | :--- | :--- | :--- | :--- | | Revenue | $2.225B - $2.275B | $2.20B - $2.26B | ~13% | | Adjusted EBITDA* | $485M - $510M | $470M - $495M | ~18% | | Adjusted EPS* | $6.35 - $6.65 | $6.10 - $6.40 | ~16% | 2025 Segment Guidance Updates | Segment | Metric | New Guidance | Prior Guidance | | :--- | :--- | :--- | :--- | | HVAC | Revenue | $1,500-$1,530M | $1,500-$1,540M | | | Segment Income Margin | 24.25%-24.75% | 23.50%-24.00% | | Detection & Measurement | Revenue | $725-$745M | $700-$720M | | | Segment Income Margin | 21.75%-23.00% | 21.50%-22.75% | [Segment Performance](index=2&type=section&id=Segment%20Performance) Both the HVAC and Detection & Measurement segments demonstrated strong growth in Q2 2025, driven by acquisitions and organic project execution [HVAC Segment](index=2&type=section&id=HVAC%20Segment) The HVAC segment's revenue grew 5.7%, driven by acquisitions and organic volume, with segment income margin expanding by 190 basis points HVAC Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $376.7M | $356.5M | +5.7% | | Segment Income | $95.8M | $83.7M | +14.5% | | Segment Income Margin | 25.4% | 23.5% | +190 bps | - Revenue growth was primarily driven by the acquisition of Sigma & Omega and higher organic volumes of heating and cooling products[6](index=6&type=chunk)[10](index=10&type=chunk) [Detection & Measurement Segment](index=2&type=section&id=Detection%20%26%20Measurement%20Segment) The Detection & Measurement segment's revenue increased 21.3%, fueled by acquisitions and organic growth in communication and transportation systems Detection & Measurement Segment Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $175.7M | $144.8M | +21.3% | | Segment Income | $40.0M | $33.9M | +18.0% | | Segment Income Margin | 22.8% | 23.4% | -60 bps | - Revenue growth was driven by the acquisition of KTS and higher organic project volumes in communication technologies and transportation systems[8](index=8&type=chunk)[11](index=11&type=chunk) [Liquidity and Financial Position](index=2&type=section&id=Liquidity%20and%20Financial%20Position) The company's financial position reflects a significant increase in total debt to fund acquisitions, alongside growth in total assets Key Balance Sheet Items (in millions) | Account | Q2 2025 | Q4 2024 | | :--- | :--- | :--- | | Total Debt | $1,019.3 | $614.7 | | Total Cash | $136.9 | $161.4 | | Total Assets | $3,306.7 | $2,714.5 | | Total Stockholders' Equity | $1,533.3 | $1,384.4 | - The increase in debt is primarily attributable to borrowings under senior credit facilities to finance business acquisitions[31](index=31&type=chunk)[33](index=33&type=chunk) [Cash Flow](index=8&type=section&id=Cash%20Flow) Net cash from continuing operations decreased year-over-year, impacted by an acquisition-related payment, while adjusted free cash flow remained stable Cash Flow Summary - Six Months Ended June 28, 2025 (vs. 2024) | Metric (in millions) | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Net Cash from Continuing Operations | $33.0 | $69.4 | | Capital Expenditures | $(13.2) | $(20.3) | | Business Acquisitions, net | $(447.7) | $(294.1) | | Net Cash from Financing Activities | $395.3 | $230.5 | Adjusted Free Cash Flow* - Six Months Ended June 28, 2025 (vs. 2024) | Metric (in millions) | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Adjusted Free Cash Flow* | $73.4 | $71.1 | [Financial Statements and Non-GAAP Reconciliations](index=5&type=section&id=Financial%20Statements%20and%20Non-GAAP%20Reconciliations) This section provides detailed unaudited financial statements and reconciliations of GAAP to non-GAAP measures for the reporting period - The report includes detailed reconciliations for key non-GAAP metrics, which exclude items like amortization of acquired intangibles and acquisition-related costs to provide a view of ongoing operational performance[17](index=17&type=chunk)[18](index=18&type=chunk) - A reconciliation of non-GAAP guidance to comparable GAAP measures is not provided, as the company states it is not practicable to predict certain excluded items[19](index=19&type=chunk)

