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what it is
SPX Tech sells the unglamorous equipment that keeps buildings cool and utilities from digging into the wrong cable.
how it gets paid
Last year Spx Tech made $2.3B in revenue. Cooling towers was the main engine at $0.83B, or 36% of sales.
why it's growing
Revenue grew 14.2% last year. The company said it fired on all cylinders in the 2025 third quarter.
what just happened
Third-quarter revenue hit $592.8 million, up 23% vs. prior year, while EPS kept climbing to $1.84 before the year finished at $6.75.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
75/100 earnings predictability — reasonably predictable
30.7x trailing p/e — you're paying up for this one
19.5% return on capital — solid for industrial equipment
xvary composite: 62/100 — average
What they do
SPX Tech sells the unglamorous equipment that keeps buildings cool and utilities from digging into the wrong cable.
This business wins by selling parts you replace only after a painful mistake. If your cooling tower fails or your crew hits the wrong line, your day gets expensive fast. That stickiness shows up in returns: return on capital was 19.5%, versus a 15.5% operating margin, which means the company turns ordinary industrial gear into above-average profit.
How they make money
$2.3B
annual revenue · their business grew +14.2% last year
Cooling towers
$0.83B
Boilers
$0.52B
Other HVAC equipment
$0.23B
Pipe and cable locators
$0.45B
Lighting and fare systems
$0.27B
The products that matter
cooling and boiler systems
Marley Cooling Towers & Weil-McLain Boilers
$1.58B · 68.8% of sales
this is the center of gravity. the HVAC segment produced $1.58B of the company’s $2.3B revenue, and it still grew 16% in the latest quarter.
69% of revenue
pipe locating and infrastructure measurement
Detection & Measurement
$0.72B · 31.2% of sales
this segment is smaller at $0.72B, but the latest quarter reached $205.4M and grew 38% from a year ago. that is the faster-growing piece investors care about.
31% of revenue
niche infrastructure safety tools
Obstruction Lighting & Fare Collection
inside the $205.4M quarterly D&M business
these are not huge on their own, and that is the point. they sit inside a segment that reached $205.4M last quarter, giving SPXC more than one way to grow beyond HVAC.
adjacent growth
Key numbers
30.7x
trailing p/e
P/E → how many dollars you pay for $1 of earnings → so what: you are paying a premium today for profit that still has to show up tomorrow.
19.5%
return on capital
Return on capital → profit earned on money put into the business → so what: SPX turns invested dollars into solid returns, better than many industrial peers.
15.5%
operating margin
Operating margin → profit after running the business, before interest and taxes → so what: this is a real earner, not a revenue-only story.
$7.65
fy2026 eps est
EPS estimate → expected profit per share next year → so what: the stock price now assumes SPX keeps climbing from $6.75 in 2025 to $7.65.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 65 / 100
- long-term debt $500M (5% of capital)
- net profit margin 17.7% — keeps 18 cents of every dollar in revenue
- return on equity 21% — $0.21 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in SPXC 3 years ago → it's now worth $31,820.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Third-quarter revenue hit $592.8 million, up 23% vs. prior year, while EPS kept climbing to $1.84 before the year finished at $6.75.
The company said it fired on all cylinders in the 2025 third quarter. HVAC was about 65% of Q3 revenue in this feed—that is a quarterly mix, not the ~69% FY HVAC share on the product card vs ~$2.3B total. HVAC grew 16% vs. prior year in that Q3 narrative, and full-year EPS then reached $6.75 versus $5.58 in 2024.
$592.8M
revenue
$1.84
Q3 EPS (feed)
23.0%
revenue growth
the number that mattered
The key number was 23% revenue growth in the third quarter because that is what keeps a 30.7x earnings multiple from looking absurd.
-
spx technologies performed at a very high level in the 2025 third quarter.
-
revenues came in well ahead of our $575 million estimate, achieving 23% vs. prior year growth, at $592.8 million.
-
the company fired on all cylinders.
-
the heating, ventilation, and air conditioning (hvac) business (65% of third-quarter revenue) advanced 16%, vs. prior year, to $387.4 million.
-
meanwhile, comparable top-line growth for the detection & measurement (d&m) segment was more impressive at 38%, reaching $205.4 million.
source: company earnings report, 2025
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What could go wrong
the top risk is a slowdown in commercial HVAC and infrastructure orders. SPXC looks better than a plain industrial right now. If demand cools, the stock will get treated like one again.
med
HVAC slowdown
HVAC is $1.58B of the company’s $2.3B annual revenue. If building upgrades and replacements pause, most of the business feels it.
The issue is not just slower sales. It is slower sales in the segment that represents 68.8% of revenue.
med
premium multiple, ordinary execution
A 30.7x trailing p/e gives SPXC very little room for an average quarter. You do not pay that multiple for “fine.”
If growth slips while the market stops believing in the 16.0% EPS growth path, the multiple can compress even if the business stays profitable.
med
Detection & Measurement cools off
The latest quarter’s 38% growth in Detection & Measurement is doing a lot of narrative work. That segment is only 31.2% of annual sales, but it is the part making SPXC look faster than its legacy HVAC base.
If D&M slows back toward the core business, investors are left with a solid industrial at a premium price.
With HVAC at $1.58B of $2.3B revenue and the stock at 30.7x earnings, even a modest slowdown can hit both the income statement and the multiple.
source: institutional data · regulatory filings · risk analysis
Pay attention to
key insight
whether 38% d&m growth was a spike or a pattern
Detection & Measurement is 31.2% of annual sales, but it grew 38% in the latest quarter. If that pace fades fast, the premium story gets thinner.
valuation
30.7x earnings needs growth to stay real
A premium multiple is fine when revenue is growing 14.2% and EPS is expected to grow 16.0%. It is less fine if either number starts sliding.
earnings
segment mix in the next quarter
Last quarter brought in $592.8M of revenue, with $387.4M from HVAC and $205.4M from D&M. Watch whether detection keeps taking a larger share of the growth.
risk
commercial project timing
This business still depends on customers replacing and upgrading physical infrastructure. Delays do not have to be permanent to matter for the stock.
Analyst rankings
short-term outlook
average
outlook rank 3 — the stock is not flashing a near-term edge. in human-speak, analysts think this is fine, not urgent.
risk profile
average
risk rank 3 — typical risk profile. not especially defensive, not a drama machine either.
chart momentum
top 20%
momentum rank 2 — the shares have outperformed most stocks recently. price action likes the story more than the outlook rank does.
earnings predictability
75 / 100
management is reasonably reliable. you usually get execution, which matters when the multiple already assumes it.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 248 buyers vs. 149 sellers in 3q2025. total institutional holdings: 47.4M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$157
$346
$207
current price
$252
target midpoint · +22% from current · 3-5yr high: $305 (+45% · 10% ann'l return)
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