SPX (SPXC) AI Stock Analysis

• Market Cap: $12.11B
• Dividend Yield: N/A
• Average Volume (3M): 368.88K
• Price to Earnings (P/E): 45.0
• Beta (1Y): 1.39
• Revenue Growth: 12.60%
• EPS Growth: 24.02%
• Country: US
• Employees: 4,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.88
• Shares Outstanding: 49,835,570
• 10 Day Avg. Volume: 334,478
• 30 Day Avg. Volume: 368,882
• PEG Ratio: 2.33
• Price to Book (P/B): 4.28
• Price to Sales (P/S): 4.22
• P/FCF Ratio: 39.30
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 5.05
• Enterprise Value/Gross Profit: 13.07
• Enterprise Value/Ebitda: 23.58
• 1Y Price Target: $269.33
• Price Target Upside: 18.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 7.72
• Revenue Forecast (FY): $2.48B

• Rating: 76 Outperform
• Price Target: $275.00 ▲(21.33% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven by solid financial performance (improving margins and lower leverage) and a constructive outlook from the latest earnings call (strong 2026 growth guidance and record backlogs), reinforced by bullish technical trends. The main constraint is valuation, with a high P/E and no dividend yield provided, plus execution/timing risks tied to capacity ramp and project timing.

Positive Factors

Revenue and margin expansion

Multi-year top-line scaling and sustained margin improvement indicate structural competitiveness and pricing or mix advantage. Growing revenue base plus higher gross and net margins support thicker operating cash flows, enabling reinvestment in capacity, R&D, and targeted M&A over the next several years.

Conservative, improving balance sheet

Significantly lower leverage and a larger equity base materially reduce financial risk and increase strategic optionality. A de-risked balance sheet supports funding of capex and bolt-on acquisitions without immediate liquidity strain, preserving resilience through industry cycles and ramp periods.

Record backlogs and capacity investments

Elevated, organically growing backlogs signal durable demand and near-to-medium term revenue visibility. When combined with planned capacity investments, this backlog underpins scalable revenue growth and market share gains, assuming execution, and helps convert bookings into sustained higher fiscal-year revenues.

Negative Factors

CapEx timing and ramp risk

Heavy near-term capex and multi-year facility buildouts create execution risk: delays or equipment issues can push expected incremental capacity and revenues into later periods, compress margins during ramp, and defer payback on the investment, affecting multi-year growth trajectories.

Higher pro forma leverage from acquisitions

Increased leverage after recent acquisitions reduces balance-sheet headroom and raises financing costs and covenant sensitivity. Success now hinges on integration-driven synergies; failure to realize expected accretion would strain flexibility for further M&A, capex, or shareholder returns.

Weaker cash conversion trends

A declining free cash flow conversion ratio suggests a growing gap between reported earnings and cash generation, limiting internal funding for capex, debt paydown, and acquisitions. Persistently weaker cash conversion raises dependence on external financing if growth and investment plans continue.

SPX Business Overview & Revenue Model

Company Description

SPX Technologies, Inc. supplies infrastructure equipment serving the heating, ventilation, and cooling (HVAC); and detection and measurement markets in the United States, China, the United Kingdom, and internationally. The company operates in two segments, HVAC and Detection and Measurement. The HVAC segment engineers, designs, manufactures, installs, and services package and process cooling products and engineered air movement solutions for the HVAC industrial and power generation markets, as well as boilers and comfort heating and ventilation products for the residential and commercial markets. It offers its products under the Marley, Recold, SGS, Cincinnati Fan, Berko, Qmark, Fahrenheat, Leading Edge, Patterson-Kelley, Weil-McLain, and Williamson-Thermoflo brands. The Detection and Measurement segment offers underground pipe and cable locators, inspection and rehabilitation equipment, and robotic systems under the Radiodetection, Pearpoint, Schonstedt, Dielectric, Riser Bond, Warren G-V, Cues, ULC Robotics, and Sensors & Software brands; and bus fare collection systems, communication technologies, and obstruction lighting products under the Genfare, TCI, Flash Technology, Sabik Marine, Sealite, Avlite, and ECS brands. The company markets its products through independent manufacturing representatives, third-party distributors, and retailers, as well as direct to customers. The company was formerly known as SPX Corporation and changed its name to SPX Technologies, Inc. in August 2022. SPX Technologies, Inc. was founded in 1912 and is headquartered in Charlotte, North Carolina.

How the Company Makes Money

SPX generates revenue through the sale of its core products across its various segments. The company operates primarily in two major divisions: the HVAC segment, which includes heating and cooling equipment and solutions, and the Industrial segment, which focuses on products such as pumps and valves. Key revenue streams include direct sales of these products to end-users, as well as through distribution channels. SPX also benefits from service agreements and aftermarket sales, providing maintenance and support for its products. Additionally, the company may engage in strategic partnerships and collaborations with other firms to enhance its product offerings and expand market reach, which can contribute significantly to its earnings.

