SPX Technologies delivered a first quarter that was well received by the market, with management attributing the performance to continued strength in its HVAC segment and successful integration of recent acquisitions. CEO Eugene Lowe pointed to operational improvements and margin gains across both segments, highlighting the adoption of newly engineered solutions and value engineering initiatives. The addition of Sigma and Omega to the HVAC portfolio was cited as a key driver, while proactive tariff mitigation efforts and a balanced product mix helped sustain year-on-year margin levels. Lowe noted, “We grew first quarter adjusted EBITDA by 12% and adjusted EPS by 10%,” emphasizing progress in both operational execution and strategic expansion.
Is now the time to buy SPXC? Find out in our full research report (it’s free).
SPX Technologies (SPXC) Q1 CY2025 Highlights:
- Revenue: $482.6 million vs analyst estimates of $480.3 million (3.7% year-on-year growth, in line)
- Adjusted EPS: $1.38 vs analyst estimates of $1.17 (17.6% beat)
- Adjusted EBITDA: $121.9 million vs analyst estimates of $95.53 million (25.3% margin, 27.6% beat)
- The company lifted its revenue guidance for the full year to $2.23 billion at the midpoint from $2.16 billion, a 3.2% increase
- Adjusted EPS guidance for the full year is $6.25 at the midpoint, beating analyst estimates by 1.5%
- EBITDA guidance for the full year is $482.5 million at the midpoint, above analyst estimates of $474.9 million
- Operating Margin: 13.8%, in line with the same quarter last year
- Organic Revenue was flat year on year (2.4% in the same quarter last year)
- Market Capitalization: $7.54 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions SPX Technologies’s Q1 Earnings Call
- Brad Hewitt (Wolfe Research) asked about the gross and net impact of tariffs for the year. CFO Mark Carano specified a net cost of around $6 million after pricing actions, clarifying the split between gross exposure and mitigation.
- Brad Hewitt (Wolfe Research) inquired about Sigma and Omega’s expected growth rates and margin profile. CEO Eugene Lowe described the business as highly complementary, with U.S. expansion opportunities, and Carano confirmed its margins are slightly below the HVAC segment average.
- Bryan Blair (Oppenheimer) sought clarity on demand trends given tariff uncertainty and macro volatility. Lowe responded that demand remains balanced across platforms, with particular strength in data centers and no significant order rate changes.
- Bryan Blair (Oppenheimer) asked about Ingenia’s revenue outlook and multi-year growth prospects. VP Paul Clegg noted capacity expansion to a $140 million run rate by year-end, with demand exceeding current production capability.
- Ross Sparenblek (William Blair) questioned the organic contribution to Detection & Measurement backlog growth. Carano explained that 22% was driven by the KTS acquisition, with the remainder organic, reflecting strong project activity.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will be monitoring (1) the pace of integration and U.S. market expansion for Sigma and Omega, (2) sales traction and capacity ramp for Ingenia and other new HVAC products, and (3) the company’s ability to manage tariff pressures while sustaining margin performance. Execution on new product launches and backlog conversion will also be important signs of continued momentum.
SPX Technologies currently trades at $162.10, up from $136.45 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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