Industry Overview - The Technology Services industry ranks within the top 40% of Zacks Ranked Industries and is expected to outperform the market over the next three to six months [1][8] - The industry is mature with strong demand for services, leading to significant growth in the first half of 2025, which is likely to continue in the second half [1][3] Market Trends - The global shift toward digitization is creating opportunities in markets such as 5G, blockchain, and artificial intelligence (AI) [3] - Companies are rapidly adopting generative AI, machine learning (ML), and data science to gain competitive advantages [3][4] - There is robust demand for multi-cloud-enabled software solutions as businesses transition from legacy platforms to modern cloud-based infrastructure [3] Company Highlights Coherent Corp. (COHR) - Coherent is positioned in the industrial, communications, electronics, and instrumentation markets, offering diversified applications [7] - Expected revenue and earnings growth rates for the current year are 11.5% and 29.3%, respectively, with a 4.1% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days [9] Vimeo Inc. (VMEO) - Vimeo provides cloud-based video software solutions, including video hosting, management, and analytics [10][11] - Expected revenue and earnings growth rates for the next year are 6.2% and over 100%, respectively, with no change in the Zacks Consensus Estimate for next-year earnings over the last 60 days [12] Skillsoft Corp. (SKIL) - Skillsoft offers personalized learning experiences and operates in two segments: Talent Development Solutions and Global Knowledge [13][14] - Expected revenue and earnings growth rates for the current year are 1.2% and -157%, respectively, with a 54.8% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days [15] Vontier Corp. (VNT) - Vontier focuses on transportation and mobility solutions, operating through three segments: Mobility Technologies, Repair Solutions, and Environmental and Fueling Solutions [16] - Expected revenue and earnings growth rates for the current year are 0.1% and 9%, respectively, with a 2.9% improvement in the Zacks Consensus Estimate for current-year earnings over the last seven days [17] SPX Technologies Inc. (SPXC) - SPX Technologies is a diversified supplier in the HVAC and detection and measurement markets, operating in two segments [18] - Expected revenue and earnings growth rates for the current year are 12.7% and 17%, respectively, with a 3.2% improvement in the Zacks Consensus Estimate for current-year earnings over the last seven days [19]

Core Viewpoint - SPX Technologies has shown strong stock performance, with a 13.5% increase over the past month and a 34.9% rise since the beginning of the year, outperforming both the Zacks Business Services sector and the Zacks Technology Services industry [1][2]. Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $1.65 against a consensus estimate of $1.45 in its last earnings report [2]. - For the current fiscal year, SPX Technologies is projected to achieve earnings of $6.53 per share on revenues of $2.23 billion, reflecting a 17.03% increase in EPS and a 12.55% increase in revenues [3]. - The next fiscal year forecasts earnings of $7.3 per share on revenues of $2.38 billion, indicating year-over-year changes of 11.91% and 6.43%, respectively [3]. Valuation Metrics - SPX Technologies currently trades at a valuation of 30.1X current fiscal year EPS estimates, which is above the peer industry average of 20.7X [7]. - On a trailing cash flow basis, the stock trades at 25.7X compared to the peer group's average of 11.6X [7]. - The company has a PEG ratio of 1.67, which does not place it among the top value stocks [7]. Zacks Rank and Style Scores - SPX Technologies holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8]. - The stock has a Value Score of D, while its Growth and Momentum Scores are A and B, respectively, resulting in a combined VGM Score of B [6][9].

Core Insights - SPX reported strong Q2 2025 results with adjusted EPS of $1.65, exceeding analyst estimates of $1.45, and GAAP revenue of $552.4 million, surpassing expectations of $546.69 million, reflecting double-digit growth year-over-year [1][2] - The company has raised its full-year 2025 guidance, anticipating revenue between $2.225 to $2.275 billion and adjusted EBITDA of $485 to $510 million, driven by strong demand and operational momentum [9] Financial Performance - Adjusted EPS increased by 16.2% year-over-year from $1.42 in Q2 2024 to $1.65 in Q2 2025 [2] - GAAP revenue rose by 10.2% from $501.3 million in Q2 2024 to $552.4 million in Q2 2025 [2] - Adjusted EBITDA improved to $126.7 million, reflecting a 16.4% increase from $108.9 million in Q2 2024 [2] - Adjusted free cash flow decreased by 35.9% from $57.9 million in Q2 2024 to $37.1 million in Q2 2025 [2] Segment Performance - HVAC segment revenue grew by 5.7% to $376.7 million, while detection and measurement revenue surged by 21.3% to $175.7 million, with 14.9% of this growth attributed to the acquisition of KTS [2][5] - Segment income margin for HVAC was 25.4%, up nearly two percentage points from the previous year, while detection and measurement margin slipped to 22.8% [6] Strategic Focus - SPX is concentrating on product innovation and expansion in high-growth markets, particularly in HVAC solutions for data centers and green buildings [4] - The company is integrating recent acquisitions, Sigma & Omega and KTS, to enhance its product offerings and market reach [6] Guidance and Future Outlook - Full-year 2025 guidance includes HVAC revenue of $1.50–$1.53 billion and detection and measurement revenue of $725–745 million, with segment income margins projected at 24.75% and 23.0%, respectively [9] - Management emphasized the importance of monitoring organic growth trends in HVAC and successful integration of KTS in detection and measurement [10]

