SPX Technologies, Inc. (SPXC) Business Profile

What it does

SPX Technologies supplies engineered equipment for heating, cooling and ventilation, as well as products used to locate, inspect and manage infrastructure. Founded in 1912 and headquartered in Charlotte, the company is led by President and Chief Executive Officer Eugene J. Lowe III. It had approximately 4,700 employees at the end of 2025.

Its HVAC business makes equipment that cools buildings and industrial processes, moves and handles air, and provides heating and ventilation. Customers use these products in places such as data centers, power facilities, commercial buildings, institutions and homes. SPX also installs and services equipment.

The Detection and Measurement business makes tools for finding underground pipes and cables, inspecting and rehabilitating infrastructure, and operating transportation and communication systems. Its products also include robotic systems and aids to navigation. Customers include utilities, telecommunications providers, defense agencies, municipalities and transit authorities.

SPX operates through its two segments, HVAC and Detection and Measurement. Both design and manufacture equipment, sell through direct and outside channels, and serve customers in several regions. The company also expands its product range through acquisitions: FIS Water added water management and control products to its cooling business in 2026.

How it makes money

In 2025, SPX generated revenue across both segments; in Q3 2026, revenue increased 20.5% year over year.

SPX generates revenue by designing, manufacturing and selling equipment across its two segments. It also installs and services products. HVAC sells package and process cooling equipment, air movement and handling systems, and heating and ventilation products. Its equipment serves industrial, institutional, commercial and residential applications.

Detection and Measurement sells underground locating and inspection equipment, robotic systems, transportation systems, communication technologies and navigation aids. Its customers use these products to build, monitor and maintain infrastructure. Project volumes in this business can vary between periods depending on when work is executed.

Both segments sell directly and through distributors. HVAC also uses independent manufacturing representatives and retailers. Installation and service accompany equipment sales, although SPX does not provide a separate recurring-revenue figure for those activities.

SPX has generally offset raw-material cost increases through product pricing. In 2026, the company raised prices across its HVAC businesses to address inflationary pressure, while noting that price changes can take time to flow through to new projects. SPX said some backlog contracts allow prices to be adjusted for costs. Its businesses generally have been stronger in the second half of the calendar year, and some have seasonal fluctuations.

Customers and how it sells

HVAC customers span residential, commercial, institutional and industrial markets. Industrial applications include data centers and power generation. Detection and Measurement customers include utilities, telecommunications providers, defense agencies, municipalities and transit authorities. They use SPX products to locate underground assets, inspect infrastructure, operate transportation systems and support communications and navigation.

The HVAC segment sells directly to customers and through independent manufacturing representatives, third-party distributors and retailers. Detection and Measurement sells directly and through third-party distributors. FIS Water’s products are typically paired with cooling towers, and SPX expects the acquired business to use its global channels and relationships with equipment manufacturers.

SPX had operations in 16 countries. HVAC serves customers in North America, Europe and Asia, while Detection and Measurement also serves customers in Africa. SPX also sells outside the United States.

No customer or group under common control accounted for more than 10% of consolidated revenue in any period presented through 2025. SPX has said that serving data centers entails structural customer concentration. It also said education and government HVAC markets were soft in 2026, while it continued to see demand for data center solutions.

Suppliers and costs

SPX manufactures many of the components used in its products and outsources some components and subassemblies to other companies. It uses numerous raw-material sources and says it is not significantly dependent on one or a limited number of suppliers. Its key materials include petroleum-based products, aluminum, steel and copper.

Supplier failure can affect product quality or interrupt SPX’s ability to deliver. Long-term supplier contracts can also increase exposure to price fluctuations. Tariffs can raise material costs, including costs of domestically sourced materials, and make cross-border shipments more expensive.

During the Q3 2026 production ramp, SPX outsourced some metal fabrication that it had previously done itself to meet demand. It said secondary suppliers with suitable lead times cost more than expected. The company also experienced higher labor and outsourcing costs as it increased production. SPX expects to bring more metal fabrication in-house as equipment and facilities become operational, while continuing to balance internal production with outsourcing to serve demand.

