SPX Raises Outlook as Organic Growth Accelerates
Second-quarter organic revenue growth accelerated to 16.9% from 7.4% in the prior quarter.
SPX Technologies (SPXC), the engineered-products maker, raised its 2026 outlook after second-quarter revenue rose 22.9% to $679.0 million and income from continuing operations climbed 51.0% to $79.3 million.
The quarter marked a sharp acceleration from the start of the year. Revenue rebounded 19.8% sequentially, while adjusted EBITDA increased 20.4% to $151.8 million and adjusted earnings rose to $2.02 a share from $1.69 a share. Acquisitions contributed 5.8 percentage points to second-quarter revenue growth.
GAAP operating income increased 32.8% to $115.0 million, lifting the operating margin 120 basis points to 16.9%. Adjusted EBITDA margin improved 20 basis points from the first quarter to 22.4%. It remained 50 basis points below the year-earlier period.
HVAC revenue rose 27.6% to $480.6 million, led by 18.9% organic growth. Segment income increased 14.6%, and margin contracted 260 basis points to 22.8% as capacity-expansion start-up costs, tariffs, inflation and cooling-equipment mix weighed on profitability. The margin recovered 30 basis points sequentially, while the year-over-year contraction widened from 40 basis points in the first quarter.
Detection & Measurement supplied the offset. Revenue rose 12.9% to $198.4 million as organic growth accelerated to 12.8% from 3.0% in the prior quarter. Segment income climbed 43.3% to $57.3 million, and margin expanded 610 basis points to 28.9% on product mix, operating leverage and cost reductions.
SPX now expects 2026 revenue of $2.705 billion to $2.765 billion, raising the midpoint by $125 million from its previous forecast. Its adjusted EBITDA outlook increased to $630 million to $660 million, while the adjusted earnings forecast rose 45 cents at both ends to $8.20 to $8.60 a share.
Both businesses received higher forecasts. HVAC revenue is expected at $1.955 billion to $1.995 billion with a margin of 24.50% to 25.00%, while Detection & Measurement revenue is projected at $750 million to $770 million with a margin of 26.25% to 26.75%.
SPX began initial Olympus Max assembly at its Madison, Alabama, facility and estimated annual data-center revenue capacity of about $1.1 billion at full production. That expansion remained capital intensive: expenditures rose to $21.1 million from $7.7 million, although adjusted free cash flow nearly doubled to $72.1 million. Debt stood at $614.7 million before an additional $340.0 million July borrowing to fund the Neptronic acquisition.