Spx Technologies, Inc. · NYSE:SPXC

Spx Technologies — Investor Presentation (June 2025)

53 slides from Spx Technologies's investor presentation, June 2025

  1. Slide 1: Investor Presentation June 2025

    I Investor Presentation JUNE 2025 INVESTOR PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement Certain statements contained in this presentation that are not historical facts, including any statements as to future market conditions, results of operations, product introductions, and financial projections, are forward-looking statements within the meaning of Section 27A of

  3. Slide 3: SPX Technologies Overview

    SPX Technologies Overview INVESTOR PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES 3|

  4. Slide 4: Company Overview

    Company Overview 2024 Revenue by Geography (Destination) ▪ Headquartered in Charlotte, NC ▪ Focused, market-leading segments: » HVAC » Detection & Measurement ▪ ~$2.2B Revenue1 ▪ 4,300+ employees ▪ NYSE Ticker: SPXC 83% 11% 6% 1 2025 revenue guidance midpoint A Leading Supplier of HVAC and Detection

  5. Slide 5: SPX Technologies - Investment Case

    SPX Technologies - Investment Case Attractive Core Well-positioned key platforms in growth markets Favorable secular trends and business mix; growth Growth initiatives in early innings Cash Flow Solid free cash flow conversion Business System Consistent repeatable process to drive improvement Capita

  6. Slide 6: SPX Products are Everywhere

    SPX Products are Everywhere Detection & Measurement HVAC 5 6 6 8 4 7 7 5 1 1 D&M 4 HVAC 1 Precision Locator 1 Cooling Tower 2 Gas Line Robot 2 Hydronics 3 Wastewater Robot 2 3 Floor Heater 2 4 Spectrum Monitoring 4 Radiant Heater 3 5 Obstruction Lighting 5 Damper 6 Marine Lighting 3 6 Air Handling U

  7. Slide 7: Balanced and Attractive End Markets

    Balanced and Attractive End Markets 2024 Revenue1 Hospitality/Other 3% Office/Retail 5% Transportation 7% Data Center 7% Communications 5% Light Manufacturing 7% Water 6% Industrial Resi 21% 7% Lab & Healthcare 9% Government 6% Institutional 9% Energy & Utility 8% Non-Residential Industrial Resi Sma

  8. Slide 8: Strong Product Offerings and Attractive Market Dynamics

    Strong Product Offerings and Attractive Market Dynamics 20252 Revenue from replacement sales1 Segment HVAC Revenue Margin ~2/3 ▪ Cooling Towers ▪ Electric Heating Revenue from #1 or #2 market position1 $1,520M ~24% ▪ Engineered Air Movement 90% ▪ Hydronics MARLEY SGS REFRIGERATION CINCINNATI FAN TAM

  9. Slide 9: SPX Technologies at a Glance

    SPX Technologies at a Glance1 ~$2.2B ~$483M ~22% ~$6.25 FY 2025E FY 2025E FY 2025E FY 2025E Revenue Adj. EBITDA Adj. EBITDA Margin Adj. EPS APA 6% EMEA 11% D&M 32% Engineered Leading Tech- Niches Positions Enabled Revenue Revenue by by Segment Geography (Destination) HVAC 68% Moats Sustainable Ameri

  10. Slide 10: Strong Track Record

    Strong Track Record 1 1 Adj. EBITDA and Margin Adj. Earnings Per Share ($ M/%) ($/Share) ~$483 ~$6.25 $421 $5.58 $310 $4.31 ~22% 21% $207 $3.10 18% $161 $2.33 14% 13% 2 2 2021 2022 2023 2024 2025E 2021 2022 2023 2024 2025E 1 Adjusted results are non-GAAP measures. Reconciliations from US GAAP financ

  11. Slide 11: The Path Forward

    The Path Forward Adjusted EBITDA1 ($ M) 2x+ New Product $310 Digital Development Commercial Continuous $390M Excellence Improvement Strategic Talent M&A 2023A Medium Term 1 Adjusted results are non-GAAP measures. Reconciliations of non-GAAP future measures to US GAAP financial measures are not pract

  12. Slide 12: Value Creation Framework and Targets

    Value Creation Framework and Targets Strong Foundation Business System Target Model Engineered Niches Leading Positions Excellence Growth Tech-Enabled Digital Strategic M&A 15%+ Adj. EBITDA1 Growth Continuous New Product Moats Improvement Development Talent Commercial Sustainable Excellence Strategi

  13. Slide 13: Sustainability that Creates Value

    Sustainability that Creates Value in… …what we make… …and how we make it Lower Core Emissions Values Diversity & Safety Inclusion Clean Engagement Water Targeted Emissions Continuous Connectivity Reduction1 Improvement Clean Energy Minimize Waste 30% 1 Reduce Scope 1 and 2 GHG emissions intensity (r

