SPXC Q3 deep dive: data center demand boosts growth, margin headwinds persist

Truist Securities lowered its price target on SPX Technologies (NYSE:SPXC) to $233 from $266, citing HVAC margin pressure. The company reported Q3 adjusted EPS of $2.21, beating estimates, with revenue up 20.5%. It raised 2026 revenue guidance to $2.775B but lowered EPS and EBITDA guidance due to inflation and capacity costs. The stock has fallen 23% over six months, trading at $159.95.

SPX Technologies (SPXC) reported Q3 HVAC organic backlog rose 69% YoY to $1.1B, its first time exceeding $1B. Cooling-platform growth is expected at 30% in H2. Detection & Measurement revenue declined 7.7% YoY but margins improved. SPX updated guidance, lowering adjusted EPS midpoint to $8.35 due to costs. The company acquired FIS Water, expanding its cooling platform. SPXC has $1.3B in debt and $121M in cash.

SPX Corporation reported Q3 2026 revenue growth of 21% and adjusted EBITDA growth of 22%, driven by HVAC segment performance and recent acquisitions. The company updated its full-year guidance, implying 25% adjusted EBITDA growth. HVAC revenue grew 35.5%, while D&M revenue declined 7.7%. The company acquired FIS Water to expand its cooling platform. Adjusted EPS increased 20% to $2.21. The company expects growth-related inefficiencies and elevated input costs to continue impacting margins.

SPX Technologies Inc (SPXC) reported Q3 2026 earnings, with HVAC segment margins declining 140 basis points due to inefficiencies and cost pressures. The company lowered its full-year adjusted EPS guidance to $8.50. Detection and Measurement segment revenue decreased 7.7% year-over-year. Supply chain challenges impacted productivity and margins. Data center revenue is expected to exceed $430 million, with high customer concentration posing potential risks.

B.Riley reiterated a Buy rating and $250 price target on SPX Technologies (NYSE:SPXC) after its Q3 results. Revenue grew 20.5% YoY to $714.5M, beating estimates, while adjusted EBITDA rose 21.7% to $165.7M. Gross margin declined slightly. The HVAC segment saw strong revenue growth but margin pressure. The company revised fiscal 2026 guidance, raising revenue but lowering EBITDA and EPS midpoints. The stock trades near its 52-week low.

SPX Technologies reported Q3 2026 revenue of $714.5M, up 20.5% YoY, with net income of $81.9M and EPS of $1.62. HVAC revenue grew 35.5% due to data-center cooling demand and acquisitions, while Detection and Measurement revenue declined 7.7%. The company faced margin pressures from labor and supply-chain issues.