Q1 2025 Performance Highlights - SPX Technologies achieved revenue growth of 3.7% in Q1 2025[13] - Adjusted EBITDA grew by 11.5%, with a 150 bps margin expansion[19] - Adjusted EPS for Q1 2025 reached $1.38[28] Segment Performance - HVAC revenue increased by 6.8% year-over-year, driven by organic growth and the Ingénia acquisition[38] - Detection & Measurement revenue decreased by 2.0%, but segment income increased due to favorable sales mix and project execution[44] Financial Position and Guidance - SPX Technologies is raising its 2025 guidance, projecting adjusted EBITDA in the range of $470 million to $495 million, implying a 15% growth at the midpoint[9,52] - Full-year revenue guidance is now $2.20 billion to $2.26 billion[52] - The company anticipates leverage below the low end of its 1.5x-2.5x target range by year-end[50] Strategic Initiatives - The acquisition of Sigma & Omega expands the value of HVAC solutions, particularly in the multi-story market, where hot water and cooling systems are typically 2X the value of cooling towers and boilers combined[9,24]

Financial Performance - Revenue for Q1 2025 was $482.6 million, an increase of 3.7% compared to Q1 2024, with organic growth contributing 0.4%[4] - GAAP income from continuing operations rose to $51.7 million, reflecting a 5.1% increase year-over-year[4] - Adjusted EBITDA for Q1 2025 was $102.6 million, up 11.5% from $92.0 million in Q1 2024, with an adjusted EBITDA margin of 21.3%[4][3] - The company anticipates adjusted EBITDA for 2025 to be in the range of $470 to $495 million, reflecting a year-on-year increase of approximately 15% at the midpoint[4] - Operating income rose to $66.6 million, reflecting a 3.1% increase compared to $64.6 million in the prior year[29] - Net income for the period was $51.2 million, compared to $49.0 million, representing a 4.5% year-over-year growth[31] - Basic income per share from continuing operations increased to $1.11, up from $1.07, while diluted income per share rose to $1.09 from $1.05[25] - The adjusted operating income for the same period was $94.9 million, representing 19.7% of revenues, compared to $84.4 million and 18.1% of revenues for the three months ended March 30, 2024[37] - SPX Technologies' diluted earnings per share from continuing operations increased to $1.38 for the three months ended March 29, 2025, compared to $1.25 for the same period in 2024[38] Revenue Segments - The HVAC segment reported revenue of $323.0 million, a 6.8% increase, driven by 4.4% organic growth and 2.9% inorganic growth from acquisitions[6] - The Detection & Measurement segment experienced a revenue decline to $159.6 million, down 2.0%, primarily due to a 6.9% organic decrease[8] - The HVAC reportable segment generated revenues of $323.0 million, a 6.8% increase from $302.4 million[29] - The Detection & Measurement segment reported revenues of $159.6 million, a decrease of 2.0% from $162.8 million[29] - For the three months ended March 29, 2025, SPX Technologies reported a consolidated net revenue growth of 3.7%, with a 6.8% increase in Detection & Measurement and a 2.0% decline in HVAC Measurement[35] Guidance and Projections - The company raised its full-year 2025 revenue guidance to a range of $2.20 to $2.26 billion, representing an approximate 12% year-on-year increase at the midpoint[4] - Adjusted EPS for 2025 is projected to be between $6.10 and $6.40, indicating a year-on-year increase of approximately 12% at the midpoint[4] Debt and Cash Position - Total debt increased to $960.3 million from $614.7 million in Q4 2024, while total cash rose to $182.2 million[12] - Total liabilities increased to $1,694.1 million, up from $1,330.1 million, primarily due to increased long-term debt[27] - Cash and equivalents at the end of the period were $177.8 million, compared to $156.9 million at the end of December 2024[27] - SPX Technologies' ending cash and equivalents increased to $182.2 million from $161.4 million at the beginning of the period, with net borrowings under other financing arrangements totaling $0.5 million[33] - Total debt increased to $960.3 million as of March 29, 2025, from $614.7 million at the end of 2024, primarily due to borrowings under senior credit facilities[33] Acquisitions and Integration - The company completed the acquisition of Sigma & Omega, enhancing its HVAC product offerings with complementary vertical stack heat pumps[2] - The company incurred acquisition and integration-related costs of $8.6 million for the three months ended March 29, 2025, compared to $5.0 million for the same period in 2024[37] - Goodwill increased significantly to $950.0 million, up from $834.5 million, indicating recent acquisitions[27] Other Financial Metrics - Total current assets increased to $906.8 million, a rise of 15.6% from $784.3 million at the end of December 2024[27] - Cash used in discontinued operations was $0.5 million for the three months ended March 29, 2025[33] - The company experienced a foreign currency exchange rate impact that resulted in a cash increase of $2.6 million during the period[33]

