Key Takeaways:
SPX Technologies reported Q2 adjusted EPS of $2.02, beating the $1.85 consensus, and raised its 2026 outlook on AI data center demand.
"Our updated outlook reflects continued strength in data center demand, the impact of the Neptronic acquisition, and stronger performance from our detection and measurement segment, positioning us well for the balance of the year," CEO Gene Lowe said.
Revenue of $679 million rose 22.9% from a year earlier, topping the $640.1 million consensus. Adjusted EBITDA climbed 19.8% to $151.8 million.
HVAC segment revenue grew 27.6% to $480.6 million, while Detection & Measurement rose 12.9% to $198.4 million. GAAP income from continuing operations surged 51% to $79.3 million.
Shares jumped 10.24% to close at $219.62 on July 31, after touching an intraday high of $236.89. The company now sees $1.1 billion in annual data center equipment sales at full production, up from a prior $750 million projection.
Management lifted its full-year 2026 forecast, guiding adjusted EPS to $8.20–$8.60, above the $8.04 consensus, and revenue to $2.705 billion–$2.765 billion, versus the $2.614 billion Street view. Adjusted EBITDA guidance rose to $630 million–$660 million from $600 million–$625 million.
The HVAC segment's margin contracted 260 basis points to 22.8%, pressured by start-up costs from capacity expansion and tariff headwinds. Detection & Measurement margin expanded 610 basis points to 28.9% on favorable product mix.
SPX closed its CA$605 million (~$430 million) cash acquisition of Neptronic, which adds about $75 million in annual revenue and broadens intelligent HVAC controls across data centers, healthcare, and education. Initial assembly of the Olympus Max cooling line is underway at its Madison, Alabama facility.
Analysts turned bullish. Truist lifted its price target to $295, Oppenheimer to $280, and Wolfe Research to $266. BofA launched coverage at $235 with a Buy rating. The stock trades at a price-to-earnings multiple near 36.6, a premium that reflects the AI data center growth story.
The guidance raise shows management expects AI-driven cooling demand to accelerate through the year. Investors will watch the next earnings call for updated segment margins as the Madison facility ramps to full production.
This article is for informational purposes only and does not constitute investment advice.
