SPX's Q1 2025 Earnings Call: Navigating Tariff Impacts and Contradictions in Demand and Revenue Growth
Friday, May 2, 2025 7:32 pm ET
2min read Tariff impact and financial guidance, order flow and demand sustainability, detection & measurement segment growth and run-rate orders, data center revenue contribution, and tariff impact and timing are the key contradictions discussed in SPX's latest 2025Q1 earnings call.
Strong Financial Performance:
- SPX Technologies reported adjusted EBITDA increased by 12% and adjusted EPS by 10% for Q1 2025.
- The growth was driven by a solid performance in the HVAC segment, the benefit of recent acquisitions, and effective management of tariff-related impacts.
Acquisition and Growth Strategy:
- The acquisition of Sigma and Omega expanded the HVAC segment, with complementary products enhancing value to customers and positioning the company for future growth.
- The transaction is expected to be modestly accretive to adjusted EPS, with opportunities for leveraging combined channels to drive growth in attractive end markets.
Segment Performance and Backlog:
- The HVAC segment reported revenue growth of 6.8% year-on-year, with a 3% increase in segment backlog at quarter end.
- The Detection & Measurement segment saw a 56% sequential increase in segment backlog, driven by strong project execution and new bookings.
Tariff Impact and Mitigation:
- Tariffs are estimated to have a net impact of approximately $0.08 to $0.12 on adjusted EPS, with gross costs offset by price increases and surcharges.
- The company is actively managing price and sourcing relationships to mitigate tariff effects and plans to offset all costs through price adjustments by next year.
Strong Financial Performance:
- SPX Technologies reported adjusted EBITDA increased by 12% and adjusted EPS by 10% for Q1 2025.
- The growth was driven by a solid performance in the HVAC segment, the benefit of recent acquisitions, and effective management of tariff-related impacts.
Acquisition and Growth Strategy:
- The acquisition of Sigma and Omega expanded the HVAC segment, with complementary products enhancing value to customers and positioning the company for future growth.
- The transaction is expected to be modestly accretive to adjusted EPS, with opportunities for leveraging combined channels to drive growth in attractive end markets.
Segment Performance and Backlog:
- The HVAC segment reported revenue growth of 6.8% year-on-year, with a 3% increase in segment backlog at quarter end.
- The Detection & Measurement segment saw a 56% sequential increase in segment backlog, driven by strong project execution and new bookings.
Tariff Impact and Mitigation:
- Tariffs are estimated to have a net impact of approximately $0.08 to $0.12 on adjusted EPS, with gross costs offset by price increases and surcharges.
- The company is actively managing price and sourcing relationships to mitigate tariff effects and plans to offset all costs through price adjustments by next year.
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
_219eac971750077834984.jpeg)