The company said steel and diesel costs increased in Q3 2026 and that it had raised HVAC prices to mitigate inflationary pressure. It also said price changes take time to pass through to new projects.

Competitive position

SPX competes with numerous companies, both large and small, across its product groups. The principal methods of competition are service, product performance, technical innovation and price, with their relative importance varying by product. SPX does not identify individual competitors in its discussion of competition. Its competitors do not all offer the same products or serve the same markets as SPX.

The company sells under brands across cooling, heating, locating, inspection, transportation, communications and navigation. It also conducts research and development to improve products and manufacturing methods and to introduce products. At December 31, 2025, SPX owned 462 patents covering products and manufacturing methods, alongside registered trademarks. It does not consider any single patent or trademark indispensable to operating its business as constituted.

Our reading: Brands, product engineering and service capabilities offer some differentiation, but their strength varies by product because customers have alternatives and price is a competitive factor. Our reading: The patent portfolio supports product development, but the absence of reliance on any single patent limits what the count alone establishes about protection from competition. Our reading: Established channels can help SPX sell acquired products, although the company still has to integrate those businesses and compete in each market.

Growth opportunities

SPX pursues growth through new products, manufacturing capacity and acquisitions. In 2025, revenue increased, reflecting both organic growth and acquired businesses. HVAC benefited from higher heating and cooling volumes, while Detection and Measurement gained revenue from the KTS acquisition and higher project volumes in communications and transportation.

The company is expanding HVAC capacity to meet demand for data center and custom air-handling products. It expects approximately $1.1 billion of total data center capacity once the facilities are in full production. Its Madison facility began assembly in Q3 2026 and shipped OlympusMAX and Ingenia products. SPX also launched a heat trace product for industrial and commercial applications.

Acquisitions add products and capabilities. In 2026, SPX acquired Thermolec and Crawford, followed by Neptronic and FIS Water. FIS Water adds water management and control products that are typically paired with cooling towers. The company said the four strategic acquisitions represented approximately $310 million of revenue run rate.

In Detection and Measurement, SPX intends to expand its hardware and software portfolio within existing markets and enter additional ones. It continues to review potential acquisitions across both segments. The company has also cautioned that acquisitions require integration of operations, personnel, technology and other systems.

Structural risks

• Cyclical demand and project timing: Many markets SPX serves are cyclical or affected by industry events. Customer spending and the timing of projects can change, and Detection and Measurement project volumes vary between periods. SPX has also identified softness in education and government HVAC markets.
• Costs and supply: Raw-material and component prices or availability can affect results. Tariffs may raise costs, and supplier problems can interrupt deliveries. During the 2026 HVAC production ramp, additional labor and outsourced fabrication contributed to inefficiencies and higher costs.
• Contract execution: Cost overruns, inflation and delays can affect results, particularly on fixed-price contracts. Some U.S. government contracts are long-term agreements funded annually, and the government can terminate contracts or fail to appropriate funding.
• Acquisitions and expansion: Acquisitions bring financial and operational challenges, including integrating systems and personnel, assuming liabilities and potential cybersecurity risks. SPX also faces uncertainty over whether facility expansions will be completed on time and at anticipated cost or deliver their expected benefits.
• Customer and market exposure: Data center activity brings structural customer concentration. Outside the United States, SPX faces risks including trade restrictions, currency movements, local competition and difficulties shipping or collecting payment.

Bottom line

Our reading

Our reading: SPX is an engineered-equipment supplier whose business rests on HVAC sales and a separate infrastructure-focused detection and measurement portfolio. Acquisitions and data center capacity expansion provide routes to growth, but they also require integration and execution. Its exposure includes cyclical customer demand, project timing and the cost of ramping production, especially when materials or outsourced components become more expensive.