SPX Technologies Raises 2026 Revenue Outlook as Data Center Cooling Demand Lifts Sales 20.5%

SPX Technologies raised its 2026 revenue outlook but trimmed its profit guidance after third-quarter revenue jumped 20.5% to $714.5 million on data center cooling demand, according to the earnings release it filed with an 8-K on Thursday after the market close.

The Charlotte, North Carolina-based industrial company now expects full-year revenue of $2.745 billion to $2.805 billion, up from $2.705 billion to $2.765 billion. It lowered its adjusted EBITDA range to $625 million to $645 million from $630 million to $660 million, and narrowed adjusted EPS guidance to $8.20 to $8.50 from $8.20 to $8.60.

Third-quarter GAAP EPS from continuing operations rose 25.6% to $1.62 from $1.29, and adjusted EPS increased 20.1% to $2.21 from $1.84. Adjusted EBITDA grew 21.7% to $165.7 million.

HVAC drives growth, but margins thin

HVAC segment revenue climbed 35.5% to $525.0 million, including 22.3% organic growth and 13.0% from acquisitions. The company attributed the organic gain primarily to higher volumes of cooling equipment, mainly tied to increased data center demand, and higher volumes of heating products. Acquisitions included Thermolec, Crawford, Neptronic and FIS Water.

Segment income rose to $120.8 million from $94.4 million, but the segment margin narrowed 140 basis points to 23.0%. SPX cited higher growth-related costs, largely labor and supply chain inefficiencies from volume increases and capacity expansion, as well as elevated input costs.

That pressure shows in the outlook. SPX raised its 2026 HVAC revenue forecast to $1.995 billion to $2.035 billion but cut the segment's expected income margin to 23.10% to 23.50% from 24.50% to 25.00%.

"HVAC continued to benefit from strong demand across key end markets, while Detection & Measurement delivered excellent profitability," President and CEO Gene Lowe said in the release. He added that the company's HVAC capacity expansion projects "remain on track to support approximately $1.1 billion of annual data center revenue capacity at full production."

Detection and Measurement margins widen

Detection and Measurement revenue fell 7.7% to $189.5 million, primarily because of lower project volumes in the communications technologies business. Segment income still edged up to $52.6 million from $51.7 million, and the margin widened 260 basis points to 27.8%, helped by a more favorable product mix and synergy initiatives.

SPX kept its 2026 revenue outlook for the segment at $750 million to $770 million and raised its margin forecast to 27.00% to 27.50% from 26.25% to 26.75%.

Cash flow and debt

Operating cash flow from continuing operations fell to $60.1 million from $106.8 million a year earlier, while capital expenditures rose to $40.0 million from $10.4 million. Adjusted free cash flow was $23.1 million, compared with $90.8 million.

Total debt rose to $1,334.7 million at the end of the quarter from $501.6 million at the end of 2025, and total cash fell to $120.8 million from $366.0 million.

By the numbers

• $714.5 million: third-quarter revenue, up 20.5%
• $2.21: adjusted EPS, up 20.1%
• 35.5%: HVAC revenue growth
• $2.745 billion to $2.805 billion: raised 2026 revenue guidance
• $8.20 to $8.50: narrowed 2026 adjusted EPS guidance

Sources

1. SPX Technologies Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0000088205-26-000060)

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Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.