SPX Technologies Q3 Revenue Rises 21% on HVAC Growth

SPX Technologies (NYSE: SPXC) reported a 21% increase in third-quarter revenue as strong organic growth and acquisitions lifted its HVAC business, while adjusted EBITDA and adjusted earnings per share each rose about 20%. The company increased its 2026 revenue range but narrowed its adjusted EBITDA and adjusted EPS outlooks, reflecting a lower expected HVAC margin range partly offset by stronger profitability expectations for Detection & Measurement.

Revenue rose 20.5% year over year to $714.5 million for the quarter ended September 26, from $592.8 million. Organic growth contributed 11.8 percentage points, acquisitions added 8.5 points and currency provided a 0.2-point benefit.

Adjusted EBITDA increased 21.7% to $165.7 million from $136.1 million, with the margin edging up 20 basis points to 23.2%. Adjusted EPS from continuing operations rose 20% to $2.21 from $1.84.

On a GAAP basis, earnings from continuing operations increased to $82.3 million from $63.1 million, while diluted EPS from continuing operations reached $1.62, compared with $1.29 a year earlier. Net income was $81.9 million, up from $62.7 million.

HVAC growth offsets margin pressure

HVAC remained the main growth driver. Segment revenue climbed 35.5% to $525 million, including 22.3% organic growth and a 13% contribution from acquisitions. SPX said both its cooling and heating operations recorded solid growth.

HVAC segment income rose by $26.4 million to $120.8 million. However, the segment margin declined 140 basis points to 23% as growth-related inefficiencies and elevated input costs offset some of the benefit from higher volume and acquisitions.

Cooling-related revenue, including package and process cooling equipment, services and engineered air-movement products, increased to $338.4 million from $236.5 million. Revenue from hydronic heating, electrical heating and ventilation rose to $186.6 million from $150.9 million.

Management described cooling backlog and demand across core verticals as strong, including high demand tied to data centers. Demand in electric and hydronic heating was solid. The company also said it continued to make progress on capacity expansions and that the integration of recent acquisitions remained on track.

SPX closed its acquisition of FIS Water during the period. The acquired business provides centrifugal and media filtration and separation technologies used in HVAC, data-center cooling, industrial and water-supply applications. Management characterized the transaction as an extension of the company’s HVAC strategy and said its acquisition pipeline remained active.

Detection & Measurement revenue falls, margins strengthen

Detection & Measurement revenue decreased 7.7% to $189.5 million, including a 7.9% organic decline that SPX attributed primarily to project timing. Currency added 0.2 percentage point.

Despite the lower revenue, segment income increased by $0.9 million to $52.6 million. The segment margin expanded 260 basis points to 27.8%, supported by favorable project mix and continued benefits from synergy initiatives.

Revenue from underground locators, inspection and rehabilitation equipment, and robotic systems rose to $67.3 million from $63.4 million. Communication technologies, navigation aids and transportation systems generated $122.2 million, down from $142 million.

The company said its project-oriented businesses had a healthy backlog and steady frontlog activity, while run-rate demand was steady and led by the U.S. market.

Revenue outlook increases as profit ranges narrow

SPX now expects 2026 revenue of $2.745 billion to $2.805 billion, compared with its prior range of $2.705 billion to $2.765 billion. The HVAC revenue forecast increased to $1.995 billion to $2.035 billion from $1.955 billion to $1.995 billion, while the Detection & Measurement forecast remained at $750 million to $770 million.

The company expects adjusted EBITDA of $625 million to $645 million, narrowing its previous range of $630 million to $660 million. The midpoint represents anticipated growth of about 25% for the year. The adjusted EBITDA margin is projected at 22.75% to 23%, compared with the prior 23.3% to 23.8% range.

Adjusted EPS is expected to be between $8.20 and $8.50, versus the previous range of $8.20 to $8.60. These outlook measures are non-GAAP, and SPX said reconciliations to comparable GAAP guidance were not practicable.

The HVAC segment margin forecast was revised to 23.1% to 23.5% from 24.5% to 25%. By contrast, the expected Detection & Measurement margin increased to 27% to 27.5% from 26.25% to 26.75%.

SPX expects full-year capital spending of $135 million to $165 million. For the first nine months, operating cash flow from continuing operations rose to $180.3 million from $139.8 million, but adjusted free cash flow declined to $111 million from $164.2 million as capital expenditures increased to $79.6 million from $23.6 million.

Total debt stood at $1.34 billion at the end of the third quarter, up from $615 million at the end of the second quarter. With $121 million of cash, net debt was $1.21 billion, compared with $447 million three months earlier.

The outlook remains subject to risks including tariffs and other trade barriers, input-cost inflation, supply-chain performance, project timing, fixed-price contract execution, capacity-expansion costs and schedules, and the integration of acquired businesses. SPX also identified changes in customer investment, geopolitical conflict, cybersecurity threats and broader economic conditions as potential sources of uncertainty.