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SPX
(NYSE:SPXC)
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Rating:69Neutral
Price Target:
$218.00
▼(-0.94% Downside)
Action:Downgraded
Date:07/31/26
The score is supported by healthy underlying financial performance and a strongly positive earnings call with raised guidance and strong Q1 growth. This is tempered by weak technical positioning (price below major moving averages) and a demanding valuation (P/E ~38.4), alongside a recent decline in free cash flow.
Positive Factors
Strong trailing profitability
SPX’s durable gross and operating margins demonstrate consistent pricing power and operational leverage in engineered HVAC and detection businesses. Sustained mid-teens operating margin capacity supports reinvestment, debt coverage and resilience across cycles, underpinning long‑term cash generation potential.
Negative Factors
Free cash flow cyclicality
While FCF remains positive, a 21% TTM decline and prior periods of negative cash flow highlight working‑capital sensitivity and cyclicality. This variability can constrain reinvestment, slow deleveraging or limit deal activity during troughs, making long‑term planning and capital allocation more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong trailing profitability
SPX’s durable gross and operating margins demonstrate consistent pricing power and operational leverage in engineered HVAC and detection businesses. Sustained mid-teens operating margin capacity supports reinvestment, debt coverage and resilience across cycles, underpinning long‑term cash generation potential.
Read all positive factors
SPX (SPXC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.00B
Dividend YieldN/A
Average Volume (3M)845.56K
Price to Earnings (P/E)38.1
Beta (1Y)1.28
Revenue Growth20.63%
EPS Growth27.00%
CountryUS
Employees4,700
SectorGeneral
Sector StrengthN/A
IndustryConstruction Materials
Share Statistics
EPS (TTM)5.63
Shares Outstanding50,064,840
10 Day Avg. Volume525,962
30 Day Avg. Volume845,563
Financial Highlights & Ratios
PEG Ratio2.24
Price to Book (P/B)4.28
Price to Sales (P/S)4.22
P/FCF Ratio39.67
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$264.47Price Target Upside20.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)8.04
Revenue Forecast (FY)$2.62B
SPX Business Overview & Revenue Model
Company Description
SPX Technologies, Inc. provides essential infrastructure equipment globally, with operations spanning the United States, China, the United Kingdom, and various international markets. The company's core business is divided into two primary division...
How the Company Makes Money
SPX Technologies makes money primarily by selling engineered equipment, components, and systems through its operating segments, supplemented by aftermarket parts and services tied to its installed base. (1) Product sales: A large portion of revenu...
SPX Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial picture: solid top-line growth (total revenue +17.4% YoY), double-digit profit expansion (adjusted EBITDA +23%, adjusted EPS +22%), strengthened guidance, margin expansion at the consolidated level, meaningful data-center momentum, new product rollouts and progressing capacity expansions. Challenges were limited and largely manageable: HVAC margin pressure from expected start‑up costs (~$8M–$9M), a modest tariff-driven EPS headwind ($0.05–$0.10), a small dip in D&M backlog, modest Q1 free cash flow, and exposure to input-cost inflation. Overall, the positives — including raised guidance, strong margins in D&M, robust data center demand and a healthy balance sheet with low leverage and an active M&A pipeline — outweigh the headwinds, and management articulated clear mitigation plans.Positive Updates
Strong Overall Financial Performance
Q1 revenue grew 17.4% year-over-year; adjusted EBITDA increased 23% YoY; adjusted EPS grew 22% to $1.69. Consolidated segment income increased $25M (22%) to $135M and consolidated segment margin expanded ~100 basis points. Management raised full-year adjusted EPS guidance by $0.15 to a midpoint of $7.95 and reiterated a 2026 implied adjusted EBITDA growth of ~21% at the midpoint.
Negative Updates
HVAC Margin Pressure from Start‑Up Costs
HVAC segment margin decreased ~40 basis points in Q1, largely attributed to capacity expansion start-up costs. Management quantified start-up costs in the quarter and near term at roughly $8M–$9M (predominantly impacting H1), and noted these were expected and factored into planning.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Overall Financial Performance
Q1 revenue grew 17.4% year-over-year; adjusted EBITDA increased 23% YoY; adjusted EPS grew 22% to $1.69. Consolidated segment income increased $25M (22%) to $135M and consolidated segment margin expanded ~100 basis points. Management raised full-year adjusted EPS guidance by $0.15 to a midpoint of $7.95 and reiterated a 2026 implied adjusted EBITDA growth of ~21% at the midpoint.
