
SPX Technologies
Engineered-products manufacturer across two segments (HVAC ~67% of sales; Detection & Measurement ~33%), growing via organic share gains plus a disciplined bolt-on M&A roll-up, with margin expansion from mix, pricing and integration. Low-capex historically, though capex has stepped up for data-center capacity; project-and-aftermarket revenue.
Sources — 18 figures with citations
- Revenue, Q2 2026 and H1 2026filed2026-06-27$679.0M in the quarter (vs $552.4M in Q2 2025); $1,245.8M for H1 2026 (vs $1,035.0M)sec.gov — Condensed Consolidated Statements of Operations, Form 10-Q for the quarter ended 2026-06-27 (filed 2026-07-31).
- Revenue growthderived2026-06-27+22.9% YoY in Q2 2026; +20.4% YoY in H1 2026; 16.9% consolidated organic in Q2sec.gov — 679.0 / 552.4 - 1 = +22.94%; 1,245.8 / 1,035.0 - 1 = +20.37%. Both bases filed; the 22.9% and 20.4% figures also appear in the 10-Q's own MD&A comparison table. The 16.9% organic split is from the earnings release.
- Gross profit and gross margin, Q2 2026filed2026-06-27$272.8M gross profit = 40.2% of revenue (vs 41.4% in Q2 2025); H1 2026 40.4% vs 41.0%sec.gov — Stated directly in the 10-Q MD&A results table (gross profit $272.8M, 40.2% of revenues). Reconciles to the income statement: revenue $679.0M less cost of products sold $406.2M = $272.8M.
- Operating income and operating margin, Q2 2026derived2026-06-27$115.0M operating income = 16.9% margin (vs $86.6M / 15.7%), +32.8% YoYsec.gov — Operating income filed. Margins derived: 115.0 / 679.0 = 16.94%; 86.6 / 552.4 = 15.68%, a ~126bps expansion. Growth derived: 115.0 / 86.6 - 1 = +32.8%.
- EPS, Q2 2026filed2026-06-27GAAP diluted EPS from continuing operations $1.56 (vs $1.10, +41.8%); GAAP diluted net income per share $1.55; adjusted EPS $2.02 (+22.4%). Income from continuing operations $79.3M; net income $78.4M; 50.675M weighted diluted shares.sec.gov — GAAP figures and share count from the filed income statement. The $2.02 adjusted EPS is from the 2026-07-30 earnings release (non-GAAP). The GAAP-to-adjusted gap is ~$0.46, or ~23% of GAAP.
- Adjusted EBITDA, Q2 2026filed2026-06-27$151.8M = 22.4% margin, +19.8% YoYglobenewswire.com — Non-GAAP measure from the 2026-07-30 earnings release. Margin cross-check: 151.8 / 679.0 = 22.36%, consistent with the stated 22.4%.
- Segment results, Q2 2026filed2026-06-27HVAC revenue $480.6M (+27.6%; 18.9% organic + 8.5% inorganic), segment margin 22.8% (-260bps); Detection & Measurement revenue $198.4M (+12.9%; 12.8% organic), segment margin 28.9% (+610bps)globenewswire.com — Segment table in the 2026-07-30 earnings release. Cross-check: $480.6M + $198.4M = $679.0M, matching filed consolidated revenue exactly.
- Balance sheet: cash, receivables, inventories, goodwillfiled2026-06-27Cash and equivalents $166.4M (from $364.0M at 2025-12-31); accounts receivable net $442.4M; inventories net $374.0M; PP&E net $324.8M; goodwill $1,234.3M (from $1,043.4M)sec.gov — Condensed Consolidated Balance Sheets. The cash decline and goodwill increase both trace to the H1 acquisition spend.
- Debt and net debtderived2026-06-27Total debt $614.7M (short-term $74.3M + current maturities $9.9M + long-term $530.5M); net debt $448.3Msec.gov — Debt components filed (debt rollforward table shows total debt $614.7M at 2026-06-27 vs $501.6M at the start of the period). Net debt derived: 614.7 - 166.4 = $448.3M, matching the figure in the earnings release. Includes a $73.0M trade-receivables financing arrangement balance and a $500.0M initial-balance term loan maturing September 2030.
