SPX Beats on Q3 Revenue and EPS but Cuts Full-Year EBITDA and HVAC Margin Outlook
SPXC is trading near its 52-week low of $155.858 (7.3% above the low).
Summary
SPX delivered a strong third quarter: revenue of $714.5 million rose 20.5% and adjusted EPS of $2.21 climbed 20.1%, beating the IBES estimate of USD 2.13, with HVAC revenue up 35.5% on data center cooling demand and acquisitions. But the guidance update is mixed. Full-year revenue was raised to $2.745-$2.805 billion, yet adjusted EBITDA was trimmed to $625-$645 million from $630-$660 million and adjusted EPS narrowed to $8.20-$8.50 from $8.20-$8.60, while the company also lifted its 2026 outlook. The culprit is HVAC margin: segment margin guidance drops to 23.10%-23.50% from 24.50%-25.00%, reflecting higher growth-related labor and supply chain costs plus elevated input costs, and Q3 HVAC margin already fell 140bps to 23.0%. Detection & Measurement was the offset, with margin guidance lifted to 27.00%-27.50% even as segment revenue fell 7.7% on weaker communications project volumes. Cash generation is the soft spot: Q3 adjusted free cash flow fell to $23.1 million from $90.8 million as capex jumped to $40.0 million and debt rose to $1.33 billion after $1.29 billion of year-to-date acquisitions. The 10-Q is due by November 5 and the earnings call is at 4:45 p.m. ET today.
At the time of this announcement, SPXC was trading at $167.26 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $8.4B. The 52-week trading range was $155.86 to $251.08. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.