Executive Summary

Q4 2024 revenue grew 13.7% year-over-year to $533.7M, GAAP EPS was $1.19 and adjusted EPS was $1.51; consolidated operating margin expanded 350 bps YoY to 16.9% and segment margin to 24.2% .
HVAC delivered record margin and profitability; segment revenue rose 18.6% YoY to $370.5M and margin reached 24.8%, driven by cooling volumes and Ingénia acquisition contribution .
Management introduced FY2025 guidance: revenue $2.13–$2.19B, adjusted EBITDA $460–$490M, and adjusted EPS $6.00–$6.25; HVAC segment margin guided to 23.5%–24.5%, Detection & Measurement (D&M) to 22%–23% .
Wall Street consensus from S&P Global was unavailable due to API limits; outcome vs estimates cannot be assessed in this report (S&P Global consensus data unavailable).
Cash flow and balance sheet strong: Q4 operating cash from continuing ops $166.7M, FY cash $313.1M; year-end cash $161.4M and total debt $614.7M; leverage ratio under bank covenant ~1x at Q4, ~1.7x including January KTS acquisition .

What Went Well and What Went Wrong

What Went Well

“Our strong Q4 performance included record margin and profitability in our HVAC segment, supported by robust customer demand and solid operational execution.” — CEO Gene Lowe .
Adjusted EBITDA increased to $116.1M (21.8% margin) in Q4, reflecting margin expansion and favorable mix; adjusted EPS grew 21% YoY to $1.51 .
D&M margin improved 410 bps YoY to 23.0% in Q4, with higher volumes in Location & Inspection and Aids to Navigation and more favorable project execution in CommTech .

What Went Wrong

Heating demand was soft due to an unseasonably warm Q4; HVAC margins came in “on the lower end” of intra-quarter expectations given weaker heating drop-through .
Sequential revenue step-up in Ingénia was below expectation due to slower timing of facility expansion ramp, though installation challenges were resolved by quarter-end .
Run-rate demand across parts of D&M remains flattish and sensitive to macro conditions, with project timing skewing more to 2026–2027, elongating revenue conversion .

Financial Results

Consolidated Results vs Prior Year and Prior Quarter

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($USD Millions)	$469.4	$483.7	$533.7
GAAP Diluted EPS ($)	$0.67	$1.08	$1.19
Adjusted EPS ($)	$1.25	$1.39	$1.51
Consolidated Operating Margin (%)	13.4%	16.3%	16.9%
Consolidated Segment Margin (%)	21.9%	23.5%	24.2%
Adjusted EBITDA ($USD Millions)	$90.6	$104.0	$116.1

Segment Breakdown

Segment	Metric	Q4 2023	Q3 2024	Q4 2024
HVAC	Revenue ($USD Millions)	$312.5	$335.3	$370.5
HVAC	Segment Income ($USD Millions)	$73.2	$80.0	$91.8
HVAC	Segment Margin (%)	23.4%	23.9%	24.8%
Detection & Measurement	Revenue ($USD Millions)	$156.9	$148.4	$163.2
Detection & Measurement	Segment Income ($USD Millions)	$29.6	$33.8	$37.6
Detection & Measurement	Segment Margin (%)	18.9%	22.8%	23.0%

KPIs and Balance Sheet/Cash Flow

KPI	Q4 2024	Notes
HVAC Backlog ($USD Millions)	~$437	Similar to Q3
D&M Backlog ($USD Millions)	$221	Up 14% seq. from Q3
Operating Cash from Continuing Ops ($USD Millions)	$166.7 (Q4)	$313.1 (FY)
Capital Expenditures ($USD Millions)	$9.8 (Q4); $38.0 (FY)
Cash and Equivalents ($USD Millions)	$161.4
Total Debt ($USD Millions)	$614.7
Leverage Ratio (Bank Credit Agreement)	~1.0x at Q4; ~1.7x incl. KTS	Management disclosure

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Revenue	FY 2025	N/A	$2.13–$2.19B	New
Adjusted EBITDA	FY 2025	N/A	$460–$490M	New
Adjusted EPS	FY 2025	N/A	$6.00–$6.25	New
HVAC Revenue	FY 2025	N/A	$1.44–$1.48B; Margin 23.5%–24.5%	New
D&M Revenue	FY 2025	N/A	$0.69–$0.71B; Margin 22%–23%	New
Consolidated Segment Margin	FY 2025	N/A	23%–24%	New
Consolidated Revenue	FY 2024	$1.97–$2.00B (Q3 update)	Actual $1.984B	Achieved within range
HVAC Revenue/Margin	FY 2024	$1.365–$1.385B; 23.25%–23.75%	Actual $1.365B; 23.7%	In-line to slightly above margin midpoint
D&M Revenue/Margin	FY 2024	$0.605–$0.615B; 21.25%–22.00%	Actual $0.619B; 22.1%	Above margin range

