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SPX
(NYSE:SPXC)
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Rating:69Neutral
Price Target:
$186.00
â–¼(-7.45% Downside)
Action:Reiterated
Date:08/18/26
The score is primarily supported by strong underlying fundamentals (healthy margins, growth, and manageable leverage) and a constructive earnings call with raised guidance and data-center-driven demand. Offsetting factors are a relatively expensive valuation (high P/E) and only neutral-to-mixed technical signals (negative MACD and price below the 50DMA), alongside the noted margin and execution risks.
Positive Factors
Data-center-led growth and backlog
Strong data-center demand is expanding SPX’s addressable opportunity and supporting substantial HVAC backlog growth. Higher expected capacity, improving throughput, and new assembly operations provide a durable foundation for revenue expansion beyond a single quarter.
Negative Factors
Cyclical and declining free cash flow
The recent decline in free cash flow and weak historical period show that cash conversion can be cyclical and working-capital sensitive. This may constrain the pace of reinvestment, acquisitions, or deleveraging if operating conditions weaken over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Data-center-led growth and backlog
Strong data-center demand is expanding SPX’s addressable opportunity and supporting substantial HVAC backlog growth. Higher expected capacity, improving throughput, and new assembly operations provide a durable foundation for revenue expansion beyond a single quarter.
Read all positive factors
SPX (SPXC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.49B
Dividend Yield2.07%
Average Volume (3M)570.00K
Price to Earnings (P/E)30.1
Beta (1Y)1.14
Revenue Growth20.63%
EPS Growth27.00%
CountryUS
Employees4,700
SectorIndustrials
Sector Strength72
IndustryConstruction Materials
Share Statistics
EPS (TTM)5.63
Shares Outstanding50,085,860
10 Day Avg. Volume670,937
30 Day Avg. Volume569,999
Financial Highlights & Ratios
PEG Ratio2.24
Price to Book (P/B)4.28
Price to Sales (P/S)4.22
P/FCF Ratio39.67
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue4.93
Enterprise Value/Gross Profit12.24
Enterprise Value/Ebitda22.83
Forecast
1Y Price Target
$250.09Price Target Upside24.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)8.35
Revenue Forecast (FY)$2.76B
SPX Business Overview & Revenue Model
Company Description
SPX Technologies, Inc. provides essential infrastructure equipment globally, with operations spanning the United States, China, the United Kingdom, and various international markets. The company's core business is divided into two primary division...
How the Company Makes Money
SPX Technologies makes money primarily by selling engineered equipment and technologies to commercial, industrial, and utility customers. Its revenue model is centered on (1) product sales of HVAC and building-environment solutions (including equi...
SPX Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed strong growth and momentum: double-digit revenue, EBITDA and EPS increases, substantial data-center demand lifting HVAC revenue and backlog, meaningful margin expansion in Detection & Measurement, and an accretive acquisition (Thermolec) that broadens controls capability. Offsetting items include near-term HVAC margin pressure from startup costs/tariffs/inflation, lumpiness in D&M driven by project timing (including a $15M pull-forward), back‑half weighted CapEx and operational ramp risks, and a pro forma leverage increase. On balance the positive growth, cash generation and strategic M&A outweigh the near-term headwinds.Positive Updates
Strong book-to-bill in HVAC
Reported HVAC book-to-bill approximately 1.4x in the quarter, reflecting robust demand and backlog build versus shipments.
Negative Updates
HVAC margin pressure in Q2
HVAC segment margin declined ~260 basis points year-over-year in Q2, primarily due to capacity expansion startup costs, the net impact of tariffs, and modest inflationary headwinds (company cited roughly ~80bps impact from tariffs, ~80bps from startup costs and ~50bps from inflationary pressures as contributors).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong book-to-bill in HVAC
Reported HVAC book-to-bill approximately 1.4x in the quarter, reflecting robust demand and backlog build versus shipments.
