SPX(US:SPXC)2026-02-24 22:54Financial Performance - HVAC reportable segment revenues were $1,518.2 million in 2025, up from $1,364.7 million in 2024 and $1,122.3 million in 2023, representing a year-over-year growth of approximately 11.3% from 2024 to 2025 and 21.6% from 2023 to 2024[30] - Detection and Measurement segment revenues were $746.9 million in 2025, up from $619.2 million in 2024 and $618.9 million in 2023, with a backlog of $350.3 million as of December 31, 2025[31] - International sales reached $452.5 million in 2025, compared to $343.1 million in 2024 and $287.1 million in 2023[38] Backlog and Revenue Recognition - As of December 31, 2025, the HVAC segment backlog was $584.5 million, an increase from $436.8 million as of December 31, 2024, indicating a backlog growth of approximately 33.9% year-over-year[30] - Approximately 83% of the HVAC segment's backlog as of December 31, 2025, is expected to be recognized as revenue during 2026[30] - Approximately 66% of the backlog is expected to be recognized as revenue during 2026[31] Acquisitions - The company completed the acquisition of T.A. Morrison & Co. Inc. on April 3, 2023, enhancing its HVAC reportable segment with motorized and non-motorized dampers[17] - On June 2, 2023, the company acquired ASPEQ Heating Group, a leading provider of electrical heating solutions, further strengthening its HVAC segment[18] - The company acquired Ingénia Technologies Inc. on February 7, 2024, specializing in custom air handling units for various high-precision markets, which will also be included in the HVAC segment[19] - The company completed the acquisition of Kranze Technology Solutions, Inc. on January 27, 2025, focusing on digital interoperability solutions for the defense industry, contributing to the Detection and Measurement segment[20] - The company acquired Thermolec in January 2026, Crawford in February 2026, and Sigma & Omega in April 2025, among others[34] - Cash outflows related to acquisitions totaled $8.2 million during the year ended December 31, 2025[33] Workforce and Operations - The company reported a diversified global presence with operations in 16 countries and approximately 4,700 employees, indicating a strong operational scale[25] - The company employs approximately 4,700 employees, with about 3,500 based in the United States[54] - The company has experienced satisfactory labor relations but is subject to potential union campaigns and labor disputes[54] - The company has trained 315 leaders through its "Frontline Leaders Program" and 138 leaders have completed the "Amplified Leadership" midlevel leader program[56] - Over 90% of employees participated in the updated Global Employee Survey, which informed action plans to enhance employee priorities[57] Research and Development - The company emphasizes research and development to improve existing products and develop new ones, focusing on sustainable solutions[41] Working Capital and Sales Trends - The company maintains sufficient working capital levels to support customer requirements, particularly inventory, and generally experiences stronger sales in the second half of the calendar year[60] - The company’s businesses generally experience stronger performance in the second half of the calendar year due to seasonal fluctuations[60]