- Cash flow and capex, H1 2026derived2026-06-27Operating cash flow $120.2M (vs $31.6M in H1 2025); capex $39.6M (vs $13.2M); free cash flow $80.6M = ~6.5% of revenue; adjusted free cash flow $87.9Msec.gov — Operating cash flow and capex are filed. FCF derived: 120.2 - 39.6 = $80.6M; margin 80.6 / 1,245.8 = 6.47%. Capex intensity derived: 39.6 / 1,245.8 = 3.18% vs 13.2 / 1,035.0 = 1.28% a year ago. The $87.9M adjusted FCF figure is from the earnings release.
- Neptronic acquisition (subsequent event)filed2026-07-22Completed 2026-07-22 for ~$430.0M net cash consideration, funded with $340.0M of revolver borrowings plus cash on hand; reported within the HVAC segmentsec.gov — Note 18, Subsequent Event, in the 10-Q. Engineered HVAC solutions: intelligent controls, electric duct heaters, humidifiers, actuators, valves.
- Pro-forma net debt after Neptronicderived2026-07-22~$879M net debt (~$954.7M total debt less ~$76M cash), or ~1.4x the FY2026 guided adjusted-EBITDA midpointsec.gov — Debt: $614.7M at 2026-06-27 + $340.0M revolver draw = $954.7M. Cash: $166.4M less the ~$90M of cash-on-hand implied by a $430.0M purchase price funded $340.0M from the revolver = ~$76M. Net debt = 954.7 - 76 = ~$879M; against the $630-660M guided adjusted EBITDA midpoint of $645M that is ~1.36x. Ignores H2 cash generation and the exact cash-on-hand split, which was not itemized.
- H1 2026 acquisition spendfiled2026-06-27$439.6M net of cash acquired (Crawford United, Thermolec), vs $447.7M in H1 2025sec.gov — Investing-activities section of the filed cash-flow statement. Combined with Neptronic's $430.0M in July, roughly $870M of acquisition cash in seven months.
- Remaining performance obligationsfiled2026-06-27$175.2M at 2026-06-27; ~56% expected to convert within 12 months, ~75% within 24 monthssec.gov — Note 4, Performance Obligations. This is the only forward-revenue-visibility figure disclosed; the company did not publish a total backlog number in the release.
- FY2026 guidance (raised)filed2026-07-30Revenue $2.705-$2.765B (~21% growth); adjusted EBITDA $630-$660M (~27% growth); adjusted EPS $8.20-$8.60 (~24% growth)globenewswire.com — Raised from the prior $2.575-$2.645B revenue guide; incorporates Neptronic.
- Price and market capmarket2026-08-03$214.13 close; ~$10.72B market cap on 50.09M shares; enterprise value ~$11.17Bstockanalysis.com — 2026-08-03 regular-session CLOSE, not an intraday high. 50-day moving average $223.48; 200-day $214.17; +9.05% over twelve months. Cross-check: 50.09M x $214.13 = $10.72B.
- TTM revenuederived2026-06-27~$2.48Bstockanalysis.com — Provider states $2.48B TTM. Cross-check: FY2025 revenue $2,265.1M less filed H1 2025 of $1,035.0M = H2 2025 $1,230.1M; plus filed H1 2026 of $1,245.8M = $2,475.9M. The FY2025 total is the one input not re-pulled from a filing this cycle.
- Interest expense and dilutionfiled2026-06-27Interest expense $8.8M in Q2 2026, down from $15.6M; weighted diluted shares 50.675M vs 47.396M (+6.9%)sec.gov — Both from the filed income statement. Interest falling while debt rose reflects the September 2030 term-loan refinancing.
