Slide 1: Q4 2024 Earnings Presentation
Q4 2024 Earnings Presentation FEBRUARY 25, 2025 Q4 2024 EARNINGS PRESENTATION | COPYRIGHT © 2024 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 FEBRUARY 25, 2025 Q4 2024 EARNINGS PRESENTATION | COPYRIGHT © 2024 SPX TECHNOLOGIES 3|
Slide 4: Executive Summary
Executive Summary ▪ Strong Close to 2024 » 36% Adjusted EBITDA1 growth » 108% Adjusted FCF1 conversion ▪ KTS further scales attractive CommTech platform » Strong technology positioning » Significant growth opportunities ▪ Introducing 2025 Guidance » Double-digit y/y growth in Adjusted EBITDA1 and Ad
Slide 5: Q4 2024 Results Summary
Q4 2024 Results Summary ($ in millions) Fourth Quarter & FY ▪ Revenue growth of 13.7% Revenue » Growth in both segments Adjusted EBITDA / Margin1 » Strong performance in HVAC Cooling ▪ Adjusted EBITDA1 growth of 28.1% » 250 bps of margin1 expansion with increases in both segments 1 Adjusted results
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: 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
Slide 8: Value Creation Playbook in CommTech
Value Creation Playbook in CommTech Engineered Niches ▪ Enhances / strengthens comms solutions Leading Positions ▪ Adds highly complementary technologies TCI ECS Tech-Enabled ▪ Broadens growth markets ▪ Expands global customer base Moats KTS Sustainable ▪ Extensive NPD potential ▪ Channel opportunit
Slide 9: Q4 2024 Financial Review
Q4 2024 Financial Review Mark A. Carano, Chief Financial Officer FEBRUARY 25, 2025 Q4 2024 EARNINGS PRESENTATION | COPYRIGHT © 2024 SPX TECHNOLOGIES 9|
Slide 10: Adjusted Earnings Per Share
Adjusted Earnings Per Share1 Q4 2023 Q4 2024 FY 2023 FY 2024 GAAP EPS from continuing $0.67 $1.19 $3.10 $4.29 operations Intangible amortization $0.18 $0.26 $0.71 $1.03 Acquisition-related $0.02 $0.05 $0.21 $0.21 Non-service pension & other $0.38 $0.01 $0.29 $0.05 Adj EPS1 from continuing operations
Slide 11: Q4 2024 Results
Q4 2024 Results ($ in millions) Q4 Revenue: Fourth Quarter & FY ▪ 13.7% year-over-year increase: Revenue » 9.9% organic1 increase with growth in both segments Consolidated Segment Income / Margin1 » 4.0% acquisition impact » -0.2% currency impact Q4 Consolidated Segment Income / Margin1: ▪ HVAC was
Slide 12: HVAC Q4 2024 Results
HVAC Q4 2024 Results ($ in millions) Q4 Revenue: Fourth Quarter & FY ▪ 18.6% year-over-year increase: Revenue » 12.8% organic1 increase due primarily to higher Segment Income / Margin Cooling sales » 6.0% acquisition impact (Ingénia) » -0.2% currency impact Q4 Segment Income / Margin: ▪ Cooling oper
Slide 13: Detection & Measurement Q4 2024 Results
Detection & Measurement Q4 2024 Results ($ in millions) Q4 Revenue: Fourth Quarter & FY ▪ 4.0% year-over-year increase: Revenue » 4.2% organic1 increase due primarily to stronger sales Segment Income / Margin of Location & Inspection and AtoN products » -0.2% currency impact Q4 Segment Income / Marg
Slide 14: Financial Position & Guidance
Financial Position & Guidance Mark A. Carano, Chief Financial Officer FEBRUARY 25, 2025 Q4 2024 EARNINGS PRESENTATION | COPYRIGHT © 2024 SPX TECHNOLOGIES 14 |
Slide 15: Financial Position Update
Financial Position Update ($ in millions) Q3 2024 Q4 2024 Q3 2024 Q4 2024 KTS Impact 2.11 Short-term debt $49 $10 2.1x Current maturities of long-term debt 24 28 1.61 Long-term debt 665 577 1.7x 1.11 Total Debt $738 $615 1.8x 1.4x 1.4x Less: Cash on hand 2 (129) (161) 0.61 1.0x Net Debt $608 $453 0.
