Key Stats for SPX Technologies Stock
- Current Price: $212.86
- Target Price (Mid): ~$299
- Street Target: ~$273
- Potential Total Return: ~41%
- Annualized IRR: ~8% / year
- Max Drawdown: 23.15%
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free) >>>
What Happened?
SPX Technologies (SPXC) spent most of 2026 as one of the industrial market’s cleanest data-center stories, and then the stock did something that made everyone look twice. On June 22, it closed at an all-time closing high of $246.41. By July 20, it sat at $212.86, down about 14% from that peak, with no deterioration in the business to explain it. Guidance still points up. The backlog is still growing. The stock cooled anyway, and the company reports second-quarter results on July 30 into a market that has grown less patient with the price it was paying.
The disconnect is what makes the print interesting. Two banks raised their targets during the slide: Truist to $295 on July 2 and Wolfe Research to $266 on July 9. Those sit at or above the broader Street mean of roughly $273, so the recent movers are the more bullish voices, not the consensus. Analysts were getting more constructive while the tape got nervous. That gap is why this earnings report carries more weight than the last one.
The Stock Ran Faster Than the Story
SPX makes engineered cooling and heating equipment, and its largest product is the cooling tower, the structure that rejects heat from large buildings, power plants, and data centers. Roughly two-thirds of revenue comes from the HVAC segment, meaning heating, ventilation, and cooling. The other third is Detection & Measurement, a group of precision-equipment and software businesses like the underground scanners used to locate gas and water lines before digging.
The re-rating over the past two years came from data centers, and that ramp is now well understood. What gets less attention is where SPX has quietly led for decades: power. CEO Gene Lowe told investors at the Bank of America Industrials conference in May that the company holds more than 50% of the installed cooling base across US power. On nuclear, of roughly 100 US plants, about 50 use cooling towers, and Lowe said “the vast majority of those are ours.” As utilities add capacity for AI demand, that base becomes a recurring upgrade business. Lowe explained that re-fitting a cooling tower on a large nuclear plant can free up “50 to 70, 80 more megawatts,” and when a utility captures that, “we get paid for it.” That is a higher-margin, less-cyclical lever than the data-center headlines suggest, and one the market rarely credits. These are management’s own claims, not independently audited, but they fit a company that has led cooling-tower installation for a century.
See historical and forward estimates for SPX Technologies stock (It’s free!) >>>
What the Numbers Have to Prove on July 30
The bull case still rests on data-center cooling, and management has given specific figures to test. Data-center revenue ran from about $200 million in 2025 to a 2026 guide that was lifted to $350 million after the first quarter, growing around 70% year over year. The flagship product is OlympusMAX, a modular dry and adiabatic cooling system for high-density data centers, which Lowe said he would argue is “going to be the most successful product we’ve ever created,” already exceeding its $50 million bookings and revenue launch targets.
The quieter story is Detection & Measurement. CFO Mark Carano noted that D&M margins moved from roughly 22% a couple of years ago to a raised guide of 25%, which he framed as structurally resetting the segment’s profitability rather than a one-quarter blip. A durably higher-margin segment changes the math on the whole company, and it gets ignored because data centers dominate the narrative.
Against that backdrop, SPX disclosed on June 19 that John Swann, the long-time head of D&M, will retire in January 2027, with Eric Kaled taking over the segment on August 31. It is a planned succession, and Swann stays through year-end to manage the handoff. Not a thesis-changer, but a real transition in a segment that just reset its margins higher.
At 18 Times EBITDA, the Valuation Is the Argument
Even after falling 14%, SPXC is not cheap. Shares trade at around 18 times next-twelve-months EV/EBITDA, a measure of enterprise value against earnings before interest, taxes, depreciation, and amortization. Named machinery peers sit lower: Dover trades near 14 times and ITT near 16 times on the same metric. On NTM P/E, SPXC’s roughly 26 times also runs ahead of both.
The premium is real, so the question is whether it is earned. The case for it: SPX grows faster than most of that peer group, has a genuine structural tailwind in data-center and power cooling, and keeps expanding margins as it scales. Gross margin widened from around 35% in 2021 to 41% by 2025 while revenue nearly doubled, the signature of a company scaling profitably rather than buying growth. The case against it is simpler. A stock priced for continued acceleration has to keep accelerating, and the forward growth rate the Street models is slower than the recent past. Buy the quality and accept the multiple, or wait for a better entry on a name that has historically offered one every few months.
See how SPX Technologies performs against its peers in TIKR (It’s free!) >>>
TIKR Advanced Model Analysis
- Current Price: $212.86
- Target Price (Mid): ~$299
- Potential Total Return: ~41%
- Annualized IRR: ~8% / year
See analysts’ growth forecasts and price targets for SPX Technologies stock (It’s free!) >>>
Two revenue drivers anchor the model. The first is cooling demand across data centers and power, where the guided ramp toward $350 million in data-center revenue and the nuclear upgrade base give the top line a visible multi-year path. The second is the acquisition engine: management has deployed about $2.5 billion across roughly 18 deals, adding around $930 million of revenue at attractive net multiples. The margin driver is operating leverage as capacity investments mature and the D&M reset holds. The primary risk is a hyperscaler capex pullback, because the committed capacity spend would hit both revenue and returns on that capital at once.
The upside case is that bookings keep compounding and margins expand faster than modeled, pushing shares toward the high-case near $447. The downside case is that growth decelerates to mid-single digits and the premium multiple compresses, leaving the stock to move sideways while earnings catch up to the price.
Conclusion
July 30 answers the question the pullback raised. Watch the full-year data-center revenue guide: management set the bar at $350 million, and the market wants it to move higher, not just hold. A raise toward $400 million with backlog to support it says the ramp is real and the dip was noise. A hold at $350 million, or softness in HVAC organic growth, says the market was right to get cautious near $246. Margins are the second tell: if capacity-expansion costs ease and D&M holds 25%, the profitability story gains a leg; if not, the premium gets harder to defend. Results land after the close on July 30.
See what stocks billionaire investors are buying so you can follow the smart money with TIKR.
Should You Invest in SPX Technologies?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up SPX Technologies, and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
You can build a free watchlist to track SPX Technologies alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.
Analyze SPX Technologies on TIKR Free →
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