Earnings, margins, COGS & capex
Two-segment industrial. HVAC (cooling towers/Marley, package and data-center cooling incl. Olympus Max, heating/boilers) is ~two-thirds of sales and the growth engine on AI data-center demand; Detection & Measurement (underground utility locating/Radiodetection, obstruction lighting, transit fare/Genfare, inspection) is a higher-margin, steadier ~one-third. FY2025 revenue $2,265.1M (+14.2%), adj EBITDA $507.4M (22.4% margin, +20.5%), adj EPS $6.76 (+21.1%), GAAP net income $244.0M (GAAP EPS $5.06). Growth is roughly half organic, half from bolt-on acquisitions (Ingenia, Sigma & Omega, KTS/Kranze, Crawford United).
Income statement — where each revenue dollar goes
% of revenueOf every $1 of revenue, ~60¢ is cost of goods and ~23¢ operating expense, leaving ~17¢ of operating profit.
Revenue trend
Margins
FY up, Q1 pressured by capacity ramp
expanding
guide implies ~23.5% FY26
up ~170bps from 13.8% YoY
compounding >20%
COGS structure
Materials (steel, fiberglass, aluminum, electronic components), motors/fans, and project labor dominate cost of sales; pricing power plus operational execution have driven segment-margin expansion despite acquisition mix. Total gross margin not separately disclosed in reviewed sources.
Capex
FY2025 capex was $92.1M (~4% of sales), stepped up from historically lower levels for the $100M+ data-center capacity expansion; op cash flow $335.6M still converted to ~$294.3M adjusted FCF (~13% margin). Cash deployment priority remains M&A.
Latest earnings
Beat, with a raise. Revenue grew 22.9% with 16.9% organic — a materially faster organic rate than the ~7.4% organic posted in Q1 2026 — and management raised all three full-year guidance ranges. A specific analyst-consensus revenue/EPS figure for the quarter was not sourced, so the characterization rests on the guidance raise and the acceleration versus the prior quarter rather than on a consensus delta.
FY2026 raised: revenue $2.705-$2.765B (~21% growth), adjusted EBITDA $630-$660M (~27% growth), adjusted EPS $8.20-$8.60 (~24% growth). The raise incorporates Neptronic, acquired 2026-07-22 and reported inside HVAC.
- HVAC segment, Q2 2026
- Revenue $480.6M (+27.6%; 18.9% organic, 8.5% inorganic); segment margin 22.8%, DOWN 260bps YoY
- Detection & Measurement segment, Q2 2026
- Revenue $198.4M (+12.9%, essentially all organic at 12.8%); segment margin 28.9%, UP 610bps YoY
- Neptronic acquisition
- Completed 2026-07-22 for ~$430.0M net cash consideration — engineered HVAC controls, electric duct heaters, humidifiers, actuators and valves — funded with $340.0M of revolver borrowings plus cash on hand; results land in HVAC
- H1 2026 acquisition spend
- $439.6M net of cash acquired (Crawford United, Thermolec), versus $447.7M in the year-ago half — a sustained ~$0.9B two-year M&A cadence
- Remaining performance obligations
- $175.2M at 2026-06-27, with ~56% expected to convert to revenue within 12 months and ~75% within 24 months
- Acquisition and integration costs
- $4.6M in Q2 2026 and $8.3M in H1 2026 (down from $12.3M and $16.9M a year ago)
- Interest expense
- $8.8M in Q2 2026, down from $15.6M a year ago despite higher debt — the September 2030 $500M term loan refinancing shows up here
- Share count
- 50.675M weighted diluted shares in Q2 2026, up from 47.396M a year ago (~7% dilution, from equity issued into the M&A program)
- Goodwill
- $1,234.3M at 2026-06-27, up from $1,043.4M at 2025-12-31 — roughly 2.7x total stockholders' equity's worth of acquired intangible value on the balance sheet
Growth drivers
- AI/hyperscale data-center cooling — HVAC data-center revenue target raised for FY2026 to ~$350M (from ~$200M in 2025), ~13% of total sales, growing ~50-70% and potentially >30% of sales within ~4 years; Olympus Max package cooling booked ~$50M in 2025 with multi-year commitments
- HVAC backlog +38% organically to ~$755M — visibility into 2026
- Serial bolt-on M&A — Ingenia and Sigma & Omega (HVAC), KTS/Kranze (D&M), and Crawford United (~$300M, closed 2026) added in 2024-2026; still-underlevered balance sheet funds more
- Detection & Measurement organic strength (FY2025 +20.6% total, 6.3% organic) in utility-locating, obstruction lighting and transit fare tech
- Pricing, mix shift to engineered/aftermarket, and continuous margin-improvement programs
Reported financials — SEC EDGAR
Audited GAAP figures pulled from SEC filings · latest filing 2026-02-25. The audited primary-source spine — not financial advice.
