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- **Revenue and Profit Growth**: Q3 revenue +23% YoY, adjusted EPS +32% to $1.84, with EBITDA exceeding $500M (20% YoY growth). 
- **Capital Strength**: $1B+ liquidity from equity offering and credit facility expansion, no EPS dilution. 
- **Strategic Initiatives**: Olympus Max cooling solution targeting $50M bookings, U.S. production expansions for TAMCO and Ingénia. 
- **M&A Focus**: Pipeline in HVAC and D&M, disciplined at 11x-12x EBITDA multiples. 
- **2026 Outlook**: 40% of backlog scheduled for delivery, D&M margin guidance raised to 23.25%-23.75%.

**【CEO Summary Section】**
- **Strong Q3 Performance**: Adjusted EPS grew 32% to $1.84, with EBITDA exceeding $500 million at the midpoint of the updated range, implying 20% YoY growth. 
- **Capital Raise and Liquidity**: Completed a $575M equity offering and expanded revolving credit facility to $1.5B, adding over $1B in liquidity with no EPS dilution. 
- **Growth Initiatives**: Launched Olympus Max, a data center cooling solution targeting $50M in 2025 bookings, and progressing on U.S. production expansions for TAMCO and Ingénia. 
- **Market Outlook**: Confident in HVAC and Detection & Measurement (D&M) growth, with D&M segment margin guidance raised to 23.25%-23.75%.

**【CFO Financial Commentary】**
- **Revenue and Profit Growth**: Total revenue up 23% YoY, driven by organic growth and acquisitions. Adjusted EBITDA increased 31% YoY, with 150bps margin expansion. 
- **Segment Performance**: HVAC revenue +15.5% YoY, D&M +38.4% YoY (26.5% organic). D&M segment income grew 53% YoY, benefiting from KTS acquisition and operating leverage. 
- **Balance Sheet Strength**: Ended Q3 with $232M cash and $502M debt, leverage ratio of 0.5x. Q3 free cash flow $91M, with Q4 expected to be the highest cash flow quarter. 
- **Guidance Update**: Full year adjusted EPS raised to $6.65-$6.80 (midpoint +21% YoY), reflecting strong Q3 and Q4 forecast.

**【Q&A Key Highlights】**
- **2026 Visibility**: Backlog positions at 40% for 2026, with HVAC targeting mid-single-digit market growth and D&M steady run-rate demand. Olympus Max on track for $50M bookings. 
- **M&A Pipeline**: Robust pipeline in HVAC (engineered air movement, electric heat) and D&M, with focus on 11x-12x EBITDA multiples. 
- **Capacity Expansion**: TAMCO Tennessee facility to begin production late Q1 2026; Ingénia U.S. facility under finalization, targeting $300M run rate by Q4 2027. 
- **Nuclear Market**: Strong position in cooling towers for existing nuclear plants, potential for incremental power generation through upgrades.

SPX Technologies, Inc. (SPXC) Q3 2025 Earnings Call Transcript

- **Q2 Growth**: Adjusted EPS up 16% to $1.65, driven by 10% revenue growth and 16% EBITDA expansion. Full year EBITDA growth target is 18%.
- **Data Center Expansion**: OlympusV Max cooling solution targets low double-digit revenue contribution in 2026, with U.S. production expansions coming online in H1 2026.
- **M&A Momentum**: Robust pipeline with ~$130 million average deal size, focusing on Engineered Air Movement and D&M segments.
- **Margin Dynamics**: HVAC margins remain strong, while D&M faces ~$0.05 tariff headwinds in H2.
- **Backlog Strength**: Total backlog of $905 million reflects healthy demand across both segments.


**【Management Opening Remarks】**
- Mark Carano, CFO, provided an overview of Q2 2025 results, emphasizing strong financial performance and updated guidance. He highlighted the release of the earnings slide presentation and reminded participants of forward-looking statement disclaimers. The company also noted upcoming investor events, including the Seaport Virtual Investor Conference and the Jefferies Industrial Conference.

