SPX Technologies (SPXC) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 results with revenue up 3.7% to $482.6M, adjusted EBITDA up 11.5% to $103M, and adjusted EPS up 10.4% to $1.38, driven by HVAC segment growth and strategic acquisitions including Sigma & Omega, KTS, and Ingénia.

• Raised full-year 2025 guidance for revenue, adjusted EBITDA, and adjusted EPS, reflecting robust Q1 performance and recent acquisitions.

• Net income from continuing operations was $51.7M, up 5.1% year-over-year.

• Continued progress on value creation initiatives, operational improvements, and integration of acquisitions.

• Well-positioned to manage macroeconomic uncertainty and continue value creation.

Financial highlights

• Q1 2025 revenue increased 3.7% year-over-year to $482.6M, with HVAC segment revenue up 6.8% and Detection & Measurement segment revenue down 2.0%.

• Adjusted EBITDA rose 11.5% to $103M, with margin expanding 150 bps to 21.3%.

• Adjusted EPS from continuing operations grew to $1.38, up 10.4% year-over-year.

• Adjusted free cash flow was $36.3M, with 56% conversion.

• Gross margin improved to 40.6% from 39.3% year-over-year.

Outlook and guidance

• 2025 revenue guidance raised to $2.20–$2.26B, up ~12% year-over-year at midpoint.

• Adjusted EBITDA guidance increased to $470–$495M, up ~15% year-over-year at midpoint.

• Adjusted EPS guidance raised to $6.10–$6.40, up ~12% year-over-year at midpoint.

• Tariff headwinds expected to impact adjusted EPS by $0.08–$0.12 for the year, with mitigation through price increases and surcharges.

• Leverage expected to fall below the 1.5x–2.5x target range by year-end, assuming no further capital deployment.