SPX Technologies (SPXC) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong results with revenue up 18.4% to $501.3M, adjusted EBITDA up 45% to $109M, and significant margin expansion, driven by robust demand and operational execution in key markets, especially HVAC.

• Achieved first post-spin quarter with revenue over $500M and adjusted operating income above $100M, supported by new product launches and productivity initiatives.

• Major acquisitions (Ingénia, ASPEQ, TAMCO) integrated into HVAC, contributing to growth and synergies.

• Net income for Q2 2024 was $44.2M, up from $36.0M in Q2 2023; adjusted EPS was $1.42, excluding an $8.4M legal settlement charge.

• Value creation initiatives and a strong acquisition pipeline continue to drive operational momentum.

Financial highlights

• Q2 2024 revenue grew 18.4% year-over-year to $501.3M, with 9% organic growth and 9.5% from acquisitions; adjusted EBITDA margin expanded 400bps to 21.7%.

• Adjusted EPS rose 34% to $1.42, excluding a $0.13 per share legal settlement charge; GAAP EPS was $0.96.

• Operating income increased to $74.6M from $51.3M year-over-year; adjusted operating income margin improved to 20.5%.

• HVAC segment revenue grew 32.5% to $356.5M; Detection & Measurement segment revenue declined 6.2% to $144.8M, but both segments saw margin improvement.

• Adjusted free cash flow for Q2 was approximately $58M.

Outlook and guidance

• Full-year 2024 guidance raised: adjusted EPS now $5.45–$5.60 (midpoint up 28% year-over-year), adjusted EBITDA $410–$430M (35% growth at midpoint).

• Revenue guidance updated to $1.97–$2.02B; segment income margin guidance: HVAC 23–24%, Detection & Measurement 20.75–21.75%.

• HVAC revenue and margin guidance raised; Detection & Measurement margin guidance also increased.

• Q4 expected to be highest revenue and margin quarter for HVAC; D&M higher margin projects weighted to Q3.

• Net leverage expected to fall below 1.5x by year-end.