SPX Technologies delivered a strong Q3, surpassing Wall Street’s revenue and profit expectations, with management crediting robust growth in both its HVAC and Detection & Measurement segments. CEO Eugene Lowe highlighted the impact of new product introductions, such as Olympus Max for data centers, and ongoing expansion in engineered air movement capacity. The company also cited recent acquisitions as significant contributors, particularly in the Detection & Measurement segment, pointing to higher project volumes and successful integration efforts. Management noted, “We grew third quarter adjusted EPS by 32% and drove significant profit and margin growth in both segments,” emphasizing strategic execution as a core driver of the quarter’s success.
Is now the time to buy SPXC? Find out in our full research report (it’s free for active Edge members).
SPX Technologies (SPXC) Q3 CY2025 Highlights:
- Revenue: $592.8 million vs analyst estimates of $579.8 million (22.6% year-on-year growth, 2.2% beat)
- Adjusted EPS: $1.84 vs analyst estimates of $1.62 (13.8% beat)
- Adjusted EBITDA: $162.9 million vs analyst estimates of $126.8 million (27.5% margin, 28.4% beat)
- The company reconfirmed its revenue guidance for the full year of $2.25 billion at the midpoint
- Management raised its full-year Adjusted EPS guidance to $6.73 at the midpoint, a 3.5% increase
- EBITDA guidance for the full year is $505 million at the midpoint, above analyst estimates of $499.3 million
- Operating Margin: 16.4%, in line with the same quarter last year
- Organic Revenue rose 14.3% year on year vs analyst estimates of 11.4% growth (285.3 basis point beat)
- Market Capitalization: $11.12 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From SPX Technologies’s Q3 Earnings Call
- Bryan Blair (Oppenheimer) asked about 2026 growth visibility and market confidence. CEO Eugene Lowe pointed to continued strength in data centers and healthcare, but noted a modest headwind from project sales shifting into this year.
- Damian Karas (UBS) pressed for details on capacity expansion for TAMCO and Ingénia. CFO Mark Carano said more specifics on investment outlays and capacity targets would be provided next quarter.
- Andrew Obin (Bank of America) questioned potential project pushouts in data centers. Lowe responded that while minor timing shifts occur, no unusual delays were observed, and customer demand remains strong.
- Ross Sparenblek (William Blair) inquired about Olympus Max adoption and growth trajectory. Lowe stated the team is on track for 2025 bookings and expects opportunities to accelerate as market trends favor their solutions.
- Bradley Hewitt (Wolfe Research) asked if increased balance sheet capacity signals larger M&A deals. Lowe clarified that the company’s disciplined acquisition strategy remains unchanged, with most opportunities in the $50 million to $500 million range.
Catalysts in Upcoming Quarters
Our analysts will be watching (1) the pace of Olympus Max adoption and its impact on future data center bookings, (2) progress in scaling production capacity at new and existing facilities for engineered air movement and air handling units, and (3) execution on the company’s robust M&A pipeline, especially as liquidity is deployed into new deals. Additionally, we will monitor backlog trends and margin performance as new projects and products ramp through 2026.
SPX Technologies currently trades at $223.06, up from $198.73 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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