SPX Technologies beats Q2 revenue estimates, raises annual guidance
Overview
SPX Q2 revenue rises 10.2% yr/yr, beating analyst expectations, per LSEG data
Adjusted EPS for Q2 increases 16.2%, exceeding consensus estimates, per LSEG data
Co, which supplies detection and measurement products, raises 2025 guidance
Outlook
SPX raises 2025 revenue guidance to $2.225-$2.275 bln
Company expects 2025 adjusted EBITDA of $485-$510 mln
SPX sees 2025 adjusted EPS of $6.35-$6.65
Company confident in strong customer demand for second half of 2025
Result Drivers
HVAC SEGMENT GROWTH - Revenue increased by 5.7% due to inorganic growth from acquisitions and higher volumes of heating and cooling products, despite a larger service project in the previous year
DETECTION & MEASUREMENT GROWTH - Revenue in this segment rose 21.3% driven by the acquisition of KTS and higher project volumes in communication technologies and transportation systems, partially offset by lower volumes in aids to navigation
STRATEGIC INITIATIVES - Co is advancing growth initiatives and new product introductions, including expanding production capacity for Engineered Air Movement businesses and launching the OlympusV Max cooling solution for data centers, per CEO Gene Lowe
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $552.40 mln | $546.60 mln (7 Analysts) |
Q2 Adjusted EPS | Beat | $1.65 | $1.45 (7 Analysts) |
Q2 EPS | $1.1 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for SPX Technologies Inc is $195.00, about 7% above its July 30 closing price of $181.26
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 20 three months ago
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