Core Viewpoint - SPX Technologies has announced a definitive agreement to acquire Kranze Technology Solutions, Inc. for approximately $350 million in cash, enhancing its Communication Technologies platform within the Detection & Measurement segment [1][6]. Group 1: Acquisition Details - The acquisition is expected to close in the first quarter of 2025, pending regulatory approval under the Hart-Scott-Rodino Act [2]. - SPX Technologies plans to finance the acquisition through its revolving credit facility, with the deal anticipated to be modestly accretive to adjusted earnings per share in 2025 after interest costs [2][6]. Group 2: Strategic Fit and Growth Potential - KTS will strengthen SPX's long-term customer relationships and geographic footprint, particularly within the US military sector, where KTS has established a significant installed base [3][5]. - The acquisition will scale SPX's CommTech platform to over $200 million in revenue, providing a solid foundation for further growth in adjacent markets [7]. Group 3: Company Profiles - SPX Technologies is a supplier of engineered products and technologies, with over 4,100 employees across 15 countries, and is listed on the New York Stock Exchange under the ticker symbol "SPXC" [3]. - KTS, founded in 2008, specializes in digital interoperability and tactical networking solutions, enhancing situational awareness and operational effectiveness for clients, particularly the US Marine Corps [8].

Core Insights - SPX Technologies has announced the acquisition of Kranze Technology Solutions, Inc. (KTS) for approximately $350 million in cash, which will enhance its Communication Technologies platform within the Detection & Measurement segment [2][3][4] - KTS is expected to generate approximately $90 million in revenue for the full year 2025, with performance metrics above the segment average [3][4] - This acquisition marks SPX's 15th since 2018, reinforcing its strategy to build high-quality, market-leading platforms [6] Company Overview - KTS, founded in 2008, specializes in digital interoperability and tactical networking solutions, enhancing situational awareness and interoperability across various platforms [5] - SPX Technologies is a supplier of engineered products and technologies, holding leadership positions in HVAC and detection and measurement markets, with over 4,100 employees across 15 countries [5][7] Strategic Implications - The acquisition is expected to scale SPX's CommTech platform to over $200 million in revenue, providing a strong foundation for growth in adjacent markets [6] - KTS's technology is highly complementary to SPX's existing tactical datalinks and RF countermeasure offerings, presenting significant growth opportunities [4][6] - The transaction is anticipated to close in the first quarter of 2025, subject to regulatory clearance, and is expected to be modestly accretive to SPX's adjusted earnings per share in 2025 [5]

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CHARLOTTE, N.C., Nov. 29, 2024 (GLOBE NEWSWIRE) -- SPX Technologies (NYSE:SPXC) announced today that it will participate in the Wolfe Research Small and Mid-Cap Conference in New York City on December 4th and virtually participate in the Sidoti Small Cap Conference on December 5th. SPX Technologies’ President and Chief Executive Officer Gene Lowe and SPX Technologies’ Vice President, Chief Financial Officer and Treasurer Mark Carano will participate in meetings with investors at both conferences. At the Sid ...

A downtrend has been apparent in SPX Technologies (SPXC) lately with too much selling pressure. The stock has declined 9.5% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, fo ...

For the quarter ended September 2024, SPX Technologies (SPXC) reported revenue of $483.7 million, up 7.8% over the same period last year. EPS came in at $1.39, compared to $1.06 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $500.23 million, representing a surprise of -3.31%. The company delivered an EPS surprise of +0.72%, with the consensus EPS estimate being $1.38. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings - ...

SPX Technologies, Inc (NYSE:SPXC) Q3 2024 Results Conference Call October 30, 2024 4:45 PM ET Company Participants Paul Clegg - Vice President-Investor Relations Gene Lowe - President and Chief Executive Officer Mark Carano - Chief Financial Officer Conference Call Participants Ross Sparenblek - William Blair Bryan Blair - Oppenheimer Damian Karas - UBS Walter Liptak - Seaport Research Steve Ferazani - Sidoti Operator Good afternoon, and welcome to the SPX Technologies Q3 2024 Earnings Conference Call. [Ope ...

SPX Technologies (SPXC) came out with quarterly earnings of $1.39 per share, beating the Zacks Consensus Estimate of $1.38 per share. This compares to earnings of $1.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 0.72%. A quarter ago, it was expected that this infrastructure equipment supplier would post earnings of $1.26 per share when it actually produced earnings of $1.42, delivering a surprise of 12.70%. Over the last ...

