SPX Technologies (SPXC) 2025 Conference Summary Company Overview - SPX Technologies is approaching its ten-year anniversary as a standalone public company with approximately $2.2 billion in revenue, predominantly from North America (83% from the US and Canada) [3][4] Business Segments - The company operates in two main segments: HVAC and Detection & Measurement - **HVAC Segment**: - Global leader in cooling towers and boilers in North America - Provides engineered products for various HVAC applications, including hospitals and data centers [5][6] - Revenue growth from approximately $900 million to $1.1 billion, with margins around 25% [17] - **Detection & Measurement Segment**: - Largest platform is location and inspection, managing underground assets - Revenue growth from approximately $550 million to over $700 million [18] Financial Performance - EBITDA growth from $160 million to an expected $483 million, representing a CAGR of around 32% [11] - Approximately two-thirds of revenue comes from replacement sales, with 90% of revenue being from leading market positions [9] Growth Strategy - The company aims for sustained EBITDA growth of over 15% long-term, supported by organic growth and acquisitions [16] - Recent acquisitions include Sigma and Omega, enhancing their product offerings in cooling solutions [24][67] Market Trends and Opportunities - Positive outlook on industrial manufacturing growth, particularly in cooling towers for semiconductors and electric automotive sectors [32] - Data center business is significant, with expectations of growth in HVAC segment driven by established relationships with large tech companies [42][62] Supply Chain and Tariff Impact - The impact of tariffs is relatively small, quantified at approximately $6 million in segment income [36] - The company is focused on securing supply chains and diversifying sources post-COVID [38][39] M&A Activity - SPX Technologies is tracking around 300 potential acquisition targets, with a focus on family-owned businesses and private equity assets [91] - The company has successfully integrated acquisitions, such as Ingenia and Tamco, which have doubled their business since acquisition [28][66] Pricing and Inflation - The company has implemented standard price increases and surcharges to mitigate inflationary pressures, with two-thirds of pricing adjustments being standard increases [98] Legislative Environment - Potential changes in tax legislation, such as accelerated depreciation, are viewed as beneficial but not critical to the company's strategic plans [100][101] Conclusion - SPX Technologies is well-positioned for growth in both its HVAC and Detection & Measurement segments, with a strong focus on engineered products and strategic acquisitions to enhance market presence and operational efficiency [30][66]