Revenue — annual (GAAP)
Margins & balance sheet — FY’25
Bull & bear
The AI data-center cooling demand is showing up as accelerating ORGANIC growth (16.9% consolidated, 18.9% in HVAC, versus ~7.4% organic in Q1), the higher-margin Detection & Measurement segment expanded margin 610bps, and management raised all three FY2026 ranges — while the stock is up only 9% over twelve months, so the multiple has already compressed against a ~24% adjusted-EPS growth guide.
- Organic growth more than doubled sequentially in rate terms: 16.9% consolidated organic in Q2 versus roughly 7.4% in Q1. This is the key change in the quarter — the growth is no longer mostly bought.
- Detection & Measurement is quietly the best business here: +12.9% revenue with essentially all of it organic, and segment margin up 610bps to 28.9%. It is the steadier, higher-margin third of the company and it is expanding, not just holding.
- Guidance was raised across the board — revenue to $2.705-$2.765B, adjusted EBITDA to $630-$660M (~27% growth), adjusted EPS to $8.20-$8.60 (~24% growth). Adjusted EBITDA growing faster than revenue is margin expansion embedded in the guide.
- The M&A machine keeps compounding and is proven: ~$440M deployed in H1 2026 (Crawford United, Thermolec) plus $430M for Neptronic in July, all bolt-ons into existing channels, funded by the revolver rather than equity at this multiple.
- Interest expense FELL to $8.8M from $15.6M year-over-year despite carrying more debt — the September 2030 term-loan structure means the leverage being added to fund Neptronic is cheap by recent standards.
- Balance-sheet capacity remains. Even pro-forma for Neptronic at roughly $879M of net debt against a $645M guided adjusted-EBITDA midpoint (~1.4x), leverage sits at or below the company's stated 1.5-2.5x target band, so the acquisition program is not out of runway.
- Valuation has de-rated into the growth: +9.05% share price over twelve months against ~21% revenue and ~24% adjusted-EPS growth means the entry multiple is meaningfully lower than it was a year ago.
The growth engine's own margin is going the wrong way — HVAC segment margin fell 260bps to 22.8% and consolidated gross margin fell ~120bps to 40.2% — while the balance sheet doubles its net debt to ~$879M to buy a fourth bolt-on in eighteen months, leaving $1.23B of goodwill and a company whose adjusted-EPS bridge depends on acquisitions closing and integrating on schedule.
- HVAC — the AI data-center story and two-thirds of revenue — saw segment margin drop 260bps YoY to 22.8%, and consolidated gross margin fell to 40.2% from 41.4%. The demand is real; the incremental margin on it currently is not accretive, whether from capacity start-up costs or acquisition mix.
- The growth is substantially purchased. HVAC's 27.6% growth included 8.5 points of inorganic, and $439.6M of H1 acquisition cash plus $430M for Neptronic means roughly $870M deployed in seven months. A serial acquirer's reported growth rate is only as durable as the deal pipeline and the multiples paid.
- Leverage roughly doubles post-Neptronic: net debt from $448.3M to ~$879M, with $340M drawn on a revolver. That removes most of the dry powder that made the underlevered balance sheet a bull point, and it happens before Neptronic contributes a full year of EBITDA.
- Goodwill of $1,234.3M (up from $1,043.4M in six months) plus $26.3M of quarterly intangible amortization is the tell: GAAP EPS of $1.56 versus adjusted EPS of $2.02 is a ~23% adjustment gap, and the bulk of it is acquisition accounting that recurs indefinitely.
- Forward visibility disclosure is thin. Remaining performance obligations of $175.2M is well under one quarter's revenue and only ~56% converts within twelve months — this is not a business with a disclosed multi-year backlog underwriting the data-center narrative.
