SPX Technologies, Inc. - Q2 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 27, 2026, and the six months ended on that date. SPX Technologies, Inc. is a diversified, global supplier of highly specialized, engineered solutions operating in two reportable segments: HVAC and Detection and Measurement. The company operates in 16 countries with sales in over 100 countries.
Key Financial Metrics
| Metric (in millions) | Q2 2026 | Q2 2025 | YTD 2026 | YTD 2025 |
|---|---|---|---|---|
| Revenues | $679.0 | $552.4 | $1,245.8 | $1,035.0 |
| Operating Income | $115.0 | $86.6 | $202.7 | $153.2 |
| Net Income | $78.4 | $52.2 | $138.3 | $103.4 |
| Diluted EPS | $1.55 | $1.10 | $2.73 | $2.19 |
| Operating Cash Flow (YTD) | $120.2 | $33.0 | $120.2 | $33.0 |
| Total Debt | $614.7 (as of June 27, 2026) | |||
| Cash & Equivalents | $168.2 (as of June 27, 2026) |
Material Changes vs. Prior Period
- Revenue Growth: Revenues increased 22.9% in Q2 and 20.4% YTD compared to 2025. Growth was driven by organic expansion in both segments and inorganic growth from acquisitions (Crawford, Thermolec, Sigma & Omega, and KTS).
- Profitability: Operating income rose 32.8% in Q2 and 32.3% YTD. However, gross profit margins declined slightly (40.2% in Q2 2026 vs. 41.4% in Q2 2025) due to start-up costs from capacity expansion, tariff headwinds, and inflationary pressures.
- Acquisitions & Divestitures:
- Acquisitions: Completed acquisitions of Thermolec ($140.2M) and Crawford United ($299.4M) in early 2026. Crawford's non-core businesses were immediately classified as held for sale.
- Divestiture: Sold Crawford's non-core businesses in March 2026 for $60.0M, resulting in a $5.7M loss on disposition recorded in discontinued operations.
- Segment Performance:
- HVAC: Revenue up 27.6% Q2; Segment income up 14.6%. Growth driven by data center cooling demand and heating products.
- Detection and Measurement: Revenue up 12.9% Q2; Segment income up 43.3%. Margins improved due to favorable product mix and operating leverage.
Guidance, Outlook, and Risks
- Subsequent Event: On July 22, 2026, the company acquired Neptronic Inc. for approximately $430.0M, funded by borrowings and cash on hand.
- Tariffs and Geopolitics: Significant uncertainty remains regarding U.S. tariffs following a Supreme Court ruling invalidating previous IEEPA tariffs and the subsequent announcement of new tariffs (Section 232). Geopolitical conflicts in the Middle East pose risks to supply chains and energy costs, though direct impact on operations is currently assessed as not material.
- Liquidity: The company maintains strong liquidity with $1,457.3M available under its revolving credit facility and $17.6M under foreign credit instruments. Total debt increased to $614.7M primarily to fund acquisitions.
- Backlog: Total backlog is robust, with HVAC at $918.8M and Detection and Measurement at $312.4M as of June 27, 2026.
Investor Verification Checklist
- Acquisition Integration: Verify the realization of synergies and revenue growth from recent acquisitions (Crawford, Thermolec, Neptronic) against the increased amortization expenses ($51.4M YTD).
- Tariff Impact: Monitor the final resolution of tariff refund claims and the specific cost impact of new Section 232 tariffs on aluminum, steel, and copper imports.
- Margin Pressure: Assess whether start-up costs from capacity expansion and inflationary pressures are temporary or indicative of a structural margin shift in the HVAC segment.
- Debt Servicing: Review the impact of increased debt levels ($614.7M) on interest expense, noting the weighted-average interest rate of 5.0%.
- Discontinued Operations: Confirm the final settlement of liabilities related to the DBT Technologies wind-down and the Crawford non-core business sale.