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

SPX Technologies (NYSE:SPXC) posted its quarterly earnings data on Thursday. The company reported $2.21 EPS for the quarter, topping analysts’ consensus estimates of $2.12 by $0.09, FiscalAI reports. The business had revenue of $714.50 million for the quarter, compared to analyst estimates of $710.38 million. SPX Technologies had a return on equity of 16.53% and a net margin of 11.27%.

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 trading on Thursday, reaching $166.99. 784,769 shares of the stock were exchanged, 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 current ratio of 1.82, a quick ratio of 1.21 and a debt-to-equity ratio of 0.23. The company has a market capitalization of $8.36 billion, a P/E ratio of 30.03, a price-to-earnings-growth ratio of 1.03 and a beta of 1.24. The stock has a 50 day simple moving average of $180.32 and a 200-day simple moving average of $207.95.

Analyst Ratings Changes

SPXC has been the subject of several recent analyst reports. JPMorgan Chase & Co. decreased their target price on SPX Technologies from $282.00 to $225.00 and set an “overweight” rating for the company in a research note on Friday, October 9th. Truist Financial dropped their price target on SPX Technologies from $301.00 to $266.00 and set a “buy” rating on the stock in a research report on Monday, October 5th. Vertical Research started coverage on SPX Technologies in a report on Monday, September 28th. They set a “buy” rating and a $215.00 price target for the company. B. Riley Financial reduced their price objective on SPX Technologies from $285.00 to $250.00 and set a “buy” rating for the company in a research report on Monday. Finally, Wolfe Research initiated coverage on shares of SPX Technologies in a research note on Tuesday, September 15th. They issued an “outperform” rating and a $250.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $243.82.

About SPX Technologies

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.