Core Insights - SPX Technologies, Inc. reported strong second quarter results for 2025, with significant year-over-year profit growth and strong margin performance, particularly in the HVAC segment [2][4] - The company raised its full-year 2025 guidance, expecting Adjusted EBITDA to range from $485 million to $510 million, reflecting an approximately 18% year-over-year increase at the midpoint [2][4] Financial Performance - Revenue for Q2 2025 was $552.4 million, a 10.2% increase from $501.3 million in Q2 2024 [3][4] - Operating income rose to $86.6 million, up 16.1% from $74.6 million in the same quarter last year [3][4] - Income from continuing operations increased to $52.5 million, a 16.2% rise compared to $45.2 million in Q2 2024 [3][4] - GAAP EPS for Q2 2025 was $1.10, up 14.6% from $0.96 in Q2 2024 [3][4] - Adjusted EBITDA for Q2 2025 was $126.7 million, reflecting a 16.3% increase from $108.9 million in Q2 2024 [3][4] Segment Performance - HVAC segment revenue for Q2 2025 was $376.7 million, a 5.7% increase from $356.5 million in Q2 2024, with segment income rising to $95.8 million [6][7] - Detection & Measurement segment revenue increased by 21.3% to $175.7 million, driven by both organic and inorganic growth [8][9] - The overall consolidated segment income for Q2 2025 was $135.8 million, up 15.5% from $117.6 million in Q2 2024 [32] Guidance and Outlook - The company anticipates full-year 2025 revenue to be in the range of $2.225 billion to $2.275 billion, representing a year-on-year increase of approximately 13% at the midpoint [4][13] - Adjusted EPS is expected to range from $6.35 to $6.65, reflecting a year-on-year increase of about 16% [4][13] - The HVAC segment is projected to generate revenue between $1.500 billion and $1.530 billion, while the Detection & Measurement segment is expected to bring in $725 million to $745 million [13]

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of a stock trend for profitable short-term investing, highlighting the use of a specific screening strategy to identify stocks with strong fundamentals and positive price momentum [1][2]. Group 1: Stock Screening Strategy - The "Recent Price Strength" screen is designed to identify stocks with sufficient fundamental strength to maintain their recent uptrend, focusing on those trading in the upper portion of their 52-week high-low range, indicating bullishness [3]. - SPX Technologies (SPXC) is highlighted as a candidate that passed the screening, showing a solid price increase of 28.4% over the past 12 weeks, reflecting investor confidence [4]. - SPXC has also maintained a price increase of 5.4% over the last four weeks, indicating that the upward trend is still intact [5]. Group 2: Fundamental Strength - SPXC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The Zacks Rank system has a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988, indicating the effectiveness of this ranking system [7]. - SPXC also has an Average Broker Recommendation of 1 (Strong Buy), suggesting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Additional Insights - The article suggests that SPXC's price trend is unlikely to reverse soon, and encourages investors to explore other stocks that meet the criteria of the "Recent Price Strength" screen [8]. - The Zacks Premium Screens offer over 45 strategically created options to help investors find winning stock picks based on their personal investing styles [8].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: SPX Technologies (SPXC) - SPX Technologies currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating a favorable outlook for the stock [2][3] - The stock has shown significant price performance, with a 3.33% increase over the past week and a 10.4% increase over the past month, outperforming the Zacks Technology Services industry, which remained flat and increased by 3.62% respectively [5] - Over the past quarter, SPXC shares have risen by 31.03%, and by 16.11% over the last year, compared to the S&P 500's increases of 22.7% and 15.9% respectively [6] Trading Volume - SPXC's average 20-day trading volume is 265,929 shares, which serves as a baseline for price-to-volume analysis; a rising stock with above-average volume is generally seen as bullish [7] Earnings Outlook - Recent earnings estimate revisions show positive momentum, with one estimate moving higher for the full year, increasing the consensus estimate from $6.32 to $6.33 over the past 60 days [9] - For the next fiscal year, one estimate has also moved upwards, with no downward revisions during the same period [9] Conclusion - Considering the positive price trends, trading volume, and earnings outlook, SPX Technologies is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]

