Expands HVAC Solutions to Include Vertical Heat Pumps and Self Contained Units; Highly Complementary Products and ChannelsCHARLOTTE, N.C., April 15, 2025 (GLOBE NEWSWIRE) -- SPX Technologies, Inc. (NYSE:SPXC) (“SPX Technologies” or the “Company”) announced today that it has completed the acquisition of Sigma Heating and Cooling and Omega Heat Pump (“Sigma & Omega”). The purchase price of approximately $144 million (CAD 200 million) reflects an acquisition multiple consistent with SPX’s typical range of 8x-1 ...

Core Viewpoint - SPX Technologies, Inc. will release its financial results for the first quarter of fiscal year 2025 on May 1, 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 May 1, 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 registration link, and it is recommended 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]

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Financial Data and Key Metrics Changes - Full year adjusted EBITDA increased by 36% and adjusted EPS grew by 29% to $5.58, near the upper end of guidance [8][18] - For Q4, total company revenue increased by 13.7% year-on-year, with organic revenue growth of 9.9% and a contribution of 4% from the Ingénia acquisition [19][10] - Adjusted EBITDA for Q4 increased by 28.1% year-on-year with a margin expansion of 250 basis points [11] Business Line Data and Key Metrics Changes - In the HVAC segment, revenues grew by 18.6% year-on-year, with organic growth of 12.8% driven by cooling and a 6% contribution from the Ingénia acquisition [20] - Detection and Measurement segment organic revenues grew by 4.2% year-on-year, with segment income increasing by 27% and margin expanding by 410 basis points [22][23] Market Data and Key Metrics Changes - Segment backlog at the end of Q4 was approximately $437 million for HVAC and $221 million for Detection and Measurement, with the latter up 14% sequentially from Q3 [22][23] - More than 80% of revenue comes from the United States, with the company well-positioned to navigate potential tariff changes [30] Company Strategy and Development Direction - The company aims for continued solid growth in 2025, with guidance reflecting double-digit growth in adjusted EBITDA and EPS [10][34] - The acquisition of Kranze Technology Solutions (KTS) is expected to enhance the communication technologies platform and broaden access to growth markets [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the economic environment, noting solid demand in HVAC cooling across key markets like data centers and healthcare [32][34] - The company is monitoring potential impacts from the new administration on government spending but currently sees no adverse effects on project opportunities [97][100] Other Important Information - Full year adjusted free cash flow was approximately $284 million, reflecting a conversion of adjusted net income of 108% [25] - The company anticipates revenue for 2025 in the range of $2.13 billion to $2.19 billion, with adjusted EPS guidance of $6 to $6.25 [26] Q&A Session Summary Question: Insights on full year guidance and key watch items - Management highlighted the importance of weather dynamics and non-residential momentum in HVAC as key factors influencing guidance [40][41] Question: Data center revenue performance and expectations - Data center revenue was around 7% of total company revenue in 2024, with expectations for similar or better performance in 2025 [46] Question: Financial contribution from KTS and market expansion - KTS is expected to contribute approximately $80 million in revenue for the year, with significant growth opportunities identified in military applications [48][51] Question: Project activity in Detection and Measurement - Management noted that project activity is healthy, with many larger orders leading to longer lead times for execution [62][66] Question: Impact of tariffs and sourcing strategies - The company is well-positioned to manage potential tariff changes, with a sourcing model that minimizes exposure [30] Question: Changes in M&A strategy - The company remains focused on engineered products and technology-heavy businesses, with an active pipeline of acquisition opportunities [102][106]

Core Viewpoint - SPX Technologies Inc. will host a tour of its Ingénia Technologies production facility on April 1, 2025, aimed at current and prospective investors as well as sell-side analysts [1][2] Company Overview - SPX Technologies is headquartered in Charlotte, North Carolina, and operates in over 15 countries with approximately 4,300 employees [5] - The company specializes in highly engineered products and technologies, holding leadership positions in the HVAC and detection and measurement markets [5] Ingénia Technologies - Ingénia Technologies, located in Mirabel, Quebec, specializes in the design and manufacture of custom air handling units, particularly for high-precision applications in healthcare, pharmaceutical, education, food processing, and industrial markets [3] - Acquired by SPX in early 2024, Ingénia is undergoing significant capacity expansion to meet increasing customer demand [4] - The company is investing in robotics, automation, and proprietary software to enhance speed to market and deliver significant value to customers [4]

For the quarter ended December 2024, SPX Technologies (SPXC) reported revenue of $533.7 million, up 13.7% over the same period last year. EPS came in at $1.51, compared to $1.25 in the year-ago quarter.The reported revenue represents a surprise of +0.46% over the Zacks Consensus Estimate of $531.23 million. With the consensus EPS estimate being $1.50, the EPS surprise was +0.67%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to deter ...

