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SPX Technologies, Inc. Common Stock
Our verdict on SPX Technologies, Inc. Common Stock isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
The acquisition was finalized for $143.6 net of cash, and its results are now being reported within the HVAC segment as promised. (2 met across 2 tracked commitments)
“In connection with the acquisition of KTS, which has definite-lived intangible assets as noted above, we updated our estimated annual amortization expense related to intangible assets to approximately $76.0 for the full year 2025, $66.0 for 2026, and $63.0 for each of the three years thereafter.”
Management continues to expect no direct material impact from announced tariffs in fiscal 2025, despite the U.S. government announcing significant additional tariffs during the period. (1 met across 1 tracked commitment)
“We have taken actions to manage near-term costs and cash flows, and implemented actions to address potential material sourcing challenges we could face over the near-term. Lastly, we will continue to assess the actual and expected impacts of the tariffs and the need for further actions.”
Management reaffirmed the expectation that unrecognized tax benefits could decrease by up to $2.0 over the next 12 months. (1 met across 1 tracked commitment)
“Based on the outcome of certain examinations or as a result of the expiration of statutes of limitations for certain jurisdictions, we believe that within the next 12 months it is reasonably possible that our previously unrecognized tax benefits could decrease by up to $2.0.”
The authorization remains active; however, no share repurchases were executed during the three or nine months ended September 27, 2025. (2 in progress across 2 tracked commitments)
“On May 13, 2025, our Board of Directors authorized management, in its sole discretion, to repurchase, in any fiscal year, up to $100.0 of our common stock, subject to maintaining compliance with all covenants of our senior credit agreement.”
Management reaffirmed the estimated annual amortization expense for 2025 and subsequent years with no material change to the guidance provided in the previous quarter. (1 met, 3 revised across 4 tracked commitments)
“In connection with the acquisitions of KTS and Sigma & Omega, which have definite-lived intangible assets as noted above, we updated our estimated annual amortization expense related to intangible assets to approximately $90.0 for the full year 2025, $73.0 for 2026, and $70.0 for each of the three years thereafter.”
See the full cited Management analysis of SPX Technologies, Inc. Common Stock
How durable is the business?
The segment saw significant expansion with revenue increasing 20.6% to $746.9 million, primarily due to the KTS acquisition (13.8% contribution). Segment margins expanded from 22.1% to 23.6% on higher project volumes and fixed cost leverage. (2 expanding across 2 engines)
“Detection and Measurement reportable segment Revenues $ 172.8 ... Segment income $ 46.7”
The HVAC segment revenue grew to $376.7 million, driven by the acquisitions of Ingénia and Sigma & Omega, alongside organic growth in heating and cooling products. (5 expanding)
“We are a diversified, global supplier of highly specialized, engineered solutions with operations in 16 countries and sales in over 100 countries around the world. We have aggregated our operating segments into the following two reportable segments: HVAC and Detection and Measurement.”
Revenue in this segment surged 21.3% primarily due to the acquisition of KTS, which contributed $21.6 million in the quarter, offsetting organic declines in aids to navigation. (4 expanding)
“From time to time, we may make acquisitions that do not significantly impact our financial position... Acquisition of KTS... Acquisition of Sigma & Omega... Acquisition of Thermolec... Acquisition of Crawford”
The U.S. market remains the dominant revenue driver, though its share of total revenue slightly moderated to 79.4% from 81.8% in the prior year's quarter. (1 stable, 2 expanding)
“Geographic Areas: Revenues: United States $ 447.6 ... Total $ 566.8”
The company's M&A moat is expanding significantly, with $447.7 million spent on acquisitions in the first half of 2025, including KTS and Sigma & Omega. (4 expanding)
“Identifiable intangible assets at March 28, 2026 ... Net Carrying Value $ 1,051.1 ... Customer relationships and contracts ... Technology ... Trademarks with indefinite lives”
See the full cited Business Model analysis of SPX Technologies, Inc. Common Stock
Where does growth come from?