Core Viewpoint - Futu Holdings Limited Sponsored ADR (FUTU) is currently positioned as a better value opportunity compared to SPX Technologies (SPXC) based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Earnings Outlook - FUTU has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while SPXC has a Zacks Rank of 2 (Buy) [3]. - The Zacks Rank emphasizes companies with positive earnings estimate revisions, suggesting that FUTU's earnings outlook is improving more significantly than SPXC's [3]. Group 2: Valuation Metrics - FUTU has a forward P/E ratio of 20.66, which is lower than SPXC's forward P/E of 27.56, indicating that FUTU may be undervalued relative to SPXC [5]. - The PEG ratio for FUTU is 1.16, while SPXC's PEG ratio is 1.53, suggesting that FUTU offers better value when considering expected EPS growth [5]. - FUTU's P/B ratio is 5.25 compared to SPXC's P/B of 5.64, further supporting the argument that FUTU is the superior value option [6]. Group 3: Value Grades - FUTU has a Value grade of B, while SPXC has a Value grade of C, indicating that FUTU is viewed more favorably in terms of value investment metrics [6].

Core Viewpoint - The sustainability of a stock trend is crucial for successful short-term investing, and ensuring this sustainability requires careful analysis of various factors [1][2]. Group 1: Stock Performance - SPX Technologies (SPXC) has shown a solid price increase of 30.2% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also maintained a price increase of 4.5% over the last four weeks, suggesting that the upward trend is still intact [5]. - SPXC is currently trading at 80.7% of its 52-week high-low range, indicating a potential breakout opportunity [5]. Group 2: Fundamental Strength - SPXC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like SPXC that have the fundamental strength to maintain their upward momentum [3]. - There are additional stocks that meet the criteria of the "Recent Price Strength" screen, providing further investment opportunities [8].

Core Viewpoint - SPX Technologies, Inc. will release its financial results for the second quarter of fiscal year 2025 on July 31, 2025, after U.S. financial markets close [1] Financial Results Announcement - The financial results will be discussed in a conference call led by President and CEO Gene Lowe and CFO Mark Carano on July 31, 2025, at 4:45 p.m. Eastern Time [2] - The call will be available via webcast, and slides will be accessible in the Investor Relations section of the company's website [3] Call Access Information - Participants can access the call by phone through a provided link and are encouraged to join fifteen minutes early to avoid delays [4] - A replay of the webcast will be available for a limited time on the company's website [4] Company Overview - SPX Technologies is a supplier of engineered products and technologies, with leadership in HVAC and detection and measurement markets [5] - The company is based in Charlotte, North Carolina, employs approximately 4,300 people across 16 countries, and is listed on the New York Stock Exchange under the ticker symbol "SPXC" [5]

