CHARLOTTE, N.C., Oct. 06, 2025 (GLOBE NEWSWIRE) -- SPX Technologies, Inc. (NYSE:SPXC) announced today that it will release its financial results for the third quarter of fiscal year 2025 after the U.S. financial markets close on Thursday, October 30, 2025. In conjunction with this announcement, SPX Technologies’ President and Chief Executive Officer Gene Lowe and SPX Technologies’ Vice President, Chief Financial Officer and Treasurer Mark Carano will discuss the Company’s financial results and business outl ...

Company Overview - SPX Technologies, Inc. is a diversified global supplier of highly engineered products and technologies, holding leadership positions in the HVAC and detection and measurement markets [5] - The company is based in Charlotte, North Carolina, and employs over 4,300 individuals across more than 16 countries [5] - SPX is publicly traded on the New York Stock Exchange under the ticker symbol "SPXC" [5] Public Offering Details - SPX announced its intention to offer and sell $500 million of shares of its common stock in an underwritten public offering [1] - The company plans to grant underwriters a 30-day option to purchase up to an additional $75 million of shares [1] - The offering is subject to market conditions, and there is no assurance regarding the completion or terms of the offering [1] Underwriters - BofA Securities, J.P. Morgan, and Wells Fargo Securities are acting as joint book-running managers for the proposed offering [2] - TD Cowen and Truist Securities are also involved as book-running managers for the offering [2] Regulatory Compliance - The shares are being offered pursuant to an effective automatic shelf registration statement previously filed with the U.S. Securities and Exchange Commission (SEC) [3] - A preliminary prospectus supplement and accompanying prospectus will be filed with the SEC, detailing the terms of the offering [3]

Financial Data and Key Metrics Changes - The company reported a 16% year-over-year growth in adjusted EPS, reaching $1.65 for Q2 2025 [11] - Total revenues increased by 10% year-over-year, driven primarily by acquisitions and higher project sales [11] - Adjusted EBITDA rose approximately 16% year-over-year, with a margin expansion of 120 basis points [8][11] Segment Data and Key Metrics Changes - In the HVAC segment, revenues grew by 5.7% year-over-year, with 4.9% attributed to inorganic growth [11] - Detection and Measurement segment revenues increased by 21% year-over-year, with organic growth of 5.5% [13] - Segment backlog for HVAC was $540 million, up 19.5% from Q1, while Detection and Measurement backlog was $365 million, up 6% sequentially [12][14] Market Data and Key Metrics Changes - The company anticipates a growth in adjusted EBITDA of 18% at the midpoint of the updated guidance for the full year [7] - Market conditions are supportive of the increased full-year outlook, particularly in the HVAC segment, which has a healthy backlog [17] Company Strategy and Development Direction - The company is focused on organic and inorganic value creation initiatives, supported by a robust M&A pipeline [7] - New product introductions, such as the Olympus Vmax cooling solution, are expected to significantly increase the addressable market in data center cooling solutions [9] - The company is making progress on capacity expansions and new product introductions, particularly in engineered air movement businesses [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the updated guidance, citing solid momentum in end markets and key initiatives [18] - The company remains optimistic about data center opportunities in 2025 and 2026, with expectations for continued growth [17] - Management noted that project businesses are seeing healthy front log activity, with many new bookings slated for delivery in 2026 and beyond [17] Other Important Information - The company ended Q2 with cash of $137 million and total debt of approximately $1 billion, with a leverage ratio of about 1.7 times [14] - Adjusted free cash flow for Q2 was approximately $37 million [15] Q&A Session Summary Question: What kind of growth is your team seeing in the data center space? - Management indicated that data center revenue is expected to grow from around $150 million to $200 million in 2025, representing about 9% of company revenue, with further growth anticipated in 2026 [24][25] Question: What would the run rate revenue capacity lift be for U.S. manufacturing? - Management stated that they aim for a run rate of $140 million by the end of Q4 2025, with expectations to reach around $300 million with new facilities by 2027 [30] Question: What are the expectations for project contributions in the D and M segment for the back half of the year? - Management expects project contributions to grow in the high teens organically during the second half of the year [32] Question: Can you clarify the strength of HVAC margins in Q2? - Management noted that HVAC margins were 25.4%, with half of the increase attributed to favorable project execution and the other half to higher volumes and a more accretive mix [40] Question: How is the integration of recent acquisitions going? - Management reported very positive integration experiences with KTS and Sigma and Omega, highlighting synergies and growth opportunities [113][116]