- Capex is stepping up 3x (H1 $39.6M vs $13.2M) for data-center capacity that is being built ahead of contracted volume, and it is the same capacity build management cites for HVAC's margin compression. If AI cooling orders normalize, the fixed cost stays.
- Dilution is running ~7% YoY (50.675M vs 47.396M weighted diluted shares), so a slice of the adjusted-EPS growth is being handed back through the share count used to fund the roll-up.
- The market is not paying up: the stock sits below its 50-day average and roughly at its 200-day, +9% over a year in which earnings grew ~24%. Either the de-rating is the opportunity or it is the market pricing the margin and leverage trend the bulls are discounting.
What it is worth
Forward P/E and EV/EBITDA vs machinery/thermal peers plus a reverse-DCF sanity check on the data-center growth ramp.
~$160-180
if data-center demand digests, growth normalizes to high-single/low-double digits, and the multiple compresses toward the ~21x machinery average.
~$228-266
from current levels to the ~$260-273 sell-side consensus; guidance delivered (~$7.95 adj EPS mid) at a still-premium ~28-30x.
~$300+
if data-center cooling scales past $500M and toward >30% of sales with sustained >20% EPS growth and ~25% EBITDA margins, holding a ~33x multiple.
At ~$228 and ~$11.4B market cap, SPXC trades ~28-29x FY2026E adj EPS ($7.75-8.15 guide, ~$7.95 mid) and ~19-20x EV/EBITDA on ~$600-625M FY26 EBITDA (EV ~$11.9B incl. ~$516M net debt) — a premium to the ~21x machinery-average forward P/E. The price implies durable mid-to-high-teens revenue growth and continued margin expansion toward ~25% EBITDA, i.e., the data-center cooling ramp must keep compounding for several years. Sell-side analyst price targets cluster ~$260-273 (Strong Buy), above the current price; a Morningstar/DCF-style fair value near ~$235 sits closer to spot.
SWOT
Strengths
- Leadership brands (Marley cooling towers, Radiodetection, Genfare) with installed base and aftermarket pull-through
- Two-segment diversification: HVAC growth engine balanced by higher-margin, steadier Detection & Measurement
- Consistent >20% adjusted EPS/EBITDA compounding with expanding margins
- Direct, differentiated exposure to the AI data-center thermal-management boom (Olympus Max package cooling)
- Underlevered balance sheet (~0.9x leverage, below the 1.5-2.5x target) funding a repeatable bolt-on M&A engine
Weaknesses
- Rich valuation (~28-29x forward earnings) leaves little room for execution stumbles
- Growth increasingly dependent on cyclical, capex-driven data-center demand concentrated among a few hyperscalers
- Roll-up model carries integration and goodwill/purchase-accounting risk; organic vs inorganic growth must be disentangled
- Q1 FY2026 HVAC segment margin dipped 40bps on data-center capacity startup costs — ramp isn't free
- Project/backlog revenue can be lumpy quarter to quarter; steel/component cost and tariff exposure
Opportunities
- Data-center cooling scaling from ~13% toward >30% of sales; liquid/hybrid cooling adjacency
- Continued accretive bolt-on M&A with balance-sheet capacity
- Electrification/decarbonization of heating and industrial cooling
- Infrastructure and utility-grid spend driving Detection & Measurement (locating, transit, lighting)
- International expansion of package-cooling platforms
Threats
- Data-center capex cycle turning or hyperscaler digestion pause
- Well-capitalized thermal-management competitors (Vertiv, Modine, Johnson Controls, Trane) targeting the same data-center cooling pool
- Private direct rivals (Baltimore Aircoil, EVAPCO) in core cooling towers
- Multiple compression if growth normalizes below the priced-in trajectory
- Input-cost inflation, tariffs, and supply-chain disruption
Moats, dependencies & bottlenecks
Moats
Moderate-strong Decades-old specification standing with utilities, contractors and transit agencies drives replacement and aftermarket revenue.
Differentiated product with multi-year hyperscaler commitments, but a contested, fast-moving thermal-management arena.
