| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 31 | 34.4x | 17.8x | Bottom tier | |
Growth | 86 | 20.6% | 7.1% | Top tier | |
Quality | 72 | 11.4% | 4.5% | Top tier | |
Safety | 82 | 0.7x | 2.6x | Top tier | |
Capital Return | 87 | — | 2.12% | Top tier | |
Momentum | 36 | 15.4% | 2.9% | Bottom tier | |
Sentiment | 68 | 9 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
SPX Technologies operates in industrial technology through two main segments: Heating, Ventilation and Air Conditioning, and Detection and Measurement. The Heating, Ventilation and Air Conditioning segment benefits from data center cooling solutions, including OlympusMAX and Everest, alongside electric heating, air handling, and cooling towers, while the Detection and Measurement segment includes project-based businesses and platforms such as Comtech and Aton, as well as transportation solutions. The Thermolec transaction expands the company’s portfolio to include smart controls, electric duct heaters, humidification solutions, and actuated valves, with exposure to commercial, healthcare, institutional, and data center markets.
In Q2 of fiscal year 2026, revenue according to EDGAR data was approximately $679.0 million, gross profit was $272.8 million, net income was $78.4 million, and earnings per share were $1.55; equivalent to a gross margin of approximately 40.2% and a net margin of approximately 11.5%. On the adjusted basis presented by management on July 30, 2026, revenue increased 23% year over year, including 17% organic growth, adjusted earnings before interest, taxes, depreciation, and amortization increased 20%, while adjusted earnings per share rose 22% to $2.02. Combined segment income reached $167.1 million, up 23%, while the combined segment margin remained stable at 24.6%.
The Heating, Ventilation and Air Conditioning segment achieved revenue growth of 27.6%, including organic growth of 18.9% and inorganic growth of 8.5%, with double-digit growth in cooling and heating, but recorded a 260-basis-point decline in segment margin. In contrast, Detection and Measurement revenue grew 13% and segment income grew 43%, while its margin increased 610 basis points, although an important portion of this increase was related to project mix and the pull-forward of a $15 million high-margin project from Q3 to Q2 of fiscal year 2026. For the 2026 trailing twelve-month period, revenue was $2.5 billion, gross profit was $996.3 million, net income was $277.7 million, and earnings per share were approximately $5.48.
The analyst consensus is Buy, with an average target of $266.8 and a target range of $243 to $295; the average is approximately 6.3% above the top of the 52-week range of $251.08, while the highest target is approximately 17.5% above it. In contrast, the $9.9 billion market capitalization equals approximately four times the $2.5 billion in revenue for the 2026 trailing twelve-month period, so the valuation requires continued data center growth and execution of the raised guidance without further deterioration in the Heating, Ventilation and Air Conditioning segment margin.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
The most prominent driver is data center cooling solutions, as management raised its fiscal year 2026 revenue forecast from $300 million in the initial plan to $430 million. Heating, Ventilation and Air Conditioning segment backlog increased to $919 million at the end of Q2 of fiscal year 2026, representing organic growth of 59%. The company also raised its full production capacity estimate from $750 million to $1.1 billion due to improved OlympusMAX and Everest productivity and expansion in Madison, Olathe, and Springfield.
The company raised the midpoint of adjusted earnings per share guidance by $0.45 to $8.40, within a new range of $8.20 to $8.60. The increase came from additional data center volumes, higher volume and margin expectations for the Detection and Measurement segment, and a modest contribution from Thermolec. Revenue guidance is now between $2.71 billion and $2.77 billion, while the midpoint of guidance implies 27% growth in adjusted earnings before interest, taxes, depreciation, and amortization.
Thermolec added smart controls, electric duct heaters, humidification solutions, and actuated valves to the Heating, Ventilation and Air Conditioning segment. Its annual revenue is approximately $75 million, and management estimates its segment income margins in the low-40% range and its earnings before interest, taxes, depreciation, and amortization margins in the mid-40% range. SPX expects a revenue contribution in the low-$30 million range and a net addition of $5 million to $6 million during approximately five months of ownership in fiscal year 2026, after paying a multiple of approximately 12.5 times.
Automated analysis for informational purposes only — not investment advice.
The segment margin increased 610 basis points, but management explained that approximately half of the increase came from favorable project mix compared with the prior year. A $15 million high-margin project was also moved from Q3 to Q2 of fiscal year 2026, improving absorption of the fixed-cost base. After normalizing these factors, management estimates the structural margin improvement at approximately 25%, compared with guidance of 26.5% for fiscal year 2026, with approximately flat segment revenue expected for the year.
Risks include the concentration of part of the data center business among a limited number of hyperscale computing customers, while long-term agreements do not equate to actual purchase orders. Increasing capacity to $1.1 billion requires successfully operating the facilities, hiring and training employees, and ensuring the supply of every component on the bills of materials without delay. The Heating, Ventilation and Air Conditioning segment margin also declined 260 basis points in Q2 of fiscal year 2026 due to startup costs, tariffs, and the year-over-year comparison, with additional inflationary pressure of approximately 50 basis points.
The company ended Q2 of fiscal year 2026 with $168 million in cash and total debt of $615 million. Adjusted free cash flow during the quarter was approximately $72 million, while the leverage ratio was 0.7 times before including the transaction. The ratio increased to 1.4 times after Thermolec, but remained below management’s target range of 1.5 to 2.5 times, leaving financial capacity to continue investing within the limits presented by management.
