One-glance verdict
Within fair range
$115.98 our estimate vs market $165.72
Wall Street consensus: $250.69 (116.2% higher than our fair-value estimate)
43% above our estimate
Fundamentals snapshot
SPX Technologies, Inc.
SPXC · NYQ · Industrials · Building Products & Equipment
Current price
$165.72
52-week range
$155.86 - $251.08
Market cap
$8.30B
Balance sheet
Watch
7.32x Adequate
Net debt $448.30M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 9.3% last year.
- Reward Returns 14.7% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 8/10 years.
- Risk Net debt grew 39.0% over 3 years.
What this company does
SPX Technologies, Inc.
SPX Technologies builds and sells essential equipment, primarily for heating, ventilation, and air conditioning (HVAC) systems in large buildings and for specialized detection tools used in infrastructure like underground pipes. The company's revenue (the total money brought in from sales) comes from these two distinct business lines, which serve critical needs for construction, maintenance, and public services. This focus on necessary technical equipment for large-scale projects can provide a steady stream of business.
How the company got here
SPX Technologies began as a piston ring company in 1912 to serve the growing auto industry. Over many decades, it grew by acquiring (buying) other companies, eventually becoming a large, diverse manufacturer named SPX Corporation. A major turning point came in 2015 when it spun off its largest business, creating a separate company called SPX FLOW. This move allowed the remaining company to focus on more specific areas, and in 2022, it was renamed SPX Technologies to reflect its new, more concentrated strategy.
What it actually does
SPX Technologies makes highly specialized equipment that is essential for buildings and public infrastructure. Think of them as a supplier of critical, behind-the-scenes products you don't see every day but rely on. Their products fall into two main categories: systems that control the temperature and air in large buildings, and devices that help locate, inspect, and manage important infrastructure like underground pipes, airport runways, and public transit.
HVAC
This is the company's largest business area and focuses on HVAC (heating, ventilation, and air conditioning) products. It doesn't make the air conditioner for your house, but rather the large-scale systems for commercial buildings, data centers, and factories, such as cooling towers, large boilers, and engineered fans. Customers for these products are businesses and institutions that need powerful and reliable climate control for their facilities. This segment provides the majority of the company's revenue (the total money it brings in from sales).
Detection & Measurement
This part of the company makes specialized tools and technologies for managing infrastructure. This includes devices that locate underground pipes and cables for utility workers, robotic cameras that inspect sewer lines, and fare collection systems for public buses and trains. It also produces specialty lighting and navigation aids for airports and marine ports. The customers are typically utility companies, city governments, and transportation authorities who need these tools to maintain and operate essential public services.
What management is betting on now
The company's main strategy is to grow by acquiring (buying) other companies that are leaders in very specific, specialized markets. They focus on purchasing businesses that add new technology or expand their product lines within their two main segments, HVAC and Detection & Measurement. For example, they have recently bought companies that make custom air handling systems and water management solutions to strengthen their HVAC offerings for large facilities like data centers. This approach aims to make SPX a go-to provider for high-performance, essential equipment in its chosen fields.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$43.50M
FY2024 Q4
$156.70M
FY2025 Q1
$-16.40M
FY2025 Q2
$34.80M
FY2025 Q3
$96.10M
FY2025 Q4
$126.70M
FY2026 Q1
$12.10M
FY2026 Q2
$68.50M
Revenue
$679.00M
Net income
$78.40M
Diluted EPS
1.55
Operating cash flow
$89.60M
Free cash flow
$68.50M
Fetching…
Sources
Revenue
$566.80M
Net income
$59.90M
Diluted EPS
1.19
Operating cash flow
$30.60M
Free cash flow
$12.10M
Fetching…
Sources
Revenue
$637.30M
Net income
$77.90M
Diluted EPS
1.56
Operating cash flow
$195.20M
Free cash flow
$126.70M
Fetching…
Sources
Revenue
$592.80M
Net income
$62.70M
Diluted EPS
1.28
Operating cash flow
$106.50M
Free cash flow
$96.10M
Fetching…
Sources
Revenue
$552.40M
Net income
$52.20M
Diluted EPS
1.10
Operating cash flow
$42.50M
Free cash flow
$34.80M
Fetching…
Sources
Revenue
$482.60M
Net income
$51.20M
Diluted EPS
1.09
Operating cash flow
$-10.90M
Free cash flow
$-16.40M
Fetching…
Sources
Revenue
$533.70M
Net income
$57.10M
Diluted EPS
1.21
Operating cash flow
$166.50M
Free cash flow
$156.70M
Fetching…
Sources
Revenue
$483.70M
Net income
$50.20M
Diluted EPS
1.06
Operating cash flow
$51.40M
Free cash flow
$43.50M
Fetching…
Sources
Is it cheap or expensive?
Fair value $115.98 vs current price $165.72
Wall Street consensus is the average analyst price target: $250.69 (116.2% higher than our fair-value estimate).
Our most-likely fair value is $115.98 a share — about 30.0% away from today's price of $165.72, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $448.3M. Interest coverage 7.3x.
Net debt
$448.30M
Interest coverage
7.32x
SPX Technologies, Inc.'s profit covers its interest bill about 7.3 times over.
Watch
Worse cushion
Baseline
Better cushion
SPXC
BASELINE
SPX Technologies, Inc.
Total debt $614.70M Interest coverage 7.32x This is the baseline the peer rows are being compared against.
Total debt $2.32B Interest coverage 6.68x -9% vs SPXC Has roughly the same debt cushion as SPXC.
Total debt $928.50M Interest coverage 37.54x +413% vs SPXC Carries about 5.1x more debt cushion than SPXC.
Total debt $211.80M Interest coverage 43.69x +497% vs SPXC Carries about 6.0x more debt cushion than SPXC.
Total debt $1.64B Interest coverage 13.41x +83% vs SPXC Carries about 1.8x more debt cushion than SPXC.
What you should know
The case for and against SPXC
3 Rewards
1 Risk
Rewards
-
Revenue grew 9.3% last year.
-
Returns 14.7% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Net debt grew 39.0% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
29.23x
Forward P/E
17.19x
P/B
3.53x
P/S
3.35x
EV/EBITDA
16.72x
PEG ratio
0.93x
Profitability
How much profit each dollar creates
Gross margin
40.3%
Operating margin
17.7%
Net margin
11.3%
ROE
14.7%
ROA
6.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.26x
Current ratio
1.82x
Quick ratio
1.14x
Total debt
$614.70M
Total cash
$166.40M
Growth
How the business has been compounding
Revenue TTM
$2.48B
Revenue 5Y CAGR
16.7%
EPS TTM
5.67
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$421.90M
Free CF TTM
$241.20M
FCF margin
9.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2015-06-12