SPX Technologies (SPXC) investor relations material

Business overview and market positioning

• Operates in engineered niches with leading, tech-enabled, and sustainable positions, generating $2.6 billion in revenue and $613 million EBITDA with a 24% margin.

• Portfolio is about two-thirds HVAC and one-third Detection & Measurement, primarily in North America.

• Holds top market positions in most segments, with 90% of revenue from businesses where it is #1 or #2.

• Brands like Marley, Cincinnati Fan, and TAMCO are well-known in their respective markets.

• Strong replacement sales provide steady year-over-year demand.

Growth strategy and M&A

• EBITDA has nearly tripled in recent years, nearly doubling within three years versus a four-to-five-year target.

• Value creation is driven by six levers: digital/AI, Lean, talent development, strategic M&A, product management, and commercial excellence.

• M&A is central, with 18 bolt-on acquisitions over five years totaling $2.5 billion, often at favorable multiples.

• Maintains a pipeline of 300-350 potential targets, focusing on proprietary deals and fragmented markets for consolidation.

• Engineered air movement and electric heat are key areas for organic and inorganic growth, aiming to build a $1 billion platform.

Operational excellence and synergy

• Lean practices and centralized supply chain management are embedded across all operations.

• Talent development is prioritized to support rapid growth and leadership needs.

• Product management is critical, with detailed roadmaps and a focus on customer needs and competitive positioning.

• Both HVAC and Detection & Measurement segments have grown at 11% CAGR since the company’s spin, with similar margin structures.