SPX Technologies (SPXC) came out with quarterly earnings of $1.51 per share, beating the Zacks Consensus Estimate of $1.50 per share. This compares to earnings of $1.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.67%. A quarter ago, it was expected that this infrastructure equipment supplier would post earnings of $1.38 per share when it actually produced earnings of $1.39, delivering a surprise of 0.72%.Over the last fo ...

Q4 2024 Earnings Presentation FEBRUARY 25, 2025 Q4 2024 EARNINGS PRESENTATION | COPYRIGHT © 2024 SPX TECHNOLOGIES 1 Safe Harbor Statement Certain statements contained in this presentation that are not historical facts, including any statements as to future market conditions, results of operations, product introductions, and financial projections, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, ...

Financial Performance - HVAC reportable segment revenues were $1,364.7 million in 2024, up from $1,122.3 million in 2023 and $913.8 million in 2022, indicating a growth of approximately 21.6% year-over-year from 2023 to 2024[30] - Detection and Measurement reportable segment revenues were $619.2 million in 2024, slightly increasing from $618.9 million in 2023 and $547.1 million in 2022, with a backlog of $220.9 million as of December 31, 2024[31] - International sales reached $343.1 million in 2024, compared to $287.1 million in 2023 and $237.4 million in 2022[38] Backlog and Revenue Recognition - The backlog for the HVAC segment was $436.8 million as of December 31, 2024, compared to $306.1 million in 2023, representing an increase of 42.5%[30] - Approximately 88% of the HVAC segment's backlog as of December 31, 2024, is expected to be recognized as revenue during 2025[30] - The segment's backlog was $220.9 million as of December 31, 2024, with approximately 58% expected to be recognized as revenue in 2025[31] Acquisitions and Strategic Growth - The company completed the acquisition of T.A. Morrison & Co. Inc. on April 3, 2023, enhancing its HVAC reportable segment[20] - The acquisition of ASPEQ Heating Group on June 2, 2023, further strengthened the company's position in the HVAC market[21] - The company acquired Ingénia Technologies Inc. on February 7, 2024, specializing in custom air handling units for various end markets[22] - The company acquired KTS in January 2025, Ingénia in 2024, and TAMCO and ASPEQ in 2023, indicating ongoing strategic acquisitions[34] Innovation and Patents - The company holds 227 domestic and 402 foreign patents, with 24 patents issued in 2024, reflecting a strong focus on innovation[42] - The company emphasizes research and development to improve existing products and develop new ones, aligning with market needs[40] - The company emphasizes research and development to improve existing products and develop new ones, coordinating resources across divisional engineering teams[40] Global Presence and Workforce - The company has operations in over 15 countries and approximately 4,300 employees, indicating a strong global presence[25] - Approximately 4,300 employees were reported as of December 31, 2024, with 3,300 based in the United States[51] Labor Relations and Employee Engagement - The company has experienced satisfactory labor relations, although it remains subject to potential union campaigns and labor disputes[52] - In 2024, the company trained 275 leaders through the "Frontline Leaders Program" and 92 leaders completed the "Amplified Leadership" midlevel program[54] - The updated Global Employee Survey achieved over 90% employee participation, informing action plans focused on employee priorities[55] Financial Management - The company has maintained sufficient working capital levels to support customer requirements, particularly in inventory management[57] Seasonal Trends - Historically, the company's businesses tend to be stronger in the second half of the year, indicating seasonal fluctuations[58]

