SPX(SPXC) - 2025 Q2 - Quarterly Results

SPX Q2 2025 Earnings Release Executive Summary 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] - SPX is advancing its strategy to expand production capacity for its Engineered Air Movement businesses to support growth in 2026 and beyond[1] - 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] - 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] Financial Performance 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 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 Both the HVAC and Detection & Measurement segments demonstrated strong growth in Q2 2025, driven by acquisitions and organic project execution HVAC Segment 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][10] Detection & Measurement Segment 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][11] Liquidity and Financial Position 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][33] Cash Flow 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 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][18] - 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]