  14. Slide 14: HVAC Segment

    HVAC Segment INVESTOR PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES 14 |

  15. Slide 15: HVAC Segment Overview

    HVAC Segment Overview 2024 Revenue by Product egment rowth ($ M) Medium-term Cooling Organic Targets 2024 Revenue $1.4B 65% ~60% Heating Replacement Revenue1 $1,520 5-6% 35% $1,365 $1,122 $914 24% ~24% 21-25% 21% 15% 2024 Revenue by 2 2022 2023 2024 2025E eography (destination) Revenue Segment incom

  16. Slide 16: SPX HVAC Products are Everywhere

    SPX HVAC Products are Everywhere Air Handling Unit Duct Heater Critical Exhaust Damper Cooling Tower Radiant Heat Floor eater Hydronics Illustrative example. SPX’s HVAC products are used in a variety of end markets. INVESTOR PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES 16 |

  17. Slide 17: Attractive Fundamentals in HVAC

    Attractive Fundamentals in HVAC Strong Diversified Favorable Sector Attributes End Markets Growth Trends Large addressable market Technology 4-5% Operationally critical applications Industrial Numerous specialty niches Institutional Substantial installed base Market CAGR1 Commercial Extensive afterm

  18. Slide 18: Supported by Near-term Megatrends

    Supported by Near-term Megatrends Electrification & Decarbonization Semiconductors ~50% Portion of industrial energy use having $39B Available subsidies for domestic high or medium potential for electrification semiconductor production in CHIPS Act AI Investments Reshoring ~2x Heat rejection require

  19. Slide 19: HVAC - Key Value Creation Drivers

    HVAC - Key Value Creation Drivers SPX BUSINESS SYSTEM Continuous Growth Digital Improvement Operational echnology- Channel Excellence enabled Deepen partnerships Improve service Create enhanced customer with manufacturing reps and reduce cost productivity across value chain and specifying engineers

  20. Slide 20: Detection & Measurement

    Detection & Measurement INVESTOR PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES 20 |

  21. Slide 21: Detection & Measurement Segment Overview

    Detection & Measurement Segment Overview 2024 Revenue by Product Segment Growth ($ M) Medium-term Location & Inspection Equipment rganic argets 2024 Revenue $619M 42% ~70% $710 AtoN, CommTech, Replacement 4-6% and Transportation Revenue1 $619 $619 58% $547 22-24% 22% ~22% 21% 19% 2024 Revenue by 202

  22. Slide 22: SPX Detection & Measurement Segment

    SPX Detection & Measurement Segment High value business platforms providing specialized field-deployed tools and technologies that enhance the safety, quality, productivity and performance of critical infrastructure systems Location & Inspection Aids to Navigation Communication Transportation Techno

  23. Slide 23: SPX Products are Everywhere

    SPX Products are Everywhere Obstruction Lighting Marine ighting Spectrum Monitoring System Fare Collection System Precision Utility ocator Wastewater Robot Gas Line Robot INVESTOR PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES 23 |

  24. Slide 24: Attractive Secular Drivers and End Markets

    Attractive Secular Drivers and End Markets trong Attractive Favorable Secular Drivers End Markets Growth Trends Energy 3-5% Population Growth & Demographics Water Urbanization & Aging Infrastructure Government Market CAGR1 Safety & Sustainability ommunications Automation, Digital & AI Transportation

  25. Slide 25: Key Megatrends

    Key Megatrends $30B ~50% Cost to industry annually from Obstruction lighting systems in US utility damages yet to be converted to LED 1.8M 40,000+ Miles of municipal wastewater and lateral Specific US infrastructure projects and pipe in US with average age of 45 years awards totaling $400B from 2021

  26. Slide 26: How Does D&M Win?

    How Does D&M Win? SPX BUSINESS SYSTEM Growth M&A Digital Strategic Market Platform mbedded Digital Expansion Accelerators echnologies ▪ Attractive end markets and adjacencies ▪ Proven compounder strategy ▪ Operator productivity ▪ High value customer segments ▪ Proprietary deal flow ▪ Predictive anal

  27. Slide 27: Financial Performance & Capital Allocation

    Financial Performance & Capital Allocation INVESTOR PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES 27 |

  28. Slide 28: Disciplined Balance Sheet Utilization

    Disciplined Balance Sheet Utilization Net Leverage1 Target Range: 1.5-2.5x Efficiently operate within target range 2.5x 2.1x Proforma of 1.5-2.5x 1.9x for Sigma 1.7x 1.6x 1.7x & Omega 1.5x 1.3x 1.6x Return-driven capital 0.4x deployment 1.0x Strong free cash flow Transformers generation divestiture

