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SPX Corporation (SPXC)
NYSE:SPXC
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SPX
(NYSE:SPXC)
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Rating:77Outperform
Price Target:
$237.00
▲(14.25% Upside)
SPX Technologies demonstrates strong financial performance and a positive outlook from recent earnings, supported by robust growth and strategic initiatives. However, the high valuation and mixed technical indicators temper the overall score. The company's enhanced liquidity and financial flexibility from recent corporate events further bolster its position.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust market demand and effective sales strategies, supporting long-term financial stability and expansion.
Strategic Acquisition
The acquisition of Crawford United enhances SPX's product offerings and market position, aligning with its strategy to deliver differentiated solutions.
Financial Flexibility
Enhanced liquidity through capital raise and credit facility expansion provides SPX with the financial flexibility to pursue growth opportunities.
Negative Factors
Industrial Market Challenges
Limited growth in industrial markets may constrain SPX's revenue potential in this segment, impacting overall growth prospects.
Project Sales Shift
Shifting project sales into 2025 creates a temporary boost but poses a potential revenue gap for 2026, affecting future financial planning.
S&P 600 Removal
Removal from the S&P 600 may affect investor perception and visibility, potentially impacting stock liquidity and institutional interest.
SPX (SPXC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.37B
Dividend YieldN/A
Average Volume (3M)621.28K
Price to Earnings (P/E)44.3
Beta (1Y)1.43
Revenue Growth12.60%
EPS Growth24.02%
CountryUS
Employees4,300
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.84
Shares Outstanding49,835,570
10 Day Avg. Volume323,609
30 Day Avg. Volume621,284
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)4.85
Price to Sales (P/S)3.39
P/FCF Ratio27.11
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue4.27
Enterprise Value/Gross Profit10.75
Enterprise Value/Ebitda20.33
Forecast
1Y Price Target
$226.88Price Target Upside9.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)7.58
Revenue Forecast (FY)$2.46B
SPX Business Overview & Revenue Model
Company DescriptionSPX 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 MoneySPX 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 Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Positive
The call presented a strong performance in Q3 2025 with significant revenue and profit growth, increased guidance, and a successful capital raise enhancing liquidity. Key segments showed robust growth, and expansion and M&A initiatives are progressing well. However, there are some concerns about the shift of project sales into 2025 from 2026 and challenges in industrial markets.Q3-2025 Updates
Positive Updates
Strong Q3 Performance
Adjusted EPS grew by 32% to $1.84, and total company revenue increased by 23% year-over-year. Adjusted EBITDA increased by approximately 31% with 150 basis points of margin expansion.
Increased Full Year Guidance
Raised full year guidance for adjusted EBITDA to exceed $500 million at the midpoint, implying approximately 20% growth year-over-year.
Successful Capital Raise
Raised $575 million through an equity offering and increased the revolving credit facility capacity by $500 million, resulting in over $1 billion of additional liquidity with no dilutive impact on 2025 EPS.
Strong Segment Performance
Detection & Measurement segment revenue increased 38.4% year-over-year, with strong organic growth of 26.5%. Segment income grew by $18 million or 53%.
M&A and Expansion Initiatives
Progressed on expansion plans for engineered air movement businesses and launched new product Olympus Max. The M&A pipeline remains robust with several attractive opportunities.
Negative Updates
Potential Headwinds for 2026
Approximately $20 million of project sales shifted from early 2026 into 2025, creating a modest headwind for next year.
Challenges in Industrial Markets
Industrial markets have been flattish with only modest growth, indicating potential challenges in this sector.