Core Insights - SPX Technologies reported revenue of $552.4 million for the quarter ended June 2025, reflecting a year-over-year increase of 10.2% [1] - The company's EPS for the quarter was $1.65, up from $1.42 in the same quarter last year, exceeding the consensus estimate of $1.45 by 13.79% [1] - The reported revenue surpassed the Zacks Consensus Estimate of $547.05 million, resulting in a surprise of 0.98% [1] Revenue Breakdown - Detection & Measurement segment generated revenues of $175.7 million, exceeding the average estimate of $166.2 million by analysts, marking a year-over-year increase of 21.3% [4] - HVAC segment revenues were reported at $376.7 million, slightly below the average estimate of $380.83 million, with a year-over-year change of 5.7% [4] Segment Income - Detection & Measurement segment income was $40 million, surpassing the average estimate of $37.45 million [4] - HVAC segment income reached $95.8 million, exceeding the average estimate of $88 million from analysts [4] Stock Performance - SPX Technologies' shares have returned 5.1% over the past month, outperforming the Zacks S&P 500 composite's return of 2.7% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - SPX Technologies reported quarterly earnings of $1.65 per share, exceeding the Zacks Consensus Estimate of $1.45 per share, marking an earnings surprise of +13.79% [1][2] Financial Performance - The company achieved revenues of $552.4 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.98% and showing an increase from $501.3 million year-over-year [2] - Over the last four quarters, SPX Technologies has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance - SPX Technologies shares have increased approximately 24.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.2% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.59 on revenues of $564.7 million, while for the current fiscal year, the estimate is $6.33 on revenues of $2.22 billion [7] - The favorable trend in estimate revisions prior to the earnings release has resulted in a Zacks Rank 2 (Buy) for SPX Technologies, indicating expected outperformance in the near future [6] Industry Context - The Technology Services industry, to which SPX Technologies belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Financial Data and Key Metrics Changes - The company reported a 16% year-over-year growth in adjusted EPS, reaching $1.65 for Q2 2025 [11] - Total revenues increased by 10% year-over-year, driven primarily by acquisitions and higher project sales [11] - Adjusted EBITDA rose approximately 16% year-over-year, with a margin expansion of 120 basis points [8][11] Segment Data and Key Metrics Changes - In the HVAC segment, revenues grew by 5.7% year-over-year, with 4.9% attributed to inorganic growth [11] - Detection and Measurement segment revenues increased by 21% year-over-year, with organic growth of 5.5% [13] - Segment backlog for HVAC was $540 million, up 19.5% from Q1, while Detection and Measurement backlog was $365 million, up 6% sequentially [12][14] Market Data and Key Metrics Changes - The company anticipates a growth in adjusted EBITDA of 18% at the midpoint of the updated guidance for the full year [7] - Market conditions are supportive of the increased full-year outlook, particularly in the HVAC segment, which has a healthy backlog [17] Company Strategy and Development Direction - The company is focused on organic and inorganic value creation initiatives, supported by a robust M&A pipeline [7] - New product introductions, such as the Olympus Vmax cooling solution, are expected to significantly increase the addressable market in data center cooling solutions [9] - The company is making progress on capacity expansions and new product introductions, particularly in engineered air movement businesses [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the updated guidance, citing solid momentum in end markets and key initiatives [18] - The company remains optimistic about data center opportunities in 2025 and 2026, with expectations for continued growth [17] - Management noted that project businesses are seeing healthy front log activity, with many new bookings slated for delivery in 2026 and beyond [17] Other Important Information - The company ended Q2 with cash of $137 million and total debt of approximately $1 billion, with a leverage ratio of about 1.7 times [14] - Adjusted free cash flow for Q2 was approximately $37 million [15] Q&A Session Summary Question: What kind of growth is your team seeing in the data center space? - Management indicated that data center revenue is expected to grow from around $150 million to $200 million in 2025, representing about 9% of company revenue, with further growth anticipated in 2026 [24][25] Question: What would the run rate revenue capacity lift be for U.S. manufacturing? - Management stated that they aim for a run rate of $140 million by the end of Q4 2025, with expectations to reach around $300 million with new facilities by 2027 [30] Question: What are the expectations for project contributions in the D and M segment for the back half of the year? - Management expects project contributions to grow in the high teens organically during the second half of the year [32] Question: Can you clarify the strength of HVAC margins in Q2? - Management noted that HVAC margins were 25.4%, with half of the increase attributed to favorable project execution and the other half to higher volumes and a more accretive mix [40] Question: How is the integration of recent acquisitions going? - Management reported very positive integration experiences with KTS and Sigma and Omega, highlighting synergies and growth opportunities [113][116]

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].