SPX Financial Statement Overview

Summary

Strong multi-year revenue growth and improved margins (gross margin ~40.5% and net margin ~10.8% in 2025) alongside a de-risked balance sheet (debt-to-equity ~0.22 in 2025). Offsetting factors are earnings and margin variability across years and softer recent cash flow quality (FCF down ~10% YoY; moderate cash conversion vs earnings).

Income Statement

Revenue has scaled meaningfully from $1.13B (2020) to $2.27B (2025), with 2025 showing solid growth (+4.8% YoY). Profitability also improved versus the weaker 2022–2023 period: gross margin expanded to ~40.5% (2025) from ~35.1% (2020), and net margin rose to ~10.8% (2025) from ~5.2% (2023). Key weakness is earnings volatility across the cycle (near-breakeven net income in 2022, unusually high net margin in 2021), and operating profitability indicators are not consistently strong year-to-year (e.g., lower EBITDA margin in 2025 vs 2024).

Balance Sheet

Leverage looks conservative and improving: debt-to-equity declined to ~0.22 (2025) from ~0.48 (2024) and ~0.64 (2020), indicating reduced balance-sheet risk. Equity has grown substantially (to ~$2.24B in 2025), supporting a stronger capital base as the business expanded. The main watch-out is return on equity has been inconsistent (very weak in 2022, stronger in 2024, moderate in 2025), suggesting profitability hasn’t been uniformly efficient relative to the capital base.

Cash Flow

Cash generation is currently solid: operating cash flow improved to ~$336M (2025) from ~$209M (2023) and was positive after the 2022 outflow. Free cash flow remains healthy (~$244M in 2025), but it declined year over year (free cash flow growth -10.3% in 2025). A notable limitation is cash conversion versus earnings is only moderate recently (free cash flow to net income ~0.73 in 2025, down from ~0.87 in 2024), indicating less of each dollar of profit is arriving as free cash.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.27B	1.98B	1.74B	1.46B	1.22B
Gross Profit	830.30M	799.40M	670.00M	523.90M	431.80M
EBITDA	484.80M	392.70M	276.70M	82.80M	125.30M
Net Income	245.50M	200.50M	89.90M	200.00K	425.40M
Balance Sheet
Total Assets	3.60B	2.71B	2.44B	1.93B	2.63B
Cash, Cash Equivalents and Short-Term Investments	364.00M	156.90M	99.40M	147.80M	388.20M
Total Debt	498.10M	670.30M	558.30M	246.80M	246.00M
Total Liabilities	1.37B	1.33B	1.25B	851.70M	1.53B
Stockholders Equity	2.24B	1.38B	1.19B	1.08B	1.10B
Cash Flow
Free Cash Flow	243.50M	247.90M	184.60M	-152.70M	165.00M
Operating Cash Flow	335.60M	285.90M	208.50M	-136.80M	174.60M
Investing Cash Flow	-561.00M	-284.50M	-570.20M	-66.10M	314.10M
Financing Cash Flow	425.50M	53.10M	309.60M	-38.90M	-167.60M

SPX Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 226.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPXC, the sentiment is Neutral. The current price of 226.66 is below the 20-day moving average (MA) of 227.23, above the 50-day MA of 217.16, and above the 200-day MA of 192.57, indicating a neutral trend. The MACD of 6.61 indicates Negative momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 58.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SPXC.

SPX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTS	80 Outperform	$11.02B	32.51	18.25%	0.70%	4.18%	16.05%
DCI	77 Outperform	$12.33B	33.35	24.96%	1.28%	2.37%	-6.93%
SPXC	76 Outperform	$12.11B	45.02	12.76%	―	12.60%	24.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GTLS	62 Neutral	$9.92B	250.06	2.25%	―	5.47%	-75.40%
PSN	62 Neutral	$6.85B	29.65	9.53%	―	-0.24%	389.03%
RRX	61 Neutral	$14.88B	53.30	4.27%	0.97%	-4.99%	22.16%

SPX Corporate Events

SPX Technologies announces retirement of key operations executive

On February 2, 2026, SPX Technologies, Inc. announced that J. Randall Data, its President of Global Operations and Data Center Solutions, informed the company of his decision to retire, effective March 20, 2026. The leadership change marks a forthcoming transition at the senior executive level, which could affect oversight of SPX’s global operations and its data center solutions business once his retirement becomes effective.

The most recent analyst rating on (SPXC) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on SPX stock, see the SPXC Stock Forecast page.