Company Guidance
In the Q3 2025 earnings call, SPX Technologies provided a robust update on its financial performance and future outlook. The company reported a 32% increase in adjusted earnings per share (EPS) to $1.84, driven by a 23% rise in revenue year-over-year. This growth was bolstered by strong organic sales and the benefits of recent acquisitions, such as KTS and Sigma & Omega. Adjusted EBITDA grew by 31%, with a margin expansion of 150 basis points. Encouraged by these results, SPX raised its full-year guidance, anticipating adjusted EBITDA to exceed $500 million, which implies approximately 20% growth year-over-year. The company also completed a $575 million equity offering and increased its revolving credit facility by $500 million, enhancing liquidity by over $1 billion without diluting EPS. Key initiatives included the expansion of production capacity for engineered air movement businesses and the launch of the Olympus Max, targeting $50 million in orders for 2025. The HVAC segment saw a 15.5% revenue increase and a backlog growth to $579 million, while the Detection & Measurement segment reported a 38.4% revenue rise, with a backlog of $366 million. Looking ahead, SPX remains optimistic about its growth prospects, both organically and through a robust M&A pipeline.SPX Financial Statement Overview
Summary
SPX exhibits a strong financial position with consistent revenue and profit growth, efficient operational management, and a stable balance sheet. The company's focus on reducing debt and improving cash flow generation further strengthens its financial health. While there are minor fluctuations in margins, the overall trajectory is positive, positioning SPX well within the Industrial - Machinery sector.Income Statement
SPX has demonstrated strong revenue growth with a 5.3% increase in the TTM period, supported by a healthy gross profit margin of 40.8%. The net profit margin stands at 10.3%, indicating solid profitability. The EBIT and EBITDA margins are robust at 11.3% and 19.7%, respectively, reflecting efficient operational management. Overall, the income statement shows a positive growth trajectory and profitability.Balance Sheet
The company's balance sheet is stable with a low debt-to-equity ratio of 0.23, suggesting prudent financial leverage. The return on equity is strong at 13.7%, indicating effective use of shareholder funds. The equity ratio of 62.3% reflects a solid capital structure. However, the decrease in total debt from the previous year highlights a focus on reducing leverage, which is a positive sign.Cash Flow
SPX's cash flow performance is commendable, with a 10.5% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 0.71 and free cash flow to net income ratio of 0.89 suggest efficient cash conversion. The company has improved its cash flow position significantly over the years, enhancing its financial flexibility.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.16B | 1.98B | 1.74B | 1.46B | 1.22B | 1.13B |
| Gross Profit | 857.80M | 799.40M | 670.00M | 523.90M | 431.80M | 395.50M |
| EBITDA | 453.70M | 392.70M | 276.70M | 82.80M | 125.30M | 128.90M |
| Net Income | 223.60M | 200.50M | 89.90M | 200.00K | 425.40M | 99.00M |
Balance Sheet | ||||||
| Total Assets | 3.45B | 2.71B | 2.44B | 1.93B | 2.63B | 2.33B |
| Cash, Cash Equivalents and Short-Term Investments | 229.40M | 156.90M | 99.40M | 147.80M | 388.20M | 64.00M |
| Total Debt | 501.20M | 670.30M | 558.30M | 246.80M | 246.00M | 412.40M |
| Total Liabilities | 1.30B | 1.33B | 1.25B | 851.70M | 1.53B | 1.69B |
| Stockholders Equity | 2.15B | 1.38B | 1.19B | 1.08B | 1.10B | 640.10M |
Cash Flow | ||||||
| Free Cash Flow | 271.50M | 247.90M | 184.60M | -152.70M | 165.00M | 111.00M |
| Operating Cash Flow | 304.90M | 285.90M | 208.50M | -136.80M | 174.60M | 126.30M |
| Investing Cash Flow | -506.40M | -284.50M | -570.20M | ― | 314.10M | -126.10M |
| Financing Cash Flow | 300.80M | 53.10M | 309.60M | -38.90M | -167.60M | 15.90M |
SPX Technical Analysis
Positive
207.44
Price Trends
210.58
Negative
198.98
Positive
178.36
Positive
Market Momentum
-0.97
Positive
49.42
Neutral
88.66
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPXC, the sentiment is Positive. The current price of 207.44 is below the 20-day moving average (MA) of 209.49, below the 50-day MA of 210.58, and above the 200-day MA of 178.36, indicating a neutral trend. The MACD of -0.97 indicates Positive momentum. The RSI at 49.42 is Neutral, neither overbought nor oversold. The STOCH value of 88.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SPXC.
SPX Risk Analysis
SPX disclosed 40 risk factors in its most recent earnings report. SPX reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SPX Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $10.51B | 29.02 | 24.96% | 1.28% | 2.37% | -6.93% | |
77 Outperform | $10.37B | 44.25 | 12.76% | ― | 12.60% | 24.02% | |
77 Outperform | $9.39B | 29.55 | 17.81% | 0.70% | 4.18% | 16.05% | |
69 Neutral | $9.99B | 39.90 | 3.89% | 0.97% | -4.99% | 22.16% | |
67 Neutral | $3.65B | 19.41 | 15.89% | ― | -0.24% | 389.03% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $9.88B | 249.51 | 2.25% | ― | 5.47% | -75.40% |
* Industrials Sector Average
SPXC
SPX
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69.38
50.25%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.