Spx Technologies, Inc. · NYSE:SPXC
Spx Technologies — Q1 2025 Earnings Presentation
31 slides from Spx Technologies's earnings presentation, May 1, 2025
Slide 1: Q1 2025 Earnings Presentation
Q1 2025 Earnings Presentation MAY 1, 2025 Q1 2025 EARNINGS PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES
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
Slide 3: Introductory Comments
Introductory Comments Gene Lowe, President & Chief Executive Officer MAY 1, 2025 Q1 2025 EARNINGS PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES 3|
Slide 4: Executive Summary
Executive Summary ▪ Strong Q1 performance » 12% Adjusted EBITDA1 growth » 10% Adjusted EPS1 growth ▪ Sigma & Omega expands value of HVAC solutions » Highly complementary products and channels » Attractive growth markets ▪ Raising 2025 guidance » Adjusted EBITDA1 range implies +15% growth at midpoint
Slide 5: Q1 2025 Results Summary
Q1 2025 Results Summary ($ in millions) First Quarter ▪ Revenue growth of 3.7% Revenue » Solid performance in HVAC Adjusted EBITDA / Margin1 » Benefit of acquisitions ▪ Adjusted EBITDA1 growth of 11.5% » 150 bps of margin1 expansion with increases in both segments 1 Adjusted results are non-GAAP mea
Slide 6: Value Creation Framework
Value Creation Framework Strong Foundation Business System 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 Strategic Planning & Goal Deploym
Slide 7: 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
Slide 8: Q1 2025 Financial Review
Q1 2025 Financial Review Mark A. Carano, Chief Financial Officer MAY 1, 2025 Q1 2025 EARNINGS PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES 8|
Slide 9: Adjusted Earnings Per Share
Adjusted Earnings Per Share1 Q1 2024 Q1 2025 GAAP EPS from continuing $1.05 $1.10 operations Intangible amortization $0.24 $0.31 Acquisition and integration-related $0.08 $0.14 Non-service pension & other2 ($0.12) ($0.17) Adj EPS1 from continuing operations $1.25 $1.38 1 Adjusted results are non-GAA
Slide 10: Q1 2025 Results
Q1 2025 Results ($ in millions) Q1 Revenue: First Quarter ▪ 3.7% year-over-year increase: Revenue » 0.4% organic increase with growth in HVAC largely Consolidated Segment Income / Margin1 offset by Detection & Measurement large project timing » 3.7% acquisition impact » -0.4% currency impact Q1 Cons
Slide 11: HVAC Q1 2025 Results
HVAC Q1 2025 Results ($ in millions) Q1 Revenue: First Quarter ▪ 6.8% year-over-year increase: Revenue » 4.4% organic increase due primarily to higher Segment Income / Margin Heating sales » 2.9% acquisition impact (Ingénia) » -0.5% currency impact Q1 Segment Income / Margin: ▪ Operating leverage du
Slide 12: Detection & Measurement Q1 2025 Results
Detection & Measurement Q1 2025 Results ($ in millions) Q1 Revenue: First Quarter ▪ -2.0% year-over-year decrease: Revenue » -6.9% organic decrease due primarily to timing Segment Income / Margin of project deliveries vs prior year » 5.2% acquisition impact (KTS) » -0.3% currency impact Q1 Segment I
Slide 13: Financial Position & Guidance
Financial Position & Guidance Mark A. Carano, Chief Financial Officer MAY 1, 2025 Q1 2025 EARNINGS PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES 13 |
Slide 14: Financial Position Update
Financial Position Update ($ in millions) Q4 2024 Q1 2025 Q4 2024 Q1 2025 Sigma & Omega 2.61 Impact Short-term debt $10 $61 2.11 2.1x Current maturities of long-term debt 28 28 1.9x Long-term debt 577 872 1.61 Total Debt $615 $960 1.11 1.9x 2 1.4x 1.6x Less: Cash on hand (161) (182) 0.61 1.0x Net De
Slide 15: 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 Raisi
Slide 16: End Market Review & Closing Comments
End Market Review & Closing Comments Gene Lowe, President & Chief Executive Officer MAY 1, 2025 Q1 2025 EARNINGS PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES 16 |
Slide 17: Market Commentary
Market Commentary Cooling Heating Project Oriented Run-Rate ▪ Solid backlog and ▪ Resi and non-resi ▪ Significant activity ▪ Mixed global demand demand in core verticals demand both steady building for 2026+ with regional variation Diverse End Markets and High Replacement Demand MAY 1, 2025 Q1 2025
Slide 18: Executive Summary