SPX Technologies (SPXC) FY Conference Summary Company Overview - SPX Technologies operates in niche industrial applications across HVAC and detection and measurement markets [2][4] - The company has a strong track record for margin expansion and has executed 16 acquisitions over the past four and a half years [2][17] - SPX is predominantly North American, with about 83% of its revenue from this region, but is expanding in Europe and Asia [4] Core Business Segments HVAC Segment - HVAC constitutes about two-thirds of SPX's business, generating approximately $1.5 billion in revenue this year [9][31] - The segment has a margin of around 22% and is characterized by a significant portion of replacement revenue, approximately 60% [10][32] - SPX focuses on engineered products in high-tech niches, avoiding competition with larger players like Carrier and Trane [11] Detection and Measurement Segment - This segment includes technologies for underground inspections and monitoring, with a revenue target of around $710 million [34][37] - SPX is a leader in outdoor technologies, particularly in precision locators and inspection robots for water and gas infrastructure [8][34] Financial Performance and Growth Strategy - SPX aims to double its EBITDA from $483 million to approximately $1 billion over the next four to five years [12][18] - The company has a strong focus on strategic M&A, with a capital allocation strategy that prioritizes growth investments over dividends [26][39] - SPX has a robust balance sheet, with a pro forma leverage ratio of around 1.9 after recent acquisitions [40] Market Dynamics and Future Outlook - The company has seen double-digit organic growth driven by better product offerings, particularly in healthcare and institutional markets [56][57] - SPX is optimistic about entering the adiabatic and dry cooling tower markets, which could significantly expand its total addressable market (TAM) [61][62] - The company anticipates meaningful revenue opportunities from new products in the data center market by 2026 [66] Competitive Landscape - SPX competes with private companies in the cooling tower market but believes it has a competitive edge due to superior mechanical equipment [73][74] - The detection and measurement segment is expected to benefit from federal funding for infrastructure projects, particularly in transportation [75] Key Takeaways - SPX Technologies is well-positioned for growth in both HVAC and detection and measurement markets, with a clear strategy focused on engineered products and strategic acquisitions [2][17] - The company is leveraging its strong brand equity and market leadership to capture additional market share and drive revenue growth [10][11] - Future growth is expected to be supported by new product launches and increased federal funding for infrastructure projects [75]

SPX Technologies (SPXC) 2025 Conference Summary Company Overview - SPX Technologies is approaching its ten-year anniversary as a standalone public company with approximately $2.2 billion in revenue, predominantly from North America (83% from the US and Canada) [3][4] Business Segments - The company operates in two main segments: HVAC and Detection & Measurement - **HVAC Segment**: - Global leader in cooling towers and boilers in North America - Provides engineered products for various HVAC applications, including hospitals and data centers [5][6] - Revenue growth from approximately $900 million to $1.1 billion, with margins around 25% [17] - **Detection & Measurement Segment**: - Largest platform is location and inspection, managing underground assets - Revenue growth from approximately $550 million to over $700 million [18] Financial Performance - EBITDA growth from $160 million to an expected $483 million, representing a CAGR of around 32% [11] - Approximately two-thirds of revenue comes from replacement sales, with 90% of revenue being from leading market positions [9] Growth Strategy - The company aims for sustained EBITDA growth of over 15% long-term, supported by organic growth and acquisitions [16] - Recent acquisitions include Sigma and Omega, enhancing their product offerings in cooling solutions [24][67] Market Trends and Opportunities - Positive outlook on industrial manufacturing growth, particularly in cooling towers for semiconductors and electric automotive sectors [32] - Data center business is significant, with expectations of growth in HVAC segment driven by established relationships with large tech companies [42][62] Supply Chain and Tariff Impact - The impact of tariffs is relatively small, quantified at approximately $6 million in segment income [36] - The company is focused on securing supply chains and diversifying sources post-COVID [38][39] M&A Activity - SPX Technologies is tracking around 300 potential acquisition targets, with a focus on family-owned businesses and private equity assets [91] - The company has successfully integrated acquisitions, such as Ingenia and Tamco, which have doubled their business since acquisition [28][66] Pricing and Inflation - The company has implemented standard price increases and surcharges to mitigate inflationary pressures, with two-thirds of pricing adjustments being standard increases [98] Legislative Environment - Potential changes in tax legislation, such as accelerated depreciation, are viewed as beneficial but not critical to the company's strategic plans [100][101] Conclusion - SPX Technologies is well-positioned for growth in both its HVAC and Detection & Measurement segments, with a strong focus on engineered products and strategic acquisitions to enhance market presence and operational efficiency [30][66]