Core Insights - SPX Technologies, Inc. reported strong second quarter results for 2025, with significant year-over-year profit growth and strong margin performance, particularly in the HVAC segment [2][4] - The company raised its full-year 2025 guidance, expecting Adjusted EBITDA to range from $485 million to $510 million, reflecting an approximately 18% year-over-year increase at the midpoint [2][4] Financial Performance - Revenue for Q2 2025 was $552.4 million, a 10.2% increase from $501.3 million in Q2 2024 [3][4] - Operating income rose to $86.6 million, up 16.1% from $74.6 million in the same quarter last year [3][4] - Income from continuing operations increased to $52.5 million, a 16.2% rise compared to $45.2 million in Q2 2024 [3][4] - GAAP EPS for Q2 2025 was $1.10, up 14.6% from $0.96 in Q2 2024 [3][4] - Adjusted EBITDA for Q2 2025 was $126.7 million, reflecting a 16.3% increase from $108.9 million in Q2 2024 [3][4] Segment Performance - HVAC segment revenue for Q2 2025 was $376.7 million, a 5.7% increase from $356.5 million in Q2 2024, with segment income rising to $95.8 million [6][7] - Detection & Measurement segment revenue increased by 21.3% to $175.7 million, driven by both organic and inorganic growth [8][9] - The overall consolidated segment income for Q2 2025 was $135.8 million, up 15.5% from $117.6 million in Q2 2024 [32] Guidance and Outlook - The company anticipates full-year 2025 revenue to be in the range of $2.225 billion to $2.275 billion, representing a year-on-year increase of approximately 13% at the midpoint [4][13] - Adjusted EPS is expected to range from $6.35 to $6.65, reflecting a year-on-year increase of about 16% [4][13] - The HVAC segment is projected to generate revenue between $1.500 billion and $1.530 billion, while the Detection & Measurement segment is expected to bring in $725 million to $745 million [13]

Core Viewpoint - SPX Technologies, Inc. will release its financial results for the second quarter of fiscal year 2025 on July 31, 2025, after U.S. financial markets close [1] Financial Results Announcement - The financial results will be discussed in a conference call led by President and CEO Gene Lowe and CFO Mark Carano on July 31, 2025, at 4:45 p.m. Eastern Time [2] - The call will be available via webcast, and slides will be accessible in the Investor Relations section of the company's website [3] Call Access Information - Participants can access the call by phone through a provided link and are encouraged to join fifteen minutes early to avoid delays [4] - A replay of the webcast will be available for a limited time on the company's website [4] Company Overview - SPX Technologies is a supplier of engineered products and technologies, with leadership in HVAC and detection and measurement markets [5] - The company is based in Charlotte, North Carolina, employs approximately 4,300 people across 16 countries, and is listed on the New York Stock Exchange under the ticker symbol "SPXC" [5]

SPX Technologies (SPXC) FY Conference Summary Company Overview - SPX Technologies operates in niche industrial applications across HVAC and detection and measurement markets [2][4] - The company has a strong track record for margin expansion and has executed 16 acquisitions over the past four and a half years [2][17] - SPX is predominantly North American, with about 83% of its revenue from this region, but is expanding in Europe and Asia [4] Core Business Segments HVAC Segment - HVAC constitutes about two-thirds of SPX's business, generating approximately $1.5 billion in revenue this year [9][31] - The segment has a margin of around 22% and is characterized by a significant portion of replacement revenue, approximately 60% [10][32] - SPX focuses on engineered products in high-tech niches, avoiding competition with larger players like Carrier and Trane [11] Detection and Measurement Segment - This segment includes technologies for underground inspections and monitoring, with a revenue target of around $710 million [34][37] - SPX is a leader in outdoor technologies, particularly in precision locators and inspection robots for water and gas infrastructure [8][34] Financial Performance and Growth Strategy - SPX aims to double its EBITDA from $483 million to approximately $1 billion over the next four to five years [12][18] - The company has a strong focus on strategic M&A, with a capital allocation strategy that prioritizes growth investments over dividends [26][39] - SPX has a robust balance sheet, with a pro forma leverage ratio of around 1.9 after recent acquisitions [40] Market Dynamics and Future Outlook - The company has seen double-digit organic growth driven by better product offerings, particularly in healthcare and institutional markets [56][57] - SPX is optimistic about entering the adiabatic and dry cooling tower markets, which could significantly expand its total addressable market (TAM) [61][62] - The company anticipates meaningful revenue opportunities from new products in the data center market by 2026 [66] Competitive Landscape - SPX competes with private companies in the cooling tower market but believes it has a competitive edge due to superior mechanical equipment [73][74] - The detection and measurement segment is expected to benefit from federal funding for infrastructure projects, particularly in transportation [75] Key Takeaways - SPX Technologies is well-positioned for growth in both HVAC and detection and measurement markets, with a clear strategy focused on engineered products and strategic acquisitions [2][17] - The company is leveraging its strong brand equity and market leadership to capture additional market share and drive revenue growth [10][11] - Future growth is expected to be supported by new product launches and increased federal funding for infrastructure projects [75]