The company maintains a steady liquidity position to fund its 'bolt-on' acquisition strategy, with $288.9 million currently available on its revolving credit facility. (3 steady, 1 accelerating, 1 new trend across 5 signals, 1 leading indicator)
“At March 28, 2026, we had $1,347.3 of available borrowing capacity under our revolving credit facility... primarily used to provide liquidity for funding acquisitions”
HVAC organic growth is accelerating, rising from 8.2% for the first half of the year to 17.7% in the most recent quarter, driven by high demand for cooling products and a large service project. (5 accelerating across 5 signals, 1 leading indicator)
“The organic revenue growth was due primarily to (i) higher volumes of cooling products primarily associated with increased data center demand and higher throughput resulting from increased capacity”
The company is actively realizing the benefits of expanded production capacity, which is directly translating into higher throughput and organic volume growth in the cooling business. (1 steady across 1 signal, 1 leading indicator)
“capital expenditures of $18.5 (inclusive of $10.8 related to capacity expansions for our engineered air movement and handling and cooling products businesses within the HVAC reportable segment)”
Backlog is showing strong acceleration, increasing significantly from $337.2 million in the prior year to $433.7 million, with the Ingénia acquisition contributing $107.5 million of that total. (5 accelerating across 5 signals)
“The segment had backlog of $755.3 and $451.3 as of March 28, 2026 and March 29, 2025, respectively.”
Acquisition-related revenue growth is accelerating as the company integrates larger deals like Ingénia, with acquisition contribution rising from 6.8% in the quarter to 14.3% for the nine-month period. (2 accelerating, 1 decelerating, 1 new trend, 1 steady across 5 signals)
“the increase in revenues... was due primarily to inorganic revenue growth resulting from the Sigma & Omega, Thermolec, and Crawford acquisitions”
See the full cited Future Growth analysis of SPX Technologies, Inc. Common Stock
What could break the thesis?
The cash position remains lower than historical levels but has stabilized slightly since the Q1 drop. Cash and equivalents stood at $132.8 million at June 28, 2025, down from $156.9 million at year-end 2024, primarily due to $447.7 million in acquisition outflows. (1 stable, 2 easing, 1 intensifying)
“Cash and equivalents [at March 28, 2026] 156.5... [at December 31, 2025] 364.0”
The risk is stable but unresolved. Total liabilities for the discontinued DBT business increased slightly to $13.3 million from $12.7 million at year-end 2024. The timing of resolution remains uncertain due to subcontractor liquidation. (3 stable)
“the impact of overruns, inflation and the incurrence of delays with respect to long-term fixed-price contracts”
The risk is easing. HVAC segment income as a percentage of revenue improved to 25.4% in Q2 2025 compared to 23.5% in Q2 2024, driven by a more accretive product mix and favorable project execution. (3 easing, 1 intensifying)
“The decline in margin, compared to the respective period in 2025, was due primarily to incremental start-up costs and related inefficiencies associated with our capacity expansion initiatives”
The company has a legacy liability related to a wound-down business in South Africa involving disputed amounts with a subcontractor in liquidation. [EXECUTION]
“Balances relate primarily to disputed amounts due to or from a subcontractor, engaged by DBT during the Kusile project, that is currently in liquidation.”
The risk is intensifying as the U.S. government announced significant additional tariffs in 2025. While management does not expect a direct material impact in fiscal 2025, they admit they cannot determine the full extent or duration of the impact if implemented on announced terms. (1 intensifying)
“During 2025, the U.S. government announced significant additional tariffs on goods imported to the U.S.... In response, certain governments have announced significant retaliatory tariffs... we are unable to determine the full extent or duration at this time.”
See the full cited Risk analysis of SPX Technologies, Inc. Common Stock
SPX Technologies, Inc. Common Stock analysis by filing period
Read the full thesis on SPX Technologies, Inc. Common Stock
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