Q1 2025 modeling: modest revenue growth driven by KTS and full-quarter Ingénia; flat organic (HVAC growth offset by D&M decline from project timing); margins similar YoY; higher interest costs from KTS; tax rate consistent with FY guidance .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024, Q3 2024)	Current Period (Q4 2024)	Trend
AI/Data Centers demand	Strength across data centers; Everest product taking share; data center ~10% of cooling; ~7% of total company	Data center ~7% of total company, ~10% of HVAC; demand “healthy and steady”; expanding adiabatic/dry addressability	Sustained growth; product portfolio expansion
HVAC cooling vs heating	Cooling strength, heating stable; Q3 margin expansion	Cooling strong; heating softness due to warm Q4; stronger hydronics bookings starting Jan	Cooling tailwinds; heating weather-sensitive
Supply chain/operations	CI initiatives, throughput gains, capex driving structural margin	Continued margin performance; Ingénia ramp timing resolved; backlog strong	Ongoing operational momentum
Tariffs/macro	Not emphasized earlier	China tariffs reflected in 2025 guide; low exposure to Mexico; mid-single-digit Canada sales; >80% revenue U.S.; pricing power, in-country sourcing	Prepared, mitigants in place
D&M project timing	Pass-through project distortion in 2023/early 2024; mixed project timing	Healthy pipeline, more delivery timing targeted to 2026–2027; backlog up 14% seq.	Longer-dated conversion; healthy pipeline
KTS acquisition & CommTech	M&A and margin improvement track; raised D&M margins	KTS closed Jan; ~$80M 2025 revenue (11 months), margins slightly above D&M avg; synergy with TCI/ECS; ROIC > WACC in 3–5 years	Strategic scaling of CommTech
Regional trends	U.S. steady; Europe softer; U.K. steady	Run-rate flattish with regional variation; U.S. steady; projects healthy	Similar pattern continues

Management Commentary

“Adjusted EBITDA* growth of 36% and Adjusted EPS* growth of 29%, … strong Q4 performance included record margin and profitability in our HVAC segment.” — Gene Lowe .
“We anticipate revenue in a range of $2.13 billion to $2.19 billion… adjusted EBITDA $460 million to $490 million… adjusted EPS $6 to $6.25.” — Mark Carano .
“KTS… significantly expands the scale of our Communication Technologies platform… highly complementary to our existing tactical data links and RF countermeasure offerings.” — Gene Lowe .
“More than 80% of our revenue comes from the United States… in-country, for-country sourcing model… we have pricing power across our businesses.” — Mark Carano .

Q&A Highlights

Data centers contribution and outlook: ~7% of total company revenue and ~10% of HVAC in 2024; expected similar or higher share in 2025; demand remains healthy with expanded adiabatic/dry products .
KTS financial contribution: ~$90M annual run-rate; ~$80M revenue in 2025 (11 months) with 1/3 contribution 1H and 2/3 in 2H; margins slightly above D&M average; synergy pathways with TCI/ECS and broader defense platforms; ROIC > cost of capital targeted in 3–5 years .
Heating dynamics: Warm Q4 suppressed heating drop-through; colder Jan shifted bookings but late-season cold yields lower replacement pickup relative to early-season .
Ingénia ramp: Sequential revenue lighter due to slower facility ramp; equipment installation now complete and back on track .
Tariffs and exposure: China tariffs embedded in 2025 guidance; minimal Mexico exposure, Canada mid-single digit of sales into U.S.; mitigants include sourcing model and pricing power .

Estimates Context

S&P Global consensus data (EPS, revenue, EBITDA) for Q4 2024 was unavailable due to API request limits; as a result, this report cannot benchmark reported results vs Wall Street consensus (S&P Global consensus unavailable).
Given strong YoY growth and margin expansion, sell-side estimates may need to account for: record HVAC margins, sustained cooling demand, longer-dated D&M project timing into 2026–2027, and incremental KTS contribution in FY2025 .

Key Takeaways for Investors

HVAC is the primary growth and margin engine; record Q4 margins and strong cooling volumes, with expanding addressable market via adiabatic/dry solutions and Everest product innovation tailwinds .
D&M margin trajectory is improving on project mix and CI initiatives; backlog up sequentially with more deliveries targeted beyond 2025, implying steadier revenue later and margin quality improving .
FY2025 guidance points to continued double-digit adjusted EPS and EBITDA growth; catalysts include KTS integration and Ingénia production ramp normalization .
Weather sensitivity remains a watch item for heating; early-season cold is critical for replacement dynamics; monitor Q1 hydronics bookings and margin drop-through .
Balance sheet flexibility supports M&A pipeline; leverage near 1x at Q4 (1.7x including KTS) with strong cash generation, enabling further platform scaling in HVAC and CommTech .
Tariff risk manageable given geographic revenue mix, sourcing model, and pricing power; macro sensitivity most apparent in D&M run-rate businesses while projects remain robust .
Data center exposure (~7% of total; ~10% of HVAC) provides secular tailwind, with product introductions expanding SPX’s share of wallet; watch institutional and healthcare as complementary drivers .

Source documents: Q4 2024 press release and 8-K ; Q4 2024 earnings call transcript ; Q3 2024 press release/8-K ; KTS acquisition press releases .

SPX Technologies, Inc. (SPXC)·Q4 2024 Earnings Summary