SPX Technologies, Inc.

Q2 adjusted EPS was $2.02, up 22% year over year. Total company revenue increased 23% year over year, with 17% organic growth. Consolidated segment income grew $31.3 million, or 23%, to $167.1 million, and consolidated segment margin was 24.6%. HVAC revenue grew 27.6% year over year, with 18.9% organic growth; HVAC segment margin declined 260 basis points due mainly to startup costs, tariffs, and modest inflationary headwinds. Detection and Measurement revenue rose 13%, segment income rose 43%, and segment margin increased 610 basis points. Quarter-end cash was $168 million, total debt was $615 million, leverage was approximately 0.7x, and Q2 adjusted free cash flow was approximately $72 million. For 2026, management raised adjusted EPS guidance by $0.45 to a midpoint of $8.40 and said the updated outlook implies 27% adjusted EBITDA growth at the midpoint; the increase reflects additional data center volume, a revised D&M outlook, and modest accretion from Thermolec.

Gene Lowe struck an upbeat tone and emphasized execution across organic growth, capacity expansion, and M&A. He said the company now expects $1.1 billion of total data center capacity at full production, up from a prior expectation of about $750 million, and pointed to strong demand in hyperscale and other data center end markets. He also described Thermolec as a strategic fit that deepens HVAC controls, expands addressable markets, and should support long-term margin expansion.

Mark Carano focused on the quarter’s financial performance and the drivers behind the guidance raise. He highlighted $2.02 of adjusted EPS, 23% revenue growth, $167.1 million of consolidated segment income, and $72 million of adjusted free cash flow. He said HVAC margin pressure in Q2 came from startup costs, tariffs, and about 50 basis points of inflationary headwinds, while the full-year HVAC increase was driven by Thermolec; he also said Thermolec was acquired for about 12.5x and should add about $5 million to $6 million of 2026 accretion.

Analysts focused heavily on the durability and timing of D&M margin strength, the pace and visibility of data center ramp, Thermolec’s growth and margins, and the company’s capital deployment capacity after the acquisition. Management said roughly half of the D&M margin improvement came from favorable project mix and the rest mostly from a project that shifted from Q3 into Q2, while Q4 should be larger than Q3 with similar margins across those two quarters. On data centers, management said visibility remains strong and that the $1.1 billion capacity target could ramp earlier if conditions stay favorable, but they were not changing the current timeline; on capital allocation, management said leverage remains below the 1.5x to 2.5x target range and that the pipeline of acquisition opportunities remains active.