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SPX Technologies, Inc. (SPXC)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered a clean beat and a raise: revenue $592.8M (+22.6% y/y), adjusted EPS $1.84 (+32.4% y/y), adjusted EBITDA $136.1M (+30.9% y/y). Consensus was $576.5M revenue and $1.62 EPS, implying a beat of $16.3M and $0.22 per share, respectively . EPS consensus based on 10 estimates; revenue consensus based on 9 estimates*.
  • Guidance raised: adjusted EPS to $6.65–$6.80 (from $6.35–$6.65), adjusted EBITDA to $495–$515M (from $485–$510M); D&M segment margin guidance raised to 23.25%–23.75% (from 21.75%–23.00%) .
  • Segment strength broad-based: HVAC revenue +15.5% with margin +50 bps to 24.4%; Detection & Measurement revenue +38.4% with margin +240 bps to 25.2% .
  • Balance sheet capacity sharply improved via $575M equity offering and revolver upsized by $500M to $1.5B; >$1B incremental liquidity, available capacity now >$1.6B; leverage ~0.5x; management emphasized no dilution to 2025 EPS .

*Values retrieved from S&P Global

What Went Well and What Went Wrong

What Went Well

  • Strong consolidated beat and margin expansion: adjusted EPS $1.84 (+32% y/y), adjusted EBITDA $136.1M (+31% y/y), with adjusted EBITDA margin up 150 bps to 23.0% .
  • Segment execution: D&M organic growth +26.5% and margin +240 bps to 25.2%, aided by operating leverage and KTS acquisition; HVAC margin up 50 bps to 24.4% on higher volumes and operating leverage .
  • Capacity and product initiatives advancing: TAMCO U.S. facility leased (150k sq ft) with production targeted by end of Q1; Olympus Max targeted for $50M bookings in 2025 for 2026 revenue; Ingenia U.S. plant site selection progressing .
    • “We are on track to achieve our objective of booking $50 million of Olympus Max orders in 2025 for revenue in 2026.”

What Went Wrong

  • Tariff environment still a watch item; back-half D&M margin cadence impacted, and Q4 D&M revenue expected modestly lower sequentially due to project timing .
  • 2026 headwind noted: ~$20M of project sales shifted from early 2026 into 2025, creating a modest headwind next year .
  • Mix/timing variability persists: management cited lumpiness in large projects and normal push/pull in data center timelines; no unusual push-outs, but dynamics remain fluid .

Financial Results

MetricQ3 2024Q2 2025Q3 2025
Revenue ($USD Millions)$483.7 $552.4 $592.8
GAAP EPS ($)$1.08 $1.10 $1.29
Adjusted EPS ($)$1.39 $1.65 $1.84
Adjusted EBITDA ($USD Millions)$104.0 $126.7 $136.1
Adjusted EBITDA Margin (%)21.5% 22.9% 23.0%
Consolidated Segment Income ($USD Millions)$113.8 $135.8 $146.1
Consolidated Segment Margin (%)23.5% 24.6% 24.6%
SegmentQ3 2024 Revenue ($M)Q2 2025 Revenue ($M)Q3 2025 Revenue ($M)Q3 2024 Margin (%)Q2 2025 Margin (%)Q3 2025 Margin (%)
HVAC$335.3 $376.7 $387.4 23.9% 25.4% 24.4%
Detection & Measurement$148.4 $175.7 $205.4 22.8% 22.8% 25.2%
KPIsQ2 2025Q3 2025
HVAC Backlog ($USD Millions)$540 $579
D&M Backlog ($USD Millions)$365 $366
Cash ($USD Millions)$136.9 $231.4
Total Debt ($USD Millions)$1,019.3 $501.6
Leverage Ratio (bank, x)~1.7x ~0.5x
Adjusted Free Cash Flow ($USD Millions)$37.1 $90.8

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EPSFY 2025$6.35–$6.65 $6.65–$6.80 Raised
Adjusted EBITDA ($M) / %FY 2025$485–$510 / 21.80%–22.40% $495–$515 / 22.20%–22.70% Raised
Total Company Revenue ($B)FY 2025$2.225–$2.275 $2.225–$2.275 Maintained
HVAC Revenue ($M)FY 2025$1,500–$1,530 $1,500–$1,530 Maintained
HVAC Segment Margin (%)FY 202524.25%–24.75% 24.25%–24.75% Maintained
D&M Revenue ($M)FY 2025$725–$745 $725–$745 Maintained
D&M Segment Margin (%)FY 202521.75%–23.00% 23.25%–23.75% Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
Data center cooling (Olympus Max)Target bookings for 2025 to drive 2026 revenue; product dry/adiabatic; TAM expansion; strong interest On track for $50M bookings in 2025; strong customer feedback; modular design, CTI validation expected Improving engagement
Capacity expansions (TAMCO, Ingenia U.S.)Announce U.S. sites before year end; Ingenia ramp to $140M run-rate by Q4; longer-term $300M run-rate combined by Q4’27 TAMCO 150k sq ft facility leased; production commissioning underway; Ingenia U.S. site selection progressing; more color on Q4 call Execution advancing
D&M margin driversBack half impacted by tariffs and investments; Q2: slight margin step-down vs prior year mix Q3 margin +240 bps y/y; raised FY margin guidance; tariffs mostly back-half weighted Positive vs plan
Tariffs/macroNet tariff impact Q1: $0.08–$0.12 EPS, gross ~$20M offset by ~$14M price/surcharges Tariff impact recalibrated lower to ~$$0.05 EPS; back-half weighted; surcharges rolled off where less needed Moderating impact
Backlog/2026 visibilityD&M backlog up 56% q/q in Q1; HVAC backlog up 19.5% q/q in Q2 Backlogs near all-time highs; ~40% scheduled to deliver in 2026; some projects pulled forward from 2026 to Q3 Strong but pull-forward noted
M&A pipelineRobust across engineered air movement and Comtech/Transportation; accretive deals at 10–12x typical “Very high level of activity,” dry powder expanded, strategy unchanged, discipline around 10–12x multiples Pipeline strengthening

