SPX Technologies, Inc.

SPX Technologies, Inc. is a diversified, global supplier of highly specialized, engineered solutions serving the HVAC and detection and measurement markets. With operations in 16 countries and approximately 4,700 employees, the company offers a wide array of highly engineered infrastructure products with strong brands. The company's HVAC solutions include package and process cooling products and engineered air movement and handling solutions for the industrial (including data center and power generation), institutional, and commercial markets, as well as hydronic and electrical heating and ventilation products for the residential, industrial, institutional, and commercial markets. The detection and measurement product lines encompass underground pipe and cable locators, inspection and rehabilitation equipment, robotic systems, transportation systems, communication technologies, and aids to navigation. The company serves a global customer base in North America, Europe, Africa, and Asia.

The company operates in highly competitive markets, with competition coming from numerous concerns, both large and small. The principal methods of competition are service, product performance, technical innovation and price. The company believes it competes effectively on the basis of each of these factors as they apply to the various products and services offered. No customer or group of customers that, to the company's knowledge, are under common control accounted for more than 10% of consolidated revenues for any period presented.

The company generates revenue through the engineering, design, manufacture, installation, and service of highly specialized, engineered solutions. The primary distribution channels are direct to customers, independent manufacturing representatives, third-party distributors, and retailers. Most revenue is recognized at a point in time as satisfaction of the related performance obligations occur at the time of shipment or delivery, while certain revenue for complex long-term, subscription, or service contracts is recognized over time. In 2025, 2024, and 2023, the company recognized revenues of $238.9 ¹, $213.4 ², and $173.2 ³, respectively, under over-time methods.

The HVAC reportable segment had revenues of $1,518.2 ⁴, $1,364.7 ⁵, and $1,122.3 ⁶ in 2025, 2024, and 2023, respectively, and backlog of $584.5 ⁷ and $436.8 ⁸ as of December 31, 2025 and 2024, respectively. Approximately 83% ⁹ of the segment's backlog as of December 31, 2025 is expected to be recognized as revenue during 2026. The segment engineers, designs, manufactures, installs and services package and process cooling products and engineered air movement and handling solutions for the industrial (including data center and power generation), institutional, and commercial HVAC markets, as well as hydronic and electrical heating and ventilation products for the residential, industrial, institutional, and commercial markets. Core brands for cooling products and engineered air movement and handling solutions include Marley, Recold, SGS, Cincinnati Fan, TAMCO, Ingénia, Air Enterprises, and Rahn Industries, while hydronics and electrical heating and ventilation products are sold under the Berko, Qmark, Fahrenheat, Leading Edge, Patterson-Kelley, Weil-McLain, Sigma, Omega, Skypeak, Thermolec, Williamson-Thermoflo, INDEECO, Heatrex, AccuTherm, Brasch, Spectrum, BannerDay PipeHeating, and Solar Products brands.

The Detection and Measurement reportable segment had revenues of $746.9 ¹⁰, $619.2 ¹¹, and $618.9 ¹² in 2025, 2024, and 2023, respectively, and backlog of $350.3 ¹³ and $220.9 ¹⁴ as of December 31, 2025 and 2024, respectively. Approximately 66% ¹⁵ of the segment's backlog as of December 31, 2025 is expected to be recognized as revenue during 2026. The segment engineers, designs, manufactures, services, and installs underground pipe and cable locators, inspection and rehabilitation equipment, robotic systems, transportation systems, communication technologies, and aids to navigation. Core brands for underground pipe and cable locators and inspection and rehabilitation equipment are Radiodetection, Pearpoint, Schonstedt, Dielectric, Cues, ULC Robotics, and Sensors & Software. Transportation systems are sold under the Genfare brand, communication technologies products are sold under the TCI, ECS, and KTS brands, and aids to navigation products are sold under the Flash Technology, ITL, Sabik Marine, Sealite, and Avlite brands.

On January 27, 2025, the company completed the acquisition of Kranze Technology Solutions, Inc. (KTS) for a purchase price of $340.0 ¹⁶, inclusive of amounts related to future service obligations of certain existing employees of $46.5 ¹⁷ and net of an adjustment to the purchase price of $2.4 ¹⁸ received during 2025 related to acquired working capital. On April 15, 2025, the company completed the acquisition of Sigma Heating and Cooling and Omega Heat Pump (Sigma & Omega) for a purchase price of $143.3 ¹⁹, net of an adjustment to the purchase price of $0.3 ²⁰ received during 2025 related to acquired working capital and cash acquired of $0.2 ²¹. On August 12, 2025, the company issued and sold 3.059 ²² shares of common stock in a registered public offering at a purchase price of $188.0 ²³ per share, with net proceeds of $551.1 ²⁴ after deducting underwriting discounts, commissions, and offering expenses of $23.9 ²⁵. On September 9, 2025, the company amended and restated its senior credit agreement, providing for committed senior secured financing in the aggregate amount of $2,025.0 ²⁶, including a multicurrency revolving credit facility in an aggregate principal amount up to the equivalent of $1,500.0 ²⁷. During 2025, the company recorded gains of $23.0 ²⁸ within other income related to increases in the estimated value of an equity security in Filtran. During 2025, the company recorded actuarial losses of $5.5 ²⁹ in connection with the annual remeasurement of pension and postretirement plans. Total capital expenditures related to facility expansion efforts totaled $62.0 ³⁰ in 2025.