Repeatable sourcing, diligence and margin-improvement playbook that smaller private rivals can't match; depends on continued capital discipline.
Certified, mission-critical utility-locating, obstruction-lighting and fare systems with regulatory and reliability lock-in.
Dependencies
Demand / customer concentration The marginal growth story; a capex slowdown hits the highest-multiple part of the thesis.
Input cost / supply chain Margin and tariff exposure; managed via pricing but not immune.
Cooling equipment depends on motors/drives/fans; availability and price feed COGS.
Growth model / capital A portion of growth is acquired; higher rates or scarcer targets slow the flywheel.
Projects are specified and installed through the contractor channel.
Advantages
- Leadership positions in niche engineered categories with pricing power
- Twin-engine model (data-center growth + steadier D&M cash generation)
- Underlevered balance sheet (~0.9x) enabling continuous accretive M&A
- Demonstrated >20% earnings compounding with margin expansion
- Direct, credible exposure to the AI infrastructure buildout
Weaknesses
- Premium valuation (~28-29x forward) with limited margin for error
- Rising cyclicality as data-center mix grows
- Reliance on acquisitions to sustain headline growth; leverage rose after Crawford United
- HVAC margin pressure during the capacity ramp
- Lumpy, project-driven revenue recognition and commodity/tariff cost sensitivity
Bottlenecks
- Manufacturing/assembly capacity for package data-center cooling amid surging demand (driving the $100M+ capacity build)
- Skilled labor and engineering talent for project execution
- Integration bandwidth to absorb serial acquisitions without margin slippage
- Component/motor supply lead times for cooling systems
- Lumpy backlog conversion timing
Top signals & trends
Top signals
Bullish while rising · Raised to ~$350M for FY2026 (~13% of sales); the single most-watched KPI for the multiple.
+38% organic to ~$755M signals forward demand; watch for deceleration.
Q1 FY26 beat + across-the-board raise; a beat-without-raise would flag a top.
~0.9x post-Crawford United; still below the 1.5-2.5x target but the higher-leverage print drove a post-print selloff — watch discipline.
D&M expanding strongly (27.0% Q1) but HVAC dipped 40bps on capacity startup costs; watch HVAC margin recovery as the ramp matures.
Trends
High positive · Primary re-rating driver; also the primary cyclicality risk.
Opportunity if SPX adapts package/hybrid designs; threat from liquid-cooling specialists (Vertiv).
Supports HVAC and heat-pump/boiler demand over the cycle.
Drives Detection & Measurement (locating, transit fare, obstruction lighting).
Fragmented niches leave a long bolt-on runway for a disciplined acquirer.
Ecosystem & competitor graph
Suppliers feed the company; customers pull from it. Line thickness shows the strength of each tie (supply-chain dependency, customer earnings contribution). Hover to isolate a tie.
Motors, drives and power-transmission components used in cooling equipment.
Motors/fans for cooling systems; US ADR, primary listing in Tokyo, context only.
US steel supply for structural cooling-tower and equipment inputs; tariff-sensitive.
US steel/aluminum inputs feeding cost of sales; tariff-sensitive.
Hyperscale data-center operator — end demand for package/data-center cooling.
Hyperscale data-center cooling demand.
Hyperscale data-center cooling demand.
Hyperscale data-center cooling demand.
Buyers of Detection & Measurement locating, obstruction-lighting and fare-collection systems.
Cooling towers and process cooling for plants and refineries.
Largest public data-center thermal-management and power play; direct competitor for the AI-cooling dollar and a higher-profile pure play.
Thermal-management peer that has also re-rated on data-center cooling; closest listed growth comparable.
Broad HVAC/building-systems giant expanding in data-center cooling; scale competitor.
Premier HVAC/thermal player; competes in commercial and data-center cooling.
Swedish air-treatment/data-center cooling specialist; Stockholm-listed, context only.
German cooling/heat-exchange competitor in industrial cooling; Frankfurt-listed, context only.
Private; a direct core cooling-tower/evaporative competitor to Marley.
Private; direct evaporative-cooling and cooling-tower rival.