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SPX Technologies Reports Second Quarter 2024 Results

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SPX Technologies (NYSE:SPXC) reported strong Q2 2024 results, with revenue of $501.3 million and operating income of $74.6 million. The company's GAAP EPS was $0.96, while Adjusted EPS reached $1.42. Based on these results, SPX is raising its full-year 2024 Adjusted EPS guidance to $5.45-$5.60, implying year-on-year growth of approximately 28%.

Key highlights include:

  • Q2 net income increased 22.8% to $44.2 million
  • Adjusted EBITDA grew 45.0% to $108.9 million
  • HVAC segment revenue increased 32.5% to $356.5 million
  • Detection & Measurement segment revenue decreased 6.2% to $144.8 million

SPX updated its full-year 2024 guidance, targeting consolidated revenue of $1.97-$2.02 billion and adjusted EBITDA of $410-$430 million.

SPX Technologies (NYSE:SPXC) ha riportato risultati solidi per il secondo trimestre del 2024, con ricavi di 501,3 milioni di dollari e reddito operativo di 74,6 milioni di dollari. L'EPS GAAP dell'azienda è stato di 0,96 dollari, mentre l'EPS aggiustato ha raggiunto 1,42 dollari. Sulla base di questi risultati, SPX ha alzato le previsioni per l'Adjusted EPS per l'intero anno 2024 a 5,45-5,60 dollari, implicando una crescita anno su anno di circa il 28%.

I punti salienti includono:

  • Il reddito netto del secondo trimestre è aumentato del 22,8% a 44,2 milioni di dollari
  • Il EBITDA aggiustato è cresciuto del 45,0% a 108,9 milioni di dollari
  • I ricavi del segmento HVAC sono aumentati del 32,5% a 356,5 milioni di dollari
  • I ricavi del segmento Rilevazione e Misura sono diminuiti del 6,2% a 144,8 milioni di dollari

SPX ha aggiornato le sue previsioni per l'intero anno 2024, puntando a ricavi consolidati di 1,97-2,02 miliardi di dollari e a un EBITDA aggiustato di 410-430 milioni di dollari.

SPX Technologies (NYSE:SPXC) reportó sólidos resultados en el segundo trimestre de 2024, con ingresos de 501.3 millones de dólares y ingreso operativo de 74.6 millones de dólares. El EPS GAAP de la compañía fue de 0.96 dólares, mientras que el EPS ajustado alcanzó 1.42 dólares. Basándose en estos resultados, SPX está elevando su guía de EPS ajustado para todo el año 2024 a 5.45-5.60 dólares, lo que implica un crecimiento interanual de aproximadamente el 28%.

Los aspectos más destacados incluyen:

  • El ingreso neto del segundo trimestre aumentó un 22.8% a 44.2 millones de dólares
  • El EBITDA ajustado creció un 45.0% a 108.9 millones de dólares
  • Los ingresos del segmento HVAC aumentaron un 32.5% a 356.5 millones de dólares
  • Los ingresos del segmento de Detección y Medición disminuyeron un 6.2% a 144.8 millones de dólares

SPX actualizó su guía para el año completo 2024, apuntando a ingresos consolidados de 1.97-2.02 mil millones de dólares y EBITDA ajustado de 410-430 millones de dólares.

SPX Technologies (NYSE:SPXC)는 2024년 2분기 실적을 발표하며 5억 1,130만 달러의 수익7460만 달러의 운영 이익을 기록했습니다. 회사의 GAAP EPS는 0.96달러였으며, 조정 EPS는 1.42달러에 도달했습니다. 이러한 결과를 바탕으로 SPX는 2024년 전체 조정 EPS 예상치를 5.45-5.60달러로 상향 조정했습니다, 이는 전년 대비 약 28% 성장함을 의미합니다.

주요 하이라이트는 다음과 같습니다:

  • 2분기 순이익이 22.8% 증가하여 4,420만 달러에 이릅니다
  • 조정 EBITDA가 45.0% 증가하여 1억 8,890만 달러에 도달했습니다
  • HVAC 부문 수익이 32.5% 증가하여 3억 5,650만 달러에 도달했습니다
  • 탐지 및 측정 부문 수익은 6.2% 감소하여 1억 4,480만 달러에 이릅니다

SPX는 2024년 전체 예상치를 업데이트하며, 통합 수익 목표를 19.7-20.2억 달러, 조정 EBITDA 목표를 4.10-4.30억 달러로 설정했습니다.

SPX Technologies (NYSE:SPXC) a rapporté de solides résultats pour le deuxième trimestre 2024, avec un chiffre d'affaires de 501,3 millions de dollars et un revenu d'exploitation de 74,6 millions de dollars. Le GAAP EPS de l'entreprise était de 0,96 dollar, tandis que l'EPS ajusté a atteint 1,42 dollar. Sur la base de ces résultats, SPX augmente son indice de guidance EPS ajusté pour l'année entière 2024 à 5,45-5,60 dollars, ce qui implique une croissance d'environ 28 % d'une année sur l'autre.

Les faits saillants comprennent :

  • Le revenu net du deuxième trimestre a augmenté de 22,8 % pour atteindre 44,2 millions de dollars
  • Le EBITDA ajusté a crû de 45,0 % pour atteindre 108,9 millions de dollars
  • Le chiffre d'affaires du segment HVAC a augmenté de 32,5 % pour atteindre 356,5 millions de dollars
  • Le chiffre d'affaires du segment Détection et Mesure a diminué de 6,2 % pour s'établir à 144,8 millions de dollars

SPX a mis à jour ses prévisions pour l'année entière 2024, visant un chiffre d'affaires consolidé de 1,97-2,02 milliards de dollars et un EBITDA ajusté de 410-430 millions de dollars.

