SPX Technologies (SPXC) Sidoti Small-Cap Virtual Investor Conference summary

Business overview and segment performance

• Operates in two main segments: HVAC and detection & measurement, with 80% of revenue from North America and strong global brands in niche engineered markets.

• HVAC segment is the largest, focused on cooling towers, boilers, and hydronics, with significant replacement revenue providing stability.

• Detection & measurement provides infrastructure technologies, including underground scanners, robotics, and lighting for cities and utilities.

• Both segments have high margins, with HVAC at 23.5% and D&M near 22%, and a large portion of revenue from replacement sales.

• Maintains leadership positions in most served markets, with 90% of revenue from #1 or #2 market positions and strong brand equity.

Financial performance and growth strategy

• Achieved significant EBITDA growth from $161M in 2021 to approximately $420M in 2024, with robust EPS CAGR.

• Strategy targets doubling EBITDA over the medium term, leveraging organic growth, strategic M&A, and digital transformation.

• Digitalization has increased recurring revenue and customer retention, with software now embedded in most products.

• Lean operations and talent development are key drivers, with a focus on continuous improvement and new product development.

• Aims for >15% annual EBITDA growth, combining 4–6% organic growth with accretive acquisitions.

M&A and platform building

• Deployed $1.6B in M&A, adding $650M in revenue at ~20% EBITDA margins before synergies, with typical deal multiples of 11–11.5x EBITDA.

• Built strong platforms in engineered air movement, electric heat, detection & measurement, and aids to navigation through targeted acquisitions.

• Recent deals have expanded geographic reach and end-market diversity, especially in marine and airport lighting.

• M&A pipeline remains active, with continued focus on margin-accretive, technology-driven businesses.