Slide 16: 2025 Guidance
2025 Guidance1 Detection & Total SPX HVAC Measurement Revenue $2.13-$2.19b $1,440-$1,480m $690-$710m Prior year $1.984b $1,365m $619m Segment Income Margin1 23.0%-24.0% 23.5%-24.5% 22.0%-23.0% Prior year 23.2% 23.7% 22.1% Adj. EBITDA1 $460-$490m Prior year $421m Adj. EBITDA Margin1 Solid growth 21.6
Slide 17: End Market Review & Closing Comments
End Market Review & Closing Comments Gene Lowe, President & Chief Executive Officer FEBRUARY 25, 2025 Q4 2024 EARNINGS PRESENTATION | COPYRIGHT © 2024 SPX TECHNOLOGIES 17 |
Slide 18: Market Commentary
Market Commentary Cooling Heating Project Oriented Run-Rate ▪ Solid demand trends ▪ More typical Q1 heating ▪ Significant activity ▪ Mixed global demand continue in key verticals season; non-resi steady building for 2026+ with regional variation Key Market Strength Supports Guidance FEBRUARY 25, 202
Slide 19: Executive Summary
Executive Summary ▪ Solid close to a strong year ▪ KTS further builds attractive CommTech platform ▪ Anticipate solid earnings growth in 2025 ▪ Attractive, active acquisition pipeline Well-Positioned to Continue Value-Creation Journey FEBRUARY 25, 2025 Q4 2024 EARNINGS PRESENTATION | COPYRIGHT © 202
Slide 20: Appendix
Appendix FEBRUARY 25, 2025 Q4 2024 EARNINGS PRESENTATION | COPYRIGHT © 2024 SPX TECHNOLOGIES 20 |
Slide 21: Modeling Considerations – Full-Year 2025
Modeling Considerations – Full-Year 2025 Metric Metric Considerations Considerations Corporateexpense Corporate expense $48.0-52.0m $48.0-52.0m Long-termincentive Long-term incentivecomp comp $17.0-19.0m $17.0-19.0m Restructuringcosts Restructuring costs $0-2.0m $0.0-2.0m Interestcost Interest cost
Slide 22: GAAP Reconciliation Results by Quarter
GAAP Reconciliation Results by Quarter ($ in millions) 2023 2024 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Consolidated segment income1 $ 74.4 $ 84.4 $ 91.6 $ 102.8 $ 353.2 $ 99.8 $ 117.6 $ 113.8 $ 129.4 $ 460.6 Corporate expense (14.6) (16.6) (13.0) (14.2) (58.4) (13.9) (12.0) (12.4) (15.3) (53.6) Acquisition-
Slide 23: Segment Results
Segment Results ($ in millions) 2023 2024 HVAC Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Revenue $251.6 $269.0 $289.2 $312.5 $1,122.3 $302.4 $356.5 $335.3 $370.5 $1,364.7 Segment income $47.7 $55.2 $58.3 $73.2 $234.4 $68.4 $83.7 $80.0 $91.8 $323.9 19% 21% 20% 23% 21% 23% 23% 24% 25% 24% Detection and 2023 2024
Slide 24: FY 2024 Revenue by Major product lines
FY 2024 Revenue by Major product lines ($ in millions) FEBRUARY 25, 2025 Q4 2024 EARNINGS PRESENTATION | COPYRIGHT © 2024 SPX TECHNOLOGIES 24 |
Slide 25: FY 2023 Revenue by Major product lines
FY 2023 Revenue by Major product lines ($ in millions) FEBRUARY 25, 2025 Q4 2024 EARNINGS PRESENTATION | COPYRIGHT © 2024 SPX TECHNOLOGIES 25 |
Slide 26: Q4 2024 U.S. GAAP to Adjusted EPS Reconciliation
Q4 2024 U.S. GAAP to Adjusted EPS Reconciliation ($ in millions, except per share values) GAAP Adjustments Adjusted Segment income $ 129.4 $ — $ 129.4 Corporate expense (1) (15.3) 1.3 (14.0) Acquisition-related and other costs (2) (0.9) 0.9 — Long-term incentive compensation expense (4.0) — (4.0) Am