SPX Technologies (NYSE:SPXC) berichtete über starke Ergebnisse im 2. Quartal 2024 mit Umsätzen von 501,3 Millionen Dollar und Betriebseinnahmen von 74,6 Millionen Dollar. Der GAAP EPS des Unternehmens betrug 0,96 Dollar, während der Adjustierte EPS 1,42 Dollar erreichte. Basierend auf diesen Ergebnissen erhöht SPX die Prognose für das gesamte Jahr 2024 für den Adjustierten EPS auf 5,45-5,60 Dollar, was ein Wachstum im Jahresvergleich von etwa 28% impliziert.

Wichtige Höhepunkte sind:

  • Das Nettoeinkommen im 2. Quartal stieg um 22,8% auf 44,2 Millionen Dollar
  • Das Adjustierte EBITDA wuchs um 45,0% auf 108,9 Millionen Dollar
  • Die Umsätze im HVAC-Segment stiegen um 32,5% auf 356,5 Millionen Dollar
  • Die Umsätze im Segment Detektion & Messung sanken um 6,2% auf 144,8 Millionen Dollar

SPX hat seine Prognose für das gesamte Jahr 2024 aktualisiert und strebt konsolidierte Umsätze von 1,97-2,02 Milliarden Dollar sowie ein Adjustiertes EBITDA von 410-430 Millionen Dollar an.

Positive
  • Q2 revenue increased to $501.3 million from $423.3 million in Q2 2023
  • Operating income grew to $74.6 million from $51.3 million in Q2 2023
  • Net income rose 22.8% to $44.2 million
  • Adjusted EBITDA increased 45.0% to $108.9 million
  • HVAC segment revenue grew 32.5%, including 17.7% organic growth
  • Full-year 2024 Adjusted EPS guidance raised to $5.45-$5.60
  • HVAC segment income margin increased by 300 basis points to 23.5%
  • Detection & Measurement segment income margin improved by 450 basis points to 23.4%
Negative
  • Detection & Measurement segment revenue decreased 6.2% to $144.8 million
  • Total outstanding debt of $790.3 million as of June 29, 2024

Insights

SPX Technologies' Q2 2024 results demonstrate robust financial performance and operational efficiency. The company reported revenue of $501.3 million, a 18.4% increase year-over-year. More impressively, operating income surged by 45.4% to $74.6 million, indicating significant margin expansion.

The HVAC segment was a standout performer, with revenue growing 32.5% to $356.5 million. This growth was driven by a combination of organic growth (17.7%) and strategic acquisitions. The segment's income margin expanded by 300 basis points to 23.5%, showcasing improved operational efficiency.

While the Detection & Measurement segment saw a 6.2% revenue decline, its income margin expanded by 450 basis points to 23.4%, highlighting the company's ability to improve profitability even in challenging market conditions.

The company's guidance upgrade is particularly noteworthy. The new adjusted EPS guidance of $5.45 to $5.60 represents a significant increase from the previous range and implies a year-over-year growth of approximately 28% at the midpoint. This upward revision suggests management's confidence in the company's near-term prospects and operational momentum.

From an investor's perspective, SPX Technologies' ability to drive margin expansion across both segments, coupled with strong organic growth in HVAC, positions the company favorably for continued value creation. The raised guidance further reinforces this positive outlook.

SPX Technologies' Q2 results offer valuable insights into broader market trends. The strong performance in the HVAC segment, with 17.7% organic growth, suggests robust demand in the cooling products market. This could be indicative of increased infrastructure spending or a growing focus on energy-efficient solutions in both residential and commercial sectors.

The company's success with new product introductions and productivity gains through continuous improvement processes highlights the importance of innovation and operational excellence in maintaining a competitive edge. This approach seems to be paying dividends, as evidenced by the significant margin expansions in both segments.

The Detection & Measurement segment's performance is particularly interesting. Despite a revenue decline, the substantial margin improvement suggests a shift towards higher-value projects or services. This could be a reflection of changing market dynamics in areas such as transportation and communication technologies.

The company's optimistic outlook, as reflected in the raised guidance, aligns with broader economic indicators suggesting resilience in certain industrial and infrastructure-related sectors. However, investors should remain vigilant about potential headwinds such as supply chain disruptions or inflationary pressures that could impact future performance.

Overall, SPX Technologies' results and outlook provide a positive signal for the industrial technology sector, particularly in areas related to HVAC and specialized measurement solutions. The company's ability to drive organic growth and improve profitability in the current economic environment is a testament to its strong market position and effective strategic execution.

Q2 GAAP EPS of $0.96; Adjusted EPS* of $1.42
Raising Full-Year 2024 Adjusted EPS* Guidance to Range of $5.45-$5.60

CHARLOTTE, N.C., Aug. 01, 2024 (GLOBE NEWSWIRE) -- SPX Technologies, Inc. (NYSE:SPXC) (“SPX”, the “Company”, “we” or “our”) today reported results for the second quarter ended June 29, 2024.

Gene Lowe, President and CEO, remarked, “I’m very pleased with our strong Q2 performance, which included substantial growth in all of our key profit measures and significant margin expansion in both segments. During the quarter we continued to see solid demand across several key markets and our businesses executed well operationally.”