Financial Performance - Q3 2024 revenue was $483.7 million, up 7.2% from $448.7 million in Q3 2023[3] - Q3 2024 net income was $50.2 million, compared to a loss of $20.4 million in Q3 2023[3] - Adjusted EBITDA for Q3 2024 increased by 27.0% to $104.0 million from $81.9 million in Q3 2023[4] - Adjusted EPS for Q3 2024 was $1.39, compared to $1.06 in Q3 2023[4] - Operating income rose to $78.9 million for the three months ended September 28, 2024, compared to $57.7 million in the prior year, reflecting a 36.9% increase[19] - Consolidated revenues reached $483.7 million, reflecting a 7.8% increase from $448.7 million year-over-year[21] - Consolidated operating income improved to $78.9 million, a 36.7% increase from $57.7 million in the same quarter last year[21] - SPX Technologies reported an adjusted operating income of $97.5 million, up from $75.8 million for the same period in 2023, representing a 28.5% increase[27] - The company reported a basic income per share from continuing operations of $1.10 for the three months ended September 28, 2024, compared to $0.78 in the prior year[19] - SPX Technologies reported earnings per share from continuing operations of $1.39 for the three months ended September 28, 2024, compared to $1.06 for the same period in 2023, marking a 31.1% increase[28] Segment Performance - HVAC segment revenue grew by 15.9% to $335.3 million, with a 9.0% increase in organic revenue[5] - Detection & Measurement segment revenue decreased by 7.0% to $148.4 million, primarily due to lower large project volume[7] - Segment income margin for HVAC increased to 23.9% in Q3 2024 from 20.2% in Q3 2023[6] - HVAC reportable segment revenues increased to $335.3 million for the quarter ended September 28, 2024, up 15.9% from $289.2 million in the same quarter last year[21] - Detection & Measurement reportable segment revenues decreased to $148.4 million, a decline of 7.0% compared to $159.5 million in the prior year quarter[21] - Organic revenue growth for the HVAC segment was 9.0%, while the Detection & Measurement segment experienced a decline of 7.0%[26] Guidance and Future Outlook - Full-year 2024 guidance for adjusted EBITDA is targeted between $410 million and $430 million[10] - Full-year 2024 revenue guidance is narrowed to a range of $1.97 billion to $2.00 billion[10] - The company plans to continue focusing on market expansion and new product development to drive future growth[19] - The company plans to continue focusing on strategic acquisitions and integration efforts to enhance operational efficiency and market presence[32] Balance Sheet and Cash Flow - Total outstanding debt as of September 28, 2024, was $737.8 million, with total cash of $129.4 million[9] - Total current assets increased to $827.6 million as of September 28, 2024, compared to $709.6 million at the end of 2023, representing a 16.6% growth[20] - Goodwill increased to $854.3 million as of September 28, 2024, up from $704.8 million at the end of 2023, indicating ongoing strategic acquisitions[20] - Long-term debt rose to $665.2 million as of September 28, 2024, compared to $523.1 million at the end of 2023, reflecting increased financing activities[20] - Cash and equivalents increased to $124.8 million as of September 28, 2024, up from $99.4 million at the end of 2023, enhancing liquidity[20] - The company’s total assets reached $2,806.0 million as of September 28, 2024, compared to $2,439.7 million at the end of 2023, marking a 15% increase[20] - The total debt at September 28, 2024, was $737.8 million, reflecting an increase from $558.3 million at December 31, 2023[25] Costs and Expenses - Selling, general and administrative expenses as a percentage of revenues for the HVAC segment increased to 23.9%, up 370 basis points from 20.2% in the prior year[21] - The company incurred integration costs of $1.4 million and $6.3 million during the three and nine months ended September 28, 2024, respectively[21] - The company’s long-term incentive compensation expense increased to $4.0 million from $3.4 million year-over-year[21] - The company incurred acquisition-related and other costs of $10.0 million for the nine months ended September 28, 2024, down from $12.0 million for the same period in 2023[32] Cash Flow Activities - Net cash from continuing operations increased to $77.0 million for the three months ended September 30, 2023, up from $45.4 million year-over-year[22] - The company reported a net cash used in investing activities of $277.3 million for the nine months ended September 28, 2024[24] - Business acquisitions net of cash acquired resulted in a cash outflow of $292.0 million for the nine months ended September 28, 2024[24] - Capital expenditures for the nine months ended September 28, 2024, were $28.2 million[24] - Borrowings under senior credit facilities amounted to $610.2 million, with repayments of $462.0 million during the same period[25] - The change in cash and equivalents due to foreign currency exchange rates was an increase of $5.5 million[24]

Core Insights - SPX Technologies reported a strong financial performance for Q3 2024, with revenue of $483.7 million, a 7.8% increase from $448.7 million in Q3 2023, and a net income of $50.2 million compared to a loss of $20.4 million in the same period last year [3][10][21] - The company achieved significant margin expansion in both HVAC and Detection & Measurement segments, with Adjusted EBITDA growing by 27% to $104 million [4][5] - SPX is well-positioned to meet its full-year 2024 guidance, targeting Adjusted EBITDA in the range of $410-$430 million and Adjusted EPS between $5.45 and $5.60 [10][11] Financial Performance - Q3 2024 revenue was $483.7 million, up from $448.7 million in Q3 2023, while operating income increased to $78.9 million from $57.7 million [3][20] - Net income for Q3 2024 was $50.2 million, a significant recovery from a loss of $20.4 million in Q3 2023 [3][21] - Adjusted EPS for Q3 2024 was $1.39, compared to $1.06 in Q3 2023, reflecting a 31.1% increase [4][10] Segment Performance - HVAC segment revenue rose by 15.9% to $335.3 million, driven by a 9.0% increase in organic revenue and a 6.8% contribution from the acquisition of Ingénia [5][25] - Detection & Measurement segment revenue decreased by 7.0% to $148.4 million, primarily due to lower large project volumes in communication technologies [7][26] - Segment income for HVAC was $80.0 million (23.9% margin), while Detection & Measurement reported segment income of $33.8 million (22.8% margin) [6][8] Guidance and Outlook - The company narrowed its full-year 2024 revenue guidance to a range of $1.97-$2.00 billion, down from a previous range of $1.97-$2.02 billion [10][11] - SPX expects Adjusted EBITDA growth of approximately 35% and Adjusted EPS growth of approximately 28% at the midpoint of its guidance range [2][10] Cash Flow and Debt - As of September 28, 2024, SPX had total outstanding debt of $737.8 million and total cash of $129.4 million, with net operating cash flow from continuing operations totaling $77.0 million for Q3 2024 [9][31] - Capital expenditures for continuing operations in Q3 2024 were $7.9 million [9][29]