SPX Technologies Reports Third Quarter 2024 Results

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]