Financial Performance - Q4 2024 GAAP EPS was $1.19, up 78% from $0.67 in Q4 2023; Full-Year GAAP EPS was $4.29, up 38% from $3.10 in 2023[2] - Adjusted EPS for Q4 2024 was $1.51, a 20.8% increase from $1.25 in Q4 2023; Full-Year adjusted EPS was $5.58, up 29.5% from $4.31 in 2023[6][8] - Net income for the twelve months ended December 31, 2024, was $200.5 million, compared to $89.9 million in 2023, reflecting a significant growth[33] - Basic income per share from continuing operations for the year was $4.37, up from $3.18 in 2023, indicating a 37.5% increase[33] - Net income for the three months ended December 31, 2024, increased to $57.1 million, up 81.3% from $31.5 million in the same period of 2023[37] Revenue Growth - Q4 2024 revenue reached $533.7 million, a 13.7% increase from $469.4 million in Q4 2023; Full-Year revenue was $1,983.9 million, up 13.9% from $1,741.2 million in 2023[4][7] - Full-year revenues reached $1,983.9 million, representing a 14.0% increase compared to $1,741.2 million in 2023[33] - Consolidated revenues for the twelve months ended December 31, 2024, reached $1,983.9 million, a 13.9% increase from $1,741.2 million in 2023[39] - For the twelve months ended December 31, 2024, SPX Technologies reported a net revenue growth of 21.6% in the HVAC segment and a 0% growth in the Detection & Measurement segment[43] Segment Performance - HVAC segment revenue for Q4 2024 was $370.5 million, an 18.6% increase from $312.5 million in Q4 2023, driven by a 12.8% organic revenue increase[10] - Detection & Measurement segment revenue for Q4 2024 was $163.2 million, a 4.0% increase from $156.9 million in Q4 2023, with a 4.2% organic revenue increase[14] - Detection & Measurement reportable segment income increased by 27.0% to $37.6 million for the three months ended December 31, 2024, compared to $29.6 million in the same period of 2023[39] - Organic revenue growth for the HVAC segment was 9.7% and for the Detection & Measurement segment was a decline of 0.2% for the twelve months ended December 31, 2024[43] Operating Income - Adjusted operating income for Q4 2024 was $110.0 million, compared to $85.2 million in Q4 2023, reflecting a 29.1% increase; Full-Year adjusted operating income was $394.7 million, up 36.7% from $288.7 million in 2023[5][7] - Operating income for the three months ended December 31, 2024, was $90.2 million, a 42.9% increase from $63.1 million in the prior year[33] - Consolidated operating income for the twelve months ended December 31, 2024, was $308.3 million, reflecting an 86.4% increase from $221.9 million in the previous year[39] Cash and Debt Management - Total outstanding debt as of December 31, 2024, was $614.7 million, with total cash of $161.4 million; net operating cash generated for the full year was $313.1 million[18] - Cash and equivalents increased to $156.9 million from $99.4 million year-over-year, showing a 58.0% growth[35] - Long-term debt rose to $577.0 million from $523.1 million, indicating a 10.3% increase[35] - Total cash and equivalents at the end of the period increased to $161.4 million as of December 31, 2024, compared to $104.9 million at the end of 2023[37] - The company reported a net cash from operating activities of $285.9 million for the twelve months ended December 31, 2024, up from $208.5 million in the prior year[37] Future Outlook - The company anticipates 2025 adjusted EPS in the range of $6.00 to $6.25, indicating continued growth expectations[19] - For 2025, SPX targets consolidated revenue of approximately $2.13 to $2.19 billion, with adjusted EBITDA expected to be between $460 to $490 million[19] - The company anticipates continued growth driven by market expansion and new product development initiatives[28] Acquisitions and Investments - The company completed acquisitions of Ingénia and Kranze Technology Solutions, enhancing its position in HVAC and Communication Technologies[3] - The company incurred acquisition-related costs of $13.5 million for the twelve months ended December 31, 2024[45] - The company incurred capital expenditures of $38.0 million for the twelve months ended December 31, 2024, compared to $23.9 million in the previous year[37] Miscellaneous - Special charges, net for the three months ended December 31, 2024, amounted to $2.7 million, compared to $0.8 million in the same period of 2023[39] - The company experienced a foreign currency exchange rate impact of $2.0 million on cash for the twelve months ended December 31, 2024[41] - The company reported a gain on the sale of a building amounting to $3.3 million for the twelve months ended December 31, 2024[57]