Mr. Lowe continued, “During Q2, we made significant progress on several key value creation initiatives, including traction on new product introductions and further productivity gains through our disciplined continuous improvement process. These enhancements are strengthening our company and positioning us for further growth.”

Mr. Lowe commented further, “Looking ahead, we continue to see overall favorable demand trends and positive operational momentum. Based on our strong results and operational trends, we are raising our full-year guidance for Adjusted EPS* to a range of $5.45 to $5.60 from $5.15 to $5.40 previously, with the midpoint implying year-on-year growth of approximately 28%.”

Second Quarter 2024 Overview:

For the second quarter of 2024, the company reported revenue of $501.3 million and operating income of $74.6 million, compared with revenue of $423.3 million and operating income of $51.3 million in the second quarter of 2023. Net income of $44.2 million for the second quarter of 2024 increased 22.8% from $36.0 million in the second quarter of 2023. Diluted income per share from continuing operations in the second quarter of 2024 was $0.96, compared with $0.82 in the second quarter of 2023. Diluted income per share from continuing operations in the second quarter of 2024 included a $8.4 million charge, and associated tax effect, for a settlement with the seller of ULC Robotics regarding contingent consideration.

Adjusted EBITDA* was $108.9 million, compared with $75.1 million in the second quarter of 2023, or an increase of 45.0%. Adjusted earnings per share* in the second quarter of 2024 was $1.42, compared with $1.06 in the second quarter of 2023. Adjusted EBITDA* and Adjusted earnings per share* exclude amortization expense and acquisition-related costs, among other items. Adjusted earnings per share* and Adjusted EBITDA* in the second quarter of 2024 also exclude the above-noted $8.4 million charge and the associated tax effect.

Second Quarter and Year-to-Date Financial Comparisons:

($ millions)Q2 2024 Q2 2023 2024 YTD 2023 YTD
Revenue$501.3  $423.3  $966.5  $823.1 
Consolidated operating income 74.6   51.3   139.2   101.1 
Income from continuing operations 45.2   38.3   94.4   77.4 
Net income 44.2   36.0   93.2   78.8 


Consolidated segment income* 117.6   84.4   217.4   158.8 
Adjusted operating income* 102.8   69.4   187.2   127.7 
Adjusted EBITDA* 108.9   75.1   200.9   137.8 

* Non-GAAP financial measure. See attached schedules for reconciliation of each historical non-GAAP measure to the respective most comparable GAAP financial measure. A reconciliation of non-GAAP guidance measures is not practicable and, accordingly, is not included.

HVAC Segment

Revenue for the second quarter of 2024 was $356.5 million, compared with $269.0 million in the second quarter of 2023, an increase of 32.5%, including a 17.7% increase in organic revenue, a 15.0% increase from the acquisitions of Ingénia and ASPEQ, and a 0.2% unfavorable impact related to the translation effect of currency fluctuation. The organic revenue growth was due primarily to increased sales of cooling products associated with volume increases, including execution of a larger than typical service project.

Segment income in the second quarter of 2024 was $83.7 million, or 23.5% of revenue. This compares with segment income of $55.2 million, or 20.5% of revenue in the second quarter of 2023. The increase in segment income and 300 basis points increase in segment income margin were primarily due to the revenue growth mentioned above.

Detection & Measurement Segment

Revenue for the second quarter of 2024 was $144.8 million, compared with $154.3 million in the second quarter of 2023, a decrease of (6.2)%. The organic revenue decrease was primarily the result of higher large project volume within the communication technologies business in the second quarter of 2023.

Segment income for the second quarter of 2024 was $33.9 million, or 23.4% of revenue. This compares with segment income of $29.2 million, or 18.9% of revenue in the second quarter of 2023. The increase in segment income and 450 basis points increase in segment income margin were primarily due to more favorable product mix primarily from certain large projects within our transportation, communication technologies, and aids to navigation business, and initiatives to drive more efficiency and productivity in our Detection & Measurement segment structure.

Financial Update: As of June 29, 2024, SPX Technologies had total outstanding debt of $790.3 million and total cash of $133.0 million. During the second quarter of 2024, SPX’s net operating cash flow from continuing operations totaled $58.7 million. Capital expenditures for continuing operations for the second quarter of 2024 were $10.4 million.

2024 Guidance Update:

SPX is updating full-year 2024 guidance, and is now targeting consolidated revenue of approximately $1.97-$2.02 billion ($1.965-$2.025 billion prior), adjusted EBITDA* of $410-$430 million ($390-$420 million prior), and adjusted earnings per share* in a range of $5.45-$5.60 ($5.15-$5.40 prior).

Segment and company performance is expected to be as follows:

 Revenue Segment Income Margin %
HVAC$1,365-$1,405 million
($1,360-$1,400 million prior)
 23.00%-24.00%
(22.25%-23.25% prior)
Detection & Measurement$605-$615 million
($605-$625 million prior)
 20.75%-21.75%
(20.00%-21.00% prior)
Total SPX$1.970-$2.020 billion
($1.965-$2.025 billion prior)
 22.30%-23.30%
(21.60%-22.60% prior)
 

Form 10-Q: The company expects to file its quarterly report on Form 10-Q for the quarter ended June 29, 2024 with the Securities and Exchange Commission on or before August 8, 2024. This press release should be read in conjunction with that filing, which will be available on the company's website at www.spx.com, in the Investor Relations section.

