SPX Technologies (SPXC) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2024 results, with adjusted EBITDA up 36% to $421M and adjusted EPS up 29% to $5.58, both near the top of guidance range.

• Adjusted free cash flow conversion was 108% of adjusted net income, reflecting robust cash generation.

• Completed strategic acquisitions of Ingénia (HVAC) and KTS, expanding Detection & Measurement and communication technologies platforms.

• Introduced new products in HVAC and Detection & Measurement, focusing on sustainability and innovation.

• Maintains an active acquisition pipeline and strong capital deployment capacity.

Financial highlights

• Q4 2024 revenue grew 13.7% year-over-year to $533.7M, with 9.9% organic growth and 4.0% from acquisitions; full-year revenue up 13.9% to $1,983.9M.

• Q4 adjusted EBITDA increased 28.1% to $116M, margin up 250 bps to 21.8%; full-year adjusted EBITDA $421M, margin up to 21.2%.

• Q4 adjusted EPS grew 21% to $1.51; full-year adjusted EPS up 29% to $5.58.

• Full-year adjusted free cash flow was $283.8M, converting 108% of adjusted net income.

• Q4 operating income grew 43% to $90.2M; full-year operating income up 39% to $308.3M.

Outlook and guidance

• 2025 guidance: revenue of $2.13–$2.19B, adjusted EBITDA of $460–$490M (13% growth at midpoint), and adjusted EPS of $6.00–$6.25 (10% growth at midpoint).

• HVAC segment 2025 revenue expected at $1.44–$1.48B, margin 23.5–24.5%; Detection & Measurement revenue $690–$710M, margin 22–23%.

• Corporate expense projected at $48–$52M; capex at $35–$50M; tax rate at 25%–26%.

• Q1 2025: modest revenue growth expected, with flat organic revenue and similar margins year-over-year.