SPX Corporation ((SPXC)) has held its Q2 earnings call. Read on for the main highlights of the call.
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SPX Corporation’s recent earnings call for Q2 2025 painted a picture of robust performance and optimism for the future. The sentiment was largely positive, driven by strong growth in key segments like Data Center and Detection & Measurement, despite some challenges posed by tariffs impacting margins. The highlights of the call significantly outweighed the lowlights, reflecting a confident outlook for the company.
Strong Q2 Performance and Raised Full Year Guidance
SPX Technologies reported a remarkable 16% increase in adjusted EPS for Q2 2025, alongside a raised full-year guidance, anticipating an 18% growth in adjusted EBITDA at the midpoint. This impressive performance was underpinned by a 10% year-over-year revenue growth, largely fueled by acquisitions and project sales.
Significant Progress in Engineered Air Movement and Data Center Segments
The company made notable strides in its Engineered Air Movement business, with plans to expand U.S. production. The launch of the OlympusV Max product is poised to bolster SPX’s standing in the data center cooling solutions market, marking a significant step forward in this segment.
Detection & Measurement Segment Growth
The Detection & Measurement segment experienced a 21% revenue increase year-over-year, with organic growth at 5.5%. This growth was significantly bolstered by the acquisition of KTS, showcasing the segment’s robust expansion.
Strong Financial Position and M&A Pipeline
SPX ended the quarter with $137 million in cash and a leverage ratio of 1.7x, underscoring its strong financial position. The company continues to maintain a robust M&A pipeline, with several promising opportunities on the horizon.
Tariff Impact on Detection & Measurement Margins
Despite the positive growth, the Detection & Measurement segment’s margins are expected to face a $0.05 tariff exposure, which will impact the second half of the year. This challenge highlights the ongoing tariff-related pressures the company must navigate.
Supply Chain and Tariff Challenges
SPX has largely managed its supply chain challenges, yet it continues to face a $0.05 tariff impact, particularly affecting the Detection & Measurement segment. These challenges underscore the complex environment in which the company operates.
Forward-Looking Guidance
During the earnings call, SPX Technologies provided an optimistic forward-looking guidance, reflecting its strong performance and future expectations. The adjusted EPS grew by 16% year-over-year, reaching $1.65, with the full-year adjusted EPS guidance raised to a range of $6.35 to $6.65, indicating a 16.5% growth at the midpoint. The company anticipates a full-year adjusted EBITDA growth of 18% at the midpoint, supported by a solid backlog and ongoing progress in capacity expansions and new product initiatives.
In conclusion, SPX Corporation’s Q2 2025 earnings call showcased a company in a strong position, with significant growth across key segments and a positive outlook for the future. Despite some challenges related to tariffs and supply chain issues, the overall sentiment was one of confidence and optimism, with the company well-positioned to continue its upward trajectory.