SPX Technologies 2025 Q1 Earnings Moderate Growth with 4.5% Net Income Increase

SPX Technologies (SPXC) reported its fiscal 2025 Q1 earnings on May 01st, 2025. The company posted a 3.7% increase in revenue to $482.60 million compared to the same quarter last year. SPX Technologies raised its full-year 2025 guidance, anticipating revenue between $2.20 to $2.26 billion, which is a notable increase year-on-year. Adjusted EBITDA is projected to grow by approximately 15% at the midpoint. These developments reflect a strong start to the year, with management highlighting improvements in key financial metrics. The company continues to focus on strategic positioning to navigate macroeconomic challenges.

Revenue

In the first quarter of 2025, SPX Technologies experienced a 3.7% rise in total revenue, reaching $482.60 million, up from $465.20 million in the previous year. The HVAC segment was a major contributor, generating $323 million, while the Detection & Measurement segment recorded $159.60 million in revenue. This performance underscores the company's diversified business model and robust market presence.

Earnings/Net Income

SPX Technologies reported an earnings per share increase of 2.8% to $1.10, up from $1.07 in the previous year. Additionally, the company's net income grew by 4.5% to $51.20 million, reflecting improved profitability. The modest EPS growth indicates stable financial health.

Price Action

The stock price of SPX Technologies has edged up 0.90% during the latest trading day, has edged up 2.37% during the most recent full trading week, and has climbed 6.13% month-to-date.

Post-Earnings Price Action Review

Following SPX Technologies' earnings report, various metrics like revenue, net income, and EPS were analyzed for their impact on the stock price. Historical data indicates that revenue announcements have a 65% probability of causing a stock price increase within three days post-release and a 70% chance over ten days. However, over a 30-day period, the likelihood of price appreciation drops to 45%, suggesting mixed long-term outcomes. The most significant post-earnings return noted was 13.42%, occurring on day 71 post-announcement. While net income and EPS didn't have specific metrics, their influence is considered integral to earnings-related metrics. Overall, these financial indicators can positively affect SPX Technologies' stock price in the short term, though various factors, including market conditions and investor sentiment, play a crucial role.

CEO Commentary

Gene Lowe, President and CEO, expressed satisfaction with SPX's robust Q1 2025 performance, highlighting growth in key profit measures and improved margins across both business segments. He noted that the company's operational execution and strategic positioning are intended to navigate various macroeconomic scenarios. Lowe emphasized ongoing value creation initiatives, including new product launches and operational improvements. The recent acquisition of Sigma & Omega is expected to enhance the HVAC segment, presenting opportunities for leveraging combined channels to fuel further growth. Overall, the tone reflects optimism regarding demand and execution across SPX's core markets.

Guidance

SPX Technologies anticipates full-year 2025 revenue in the range of $2.20 to $2.26 billion, representing a year-on-year increase of approximately 12% at the midpoint. Adjusted EBITDA is projected between $470 to $495 million, indicating a 15% year-on-year growth at the midpoint. Additionally, the company expects Adjusted EPS to be in the range of $6.10 to $6.40, also reflecting a 12% increase year-on-year at the midpoint. These projections incorporate the impact of the Sigma & Omega acquisition and adjustments related to current tariff rates and mitigation strategies.

Additional News

On April 15, 2025, SPX Technologies announced the completion of its acquisition of Sigma & Omega, a Toronto-based manufacturer specializing in hydronic heating and cooling equipment. This strategic move is expected to enhance SPX's HVAC capabilities, particularly with Sigma & Omega's expertise in vertical stack heat pumps and commercial self-contained units. The acquisition, valued at approximately $144 million CAD, aims to leverage Sigma & Omega's strong domestic presence and expand sales in the U.S. market. This acquisition aligns with SPX's strategy to strengthen its market position and drive growth in key sectors.