Read all positive updates
Company Guidance
SPX raised its 2026 outlook, increasing full‑year adjusted EPS midpoint by $0.45 to $8.40 (the midpoint implies ~27% adjusted EBITDA growth), citing higher data‑center volume (now guiding data‑center revenue to about $430M for the year and total data‑center capacity of $1.1B at full production, up from $750M), stronger Detection & Measurement performance, and the Thermolec acquisition (Thermolec ~ $75M revenue run‑rate, low‑40s segment income / mid‑40s EBITDA margins, ~12.5x purchase multiple and roughly $5–6M of 2026 accretion; ~25 bps contribution to HVAC margin). That raise was supported by Q2 results of revenue +23% YoY (17% organic), adjusted EBITDA +20% YoY, adjusted EPS $2.02 (+22%), consolidated segment income $167.1M, HVAC revenue +27.6% (organic +18.9%) with backlog $919M (+59% organic), D&M revenue +13% with backlog $312M, Q2 adjusted free cash flow ≈$72M, cash $168M, debt $615M (leverage ~0.7x; pro forma ~1.4x with Thermolec).SPX Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
76
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.48B | 2.27B | 1.98B | 1.74B | 1.46B | 1.22B |
| Gross Profit | 996.30M | 917.70M | 799.40M | 670.00M | 523.90M | 431.80M |
| EBITDA | 534.20M | 484.80M | 392.70M | 276.70M | 82.80M | 125.30M |
| Net Income | 278.90M | 244.00M | 200.50M | 89.90M | 200.00K | 425.40M |
Balance Sheet | ||||||
| Total Assets | 3.94B | 3.60B | 2.71B | 2.44B | 1.93B | 2.63B |
| Cash, Cash Equivalents and Short-Term Investments | 166.40M | 364.00M | 156.90M | 99.40M | 147.80M | 388.20M |
| Total Debt | 614.70M | 501.60M | 670.30M | 558.30M | 246.80M | 246.00M |
| Total Liabilities | 1.59B | 1.37B | 1.33B | 1.25B | 851.70M | 1.53B |
| Stockholders Equity | 2.35B | 2.24B | 1.38B | 1.19B | 1.08B | 1.10B |
Cash Flow | ||||||
| Free Cash Flow | 303.40M | 241.20M | 247.90M | 184.60M | -152.70M | 165.00M |
| Operating Cash Flow | 421.90M | 333.30M | 285.90M | 208.50M | -136.80M | 174.60M |
| Investing Cash Flow | -519.90M | -561.00M | -284.50M | -570.20M | -66.10M | 314.10M |
| Financing Cash Flow | 128.50M | 425.50M | 53.10M | 309.60M | -38.90M | -167.60M |
SPX Technical Analysis
Negative
200.98
Price Trends
192.27
Negative
207.79
Negative
210.33
Negative
Market Momentum
-6.25
Negative
33.37
Neutral
18.58
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SPXC, the sentiment is Negative. The current price of 200.98 is above the 20-day moving average (MA) of 173.80, above the 50-day MA of 192.27, and below the 200-day MA of 210.33, indicating a bearish trend. The MACD of -6.25 indicates Negative momentum. The RSI at 33.37 is Neutral, neither overbought nor oversold. The STOCH value of 18.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SPXC.
SPX Risk Analysis
SPX disclosed 45 risk factors in its most recent earnings report. SPX reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SPX Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.84B | 22.14 | 35.36% | 0.84% | 8.57% | 8.25% | |
75 Outperform | $95.37B | 27.29 | 26.94% | 1.02% | 6.81% | 70.90% | |
69 Neutral | $8.49B | 30.10 | 12.37% | 2.07% | 20.63% | 27.00% | |
66 Neutral | $848.15M | 12.68 | 13.03% | 2.64% | 3.01% | 55.11% | |
65 Neutral | $12.72B | 18.29 | 41.06% | 1.42% | 1.90% | -2.79% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | $9.02B | -14.02 | -17.10% | 2.68% | -11.79% | -310.77% |
* Industrials Sector Average
SPXC
SPX
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-12.26
-6.78%
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AWI
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161.87
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CSL
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319.57
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JCI
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155.41
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47.85%
OC
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112.61
-9.61
-7.86%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.