SPX Technologies (NYSE:SPXC) Issues Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Key Points

• SPX Technologies beat quarterly estimates, reporting adjusted EPS of $2.21 versus the $2.12 consensus and revenue of $714.5 million, up 20.5% year over year.
• HVAC demand remained strong, with revenue rising 35.5% and organic backlog increasing 69% to approximately $1.1 billion. However, segment margins fell due to growth-related costs and input-price pressures.
• Management lowered the top end of full-year adjusted EPS guidance to $8.50, with a midpoint of $8.35. Analysts still maintain a “Moderate Buy” consensus and an average price target of $243.82.

SPX Technologies (NYSE:SPXC - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $2.21 earnings per share for the quarter, beating the consensus estimate of $2.12 by $0.09, FiscalAI reports. The firm had revenue of $714.50 million for the quarter, compared to analyst estimates of $710.38 million. SPX Technologies had a net margin of 11.27% and a return on equity of 16.53%.

Here are the key takeaways from SPX Technologies' conference call:

• Q3 performance was strong, with revenue up 20.5%, adjusted EBITDA up 21.7% to $165.7 million, and adjusted EPS up 20% to $2.21—the fifth consecutive quarter of at least 20% EPS growth.
• HVAC revenue increased 35.5% year over year, including 22.3% organic growth, while organic backlog rose 69% to a record approximately $1.1 billion. Data-center demand remains robust, and Madison began shipping products during the quarter as capacity expansion continues.
• HVAC margins declined approximately 140 basis points because of growth-related inefficiencies, higher labor and outsourcing costs, and elevated input prices. These pressures are expected to continue into Q4, and management lowered the top end of full-year adjusted EPS guidance to $8.50, with a midpoint of $8.35.
• Detection & Measurement revenue fell 7.7% due largely to unfavorable project timing, but segment margin expanded 260 basis points on favorable mix, synergy benefits, and a customer resolution. Management said the business’s structural margin profile has improved beyond its existing 22%–24% medium-term target, which may be updated with 2027 guidance.
• Recent acquisitions, including FIS Water, are tracking at or slightly ahead of expectations and are expected to add complementary cooling and water-management capabilities. Management also reported a strong acquisition pipeline, although it does not expect another major transaction before year-end.

SPX Technologies Stock Performance

SPXC stock traded up $1.79 during midday trading on Thursday, hitting $166.99. 784,769 shares of the company traded hands, compared to its average volume of 570,146. SPX Technologies has a twelve month low of $155.86 and a twelve month high of $251.08. The company has a quick ratio of 1.21, a current ratio of 1.82 and a debt-to-equity ratio of 0.23. The business has a 50 day simple moving average of $180.32 and a 200-day simple moving average of $207.95. The stock has a market capitalization of $8.36 billion, a price-to-earnings ratio of 30.03, a price-to-earnings-growth ratio of 1.03 and a beta of 1.24.

Analysts Set New Price Targets

Several brokerages have recently commented on SPXC. Wells Fargo & Company dropped their price target on shares of SPX Technologies from $250.00 to $243.00 and set an "overweight" rating on the stock in a research note on Tuesday, October 13th. Wall Street Zen lowered shares of SPX Technologies from a "buy" rating to a "hold" rating in a research note on Saturday, October 10th. B. Riley Financial decreased their price objective on shares of SPX Technologies from $285.00 to $250.00 and set a "buy" rating for the company in a report on Monday. Wolfe Research initiated coverage on shares of SPX Technologies in a report on Tuesday, September 15th. They issued an "outperform" rating and a $250.00 price objective for the company. Finally, Oppenheimer cut their target price on SPX Technologies from $270.00 to $265.00 and set an "outperform" rating on the stock in a report on Wednesday, October 21st. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, SPX Technologies presently has a consensus rating of "Moderate Buy" and an average price target of $243.82.

SPX Technologies Company Profile

SPX Technologies, Inc NYSE: SPXC is a diversified industrial technology company that develops and manufactures engineered products and solutions for the heating, ventilation, air conditioning and infrastructure markets. The company serves commercial, industrial and residential customers through specialized technologies designed to support building climate control, utility infrastructure and related applications.

SPX Technologies operates through two primary business segments: HVAC and Detection & Measurement.

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