SPX Raises 2026 Sales Outlook, Trims Ebitda Range

The Tip Desk · October 29, 2026 · 3 min read

Third-quarter revenue was $714.5 million, up 20.5%, as HVAC cooling volumes tied to data centers lifted the mix.

SPX Technologies (SPXC), a Charlotte-based supplier of HVAC and detection products, reported third-quarter revenue of $714.5 million, up 20.5% from a year earlier, as cooling volumes tied to data centers and heating products lifted the HVAC mix.

GAAP income from continuing operations was $82.3 million, up 30.4%, and GAAP earnings were $1.62 a share, up 25.6%. Adjusted EPS was $2.21, up 20.1%. Adjusted EBITDA was $165.7 million, up 21.7%, with adjusted EBITDA margin of 23.2%.

Year-over-year revenue growth had been 22.9% in the second quarter and 17.4% in the first. Organic growth in the third quarter was 11.8%.

HVAC revenue was $525.0 million, up 35.5%, including 22.3% organically and 13.0% from acquisitions of Thermolec, Crawford, Neptronic and FIS Water. The company said the organic increase came primarily from higher volumes of cooling equipment, mainly associated with increased data center demand resulting from increased capacity, and from higher volumes of heating products. HVAC segment income was $120.8 million, up 28.0%. Segment margin was 23.0%, down 140 basis points from 24.4% a year earlier. The company attributed the margin decline primarily to higher growth-related costs, largely labor and supply-chain inefficiencies, associated with volume increases and capacity expansion, and to elevated input costs.

Detection and Measurement revenue was $189.5 million, down 7.7%, or 7.9% organically, which the company said was driven primarily by lower project volumes in communications technologies. Segment income was $52.6 million, up 1.7%. Segment margin was 27.8%, up 260 basis points from 25.2%. The company said the income and margin increases came from a more favorable product mix in transportation and communication technologies and from synergy initiatives, primarily in location and inspection and rehabilitation, partially offset by lower income from the organic revenue decline.

President and CEO Gene Lowe said HVAC continued to benefit from strong demand across key end markets and that Detection and Measurement delivered excellent profitability. He said HVAC capacity expansion projects remain on track to support approximately $1.1 billion of annual data center revenue capacity at full production and that the company recently expanded its cooling platform through the acquisition of FIS Water.

Net operating cash flow from continuing operations was $60.1 million, down from $106.8 million a year earlier. Capital expenditures were $40.0 million, up from $10.4 million. Adjusted free cash flow was $23.1 million, down from $90.8 million.

Total debt was $1,334.7 million at September 26, 2026, up from $501.6 million at year-end 2025. Cash was $120.8 million, down from $366.0 million.

For full-year 2026, SPX now anticipates revenue of $2.745 billion to $2.805 billion, up about 23% year-on-year at the midpoint, from a prior range of $2.705 billion to $2.765 billion. Adjusted EBITDA guidance was lowered to $625 million to $645 million, up about 25% at the midpoint, from $630 million to $660 million. Adjusted EPS guidance was lowered to $8.20 to $8.50, up about 24% at the midpoint, from $8.20 to $8.60. Lowe said the updated guidance implies approximately 25% adjusted EBITDA growth at the midpoint.

HVAC full-year revenue guidance was raised to $1,995 million to $2,035 million, with HVAC margin guidance cut to 23.10% to 23.50% from 24.50% to 25.00%. Detection and Measurement revenue guidance was held at $750 million to $770 million, with margin guidance raised to 27.00% to 27.50% from 26.25% to 26.75%.

The company said it expects to file its Form 10-Q for the period ended September 26, 2026 by November 5, 2026.