  29. Slide 29: Free Cash Flow Generation Enables Growth Strategy

    Free Cash Flow Generation Enables Growth Strategy Adj. Free Cash Flow1 Conversion (% of Adj. Net Income1) 108% 95% 95-100% Solid Adj. Free Cash Flow2 Performance ~90% ▪ Target 95-100% conversion of adj. net income2 ▪ Focused working capital optimization ▪ Return-driven CapEx investments to facilitat

  30. Slide 30: Growth-Oriented Capital Allocation

    Growth-Oriented Capital Allocation Capital Deployed 2021-2025E1 Strategic Acquisitions 92% Priorities ▪ Strategic acquisitions ~$2.1B ▪ Return-driven CapEx investments to facilitate organic growth Return of ▪ Opportunistic return of capital to Capital 2% shareholders CapEx 6% 1 Assumes $42.5M of Cap

  31. Slide 31: 2025 Guidance

    2025 Guidance1 Detection & Total SPX HVAC Measurement Revenue $2.20-$2.26b $1,500-$1,540m $700-$720m Prior range $2.13-$2.19b $1,440-$1,480m $690-$710m Segment Income Margin1 22.90%-23.60% 23.50%-24.00% 21.50%-22.75% Prior range 23.00%-24.00% 23.50%-24.50% 22.00%-23.00% Adj. EBITDA1 $470-$495m Prior

  32. Slide 32: Building Strategic Platforms

    Building Strategic Platforms INVESTOR PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES 32 |

  33. Slide 33: M&A Track Record

    M&A Track Record (Revenue1 in $ M) HVAC Segment Detection & Measurement Segment ~$1,520 ~$710 Heating Cooling L&I AtoN CommTech Transport 1 2025 guidance midpoint model Building “Platforms of Scale” INVESTOR PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES 33 |

  34. Slide 34: What Makes a Good SPX M&A Target?

    What Makes a Good SPX M&A Target? Strategic Framework Focus Areas Assessment Criteria ✓ Sizable TAM Engineered Niches Leading Positions HVAC ✓ Less-Cyclical ✓ Attractive Growth & Tech-Enabled Margin Opportunities Moats D&M ✓ Achievable Synergies Sustainable ✓ Cash ROIC > WACC INVESTOR PRESENTATION |

  35. Slide 35: M&A Playbook: Managing Risk & Unlocking Value

    M&A Playbook … Managing Risk & Unlocking Value Due Diligence Integration FUNCTIONAL EXPERTISE ▪ Target Identification DEFINED PROCESS & BUSINESS UNIT ▪ Business Continuity OWNERSHIP PLAYBOOK ▪ Strategic ▪ Strategic Objectives Assessment ▪ Deliver Synergies ▪ Data Validation & ▪ Fit for Purpose Hypot

  36. Slide 36: M&A - Key Performance Metrics

    M&A - Key Performance Metrics 1.5-2.0x 1 $2.1B $130M typical purchase capital deployed average price multiple since 2018 deal size reduction through synergies ~$812M 8x-12x $8B+ acquired revenue typical Adj. EBITDA2 increase in and 20%+ Adj. purchase addressable EBITDA2 price market margin multiples

  37. Slide 37: Ample Room for Growth

    Ample Room for Growth HVAC D&M Product New Business Adjacency Addition / Extension Core NEW Creation New Products Addressable $11B+ $4B+ Adjacent Markets Market1 PRODUCTS for Growth in using Existing Markets New Products ▪ L&I, AtoN, Inorganic ▪ EAM, Electric Heat & CommTech & Core Focus Cooling Exp

  38. Slide 38: Sigma & Omega - Highly Complementary Addition

    Sigma & Omega - Highly Complementary Addition Expands value of our HVAC solutions in attractive multi-story market Cooling towers Typical value of hot water and cooling systems is SIGMA & OMEGA Hot water system Cooling system Heat pumps and fan coils & self-contained units 2X the value of cooling to

  39. Slide 39: M&A Case Studies - HVAC

    M&A Case Studies - HVAC Engineered Air Movement 1 Electric Heat 2 Leading fans, blowers, and Leader in supplemental critical exhaust systems electric heat for commercial applications Industrial and commercial dampers and air control solutions High quality electric heating for industrial and High per

  40. Slide 40: M&A Case Studies – Detection & Measurement Location & Inspection

    M&A Case Studies – Detection & Measurement Location & Inspection Leading electromagnetic locator brand Water / Wastewater pipeline inspection & remediation Specialized ferrous locators Gas pipeline inspection & remediation Leading GPR equipment ~$270M Solution provider for full lifecycle management