**【CEO Summary Section】**
- **Q2 Performance**: Adjusted EPS grew 16% to $1.65, driven by 10% revenue growth (largely from acquisitions and project sales) and a 16% increase in adjusted EBITDA. Segment margin expanded by 120 basis points.
- **New Product Success**: The OlympusV Max cooling solution, launched earlier this year, is gaining traction in the data center market. The company expects to book orders in 2025 for revenue in 2026, targeting a significant addressable market expansion.
- **Expansion Plans**: U.S. production expansions for TAMCO actuated dampers and Ingenia customer handling units are expected to come online in H1 2026. The Quebec facility is on track to achieve a $140 million run rate by year-end.
- **Full Year Outlook**: Adjusted EBITDA growth is expected to be 18% at the midpoint of the updated guidance range, reflecting strong demand and execution.

**【CFO Financial Commentary】**
- **Q2 Financials**: Total revenue increased 10% YoY to $1.3 billion. Adjusted EBITDA rose 16%, with HVAC segment income up 14.5% and Detection & Measurement (D&M) segment income up 18%. Free cash flow was $37 million.
- **Segment Breakdown**: 
  - **HVAC**: Organic growth of 7% (excluding a large cooling project), segment margin expanded 190 basis points due to higher volumes and favorable project execution. Backlog reached $540 million.
  - **D&M**: Organic revenue growth of 5.5%, driven by transportation and CommTech projects. Backlog increased 6% sequentially to $365 million.
- **Full Year Guidance**: Adjusted EPS updated to $6.35-$6.65 (16.5% growth at midpoint). HVAC revenue guidance midpoint is $1.52 billion with margin up 75 basis points. D&M guidance reflects additional project deliveries.
- **Leverage**: Debt is $1 billion, with leverage at 1.7x. Free cash flow is expected to improve as the year progresses.

**【Q&A Key Highlights】**
- **Data Center Growth**: The company expects data center revenue to grow from ~9% of total in 2025 to low double digits in 2026, driven by OlympusV Max adoption. Orders for 2026 are expected to be in the tens of millions.
- **M&A Pipeline**: The company maintains a robust M&A pipeline, with a focus on Engineered Air Movement and D&M segments. Average deal size remains ~$130 million, with flexibility for larger transactions.
- **Margins and Tariffs**: HVAC margins are expected to remain strong, while D&M margins face headwinds from tariffs (~$0.05 impact in H2) and investments in new products. Tariffs are being partially offset by pricing actions.
- **Backlog Visibility**: Both segments show healthy backlog growth, with D&M project bookings for 2026 and beyond.


SPX Technologies, Inc. (SPXC) Q2 2025 Earnings Call Transcript

- **Q1 Strong Growth**: 12% EBITDA, 10% EPS growth. HVAC up 6.8% YoY, D&M backlog +56% QoQ.
- **Acquisition Impact**: Sigma/Omega adds $40-45M in 2025, expanding HVAC TAM for multistory buildings.
- **Tariff Mitigation**: $0.08-0.12 EPS impact offset by price/surcharge. Full offset by 2026.
- **2025 Outlook**: EPS $6.10-6.40 (12% growth), EBITDA +15%. Free cash flow guidance to be updated.
- **Resilience**: 2/3 revenue from replacement/maintenance. 2020 COVID impact: flat vs. 20%+ decline for peers.


**【CEO Opening Remarks】**
- Q1 2025: Adjusted EBITDA up 12% YoY, adjusted EPS up 10% to $1.38. HVAC segment revenue grew 6.8% YoY, driven by heating and cooling platforms.
- Acquired Sigma and Omega for $65M annual revenue, expanding HVAC addressable market for multistory buildings. Expected to add $40-45M in 2025.
- Tariff mitigation: Price increases and surcharges offset $14M of $20M gross tariff impact. Net $0.08-0.12 EPS impact for 2025.
- 2025 Guidance: Adjusted EPS $6.10-6.40 (12% growth midpoint), EBITDA up 15%.