Conference Call: SPX Technologies will host a conference call at 4:45 p.m. (EDT) today to discuss second quarter results. The call will be simultaneously webcast via the company's website at www.spx.com and the slide presentation will be available in the Investor Relations section of the site.

Call Access: To access the call by phone, please go to this link https://register.vevent.com/register/BI897f7ff93cf54486873d06ecf7d4508e and you will be provided with dial-in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at www.spx.com.

Upcoming Investor Events: Company management plans to conduct virtual meetings with investors during the third quarter of 2024 and the company will also be participating virtually in the Seaport Annual Investor Conference on August 21st and the Jefferies Industrial Conference in New York on September 5th.

About SPX Technologies, Inc.: SPX Technologies, Inc. is a diversified, global supplier of highly engineered products and technologies, holding leadership positions in the HVAC and detection and measurement markets. Based in Charlotte, North Carolina, SPX has more than 4,100 employees in 15 countries. SPX is listed on the New York Stock Exchange under the ticker symbol “SPXC.” For more information, please visit www.spx.com.

Non-GAAP Financial Information: This press release contains certain non-GAAP financial measures, including consolidated segment income, adjusted operating income, adjusted income from continuing operations before income taxes, adjusted income from continuing operations, adjusted earnings per share from continuing operations (or, adjusted EPS), EBITDA, Adjusted EBITDA, and organic revenue growth (decline). These non-GAAP financial measures do not provide investors with an accurate measure of, and should not be used as a substitute for, the comparable financial measures as determined in accordance with accounting principles generally accepted in the United States (“GAAP”). The Company believes these non-GAAP financial measures, when read in conjunction with the comparable GAAP financial measures, give investors a useful tool to assess and understand the Company’s overall financial performance, because they exclude items of income or expense that the Company believes are not reflective of its ongoing operating performance, allowing for a better period-to-period comparison of operations of the Company. Additionally, the Company’s management uses these non-GAAP financial measures as measures of the Company’s performance. The Company acknowledges that there are many items that impact a company’s reported results and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.

Refer to the tables included in this press release for the components of each of the non-GAAP financial measures, and for the reconciliations of historical non-GAAP financial measures to their respective comparable GAAP measures. Our non-GAAP financial guidance excludes items, which would be included in our GAAP financial measures, that we do not consider indicative of our on-going performance; and are calculated in a manner consistent with the presentation of the similarly titled historical non-GAAP measures presented in this press release. These items include, but are not limited to, acquisition costs, costs associated with dispositions, and potential non-cash income or expense items associated with changes in market interest rates and actuarial or other data related to our pension and postretirement plans, as the ultimate aggregate amounts associated with these items are out of our control and/or cannot be reasonably predicted. Accordingly, a reconciliation of our non-GAAP financial guidance to the most comparable GAAP financial measures is not practicable. Full-year guidance excludes changes in the number of shares outstanding; impacts from future acquisitions, dispositions and related transaction costs, restructuring costs, incremental impacts of tariffs and trade tensions on market demand and costs subsequent to the end of the second quarter, the impact of foreign exchange rate changes subsequent to the end of the second quarter, and environmental and litigation charges.

Forward Looking Statements: Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Please read these results in conjunction with the Company’s documents filed with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements, including the following: cyclical changes and specific industry events in the Company’s markets; changes in anticipated capital investment and maintenance expenditures by customers; availability, limitations or cost increases of raw materials and/or commodities that cannot be recovered in product pricing; the impact of competition on profit margins and the Company’s ability to maintain or increase market share; inadequate performance by third-party suppliers and subcontractors for outsourced products, components and services and other supply-chain risks; the uncertainty with respect to environmental and other contingent liabilities; the impact of climate change and any legal or regulatory actions taken in response there to; cyber-security risks; risks with respect to the protection of intellectual property, including with respect to the Company’s digitalization initiatives; the impact of overruns, inflation and the incurrence of delays with respect to long-term fixed-price contracts; defects or errors in current or planned products; the impact of pandemics and governmental and other actions taken in response; domestic economic, political, legal, accounting and business developments adversely affecting the Company’s business, including regulatory changes; changes in worldwide economic conditions, including as a result of geopolitical conflicts; uncertainties with respect to the Company’s ability to identify acceptable acquisition targets; uncertainties surrounding timing and successful completion of acquisition or disposition transactions, including with respect to integrating acquisitions and achieving cost savings or other benefits from acquisitions; the impact of retained liabilities of disposed businesses; potential labor disputes; and extreme weather conditions and natural and other disasters.

Actual results may differ materially from these statements. The words “guidance,” “believe,” “targeting,” “expect,” “anticipate,” “project” and similar expressions identify forward-looking statements. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct.

Statements in this press release speak only as of the date of this press release, and SPX disclaims any responsibility to update or revise such statements, except as required by law.

SOURCE SPX Technologies, Inc.

Investor and Media Contacts:
Paul Clegg, VP, Investor Relations and Communications
Phone: 980-474-3806
E-mail: spx.investor@spx.com
Source: SPX Technologies, Inc.



SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share amounts)
        
 Three months ended Six months ended
 June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023
        
Revenues$501.3  $423.3  $966.5  $823.1 
Costs and expenses:       
Cost of products sold 300.5   259.7   582.8   509.6 
Selling, general and administrative 101.2   100.8   204.1   194.6 
Intangible amortization 16.8   11.5   31.6   17.8 
Special charges, net (0.2)     0.4    
Other operating expense, net 8.4      8.4    
Operating income 74.6   51.3   139.2   101.1 
        
Other income (expense), net (1.7)     (5.7)  2.5 
Interest expense (12.8)  (5.4)  (22.6)  (7.8)
Interest income 0.3   0.2   0.6   0.7 
Income from continuing operations before income taxes 60.4   46.1   111.5   96.5 
Income tax provision (15.2)  (7.8)  (17.1)  (19.1)
Income from continuing operations 45.2   38.3   94.4   77.4 
        
Income (loss) from discontinued operations, net of tax           
Gain (loss) on disposition of discontinued operations, net of tax (1.0)  (2.3)  (1.2)  1.4 
Income (loss) from discontinued operations, net of tax (1.0)  (2.3)  (1.2)  1.4 
        
Net income$44.2  $36.0  $93.2  $78.8 
        
Basic income per share of common stock:       
Income from continuing operations$0.98  $0.84  $2.05  $1.70 
Income (loss) from discontinued operations, net of tax (0.02)  (0.05)  (0.03)  0.03 
Net income per share$0.96  $0.79  $2.02  $1.73 
        
Weighted-average number of common shares outstanding — basic 46.246   45.533   46.038   45.457 
        
Diluted income per share of common stock:       
Income from continuing operations$0.96  $0.82  $2.01  $1.66 
Income (loss) from discontinued operations, net of tax (0.02)  (0.05)  (0.02)  0.03 
Net income per share$0.94  $0.77  $1.99  $1.69 
        
Weighted-average number of common shares outstanding — diluted 47.158   46.627   46.901   46.500 



SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
    
 June 29, 2024 December 31, 2023
ASSETS   
Current assets:   
Cash and equivalents$128.1  $99.4 
Accounts receivable, net 325.9   279.8 
Contract assets 32.0   16.6 
Inventories, net 292.7   276.7 
Other current assets 30.0   37.1 
Total current assets 808.7   709.6 
Property, plant and equipment:   
Land 23.2   17.9 
Buildings and leasehold improvements 119.4   73.4 
Machinery and equipment 297.5   264.4 
  440.1   355.7 
Accumulated depreciation (221.4)  (215.2)
Property, plant and equipment, net 218.7   140.5 
Goodwill 845.0   704.8 
Intangibles, net 742.7   680.8 
Other assets 154.2   188.9 
Deferred income taxes 3.5   4.0 
Assets of DBT and Heat Transfer 10.3   11.1 
TOTAL ASSETS$2,783.1  $2,439.7 
    
LIABILITIES AND STOCKHOLDERS' EQUITY   
Current liabilities:   
Accounts payable$128.2  $118.7 
Contract liabilities 61.7   73.5 
Accrued expenses 150.7   168.5 
Income taxes payable 12.3   5.3 
Short-term debt 256.3   17.9 
Current maturities of long-term debt 24.1   17.3 
Total current liabilities 633.3   401.2 
    
Long-term debt 509.9   523.1 
Deferred and other income taxes 102.9   77.0 
Other long-term liabilities 213.2   204.1 
Liabilities of DBT and Heat Transfer 40.0   39.7 
Total long-term liabilities 866.0   843.9 
    
Stockholders' equity:   
Common stock 0.5   0.5 
Paid-in capital 1,359.1   1,353.6 
Retained earnings 131.5   38.3 
Accumulated other comprehensive income 244.9   261.1 
Common stock in treasury (452.2)  (458.9)
Total stockholders' equity 1,283.8   1,194.6 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$2,783.1  $2,439.7 



SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
RESULTS OF REPORTABLE SEGMENTS
(Unaudited; in millions)
              
 Three months ended     Six months ended    
 June 29, 2024 July 1, 2023 Δ %/bps June 29, 2024 July 1, 2023 Δ %/bps
HVAC reportable segment               
                
Revenues$356.5  $269.0  $87.5   32.5% $658.9  $520.6  $138.3   26.6%
Gross profit 132.3   99.1   33.2     249.7   187.4   62.3   
Selling, general and administrative expense 48.6   43.9   4.7     97.6   84.5   13.1   
Income$83.7  $55.2  $28.5   51.6% $152.1  $102.9  $49.2   47.8%
as a percent of revenues 23.5%  20.5%   300bps  23.1%  19.8%   330bps
                
Detection & Measurement reportable segment               
                
Revenues$144.8  $154.3  $(9.5)  (6.2)% $307.6  $302.5  $5.1   1.7%
Gross profit 69.4   65.6   3.8     135.8   127.2   8.6   
Selling, general and administrative expense 35.5   36.4   (0.9)    70.5   71.3   (0.8)  
Income$33.9  $29.2  $4.7   16.1% $65.3  $55.9  $9.4   16.8%
as a percent of revenues 23.4%  18.9%   450bps  21.2%  18.5%   270bps
                
                
Consolidated Revenues$501.3  $423.3  $78.0   18.4% $966.5  $823.1  $143.4   17.4%
Consolidated Operating Income 74.6   51.3   23.3   45.4%  139.2   101.1   38.1   37.7%
as a percent of revenues 14.9%  12.1%   280bps  14.4%  12.3%   210bps
Consolidated Segment Income 117.6   84.4   33.2   39.3%  217.4   158.8   58.6   36.9%
as a percent of revenues 23.5%  19.9%   360bps  22.5%  19.3%   320bps
                
