SPX Technologies — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue increased 20.5% year-over-year to $714.5 million in Q3 2026, compared to $592.8 million in Q3 2025.
• GAAP income from continuing operations rose 30.4% to $82.3 million, up from $63.1 million in Q3 2025.
• GAAP net income increased 30.6% to $81.9 million, compared to $62.7 million in Q3 2025.
• GAAP EPS from continuing operations grew 25.6% to $1.62, up from $1.29 in Q3 2025.
• Adjusted EPS increased 20.1% to $2.21, compared to $1.84 in Q3 2025.
• Adjusted EBITDA rose 21.7% to $165.7 million, up from $136.1 million in Q3 2025.
• Adjusted EBITDA margin was 23.2% in Q3 2026, compared to 23.0% in Q3 2025.
• Net operating cash flow from continuing operations was $60.1 million in Q3 2026, down from $106.8 million in Q3 2025.
• Capital expenditures were $40.0 million in Q3 2026, compared to $10.4 million in Q3 2025.
• Adjusted free cash flow was $23.1 million in Q3 2026, down from $90.8 million in Q3 2025.
• Total debt increased to $1,334.7 million at September 26, 2026, from $501.6 million at December 31, 2025.
• Total cash was $120.8 million at September 26, 2026, compared to $366.0 million at December 31, 2025.
• Year-to-date revenue was $1,960.3 million, up from $1,627.8 million in the prior year period.
• Year-to-date GAAP net income was $220.2 million, up from $166.1 million in the prior year period.

Guidance and Future Outlook:

• Updated full-year 2026 revenue guidance is $2.745 to $2.805 billion, implying ~23% year-on-year growth at the midpoint (prior range: $2.705 to $2.765 billion).
• Updated full-year 2026 Adjusted EBITDA guidance is $625 to $645 million, implying ~25% year-on-year growth at the midpoint (prior range: $630 to $660 million).
• Updated full-year 2026 Adjusted EPS guidance is $8.20 to $8.50, implying ~24% year-on-year growth at the midpoint (prior range: $8.20 to $8.60).
• Management expects approximately 25% Adjusted EBITDA growth at the midpoint for 2026.
• HVAC segment full-year revenue guidance is $1,995 to $2,035 million (prior: $1,955 to $1,995 million).
• HVAC segment full-year Adjusted EBITDA margin guidance is 23.10% to 23.50% (prior: 24.50% to 25.00%).
• Detection and Measurement segment full-year revenue guidance remains $750 to $770 million.
• Detection and Measurement segment full-year Adjusted EBITDA margin guidance is 27.00% to 27.50% (prior: 26.25% to 26.75%).

Business Segments and Product Lines:

• HVAC: Revenue was $525.0 million in Q3 2026, up 35.5% year-over-year.
  • Organic revenue growth was 22.3%, driven by higher volumes of cooling equipment (associated with data center demand and capacity increases) and heating products.
  • Inorganic growth contributed 13.0%, driven by acquisitions of Thermolec, Crawford, Neptronic, and FIS Water.
  • Segment income was $120.8 million, up from $94.4 million.
  • Segment margin decreased 140 basis points to 23.0%, primarily due to higher growth-related costs (labor and supply chain inefficiencies) and elevated input costs.
  • HVAC capacity expansion projects are on track to support approximately $1.1 billion of annual data center revenue capacity at full production.
• Detection and Measurement: Revenue was $189.5 million in Q3 2026, down 7.7% year-over-year.
  • Organic revenue declined 7.9%, primarily driven by lower project volumes in the communications technologies business.
  • Segment income was $52.6 million, up from $51.7 million.
  • Segment margin increased 260 basis points to 27.8%, driven by a more favorable product mix in transportation and communication technologies businesses and synergy benefits in location, inspection, and rehabilitation businesses.

Market and Competitive Landscape:

• HVAC demand is strong across key end markets, specifically driven by data center demand.
• The company expanded its cooling platform through the acquisition of FIS Water to strengthen its position in attractive adjacent markets.
• The company holds leadership positions in the HVAC and detection and measurement markets.

Risks and Challenges:

• HVAC segment margins were pressured by higher growth-related costs, including labor and supply chain inefficiencies associated with volume increases and capacity expansion.
• Elevated input costs impacted HVAC segment margins.
• Communications technologies business experienced lower project volumes, leading to organic revenue decline in the Detection and Measurement segment.
• Forward-looking statements identify risks including cyclical changes, capital investment fluctuations, geopolitical conflicts, tariffs, raw material cost increases, competition, government contract risks, supply chain risks, environmental liabilities, cyber-security risks, and integration risks related to acquisitions.

Management Commentary and Tone:

• Gene Lowe, President and CEO, described the quarter as "strong," highlighting robust revenue and earnings growth.
• Management noted that HVAC benefited from strong demand and that Detection & Measurement delivered excellent profitability.
• Mr. Lowe expressed confidence in the business model and the consistent execution of teams.
• Management stated that strategic growth initiatives made meaningful progress, with HVAC capacity expansion on track and the FIS Water acquisition strengthening the cooling platform.
• The tone regarding future outlook is confident, citing momentum and opportunities ahead.

Other Key Points:

• The company acquired Thermolec, Crawford, Neptronic, and FIS Water during the quarter, contributing to inorganic revenue growth.
• The company expects to file its Form 10-Q for the period ended September 26, 2026, by November 5, 2026.
• A conference call was hosted to discuss results, with a webcast and slide presentation available on the company website.
• Non-GAAP measures used include Adjusted Operating Income, Adjusted EBITDA, and Adjusted Free Cash Flow, which exclude items such as intangible asset amortization, acquisition costs, and pension-related charges.
• The company has operations in over 16 countries and is listed on the NYSE under the ticker symbol "SPXC".