Key Stats for SPX Technologies Stock
- Price change for SPX Technologies stock today: 10%
- $SPXC Stock Price as of Jul. 31: $220
- 52-Week High: $251
- $SPXC Stock Price Target: $273
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) stock jumped over 10% on Friday after the HVAC equipment maker posted a strong Q2 and raised its full-year outlook.
- Revenue climbed 23% year over year to $679 million.
- Adjusted EBITDA rose 20% to $152 million,
- Adjusted earnings per share increased 22% to $2.02.
- All three numbers point in the same direction: business is accelerating. Also, all three numbers beat analyst expectations.
A big driver here is data centers. AI has created massive demand for equipment that keeps data centers cool, and SPX Technologies stock is riding that wave.
The company now expects to reach $1.1 billion in total data center equipment sales once its expansion projects hit full production, up sharply from its prior target of $750 million.
On the earnings call, CEO Gene Lowe explained the increase came from two main sources: faster-than-expected throughput improvements on its OlympusMAX cooling product, and strong demand for its core Everest cooling line.
Lean manufacturing projects and better production flow helped the company get more output from its existing facilities than it originally planned.
SPX also completed its $430 million acquisition of Neptronic during the quarter, a move that strengthens its position in the fast-growing thermal management market.
Neptronic brings intelligent controls, electric duct heaters, and humidification products that complement SPX’s existing HVAC lineup.
Lowe said the deal expands the company’s portfolio with products that “leverage our established sales channels,” and management expects the acquisition to add modestly to this year’s earnings.
Segment results were strong across the board.
In HVAC, revenue grew 27.6% year over year, with backlog up 59% organically, largely thanks to data center demand. In Detection & Measurement, revenue grew 13% while segment income jumped 43%, helped by a high-margin project that got pulled forward into the quarter from later in the year.
Given this performance, SPX raised its full-year targets. Management now expects revenue to grow roughly 21% to about $2.7 billion, with adjusted earnings per share growing about 24% to $8.40.
Lowe attributed the updated outlook to continued strength in data center demand, the Neptronic acquisition, and stronger performance from the Detection & Measurement segment.
See analysts’ growth forecasts and price targets for SPX Technologies stock (It’s free) >>>
What the Market Is Telling Us About SPX Technologies Stock
A double-digit stock jump on an earnings beat and raised guidance tells you investors are buying into the growth story here, not just the quarter that already happened.
SPX Technologies stock’s rally reflects real confidence that the company’s AI-driven data center business has real staying power, not just a temporary spike in demand.
With expanded manufacturing capacity coming online through 2028 and a newly acquired business adding complementary products, SPX Technologies stock appears well positioned to keep capturing more of the growing data center cooling market.
The main things to watch going forward will be how smoothly the company ramps up its new production facilities and whether data center demand stays as strong as management currently expects.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does SPX Technologies Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
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!