Consolidated operating income$74.6  $51.3  $23.3    $139.2  $101.1  $38.1   
Exclude:               
Corporate expense 12.0   16.6   (4.6)    25.9   31.2   (5.3)  
Acquisition-related and other costs(1) 2.3   1.5   0.8     4.9   2.1   2.8   
Long-term incentive compensation expense 3.7   3.5   0.2     7.0   6.6   0.4   
Amortization of intangible assets(2) 16.8   11.5   5.3     31.6   17.8   13.8   
Special charges, net (0.2)     (0.2)    0.4      0.4   
Other operating expense, net(3) 8.4      8.4     8.4      8.4   
Consolidated segment income$117.6  $84.4  $33.2   39.3% $217.4  $158.8  $58.6   36.9%
as a percent of revenues 23.5%  19.9%   360bps  22.5%  19.3%   320bps
                
(1)Represents certain integration costs incurred of $2.3 and $4.9 during the three and six months ended June 29, 2024, respectively, and $1.5 and $2.1 during the three and six months ended July 1, 2023, respectively, including additional “Cost of products sold” related to the step-up of inventory (to fair value) acquired in connection with the Ingénia acquisition of $0.9 and $1.8 during the three and six months ended June 29, 2024 and the ASPEQ acquisition of $1.1 during the three and six months ended July 1, 2023.
                
(2)Represents amortization expense associated with acquired intangible assets.
                
(3)Represents a charge of $8.4 associated with a settlement with the seller of ULC Robotics (“ULC”) regarding additional contingent consideration.



SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
        
 Three months ended Six months ended
 June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023
Cash flows from (used in) operating activities:       
Net income$44.2  $36.0  $93.2  $78.8 
Less: Gain (loss) from discontinued operations, net of tax (1.0)  (2.3)  (1.2)  1.4 
Income from continuing operations 45.2   38.3   94.4   77.4 
Adjustments to reconcile income from continuing operations to net cash from operating activities:       
Special charges, net (0.2)     0.4    
(Gain) loss on change in fair value of equity security       4.2   (3.6)
Deferred and other income taxes (7.2)  (6.9)  (10.6)  (10.4)
Depreciation and amortization 23.4   16.0   44.4   26.7 
Pension and other employee benefits 2.7   2.2   6.9   5.7 
Long-term incentive compensation 3.7   3.5   7.0   6.6 
Other, net (1.4)  (1.5)  (3.0)  (3.0)
Changes in operating assets and liabilities, net of effects from acquisitions and divestitures:       
Accounts receivable and other assets (0.3)  20.0   (29.8)  4.9 
Inventories 1.3   (5.8)  (10.7)  (27.0)
Accounts payable, accrued expenses and other (8.1)  8.0   (33.0)  (2.7)
Cash spending on restructuring actions (0.4)     (0.8)   
Net cash from continuing operations 58.7   73.8   69.4   74.6 
Net cash used in discontinued operations (1.2)  (1.8)  (1.4)  (7.0)
Net cash from operating activities 57.5   72.0   68.0   67.6 
        
Cash flows from (used in) investing activities:       
Proceeds/borrowings related to company-owned life insurance policies, net 42.8   0.9   42.9   1.0 
Business acquisitions, net of cash acquired    (547.1)  (294.1)  (547.1)
Capital expenditures (10.4)  (4.7)  (20.3)  (8.7)
Net cash from (used in) continuing operations 32.4   (550.9)  (271.5)  (554.8)
Net cash used in discontinued operations           
Net cash from (used in) investing activities 32.4   (550.9)  (271.5)  (554.8)
        
Cash flows from (used in) financing activities:       
Borrowings under senior credit facilities 18.0   800.0   575.2   820.0 
Repayments under senior credit facilities (102.8)  (420.0)  (382.0)  (420.0)
Borrowings under trade receivables arrangement 67.0   14.0   132.0   61.0 
Repayments under trade receivables arrangement (46.0)  (31.0)  (93.0)  (31.0)
Net repayments under other financing arrangements (0.5)  (0.1)  (0.8)  (0.1)
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options 2.1   1.7   (0.9)  (2.4)
Financing fees paid    (1.3)     (1.3)
Net cash from (used in) continuing operations (62.2)  363.3   230.5   426.2 
Net cash from discontinued operations           
Net cash from (used in) financing activities (62.2)  363.3   230.5   426.2 
Change in cash and equivalents due to changes in foreign currency exchange rates (0.2)  (1.5)  1.1   (0.5)
Net change in cash and equivalents 27.5   (117.1)  28.1   (61.5)
Consolidated cash and equivalents, beginning of period 105.5   212.7   104.9   157.1 
Consolidated cash and equivalents, end of period$133.0  $95.6  $133.0  $95.6 


 Six months ended
 June 29, 2024 July 1, 2023
Components of cash and equivalents:   
Cash and equivalents$128.1  $87.1 
Cash and equivalents included in assets of DBT and Heat Transfer 4.9   8.5 
Total cash and equivalents$133.0  $95.6 



SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
CASH AND DEBT RECONCILIATION
(Unaudited; in millions)
          
