Key Stats for SPX Technologies Stock
- Earnings Reaction: -6.7%
- Current Price: $226.66
- Valuation Model Target: $262.67
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What Happened?
SPX Technologies (SPXC) is aggressively scaling its industrial footprint, with shares trading near $226.66 following a strong fourth-quarter earnings release that featured an ambitious 2026 growth outlook.
The engineered solutions leader delivered a powerhouse 2025, growing full-year adjusted EBITDA and EPS by 21% while expanding fourth-quarter revenue by 19.4%.
The primary catalyst driving the company’s valuation is the violent acceleration in data center cooling demand.
Management expects its data center sales to surge by approximately 50% in 2026 as hyper-scalers build out the infrastructure required for artificial intelligence.
To capture this demand, SPX is investing over $100 million to expand its HVAC manufacturing capacity, including the purchase of a 459,000-square-foot facility in Madison, Alabama.
CEO Eugene Lowe detailed exactly how these investments will fundamentally transform the company’s revenue potential.
Lowe stated verbatim: “We anticipate these investments will enable nearly half of our HVAC segment’s revenue growth in 2026 and add roughly $700 million of incremental capacity once at full production, supporting substantial growth in both data center and custom air handling volume.”
Furthermore, the company recently completed the strategic acquisitions of Air Enterprises, Rahn Industries, and Thermolec to solidify its position in the engineered air movement market.
See analysts’ growth forecasts and price targets for SPX Technologies stock (It’s free!) >>>
Is SPX Technologies Undervalued Today?
The TIKR Model indicates that the market is focusing on the temporary start-up costs of new facilities while ignoring the massive, high-margin revenue runway being built.
The model projects a target price of $262.67, representing a 15.9% potential total return from current levels.
Despite the massive capital investment, SPX maintains one of the cleanest balance sheets in the industrial sector.
The company ended the year with a leverage ratio of just 0.3x, providing immense “dry powder” for further aggressive M&A.
CFO Mark Carano explained exactly how the company’s financial discipline is enabling this hyper-growth strategy.
Carano stated verbatim: “Our leverage ratio, as calculated under our bank credit agreement was approximately 0.3x at year-end. Including the effect of the recently announced acquisitions, our leverage ratio was 1.”
Simultaneously, the Detection and Measurement segment is seeing unprecedented demand, with its backlog surging over 40% organically to a record $350 million.
Read the full SPX Technologies Transcript on TIKR to see the 2026 guidance breakdown >>>
Valuation Deep Dive
The TIKR Advanced Valuation Model identifies SPX Technologies as a premier infrastructure play that is successfully leveraging the AI data center super-cycle to drive structural margin expansion.
- Target Price: $262.67
- Current Price: $226.66
- Annualized Return (IRR): 3.1%
The Data Center Cooling Monopoly: As AI chips become more powerful, they generate massive amounts of heat that traditional air-cooled systems cannot manage. SPX’s new OlympusMAX product has become its most successful launch in history by providing integrated cooling solutions specifically engineered for high-density GPU racks. This technological leadership allows SPX to command premium pricing and capture a dominant share of the multiyear data center buildout.
Record Backlogs and Inorganic Growth: The company’s growth is no longer dependent on cyclical economic trends. According to the TIKR Historical Breakdown, SPX delivered a 14.2% revenue growth rate over the last year. By methodically acquiring specialized electric heating and engineered air movement providers like Thermolec and Air Enterprises, management is creating a highly diversified industrial platform with record visibility through its $585 million HVAC backlog.
Conclusion: A highly disciplined industrial giant successfully pivoting into the most lucrative segments of the technology infrastructure market. SPX Technologies offers a defensive 15.9% projected total return potential. The path to the $262.67 target is paved by a record $350 million D&M backlog, aggressive data center capacity adds, and a pristine balance sheet.
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How Much Upside Does SPX Technologies Stock Have From Here?
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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!
