SPX Technologies, Inc.

What they do

SPX Technologies operates in two reportable segments: HVAC and Detection and Measurement. The HVAC segment provides cooling and heating equipment, including data center cooling solutions, while the Detection and Measurement segment offers products for communication technologies, transportation systems, and process cooling. The company also has a small, held-for-sale unit (DBT and Heat Transfer) accounted for as discontinued operations.

Revenue drivers

• HVAC segment — Largest segment; Q2 2026 revenue of $480.6M (+27.6% YoY), driven by data center cooling demand and inorganic growth from acquisitions like Sigma & Omega, Ing nia, ASPEQ, TAMCO, and Neptronic.
• Detection and Measurement segment — Includes communication technologies (with additional demand from geopolitical conflicts), transportation systems, and process cooling; grew via KTS acquisition (purchase price $340.0M in Jan 2025).
• Organic growth across both segments — Q2 2026 organic growth was 18.9% for HVAC; overall revenue growth was 22.9% YoY, supported by robust data center demand.

Recent performance

In Q2 2026 (ended June 27, 2026), revenue rose 22.9% to $679.0M, with GAAP income from continuing operations up 51.0% to $79.3M and GAAP EPS of $1.56 (+41.8% YoY). Adjusted EPS was $2.02 (+22.4%), and adjusted EBITDA was $151.8M (+19.8%). For the first half of 2026, revenue was $1,245.8M, operating income $202.7M, and continuing operations income $143.7M. Operating cash flow from continuing operations in H1 2026 was $120.2M, up from $33.0M in the prior-year period.

Strategy

Management is advancing organic and inorganic growth initiatives, including the Neptronic acquisition to expand HVAC product categories and increase data center revenue capacity to approximately $1.1 billion annually at full production. The company is adding manufacturing capacity, with initial assembly of Olympus Max underway at a Madison, Alabama facility. Acquisitions (KTS, Sigma & Omega, Neptronic) are being integrated to drive revenue and cost synergies. SPX also completed a public offering in August 2025, raising $551.1M net proceeds, and amended its credit agreement to $2.025B for acquisition financing.

Risks

• Tariffs and trade barriers — New U.S. and retaliatory tariffs could raise costs or disrupt material sourcing; 2025 had no material direct impact, but future effects are uncertain.
• Cyclicality and data center demand — Many markets are cyclical, and a downturn in data center construction could reduce demand for HVAC cooling products.
• Customer capital expenditure dependence — Demand depends on customers' capital investment and maintenance spending, which can fluctuate with economic conditions and credit availability.
• Geopolitical conflicts and raw material supply — Ongoing conflicts have increased demand for communication technologies but also pose risks to raw material availability, though current impact is not material.

Outlook

Management raised full-year 2026 guidance: revenue of $2.705 to $2.765 billion (up ~21% YoY at midpoint), adjusted EBITDA of $630 to $660 million (up ~27%), and adjusted EPS of $8.20 to $8.60 (up ~24%). The outlook reflects sustained data center demand, the Neptronic acquisition, and stronger Detection and Measurement performance. Management expressed confidence in customer demand and momentum into the second half of 2026.