Read all positive updates
Company Guidance
SPX raised 2026 adjusted EPS guidance by $0.15 to a midpoint of $7.95 and said the update implies roughly 21% adjusted EBITDA growth at the midpoint; management expects a $0.05–$0.10 headwind from recent Section 232 tariff changes (predominantly affecting HVAC in Q2) but expects the impact to be de‑minimis in H2 and not to affect 2027, and noted that excluding the Q2 tariff hit first‑half adjusted EPS pacing should be similar to last year. The raise follows a strong Q1 (adjusted EPS $1.69, +22% YoY; revenue +17.4% YoY; adjusted EBITDA +23% YoY with 90 bps of margin expansion) driven by HVAC (+22% revenue, 11.5% inorganic / 9.6% organic; segment income +$15M, -40 bps margin; backlog $755M, +38% organic) and D&M (+8.3% revenue, organic +3%; segment income +$10M, +410 bps margin; backlog $333M), and management cited a healthy balance sheet (cash $158M, debt $674M, leverage ~0.9x) and Q1 adjusted free cash flow of ~ $16M as giving capacity to pursue accretive M&A.SPX Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
76
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.48B | 2.27B | 1.98B | 1.74B | 1.46B | 1.22B |
| Gross Profit | 996.30M | 917.70M | 799.40M | 670.00M | 523.90M | 431.80M |
| EBITDA | 534.20M | 484.80M | 392.70M | 276.70M | 82.80M | 125.30M |
| Net Income | 278.90M | 244.00M | 200.50M | 89.90M | 200.00K | 425.40M |
Balance Sheet | ||||||
| Total Assets | 3.94B | 3.60B | 2.71B | 2.44B | 1.93B | 2.63B |
| Cash, Cash Equivalents and Short-Term Investments | 166.40M | 364.00M | 156.90M | 99.40M | 147.80M | 388.20M |
| Total Debt | 614.70M | 501.60M | 670.30M | 558.30M | 246.80M | 246.00M |
| Total Liabilities | 1.59B | 1.37B | 1.33B | 1.25B | 851.70M | 1.53B |
| Stockholders Equity | 2.35B | 2.24B | 1.38B | 1.19B | 1.08B | 1.10B |
Cash Flow | ||||||
| Free Cash Flow | 303.40M | 241.20M | 247.90M | 184.60M | -152.70M | 165.00M |
| Operating Cash Flow | 421.90M | 333.30M | 285.90M | 208.50M | -136.80M | 174.60M |
| Investing Cash Flow | -519.90M | -561.00M | -284.50M | -570.20M | -66.10M | 314.10M |
| Financing Cash Flow | 128.50M | 425.50M | 53.10M | 309.60M | -38.90M | -167.60M |
SPX Technical Analysis
Neutral
220.07
Price Trends
223.48
Negative
215.35
Negative
214.17
Negative
Market Momentum
-4.45
Positive
48.49
Neutral
49.89
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 220.07 is above the 20-day moving average (MA) of 214.01, below the 50-day MA of 223.48, and above the 200-day MA of 214.17, indicating a neutral trend. The MACD of -4.45 indicates Positive momentum. The RSI at 48.49 is Neutral, neither overbought nor oversold. The STOCH value of 49.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SPXC.
SPX Risk Analysis
SPX disclosed 45 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $11.55B | 31.61 | 18.38% | 0.63% | 14.22% | 25.22% | |
71 Outperform | $10.92B | 24.93 | 28.13% | 1.31% | 4.44% | 25.08% | |
69 Neutral | $11.00B | 38.06 | 12.67% | ― | 20.63% | 27.00% | |
68 Neutral | $13.66B | 47.51 | 4.23% | 0.66% | 1.54% | 22.59% | |
57 Neutral | $4.72B | 30.07 | 6.01% | ― | -5.84% | -60.23% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
SPXC
SPX
214.13
10.42
5.12%
DCI
Donaldson Company
96.02
24.59
34.43%
RRX
Regal Rexnord
211.21
67.11
46.57%
WTS
Watts Water Technologies
350.52
88.71
33.88%
PSN
Parsons
47.61
-29.39
-38.17%
SPX Corporate Events
Business Operations and StrategyExecutive/Board Changes
SPX Technologies announces retirement of Detection segment president
Neutral
Jun 22, 2026
SPX Technologies, Inc. disclosed that John W. Swann III, president of its Detection and Measurement segment, notified the company on June 18, 2026, of his decision to retire in January 2027. The planned leadership change signals an upcoming transi...
Executive/Board ChangesShareholder Meetings
SPX Stockholders Approve Directors, Pay and Auditor at Meeting
Positive
May 12, 2026
SPX Technologies, Inc. held its 2026 Annual Meeting of Stockholders on May 12, 2026, with approximately 96% of eligible shares represented in person or by proxy, underscoring strong investor engagement. Stockholders elected directors Ricky D. Puck...
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.