SPX Technologies (SPXC) Q3 2026 Earnings Call: HVAC Backlog Reaches $1.1B
Source Tradingkey
Key Takeaways
- Q3 2026 revenue increased 20.5% year over year, including 11.8% organic growth and 8.5% inorganic growth. Adjusted EPS rose 20% to $2.21.
- Adjusted EBITDA increased 21.7% to $165.7 million, while adjusted EBITDA margin expanded 20 basis points to 23.2%.
- HVAC revenue grew a record 35.5%, led by 22.3% organic growth and strong data center volumes. Organic HVAC backlog reached approximately $1.1 billion, up 69% year over year and 15% sequentially.
- HVAC segment margin declined about 140 basis points due to additional labor, outsourcing expenses and elevated input costs required to support accelerating demand.
- Management lowered the top end of full-year adjusted EPS guidance to $8.50, resulting in a midpoint of $8.35. Updated guidance implies approximately 25% adjusted EBITDA growth for 2026.
- SPX Technologies expects approximately $1.1 billion of total data center production capacity when current expansions reach full output. Management said data center demand has continued to accelerate, with good visibility over the next two to three years.
Key Financial Data
| Metric | Q3 2026 result | Change |
|---|---|---|
| Revenue | — | +20.5% year over year |
| Organic revenue | — | +11.8% |
| Inorganic revenue | — | +8.5% |
| Adjusted EBITDA | $165.7 million | +21.7% |
| Adjusted EBITDA margin | 23.2% | +20 bps |
| Adjusted EPS | $2.21 | +20% |
| HVAC revenue | — | +35.5% |
| HVAC organic revenue | — | +22.3% |
| HVAC segment margin | — | -140 bps |
| D&M revenue | — | -7.7% |
| D&M segment income | — | +1.7% |
| D&M segment margin | — | +260 bps |
| Cash | $121 million | Quarter-end |
| Total debt | $1.3 billion | Quarter-end |
| Bank leverage ratio | Approximately 1.8x | Includes FIS Water acquisition |
| Year-to-date adjusted free cash flow | $111 million | Through Q3 |
Business and Operating Performance
HVAC
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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