Financial Data and Key Metrics Changes - The company reported a 3.7% increase in revenue year-on-year for Q1 2025, driven by strong performance in the HVAC segment and recent acquisitions [8][13] - Adjusted EBITDA grew by 12% year-on-year, with a margin expansion of 150 basis points [6][8] - Adjusted EPS increased by 10% to $1.38 for the quarter [13][17] Segment Performance Changes - In the HVAC segment, revenues grew by 6.8% year-on-year, with organic growth of 4.4% driven by the heating platform [13][14] - The Infection and Measurement segment saw a 2% decline in revenues year-on-year, with organic revenue down 6.9%, partially offset by a 5.2% increase from the acquisition of KTS [15][16] - Segment backlog for HVAC was $451 million, up approximately 3% from Q4, while the Infection and Measurement segment backlog was $346 million, up 56% sequentially [14][16] Market Data and Key Metrics Changes - The company noted a healthy backlog for highly engineered solutions in the HVAC segment, with positive sentiment regarding data center opportunities in 2025 and 2026 [21][22] - Demand in the Detection and Measurement segment remains steady, with regional variations noted, particularly stronger in the U.S. compared to Europe and Asia [42][44] Company Strategy and Industry Competition - The acquisition of Sigma and Omega is expected to enhance the value provided to HVAC customers and position the company for future growth [10][22] - The company aims to leverage its business system to manage tariff impacts and maintain strong margin performance [8][9] - The company believes it is less cyclical than most industrial tech companies due to diverse end market drivers and a high level of replacement revenue [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the updated full-year guidance, anticipating adjusted EBITDA growth of 15% at the midpoint [7][22] - The company is well-positioned to navigate macroeconomic uncertainties and adapt to rapid changes in the environment [22] - Management highlighted strong demand in the HVAC segment, particularly in data centers, and noted that replacement sales are critical and resilient [20][38] Other Important Information - The company ended Q1 with cash of $182 million and total debt of $960 million, resulting in a leverage ratio of approximately 1.6 times [16] - Adjusted free cash flow for Q1 was approximately $36 million [17] Q&A Session Summary Question: What are the assumptions regarding gross and net tariff impact for the year? - Management indicated a tariff impact of approximately $0.08 to $0.12 on adjusted EPS, with a gross cost of around $20 million offset by price increases of about $14 million [28][29] Question: How does the Sigma and Omega acquisition fit into growth rates and EBITDA margins? - Management expressed strong confidence in the acquisition, noting it complements existing products and has synergy opportunities for growth, with expected revenues of $65 million for Sigma and Omega [30][31] Question: What is the outlook for order rates and demand amid tariff-related uncertainty? - Management reported no significant changes in demand, with a balanced performance across HVAC segments and strong activity in data centers [37][38] Question: Can you provide insights on Ingenia's revenue projections and multi-year growth visibility? - Management projected Ingenia's revenue capacity to reach $140 million by the end of the year, with high demand for its unique value proposition [48][50] Question: How does the acquisition of Sigma and Omega affect total addressable market (TAM)? - Management noted that while the TAM for Sigma and Omega is smaller than cooling towers, it still meaningfully expands the company's market opportunities [52][53]

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]