**【CFO Financial Highlights】**
- Q1 Revenue: $1.1B (+3.7% YoY). HVAC segment +6.8% YoY, D&M segment -2% YoY (organic -6.9%, offset by KTS acquisition).
- Segment Margins: HVAC +30bps, D&M +360bps. Full year free cash flow guidance to be updated post-Q2.
- Leverage: 1.6x (excluding Sigma/Omega), target 1.5-2.5x. 2025 capex ~$80M, ~$20M for Sigma/Omega integration.

**【Q&A Key Takeaways】**
- **Tariff Impact Timing**: ~40% in Q2, 30% in Q3, 30% in Q4. Full offset by 2026 via price/supply chain changes.
- **Ingenia Growth**: 2025 run rate $100-140M, targeting $140M+ by year-end. U.S. expansion underway.
- **D&M Backlog**: $346M (up 56% QoQ), 34% organic growth. Project pipeline strong for 2026+.
- **Cyclical Resilience**: 2/3 revenue from replacement/maintenance. 2020 COVID impact: flat vs. 20%+ decline for peers.
- **TAM Expansion**: Sigma/Omega adds ~$2x order value per cooling tower/boiler solution. 2/3 revenue from Canada, targeting U.S. expansion.


SPX (SPXC)-1 May 25-2025 Q1 Earnings call transcript

- **Record 2024 Performance**: 36% EBITDA growth, $5.58 EPS, and 13.7% Q4 revenue growth highlight strong execution across HVAC and D&M segments.
- **Strategic Acquisitions Pay Off**: KTS adds $90M annual revenue and expands CommTech into U.S. military and global markets.
- **Sustainability Innovation**: New biofuel boilers and antibiotic cooling solutions target high-growth data center, healthcare, and institutional markets.
- **2025 Growth Drivers**: 13% EBITDA growth, 10% EPS expansion, and $2.13B-$2.19B revenue range reflect confidence in organic momentum and acquisition integration.
- **Risks Mitigated**: 80%+ U.S. revenue, in-country sourcing, and pricing power reduce tariff and supply chain risks.

**【CEO Summary Section】**
- Full year 2024 adjusted EBITDA grew 36%, with Q4 revenue up 13.7% YoY driven by HVAC cooling and Detection & Measurement (D&M) segment growth.
- Acquired KTS, expanding Communication Technologies (CommTech) platform with $90M annual revenue and enhanced project pipeline visibility for 2026+.
- Introduced sustainability-focused products like biofuel boilers and antibiotic cooling solutions, targeting data centers, healthcare, and institutional markets.
- 2025 guidance: $2.13B-$2.19B revenue, 13% EBITDA growth, and 10% EPS growth at midpoint.

**【CFO Financial Commentary】**
- Q4 adjusted EPS $1.51 (21% YoY growth), full year $5.58 (29% YoY), near upper end of guidance.
- HVAC segment organic revenue +12.8% YoY, D&M segment margin +410bps to 27%.
- 2025 free cash flow expected to exceed 100% of adjusted net income, with leverage ratio <2.5x post-KTS acquisition.
- Q1 2025 modest revenue growth driven by KTS and Ingénia, with flat organic growth offsetting D&M project timing.

**【Q&A Highlights】**
- **Data Center Growth**: 7% of total revenue in 2024, expected to remain steady with new abiotic and dry cooling products targeting 2026+.
- **KTS Synergies**: $80M+ 2025 contribution, with potential CommTech expansion into U.K., Canada, and U.S. Air Force.
- **Market Risks**: Cautious optimism on U.S. economic policy, with 80%+ U.S.-sourced revenue mitigating tariff exposure.
- **Project Visibility**: D&M backlog up 14% QoQ, with 2026+ pipeline driven by Genfare transportation and military projects.
- **Ingénia Expansion**: Facility expansion delays resolved, full production capacity achieved for large-scale cooling solutions.

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