EarningsQ3 2026 Earnings Report
MX:SPXC Q3 2026 EPS Results
Actual EPS$41.52
Consensus EPS$39.77
Beat/MissBeat by +$1.75
One Year Ago EPS$34.57
MX:SPXC Q3 2026 Revenue Results
Actual Revenue$13.42B
Expected Revenue$13.35B
Beat/MissBeat by +$77.40M
YoY Revenue Growth+20.53%
Earnings Announcement Details
QuarterQ3 2026
Date10/29/2026
TimeAfter Close
Conference CallThursday, October 29, 2026
MX:SPXC Upcoming Earnings
SPX's next earnings date is estimated for February 25, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:SPXC Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Management reported 20% adjusted EPS growth, record HVAC revenue and backlog, approximately 25% expected full-year adjusted EBITDA growth, healthy demand across core markets and data centers, successful acquisition integration, and improving supply-chain performance. These strengths were partly offset by HVAC margin pressure from growth-related inefficiencies and elevated input costs, a 7.7% D&M revenue decline, lower adjusted EPS guidance at the top end, and softness in selected end markets.Company Guidance
Strong Third-Quarter Earnings Growth
Adjusted EPS increased 20% year-over-year to $2.21, marking the fifth consecutive quarter of 20% or more year-over-year growth. Revenue increased 20.5% year-over-year, including 11.8% organic growth and 8.5% inorganic growth, while adjusted EBITDA increased 21.7% to $165.7 million. Adjusted EBITDA margin increased 20 basis points to 23.2%.
Full-Year Adjusted EBITDA Growth Outlook
Updated full-year guidance implies approximately 25% adjusted EBITDA growth at the midpoint, reflecting continued momentum in both segments.
Record HVAC Revenue and Backlog Growth
HVAC revenue grew a record 35.5% year-over-year, including 22.3% organic growth and 13% inorganic growth, driven by growth in heating and cooling and strong data center volumes. Organic HVAC backlog increased 69% year-over-year and 15% sequentially to approximately $1.1 billion, crossing the $1 billion mark for the first time.
Healthy Data Center Demand and Capacity Expansion
Demand for data center solutions remains robust and was described as accelerating. Capacity expansions across HVAC facilities remain on track with the previously outlined timeline and capital requirements, with approximately $1.1 billion of total data center capacity expected once fully operational. Madison commenced assembly during the quarter, shipping OlympusMAX and Ingenia products, and is expected to ramp production through the balance of the year.
Broad Strength Across HVAC End Markets
Beyond data centers, the company described power, industrial, semiconductor, health care, pharmaceutical, sports and entertainment, and commercial replacement activity as healthy. The company said it feels very good about its HVAC organic growth in both core markets and data centers.
Detection & Measurement Margin Improvement
Detection & Measurement revenue decreased 7.7% year-over-year, but segment income increased approximately 1.7% and segment margin increased 260 basis points. The margin improvement was driven by favorable project mix, continued synergy initiatives, and a commercial resolution with a customer. D&M backlog ended the quarter at $322 million, up 3% sequentially.
Improved Structural Margin Profile in D&M
Management said D&M has reset its structural margin profile and is operating at a higher margin level than the previously stated 22% to 24% medium-term framework. Management may update the framework with next year's guidance. The company estimated that unique 2026 factors represented approximately 175 basis points of margin, including a transportation-project scope expansion, a one-time commercial resolution, and favorable mix.
Strategic Acquisitions Tracking Well
Four strategic HVAC acquisitions were completed this year: Crawford, including Air Enterprises and Rahn, Thermolec, Neptronic, and FIS Water. Approximately $1.2 billion of capital was deployed for approximately $310 million of revenue run rate, at a blended purchase multiple of approximately 11.7x. Management said the acquisitions are on track or modestly ahead, and the four transactions are expected to contribute approximately 60 basis points of year-over-year margin accretion in 2026.
FIS Water Expands Cooling and Water Management Offering
FIS Water complements SPX's cooling product offering with water management and control solutions, including products typically paired with cooling towers. Management said the acquisition broadens the company's offering, strengthens its position in attractive end markets including data centers, and creates additional opportunities through SPX's global channels, OEM relationships, and specification-driven sales capabilities.
Heat Trace Product Launch Gaining Momentum
The company's heat trace launch is gaining momentum, with strong early customer engagement and a meaningful opportunity to scale through established channels across industrial and commercial applications.
Supply Chain Flexibility and Improvement
Management said no material supply-chain issue significantly affected the company in the third quarter or is expected to do so in the fourth quarter. The company has intellectual property and engineering control over most of its products and can use multiple suppliers for component fabrication. Management also reported very nice improvement in supply-chain performance in September and year-to-date October, and said it has not experienced coil shortages.
Pricing Actions and Contract Mechanisms
The company has been raising prices throughout the year across its HVAC businesses and said it has not seen pushback on pricing. Management stated that hyperscaler frame agreements include mechanisms to adjust prices based on changes in input costs, and that price increases are already included in a significant portion of the backlog.
Strong Financial Position and Cash Generation
SPX ended the third quarter with $121 million of cash and $1.3 billion of total debt. Its leverage ratio under the bank credit agreement was approximately 1.8x at quarter end, including the FIS Water acquisition, and year-to-date adjusted free cash flow was $111 million.
Attractive Acquisition Pipeline
Management described the acquisition pipeline as strong, with opportunities in engineered air movement, electric heat, cooling, niche hydronics, location and inspection, and transportation. Management said it does not expect anything as large as FIS Water before year-end but continues to see strategic opportunities into 2027.
Healthy Demand Visibility in Data Centers
More than 90% of the company's data center activity is directed toward hyperscalers, with additional activity from neoclouds and smaller data centers. Management said customers are providing very good visibility over the next two to three years and that demand has increased and accelerated compared with three months earlier.
MX:SPXC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed