SPX Technologies 2025 Q2 Earnings Beats Expectations as Net Income Rises 18.1%

SPX Technologies (SPXC) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. The company surpassed analyst expectations with an EPS of $1.12, exceeding the projected $1.45 per share. SPX Technologies raised its full-year 2025 guidance, projecting revenue between $2.225 billion and $2.275 billion, reflecting a year-over-year increase of approximately 13% at the midpoint. Adjusted EBITDA is now expected to be in the range of $485 million to $510 million, indicating an 18% year-over-year increase at the midpoint, up from the prior range of $470 million to $495 million. Adjusted EPS is forecasted between $6.35 and $6.65, also a 16% increase year-over-year at the midpoint, bolstered by strong second-quarter performance and a positive outlook for the remainder of the year.

Revenue

The total revenue of SPX Technologies increased by 10.2% to $552.40 million in 2025 Q2, up from $501.30 million in 2024 Q2.

Earnings/Net Income

SPX Technologies' EPS rose 16.7% to $1.12 in 2025 Q2 from $0.96 in 2024 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $52.20 million in 2025 Q2, marking 18.1% growth from $44.20 million in 2024 Q2. The EPS results indicate strong financial performance.

Price Action

The stock price of SPX Technologies has edged up 1.33% during the latest trading day, climbed 3.98% during the most recent full trading week, and jumped 8.77% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing SPX Technologies (SPXC) shares following their revenue increase on the financial report release date and holding for 30 days has proven to be highly lucrative over the past three years. This approach delivered an impressive 265.84% return, significantly outperforming the benchmark return of 85.57%, yielding an excess return of 180.27%. This indicates that focusing on SPXC's post-revenue raise performance has been exceptionally effective. The strategy showcased a compound annual growth rate (CAGR) of 29.86% and, despite having a maximum drawdown of 0.00%, maintained a reasonable Sharpe ratio of 0.90, suggesting commendable risk-adjusted returns.

CEO Commentary

Gene Lowe, President and CEO, expressed satisfaction with the second quarter results, highlighting significant year-over-year profit growth across both segments and strong margin performance, especially in HVAC. He noted solid demand in key end markets and successful operational execution, supported by contributions from recent acquisitions. Lowe emphasized progress on growth initiatives and product introductions, particularly the OlympusV Max cooling solution, which addresses data center energy and water optimization needs. He conveyed confidence in continued customer demand and operational momentum, affirming an optimistic outlook for the second half of 2025.

Guidance

SPX Technologies raises its full-year 2025 guidance, projecting revenue between $2.225 billion and $2.275 billion, reflecting a year-over-year increase of approximately 13% at the midpoint. Adjusted EBITDA is now expected to be in the range of $485 million to $510 million, indicating an 18% year-over-year increase at the midpoint, up from the prior range of $470 million to $495 million. Adjusted EPS is forecasted between $6.35 and $6.65, also a 16% increase year-over-year at the midpoint, bolstered by strong second-quarter performance and a positive outlook for the remainder of the year.

Additional News

SPX Technologies has been actively involved in mergers and acquisitions, with notable activity in the HVAC sector. The company announced a strategic acquisition to enhance its product offerings, aiming to expand its market presence and leverage synergies. Additionally, there have been no significant changes in the executive team, with Gene Lowe continuing to lead as CEO, maintaining stability in leadership. In terms of shareholder returns, SPX Technologies has not declared any new dividend payments or buyback plans recently, focusing instead on reinvesting in growth opportunities and strategic initiatives.