Revenues for 2025 totaled $2,265.1 ³¹, compared to $1,983.9 ³² in 2024 and $1,741.2 ³³ in 2023. Operating income for 2025 totaled $350.4 ³⁴, compared to $308.3 ³⁵ in 2024 and $221.9 ³⁶ in 2023. Income from continuing operations was $245.5 ³⁷ in 2025, compared to $201.8 ³⁸ in 2024 and $144.7 ³⁹ in 2023. Net income was $244.0 ⁴⁰ in 2025, compared to $200.5 ⁴¹ in 2024 and $89.9 ⁴² in 2023. Diluted earnings per share from continuing operations was $5.06 ⁴³ in 2025, compared to $4.29 ⁴⁴ in 2024 and $3.10 ⁴⁵ in 2023.

The company expects 2026 capital expenditures to approximate $135.0 to $165.0 ⁴⁶, with a significant portion related to upgrades to existing, and continued expansion into new manufacturing facilities. The company expects to make $16.5 ⁴⁷ of minimum required funding contributions and direct benefit payments to its defined benefit pension and postretirement benefit plans in 2026.

Growth for the HVAC businesses will be driven by innovation, increased scalability, and the company's ability to meet the needs of broader markets. The company intends to expand its portfolio of specialized products through new, innovative hardware and software solutions in an attempt to further capitalize on the detection and measurement markets it currently serves and expand the number of markets that it serves. The company completed the acquisition of Thermolec Ltd. on January 20, 2026, which specializes in custom electric duct heating and related solutions, and the acquisition of Crawford United Corporation on February 6, 2026, which specializes in highly engineered air handling and industrial products. The post-acquisition results of Thermolec and Crawford's Commercial Air Handling Equipment businesses will be reflected within the HVAC reportable segment.

The company believes that its diverse set of businesses, along with its strong balance sheet and available liquidity, position it well to manage the direct adverse impacts of announced tariffs. The company has taken actions to manage near-term costs and cash flows, and implemented actions to address potential material sourcing challenges it could face over the near-term. The company will continue to assess the actual and expected impacts of the tariffs and the need for further actions.

During the fourth quarter of 2025, the company entered into an agreement to purchase land and buildings related to a new facility. This property will be enhanced through acquisition and installation of further machinery and equipment in 2026 to increase the capacity for the company's engineered air movement and handling and cooling products businesses. Total capital expenditures related to these expansion efforts totaled $62.0 ⁴⁸ in 2025.

On May 13, 2025, the Board of Directors re-authorized management, in its sole discretion, to repurchase the company's capital stock in any fiscal year. As of December 31, 2025, the maximum approximate dollar value of common stock that may be purchased under this authorization during the current fiscal year is $100.0 million ⁴⁹. The company's senior credit agreement permits an unlimited amount of dividends and share repurchases if the consolidated leverage ratio is less than 3.00 to 1.00 ⁵⁰. The company discontinued dividend payments in September 2015 and there have been no dividends declared since such time.

The company is subject to risks relating to the price and availability of raw materials and components, including price increases in response to trade laws and tariffs and shortages related to supply chain disruptions. Increases in the prices of raw materials and components, including as a result of new or increased tariffs, or shortages or allocations of materials and components may have a material adverse effect on the company's financial position, results of operations or cash flows. The company is also subject to risks that cost overruns, inflation, delays and other risks could significantly impact results, particularly with respect to fixed-price contracts.

The company's non-U.S. revenues and operations expose it to numerous risks, including customs, tariffs and trade restrictions, significant competition from local or long-term participants in non-U.S. markets, local political, economic and social conditions, unexpected changes relating to currency exchange rates, and local, regional or worldwide hostilities. Approximately 80% ⁵¹ of the company's revenues in 2025 were generated inside the United States. Sales outside the United States were $452.5 ⁵², $343.1 ⁵³, and $287.1 ⁵⁴ in 2025, 2024, and 2023, respectively.

Many of the markets in which the company operates are cyclical or subject to industry events, and contract timing on projects may cause significant fluctuations in revenues and profits. The company's business depends on capital investment and maintenance expenditures by customers, which fluctuate based on general economic conditions and commodity prices. The company operates in highly competitive markets, which could result in pressure on profit margins. The company is exposed to risks relating to the price and availability of raw materials and components, including price increases in response to trade laws and tariffs. The company's business with various governments is subject to government contracting risks, including termination for convenience or default. Acquisitions involve risks including integration challenges, potential impairment charges, and assumption of unknown liabilities. The company had goodwill and other intangible assets, net, of $1,911.6 ⁵⁵ at December 31, 2025, and if the fair value of any reporting unit is insufficient to recover the carrying value, a material non-cash charge to earnings could result. The company's net liability to defined benefit pension and postretirement plans was $92.8 ⁵⁶ at December 31, 2025, and changes in key assumptions could affect results of operations and cash flows.

Management's discussion emphasizes the company's transformation into a diversified, global supplier of highly specialized, engineered solutions serving the HVAC and detection and measurement markets. Key themes include the successful integration of acquisitions such as KTS and Sigma & Omega, which are expected to drive growth, and the company's focus on innovation, scalability, and meeting the needs of broader markets. Management highlights the company's strong balance sheet and available liquidity as positioning it well to manage the direct adverse impacts of announced tariffs. Strategic priorities for the period ahead include expanding the portfolio of specialized products through new, innovative hardware and software solutions, continuing to execute on capacity expansion for engineered air movement and handling and cooling products businesses, and integrating recent acquisitions like Thermolec and Crawford to further strengthen the HVAC segment.