SPX Reports First Quarter 2025 Results

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]