The earnings call presented a strong positive outlook with significant revenue and profit growth, especially in the HVAC segment, alongside effective debt management and sustainability achievements. However, challenges remain in the Detection & Measurement segment with declining revenue and flat growth in HVAC heating.

Company Guidance

During the SPX Technologies Q3 2024 earnings call, the company provided guidance indicating strong financial performance and positive outlook. The guidance highlighted a projected year-on-year increase in adjusted EBITDA of approximately 35% and an adjusted EPS growth of 28%. Revenue for the third quarter grew by 7.8%, driven by notable strength in the HVAC segment, which saw a 15.9% year-on-year revenue increase. Adjusted EBITDA for Q3 rose by approximately 27%, with a margin expansion of 320 basis points. The company maintained its full-year guidance for adjusted EBITDA and EPS, while narrowing the HVAC revenue range to $1.365 billion to $1.385 billion, reflecting a midpoint growth of 22.5% year-on-year. Additionally, the Detection & Measurement segment's margin guidance was increased to a range of 21.25% to 22%, representing a year-on-year midpoint increase of 240 basis points. The firm anticipates ending the year with a solid backlog position, setting a strong foundation for 2025.

Strong Revenue and Profit Growth

SPX Technologies reported a 7.8% increase in revenue for Q3 2024, driven by strength in HVAC cooling. Adjusted EBITDA increased approximately 27% year-on-year with 320 basis points of margin expansion. Adjusted EPS grew 31% to $1.39.

HVAC Segment Performance

The HVAC segment saw revenues grow 15.9% year-on-year, with organic growth at 9% and acquisition-driven growth at 6.8%. Segment margin increased by 370 basis points.

Debt and Cash Flow Management

SPX Technologies ended Q3 with $129 million in cash and a leverage ratio of 1.4x, with expectations to reduce it to 1.2x by year-end. Adjusted free cash flow for the quarter was approximately $61 million.

Sustainability Achievements

Achieved a 30% reduction in carbon intensity and introduced new climate-conscious solutions to reduce power usage, emissions, and water usage.

Detection & Measurement Segment Margin Improvement

Despite a 7% decrease in revenue, the Detection & Measurement segment saw margin increase by 190 basis points due to favorable project mix and efficiency improvements.

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SPX (SPXC) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

SPXC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 02, 2018	2018 (Q2)	- / 0.53	0.44	20.45% (+0.09)	―	―
Nov 01, 2018	2018 (Q3)	0.46 / 0.37	0.36	2.78% (+0.01)	―	―
Feb 14, 2019	2018 (Q4)	0.84 / 0.89	0.6	48.33% (+0.29)	―	―
May 02, 2019	2019 (Q1)	0.48 / 0.51	0.44	15.91% (+0.07)	―	―
Aug 01, 2019	2019 (Q2)	0.52 / 0.67	0.53	26.42% (+0.14)	―	―
Oct 30, 2019	2019 (Q3)	0.51 / 0.60	0.37	62.16% (+0.23)	―	―
Feb 13, 2020	2019 (Q4)	0.93 / 0.96	0.89	7.87% (+0.07)	―	―
Apr 30, 2020	2020 (Q1)	0.52 / 0.62	0.51	21.57% (+0.11)	―	―
Jul 30, 2020	2020 (Q2)	0.46 / 0.64	0.67	-4.48% (-0.03)	―	―
Oct 29, 2020	2020 (Q3)	0.50 / 0.64	0.6	6.67% (+0.04)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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SPXC Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 30, 2024	$158.97	$143.49	-9.74%
Aug 01, 2024	$143.29	$144.65	+0.95%
May 02, 2024	$121.95	$130.94	+7.37%
Feb 22, 2024	$111.43	$108.62	-2.52%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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