Slide 27: Q4 2023 U.S. GAAP to Adjusted EPS Reconciliation
Q4 2023 U.S. GAAP to Adjusted EPS Reconciliation ($ in millions, except per share values) GAAP Adjustments Adjusted Segment income $ 102.8 $ — $ 102.8 Corporate expense (1) (14.2) 0.8 (13.4) Acquisition-related and other costs (2) (0.8) 0.8 — Long-term incentive compensation expense (3.4) — (3.4) Am
Slide 28: 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)
Slide 29: 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)
Slide 30: U.S. GAAP to Adjusted Operating Income Reconciliation
U.S. GAAP to Adjusted Operating Income Reconciliation ($ in millions) Three months ended Twelve months ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Operating income $ 90.2 $ 63.1 $ 308.3 $ 221.9 Include - TSA Income (1) — — — 0.3 Exclude: Acquisition-related and othe
Slide 31: Q4 Adjusted EBITDA Reconciliation
Q4 Adjusted EBITDA Reconciliation ($ in millions) Three months ended December 31, 2024 December 31, 2023 Net income $ 57.1 $ 31.5 Exclude: Income tax provision (21.4) (10.1) Interest expense, net (10.1) (9.0) Amortization expense (1) (16.5) (11.6) Depreciation expense (7.2) (5.2) Income (loss) from
Slide 32: Full-Year Adjusted EBITDA Reconciliation
Full-Year Adjusted EBITDA Reconciliation Twelve months ended ($ in millions) December 31, 2024 December 31, 2023 Net income $ 200.5 $ 89.9 Exclude: Income tax provision (53.6) (41.6) Interest expense, net (43.6) (25.5) Amortization expense (1) (64.9) (44.0) Depreciation expense (26.7) (19.2) Loss fr
Slide 33: Q4 2024 Non-GAAP Reconciliation – Organic Revenue
Q4 2024 Non-GAAP Reconciliation – Organic Revenue Three months ended December 31, 2024 Detection & HVAC Measurement Consolidated Net Revenue Growth 18.6 % 4.0 % 13.7 % Exclude: Foreign Currency (0.2) % (0.2) % (0.2) % Exclude: Acquisitions 6.0 % - % 4.0 % Organic Revenue Growth 12.8 % 4.2 % 9.9 % FE
Slide 34: FY 2024 Non-GAAP Reconciliation – Organic Revenue
FY 2024 Non-GAAP Reconciliation – Organic Revenue Twelve months ended December 31, 2024 Detection & HVAC Measurement Consolidated Net Revenue Growth 21.6 % - % 13.9 % Exclude: Foreign Currency (0.1) % 0.2 % - % Exclude: Acquisitions 12.0 % - % 7.7 % Organic Revenue Growth (Decline) 9.7 % (0.2) % 6.2
Slide 35: U.S. GAAP to Adjusted Net Income Reconciliation
U.S. GAAP to Adjusted Net Income Reconciliation ($ in millions) FY 2024 Income from continuing operations $ 201.8 Exclude: Amortization of acquired intangible assets (64.5) (1) Acquisition-related and other costs (13.5) (2) Other operating expense, net (8.4) Non-service pension an postretirement los
Slide 36: FY 2024 Adjusted Free Cash Flow Reconciliation
FY 2024 Adjusted Free Cash Flow Reconciliation ($ in millions) FY 2024 Operating cash flow from continuing operations $ 313.1 Capital expenditures (38.0) Free cash flow from continuing operations 275.1 Adjustments (1) 8.7 Adjusted free cash flow from continuing operations $ 283.8 Adjusted net income