Core Insights - SPX Technologies, Inc. reported strong first-quarter results for 2025, with revenue of $482.6 million, representing a 3.7% increase compared to Q1 2024 [2][3] - The company raised its full-year 2025 guidance for Adjusted EBITDA to a range of $470 to $495 million, indicating a ~15% year-on-year increase at the midpoint [1][3] - The acquisition of Sigma & Omega is expected to enhance SPX's HVAC segment, providing opportunities for growth through combined channels [1] Financial Performance - Revenue for Q1 2025 was $482.6 million, up from $465.2 million in Q1 2024 [2] - Operating income increased to $66.6 million, a rise of 3.1% from $64.6 million in the previous year [2][3] - GAAP EPS rose to $1.10, reflecting a 4.8% increase year-on-year [2][3] - Adjusted EBITDA for Q1 2025 was $102.6 million, up 11.5% from $92.0 million in Q1 2024 [2][3] Segment Performance - The HVAC segment reported revenue of $323.0 million, a 6.8% increase from $302.4 million in Q1 2024, with an organic growth of 4.4% [5][28] - Detection & Measurement segment revenue decreased by 2.0% to $159.6 million, with an organic decline of 6.9% [7][28] - Segment income for HVAC was $73.9 million, with a margin of 22.9%, while Detection & Measurement segment income was $36.6 million, with a margin of 22.9% [5][28] Guidance and Outlook - SPX anticipates full-year 2025 revenue in the range of $2.20 to $2.26 billion, reflecting a ~12% year-on-year increase at the midpoint [3][11] - Adjusted EPS guidance for 2025 is set between $6.10 and $6.40, indicating a ~12% increase year-on-year [3][11] - The company expects continued healthy demand in core markets and solid execution across its businesses [1][3] Liquidity and Financial Position - Total debt increased to $960.3 million as of Q1 2025, up from $614.7 million at the end of Q4 2024 [10][34] - Total cash on hand was $182.2 million, compared to $161.4 million at the end of the previous quarter [10][34] - Net cash used in continuing operations was $(10.4) million for Q1 2025, down from $10.7 million in Q1 2024 [30]

Core Viewpoint - Futu Holdings Limited Sponsored ADR (FUTU) is currently more attractive to value investors compared to SPX Technologies (SPXC) based on various valuation metrics and earnings estimate revisions [1][3][7]. Valuation Metrics - FUTU has a forward P/E ratio of 11.51, significantly lower than SPXC's forward P/E of 20.89, indicating that FUTU may be undervalued [5]. - The PEG ratio for FUTU is 0.50, while SPXC has a PEG ratio of 1.16, suggesting that FUTU offers better value relative to its expected earnings growth [5]. - FUTU's P/B ratio stands at 3.04, compared to SPXC's P/B of 4.30, further supporting the notion that FUTU is more attractively priced [6]. Analyst Outlook - FUTU holds a Zacks Rank of 1 (Strong Buy), indicating a more favorable analyst outlook due to stronger earnings estimate revision activity compared to SPXC, which has a Zacks Rank of 2 (Buy) [3][7]. - The combination of a strong Zacks Rank and favorable valuation metrics positions FUTU as a superior option for value investors at this time [3][7].

Core Viewpoint - SPX Technologies, Inc. has completed the acquisition of Sigma Heating and Cooling and Omega Heat Pump for approximately $144 million (CAD 200 million), aligning with its typical acquisition multiple of 8x-12x Adjusted EBITDA [1][3]. Company Overview - Sigma & Omega, founded in 1997, is a Toronto-based manufacturer specializing in hydronic heating and cooling equipment, with expected annual revenues of approximately $65 million in 2025 and a workforce of around 220 employees [2][3]. Strategic Integration - Sigma & Omega will be integrated into SPX's hydronics business, enhancing its HVAC segment alongside Weil-McLain and Patterson-Kelley. The majority of Sigma & Omega's sales are from Canadian customers, but SPX aims to expand its U.S. customer base through increased domestic production [3][4]. Synergies and Growth Potential - The acquisition is expected to create significant synergies with SPX's existing HVAC businesses, leveraging Sigma & Omega's differentiated product offerings, such as vertical stack water-sourced heat pumps and fan coils, to enhance customer value and production efficiency [4][5]. Future Guidance - SPX Technologies plans to update its full-year 2025 guidance to reflect the impact of Sigma & Omega on May 1, 2025, coinciding with the Q1 2025 results announcement [3].

Core Viewpoint - SPX Technologies has acquired Sigma Heating and Cooling and Omega Heat Pump for approximately $144 million (CAD 200 million), which aligns with its typical acquisition multiple of 8x-12x Adjusted EBITDA [1][6]. Company Overview - Sigma & Omega, founded in 1997, is a Toronto-based manufacturer specializing in hydronic heating and cooling equipment, including vertical stack heat pumps and fan coils, with anticipated annual revenues of approximately $65 million in 2025 [2][3]. - The company employs around 220 people and primarily serves domestic Canadian customers [2][3]. Strategic Integration - Sigma & Omega will be integrated into SPX's hydronics business, enhancing the HVAC segment alongside Weil-McLain and Patterson-Kelley [3]. - SPX aims to increase Sigma & Omega's sales to U.S. customers through expanded U.S.-based production [3]. Synergies and Growth Potential - The acquisition is expected to create significant synergies with SPX's existing HVAC businesses, enhancing the value provided to customers [4]. - Sigma & Omega's product offerings, including vertical stack water-sourced heat pumps and commercial self-contained units, are complementary to SPX's current portfolio, targeting growth in high-rise residential buildings, hotels, schools, hospitals, and commercial properties across North America [4]. Management Statements - SPX's President and CEO expressed excitement about the acquisition, highlighting the strategic fit and potential for continued growth in attractive end markets [4]. - Founders of Sigma & Omega noted that the partnership will create new opportunities for employees, customers, and shareholders, enhancing the overall value of the platform [4].

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]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information does not constitute any recommendation or advice for investment actions [1]. - Users are advised to perform their own research and consider their financial situation before making decisions [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - It encourages users to understand how these instruments work and the associated risks before investing [1].

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]