SPX Technologies Q2 Earnings Call Highlights

SPX Technologies reported strong Q2 2026 results: Revenue rose 23% year over year, adjusted EBITDA increased 20%, and adjusted EPS grew 22% to $2.02. The company raised its full-year adjusted EPS guidance midpoint by $0.45 to $8.40. Data center demand remains a major growth driver. SPX raised its 2026 data center revenue outlook to $430 million and increased expected fully operational production capacity to approximately $1.1 billion, supported by strong hyperscale, colocation and neo-cloud demand. HVAC revenue increased 27.6%, while Detection & Measurement segment income surged 43%. The recently announced Neptronic acquisition is expected to add about $75 million in full-year revenue and modestly support 2026 earnings.

SPX Technologies NYSE: SPXC reported second-quarter 2026 results marked by double-digit revenue, adjusted EBITDA and adjusted earnings-per-share growth, as demand for its data center cooling products and stronger Detection & Measurement project activity supported performance. Adjusted EBITDA increased 20% from a year earlier, while adjusted EPS rose 22% to $2.02, Chief Executive Officer Gene Lowe said on the company’s earnings call. Revenue increased 23%, including 17% organic growth. Consolidated segment income rose $31.3 million, or 23%, to $167.1 million, while consolidated segment margin held at 24.6%.

The company raised the midpoint of its full-year adjusted EPS guidance by $0.45 to $8.40. Lowe said the updated outlook reflects additional data center volume, a stronger outlook for Detection & Measurement, and modest accretion from the recently announced Neptronic acquisition. The revised guidance implies 27% adjusted EBITDA growth at the midpoint.

SPX increased its expected data center production capacity to approximately $1.1 billion when fully operational, up from a prior estimate of about $750 million. Lowe attributed the increase to higher-than-anticipated throughput at the company’s Olathe, Kansas, and Springfield facilities, as well as production and workflow improvements. The company has raised its 2026 data center revenue outlook several times, from an initial expectation of $300 million to $350 million last quarter and now to $430 million. Lowe said demand remains strong among existing hyperscale customers, while the company has also recorded wins with colocation and “neo cloud” customers. Assembly activity for the OlympusMAX cooling product began in July at the company’s new Madison, Alabama, facility. SPX expects to add production capabilities there during the first half of 2027. Production of engineered aluminum dampers at Tamco’s Tennessee facility is also ramping as planned. Chief Financial Officer Mark Carano said Tamco is expected to reach full production capacity sometime in 2027, while the Madison facility is expected to reach full capacity in the second half of 2028. He added that the timetable could move earlier if progress continues favorably. SPX said it has long-term agreements with several data center customers, though Lowe noted that such agreements are not recorded as backlog until formal purchase orders are received. The company said it evaluates supply availability for each major order and seeks to ensure it can meet delivery commitments.

In the HVAC segment, second-quarter revenue rose 27.6% year over year, including 18.9% organic growth. The segment recorded double-digit organic growth in both cooling and heating. Segment income increased $14 million, or 15%, primarily due to higher volume. HVAC segment margin declined 260 basis points from a year ear...