          
 Six months ended        
 June 29, 2024        
Beginning cash and equivalents$104.9         
Cash from continuing operations 69.4         
Capital expenditures (20.3)        
Business acquisitions, net of cash acquired (294.1)        
Proceeds/borrowings from company-owned life insurance policies, net 42.9         
Borrowings under senior credit facilities 575.2         
Repayments under senior credit facilities (382.0)        
Borrowings under trade receivables agreement 132.0         
Repayments under trade receivables arrangement (93.0)        
Net repayments under other financing arrangements (0.8)        
Minimum withholdings paid on behalf of employees for net share settlements, net of proceeds from the exercise of employee stock options (0.9)        
Cash used in discontinued operations (1.4)        
Change in cash due to changes in foreign currency exchange rates 1.1         
Ending cash and equivalents$133.0         
          
          
 Debt at       Debt at
 December 31, 2023 Borrowings Repayments Other June 29, 2024
Revolving loans$  $575.2  $(375.2) $  $200.0 
Term loans 541.6      (6.8)     534.8 
Trade receivables financing arrangement 16.0   132.0   (93.0)     55.0 
Other indebtedness 2.4      (0.8)  0.4   2.0 
Less: Deferred financing costs associated with the term loans (1.7)        0.2   (1.5)
Totals$558.3  $707.2  $(475.8) $0.6  $790.3 



SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION - ORGANIC REVENUE
HVAC AND DETECTION & MEASUREMENT REPORTABLE SEGMENTS
(Unaudited)
    
 Three months ended June 29, 2024
 HVAC Detection &
Measurement
Net Revenue Growth (Decline) 32.5%  (6.2)%
    
Exclude: Foreign Currency (0.2)%  %
    
Exclude: Acquisitions 15.0%  %
    
Organic Revenue Growth (Decline) 17.7%  (6.2)%



SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION - ADJUSTED OPERATING INCOME
(Unaudited; in millions)
        
        
 Three months ended Six months ended
 June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023
Operating income$74.6  $51.3  $139.2  $101.1 
        
Include - TSA Income(1)    0.1      0.2 
        
Exclude:       
Acquisition-related and other costs(2) (3.0)  (6.5)  (8.0)  (8.6)
        
Other operating expense, net(3) (8.4)     (8.4)   
        
Amortization of acquired intangible assets (16.8)  (11.5)  (31.6)  (17.8)
        
Adjusted operating income$102.8  $69.4  $187.2  $127.7 
as a percent of revenues 20.5%  16.4%  19.3%  15.5%
        
(1)Represents transition services income related to the Asbestos Portfolio Sale for the three and six months ended July 1, 2023. Amounts recorded in non-operating income for U.S. GAAP purposes. The Asbestos Portfolio Sale is described in the Company’s most recent Form 10-K.
        
(2)For the three and six months ended June 29, 2024, represents (i) certain acquisition and strategic/transformation related costs of $0.7 and $3.1, respectively, (ii) certain integration costs of $1.4 and $3.1, respectively, and (iii) inventory step-up charges related to the Ingénia acquisition of $0.9 and $1.8, respectively. For the three and six months ended July 1, 2023, represents (i) acquisition and strategic/transformation related costs of $5.0 and $6.5, respectively, (ii) certain integration costs of $0.4 and $1.0, respectively, and (iii) an inventory step-up charge of $1.1 related to the ASPEQ acquisition.
        
(3)For the three and six months ended June 29, 2024, represents a charge of $8.4 associated with a settlement with the seller of ULC regarding additional contingent consideration.



SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION - EARNINGS PER SHARE
Three Months Ended June 29, 2024
(Unaudited; in millions, except per share values)
      
      
 GAAP Adjustments Adjusted
Segment income$117.6  $  $117.6 
Corporate expense(1) (12.0)  0.7   (11.3)
Acquisition-related costs(2) (2.3)  2.3    
Long-term incentive compensation expense (3.7)     (3.7)
Amortization of intangible assets(3) (16.8)  16.8    
Special charges, net 0.2      0.2 
Other operating expense, net(4) (8.4)  8.4    
Operating income 74.6   28.2   102.8 
      
Other expense, net(5) (1.7)  1.2   (0.5)
Interest expense, net (12.5)     (12.5)
Income from continuing operations before income taxes 60.4   29.4   89.8 
Income tax provision(6) (15.2)  (7.7)  (22.9)
Income from continuing operations 45.2   21.7   66.9 
      
Diluted shares outstanding 47.158     47.158 
      
Earnings per share from continuing operations$0.96    $1.42 
      
(1)Adjustment represents the removal of certain acquisition and strategic/transformation related costs ($0.7).

 
(2)Adjustment represents the removal of (i) integration costs of $1.4 and (ii) an inventory step-up charge related to the Ingénia acquisition of $0.9 within the HVAC reportable segment.
 
(3)Adjustment represents the removal of amortization expense associated with acquired intangible assets of $12.5 and $4.3 within the HVAC and Detection & Measurement reportable segments, respectively.
      
(4)Adjustment represents the removal of a charge of $8.4 associated with a settlement with the seller of ULC regarding additional contingent consideration.
      
(5)Adjustment represents the removal of non-service pension and postretirement charges of $1.2.
      
(6)Adjustment primarily represents the tax impact of items (1) through (5) above.



SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION - EARNINGS PER SHARE
Three Months Ended July 1, 2023
(Unaudited; in millions, except per share values)
      
      
 GAAP Adjustments Adjusted
Segment income$84.4  $  $84.4 
Corporate expense(1) (16.6)  5.1   (11.5)
Acquisition-related costs(2) (1.5)  1.5    
Long-term incentive compensation expense (3.5)     (3.5)
Amortization of intangible assets(3) (11.5)  11.5    
Operating income 51.3   18.1   69.4 
      
Other income, net(4)    1.2   1.2 
Interest expense, net (5.2)     (5.2)
Income from continuing operations before income taxes 46.1   19.3   65.4 
Income tax provision(5) (7.8)  (8.1)  (15.9)
Income from continuing operations 38.3   11.2   49.5 
      
Diluted shares outstanding 46.627     46.627 
      
Earnings per share from continuing operations$0.82    $1.06 
      
(1)Adjustment represents the removal of acquisition and strategic/transformation related expenses ($5.0) and a reclassification of transition services income ($0.1) from “Other income, net.”
 
(2)Adjustment represents the removal of (i) an inventory step-up charge of $1.1 related to the ASPEQ acquisition and (ii) integration costs of $0.4 within the HVAC reportable segment.
 
(3)Adjustment represents the removal of amortization expense associated with acquired intangible assets of $4.3 and $7.2 within the Detection & Measurement and HVAC reportable segments, respectively.
      
(4)Adjustment represents the removal of (i) non-service pension and postretirement charges of $1.2, (ii) the reclassification of income related to a transition services agreement ($0.1) to “Corporate expense,” and (iii) the removal of a charge related to the Asbestos Portfolio Sale ($0.1).
      
(5)Adjustment primarily represents the tax impact of items (1) through (4) above and the removal of certain discrete income tax benefits that are considered non-recurring.



SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION - ADJUSTED EBITDA
(Unaudited; in millions)
    
    
 Three months ended
 June 29, 2024 July 1, 2023
Net income$44.2  $36.0 
    
Exclude:   
Income tax provision (15.2)  (7.8)
Interest expense, net (12.5)  (5.2)
Amortization expense(1) (16.8)  (11.5)
Depreciation expense (6.6)  (4.5)
Loss from discontinued operations, net of tax (1.0)  (2.3)
EBITDA 96.3   67.3 
    
Exclude:   
Acquisition-related and other costs(2) (3.0)  (6.5)
Other operating expense, net(3) (8.4)   
Non-service pension and postretirement charges (1.2)  (1.2)
Asbestos-related charges    (0.1)
Adjusted EBITDA$108.9  $75.1 
as a percent of revenues 21.7%  17.7%
    
(1)Represents amortization expense associated with acquired intangible assets recorded within “Intangible amortization.”

    
(2)For the three months ended June 29, 2024 and July 1, 2023, represents (i) certain acquisition and strategic/transformation related costs of $0.7 and $5.0, respectively, (ii) certain integration costs of $1.4 and $0.4, respectively, and (iii) inventory step-up charges of $0.9 and $1.1, respectively, related to the Ingénia and ASPEQ acquisitions within the HVAC reportable segment.
    
(3)Represents a charge of $8.4 associated with a settlement with the seller of ULC regarding additional contingent consideration.



SPX TECHNOLOGIES, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATION - ADJUSTED EBITDA
(Unaudited; in millions)
    
    
 Six months ended
 June 29, 2024 July 1, 2023
Net income$93.2  $78.8 
    
Exclude:   
Income tax provision (17.1)  (19.1)
Interest expense, net (22.0)  (7.1)
Amortization expense(1) (31.6)  (17.8)
Depreciation expense (12.8)  (8.9)
Gain (loss) from discontinued operations, net of tax (1.2)  1.4 
EBITDA 177.9   130.3 
    
Exclude:   
Acquisition-related and other costs(2) (8.0)  (8.6)
Other operating expense, net(3) (8.4)   
Non-service pension and postretirement charges (2.4)  (2.4)
Fair value adjustments on an equity security (4.2)  3.6 
Asbestos-related charges    (0.1)
Adjusted EBITDA$200.9  $137.8 
as a percent of revenues 20.8%  16.7%
    
(1)Represents amortization expense associated with acquired intangible assets recorded within “Intangible amortization.”

    
(2)For the six months ended June 29, 2024 and July 1, 2023, represents (i) certain acquisition and strategic/transformation related costs of $3.1 and $6.5, respectively, (ii) certain integration costs of $3.1 and $1.0, respectively, and (iii) inventory step-up charges of $1.8 and $1.1, respectively, related to the Ingénia and ASPEQ acquisitions within the HVAC reportable segment.
    
(3)Represents a charge of $8.4 associated with a settlement with the seller of ULC regarding additional contingent consideration.

FAQ

What was SPX Technologies' Q2 2024 revenue?

SPX Technologies reported revenue of $501.3 million for Q2 2024.

How much did SPX Technologies' (SPXC) Adjusted EPS grow in Q2 2024?

SPX Technologies' Adjusted EPS grew to $1.42 in Q2 2024, compared to $1.06 in Q2 2023.

What is SPX Technologies' (SPXC) updated full-year 2024 Adjusted EPS guidance?

SPX Technologies raised its full-year 2024 Adjusted EPS guidance to a range of $5.45 to $5.60.

How did SPX Technologies' (SPXC) HVAC segment perform in Q2 2024?

SPX Technologies' HVAC segment revenue increased 32.5% to $356.5 million in Q2 2024, with a 17.7% increase in organic revenue.

What was SPX Technologies' (SPXC) net income for Q2 2024?

SPX Technologies reported a net income of $44.2 million for Q2 2024, a 22.8% increase from Q2 2023.

SPX Technologies, Inc.

NYSE:SPXC

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44.56M
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95.63%
1.24%
Building Products & Equipment
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