  41. Slide 41: M&A Case Studies – Detection & Measurement

    M&A Case Studies – Detection & Measurement Aids to Navigation Obstruction Lighting Marine & Airfield Lighting Terrestrial Airfield Ground Obstruction Lighting and Marine Obstruction Lighting Bolt-on Terrestrial Marine Obstruction Lighting Obstruction Lighting ~$160M Global Leader in aids to navigati

  42. Slide 42: Building Strategic Platforms – CommTech

    Building Strategic Platforms – CommTech KTS scales and accelerates growth in CommTech platform and enhances D&M segment margin KTS Spectrum Tactical Data Advanced Digital Monitoring and Links and RF Interoperability and COMINT Solutions Countermeasures Tactical Networking ~$200m Broad Provider of Sp

  43. Slide 43: Summary & Conclusion

    Summary & Conclusion INVESTOR PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES 43 |

  44. Slide 44: Summary & Conclusion

    Summary & Conclusion Solid base of attractive growth businesses Successful and effective growth and capital deployment Significant further Business System and continuous improvement opportunities Large M&A pipeline with strong execution capabilities Strong cash generation and disciplined balance she

  45. Slide 45: Appendix

    Appendix INVESTOR PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES 45 |

  46. Slide 46: Modeling Considerations – Full-Year 2025

    Modeling Considerations – Full-Year 2025 Metric Metric Considerations Considerations Corporateexpense Corporate expense $48.0-52.0m $50.0-54.0m Long-termincentive Long-term incentivecomp comp $17.0-19.0m $16.0-18.0m Restructuringcosts Restructuring costs $0-2.0m ~$1.0m Interestcost Interest cost $48

  47. Slide 47: FY 2024 U.S. GAAP to Adjusted EPS Reconciliation

    FY 2024 U.S. GAAP to Adjusted EPS Reconciliation ($ in millions, except per share values) GAAP Adjustments Adjusted Segment income $ 460.6 $ — $ 460.6 Corporate expense (1) (53.6) 5.0 (48.6) Acquisition-related and other costs (2) (7.2) 7.2 — Long-term incentive compensation expense (15.0) — (15.0)

  48. Slide 48: FY 2023 U.S. GAAP to Adjusted EPS Reconciliation

    FY 2023 U.S. GAAP to Adjusted EPS Reconciliation ($ in millions, except per share values) GAAP Adjustments Adjusted Segment income $ 353.2 $ — $ 353.2 Corporate expense (1) (58.4) 8.1 (50.3) Acquisition-related and other costs (2) (5.8) 5.8 — Long-term incentive compensation expense (13.4) — (13.4)

  49. Slide 49: FY 2022 U.S. GAAP to Adjusted EPS Reconciliation

    FY 2022 U.S. GAAP to Adjusted EPS Reconciliation ($ in millions, except per share values) GAAP Adjustments Adjusted Segment income $ 249.6 $ — $ 249.6 Corporate expense (1) (68.6) 18.2 (50.4) Acquisition-related and other costs (2) (1.9) 1.9 — Long-term incentive compensation expense (3) (10.9) (0.8

  50. Slide 50: FY 2021 U.S. GAAP to Adjusted EPS Reconciliation

    FY 2021 U.S. GAAP to Adjusted EPS Reconciliation ($ in millions, except per share values) GAAP Adjustments Adjusted Segment income $ 200.6 $ — $ 200.6 Corporate expense (1) (60.5) 8.6 (51.9) Acquisition related and other costs (2) (5.1) 5.1 — Long-term incentive compensation expense (12.8) — (12.8)

  51. Slide 51: FY 2016 U.S. GAAP to Adjusted EPS Reconciliation

    FY 2016 U.S. GAAP to Adjusted EPS Reconciliation ($ in millions, except per share values) GAAP Adjustments Adjusted Segment income (1) $ 142.8 $ 14.5 $ 157.3 Corporate expense (41.7) — (41.7) Pension and postretirement income (expense)(2) (15.4) 16.0 0.6 Long-term incentive compensation expense (13.

  52. Slide 52: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation ($ in millions) (1) Adjustment represents amortization expense associated with acquired intangible assets recorded within "Intangible amortization" and amortization of capitalized software costs recorded within "Cost of products sold." (2) For the twelve months ended D

  53. Slide 53: 2021-2024 Adjusted FCF Reconciliation

    2021-2024 Adjusted FCF Reconciliation ($ in millions) * For the twelve months ended December 31, 2024, adjustments represent the removal of certain discrete income tax items that are considered non-recurring of $16.4, cash payments associated with integration costs of $4.8 within our HVAC reportable

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