SPX Technologies (SPXC) Bank of America Industrials, Transportation & Airlines Key Leaders Conference 2025 summary

Company overview and strategy

• Operates in two main segments: HVAC and Detection & Measurement, with $2.2B in revenue and 83% North American focus.

• Holds leading market positions in cooling towers, boilers, and underground asset management technologies.

• Emphasizes engineered niches, tech-enabled products, and sustainable business models.

• Achieved significant EBITDA growth, targeting sustained 15%+ long-term EBITDA growth.

• Focuses on organic growth, digital initiatives, and product management, with strong cash generation.

Segment performance and growth

• HVAC segment has grown to $900M+ with 25% margins, mainly in North America, and targets 5-6% organic growth.

• Detection & Measurement segment is more global, growing from $550M to $700M+, with strong technical and software integration.

• Two-thirds of revenue is replacement sales, and 90% of revenue comes from markets where the company is #1 or #2.

• Backlog in Detection & Measurement increased, reflecting both market improvement and share capture, with multi-year project visibility.

M&A and capital allocation

• Deployed $2B in M&A, adding $812M in revenue at 20% EBITDA margins, with average deal size of $130M and strong synergy realization.

• Recent acquisitions (Sigma & Omega, Kranze Tech) expand product offerings and geographic reach, especially in Canada and communications tech.

• M&A pipeline includes ~300 companies, with a focus on proprietary and family-owned businesses; private equity competition has lessened.

• Capital allocation prioritizes organic and inorganic growth; buybacks are not a current focus unless valuation disconnects occur.