Management Commentary

  • “We grew third-quarter adjusted EPS by 32% and drove significant profit and margin growth in both segments… we are raising our full-year guidance range. We now anticipate adjusted EBITDA to exceed $500 million… ~20% growth y/y.” — CEO Gene Lowe .
  • “We completed a $575 million offering of our common stock… increased the capacity of our revolving credit facility by $500 million to $1.5 billion… liquidity increased by more than $1 billion… leverage ~0.5x… no dilutive impact to 2025 EPS.” — CFO Mark Carano .
  • “Olympus Max… continues to receive excellent feedback… on track to… $50 million of orders in 2025 for revenue in 2026.” — CEO .
  • “Segment backlog… HVAC $579 million, up 7% sequentially… D&M revenue increased 38.4%… margin increased by 240 basis points.” — CFO .

Q&A Highlights

  • Capacity expansion: TAMCO Tennessee 150k sq ft facility; Ingenia larger U.S. site with details on Q4 call; capex largely light for TAMCO, heavier for Ingenia’s robotics/automation .
  • Nuclear/power opportunities: strong installed base in cooling towers; upgrades can add 50–80 MW; near-term activity more combined-cycle vs new nuclear .
  • Data centers: no unusual push-outs; fluid environment with normal timing changes; trend moving toward water-cooled chillers expanding addressable opportunity .
  • Olympus Max adoption: target $50M bookings and potential rapid growth into 2027–2028; mix likely ~2/3 adiabatic, ~1/3 dry; strong seat at hyperscaler design tables .
  • D&M margin cadence: Q3 upside from leverage and KTS; some NPI costs shifting to 2026; Q4 D&M revenue modestly lower sequentially due to timing .
  • Free cash flow use: Q4 expected to be highest FCF quarter; capital deployment prioritized to M&A and plant expansion .
  • M&A discipline: average multiples ~11x, targeting cash-on-cash returns; larger deals carry higher multiples but also greater synergy; strategy unchanged .

Estimates Context

MetricConsensusActualBeat/(Miss)
Revenue ($USD Millions)$576.5M*$592.8M +$16.3M
Primary EPS ($)$1.62*$1.84 +$0.22
Primary EPS – # of Estimates10*——
Revenue – # of Estimates9*——

*Values retrieved from S&P Global

Key Takeaways for Investors

  • Bold beat-and-raise quarter: revenue, EPS, and EBITDA all exceeded expectations with guidance raised across EPS and EBITDA; this is typically a positive near-term catalyst for the stock .
  • Margin trajectory improving: consolidated adjusted EBITDA margin expanded y/y; D&M margin guidance raised meaningfully to 23.25–23.75%, reflecting operating leverage and KTS contribution .
  • Structural growth drivers: data center cooling (Olympus Max), engineered air movement capacity adds (TAMCO, Ingenia), and healthcare/institutional HVAC demand support multi-year growth .
  • Liquidity and M&A optionality: >$1B incremental liquidity and >$1.6B available capacity with leverage ~0.5x underpin robust M&A pipeline and organic investments without 2025 EPS dilution .
  • Watch 2026 setup: ~$20M of projects pulled forward into 2025 creates a modest headwind next year; management highlighted strong backlog with ~40% slated for 2026, mitigating risk .
  • Near-term modeling: Q4 D&M revenue expected modestly lower sequentially on timing; tariff headwind recalibrated lower and largely back-half weighted; HVAC backlog up sequentially supports Q4 .
  • Non-GAAP clarity: adjustments exclude amortization, acquisition/integration costs, non-service pension items, mark-to-market; reconciliations provided for transparency .

Additional Materials Reviewed (Q3 2025)

  • 8-K 2.02 and press release reporting Q3 2025 results and guidance (Oct 30, 2025) .
  • Earnings call transcript (Oct 30, 2025) -.
  • Q3 reporting date announcement (Oct 06, 2025) .
  • Prior quarters for trend analysis: Q2 2025 8-K & call (Jul 31, 2025) - -; Q1 2025 press release, 8-K & call (May 01, 2025) - - -.