Executive Summary ▪ Strong start to year ▪ Sigma & Omega enhances value of HVAC solutions ▪ Raising full-year guidance ▪ Well-positioned to manage macro uncertainty Well-Positioned to Continue Value-Creation Journey MAY 1, 2025 Q1 2025 EARNINGS PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES 18 |
Slide 19: Appendix
Appendix MAY 1, 2025 Q1 2025 EARNINGS PRESENTATION | COPYRIGHT © 2025 SPX TECHNOLOGIES 19 |
Slide 20: 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 $48
Slide 21: GAAP Reconciliation Results by Quarter
GAAP Reconciliation Results by Quarter ($ in millions) 2024 2025 Q1 Q2 Q3 Q4 FY Q1 1 Consolidated segment income $ 99.8 $ 117.6 $ 113.8 $ 129.4 $ 460.6 $ 110.5 Corporate expense (13.9) (12.0) (12.4) (15.3) (53.6) (14.0) Acquisition and integration-related costs (2.6) (2.3) (1.4) (0.9) (7.2) (6.4) Lo
Slide 22: Segment Results
Segment Results ($ in millions) 2024 2025 HVAC Q1 Q2 Q3 Q4 FY Q1 Revenue $302.4 $356.5 $335.3 $370.5 $1,364.7 $323.0 Segment income $68.4 $83.7 $80.0 $91.8 $323.9 $73.9 23% 23% 24% 25% 24% 23% Detection and 2024 2025 Measurement Q1 Q2 Q3 Q4 FY Q1 Revenue $162.8 $144.8 $148.4 $163.2 $619.2 $159.6 Seg
Slide 23: Q1 2025 Revenue by Major product lines
Q1 2025 Revenue by Major product lines ($ in millions) Three months ended March 29, 2025 Detection and Reportable Segments HVAC Measurement Total Major product lines Package and process cooling equipment and services, and engineered air movement and handling solutions $ 199.1 $ — $ 199.1 Boilers, el
Slide 24: Q1 2024 Revenue by Major product lines
Q1 2024 Revenue by Major product lines ($ in millions) Three months ended March 30, 2024 Detection and Reportable Segments HVAC Measurement Total Major product lines Package and process cooling equipment and services, and engineered air movement and handling solutions $ 187.8 $ — $ 187.8 Boilers, el
Slide 25: Q1 2025 U.S. GAAP to Adjusted EPS Reconciliation
Q1 2025 U.S. GAAP to Adjusted EPS Reconciliation ($ in millions, except per share values) GAAP Adjustments Adjusted Segment income $ 110.5 $ — $ 110.5 Corporate expense (1) (14.0) 2.2 (11.8) Acquisition-related costs (2) (6.4) 6.4 — Long-term incentive compensation expense (3.7) — (3.7) Amortization
Slide 26: Q1 2024 U.S. GAAP to Adjusted EPS Reconciliation
Q1 2024 U.S. GAAP to Adjusted EPS Reconciliation ($ in millions, except per share values) GAAP Adjustments Adjusted Segment income $ 99.8 $ — $ 99.8 Corporate expense (1) (13.9) 2.4 (11.5) Acquisition-related costs (2) (2.6) 2.6 — Long-term incentive compensation expense (3.3) — (3.3) Amortization o
Slide 27: U.S. GAAP to Adjusted Operating Income Reconciliation
U.S. GAAP to Adjusted Operating Income Reconciliation ($ in millions) Three months ended March 29, 2025 March 30, 2024 Operating income $ 66.6 $ 64.6 Exclude: Acquisition-related and other costs (1) (8.6) (5.0) Amortization of acquired intangible assets (19.7) (14.8) Adjusted operating income $ 94.9
Slide 28: Q1 Adjusted EBITDA Reconciliation
Q1 Adjusted EBITDA Reconciliation ($ in millions) Three months ended March 29, 2025 March 30, 2024 Net income $ 51.2 $ 49.0 Exclude: Income tax provision (6.2) (1.9) Interest expense, net (11.4) (9.5) Amortization expense (1) (19.9) (14.8) Depreciation expense (7.1) (6.2) Loss from discontinued oper
Slide 29: Q1 2025 Organic Revenue
Q1 2025 Organic Revenue Three months ended March 29, 2025 Detection & HVAC Measurement Consolidated Net Revenue Growth (Decline) 6.8 % (2.0) % 3.7 % Exclude: Foreign Currency (0.5) % (0.3) % (0.4) % Exclude: Acquisitions 2.9 % 5.2 % 3.7 % Organic Revenue Growth (Decline) 4.4 % (6.9) % 0.4 % MAY 1, 2
Slide 30: U.S. GAAP to Adjusted Net Income Reconciliation
U.S. GAAP to Adjusted Net Income Reconciliation ($ in millions) Q1 2025 Income from continuing operations $ 51.7 Exclude: Amortization of acquired intangible assets (19.7) (1) Acquisition and integration-related costs (8.6) Non-service pension and postretirement losses (2.2) Fair value adjustment on
Slide 31: Q1 2025 Adjusted Free Cash Flow Reconciliation
Q1 2025 Adjusted Free Cash Flow Reconciliation ($ in millions) Q1 2025 Operating cash flow from continuing operations $ (10.4) Capital expenditures (5.5) Free cash flow from continuing operations (15.9) (1) Adjustments 52.2 Adjusted free cash flow from continuing operations $ 36.3 Adjusted net incom