Breaking Down SPX Technologies, Inc. (SPXC) Financial Health: Key Insights for Investors

Are you keeping a close watch on SPX Technologies, Inc. (SPXC) and wondering about its financial stability? With a strong finish to 2024, the company reported a revenue of $1.98 billion, marking a 13.94% increase from 2023. But how does this translate into overall financial health? Delve deeper to uncover insights into SPXC's key financial metrics, including a surge in full-year GAAP net income by 123%, and understand how strategic acquisitions and market positioning are shaping its future growth.

SPX Technologies, Inc. (SPXC) Revenue Analysis

Understanding SPX Technologies, Inc.'s revenue streams involves examining where the company's money comes from, how these sources have changed over time, and the relative importance of each business segment. This analysis provides insights into the company's financial health and future prospects. For more information, check out: Exploring SPX Technologies, Inc. (SPXC) Investor Profile: Who’s Buying and Why?

SPX Technologies, Inc. operates through two primary segments:

• HVAC: This segment focuses on providing heating, ventilation, and air conditioning solutions.
• Detection & Measurement: This segment offers products and technologies for locating, inspecting, and maintaining critical infrastructure.

In 2024, SPX Technologies reported total revenue of $1.77 billion. This represents a 13.3% increase compared to the $1.56 billion reported in 2023.

Here's a breakdown of revenue by segment for 2024:

HVAC:

• Revenue: $1.15 billion
• Organic growth: 13.8%
• Total growth: 14.9%

Detection & Measurement:

• Revenue: $620.1 million
• Organic growth: 10.6%
• Total growth: 11.4%

The following table summarizes SPX Technologies' revenue performance across its segments for the fiscal year 2024:

SPX Technologies' revenue growth is driven by both organic expansion and strategic acquisitions. Organic growth reflects increased sales from existing products and services, while total growth includes the impact of acquisitions. The HVAC segment, being the larger of the two, significantly contributes to the company's overall revenue. The Detection & Measurement segment also plays a crucial role, providing steady growth and diversification.

SPX Technologies, Inc. (SPXC) Profitability Metrics

Analyzing SPX Technologies, Inc.'s profitability involves looking at several key metrics that provide insights into its financial health and operational efficiency. These include gross profit, operating profit, and net profit margins. By examining these figures, we can understand how well SPX Technologies manages its costs and generates profit from its revenue.

Here's an overview of SPX Technologies, Inc.'s profitability based on the 2024 fiscal year data:

• Gross Profit: SPX Technologies reported a gross profit of $697.7 million.
• Operating Income: The company's operating income reached $341.4 million.
• Net Income: SPX Technologies' net income stood at $224.3 million.

To provide a more detailed understanding, let's break down the margins:

• Gross Profit Margin: The gross profit margin was 32.7%.
• Operating Profit Margin: The operating profit margin was 16.0%.
• Net Profit Margin: The net profit margin was 10.5%.

Here is a table summarizing the profitability metrics for SPX Technologies, Inc. based on the 2024 fiscal year:

Analyzing the trends in profitability over time helps to assess the company's ability to sustain and improve its financial performance. Comparing SPX Technologies' profitability ratios with industry averages offers insights into its competitive positioning and operational effectiveness.

Operational efficiency is crucial for maintaining and improving profitability. Effective cost management and positive gross margin trends are indicators of strong operational performance. For additional insights into the company's strategic direction, you might find this resource helpful: Mission Statement, Vision, & Core Values of SPX Technologies, Inc. (SPXC).

SPX Technologies, Inc. (SPXC) Debt vs. Equity Structure

Understanding how SPX Technologies, Inc. (SPXC) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and its strategies for balancing debt and equity funding.

As of December 28, 2024, SPX Technologies, Inc. (SPXC) reported the following debt figures:

• Total long-term debt: $658.4 million
• Total short-term debt: $14.8 million

The company's approach to managing debt includes strategic issuances and refinancing activities to optimize its capital structure. For instance, in Q4 2023, SPX Technologies, Inc. (SPXC) successfully refinanced its debt, extending maturities and securing favorable terms. Such actions reflect a proactive approach to financial management, ensuring the company maintains financial flexibility and stability.

The debt-to-equity ratio is a key metric for evaluating a company's financial leverage. SPX Technologies, Inc. (SPXC)'s debt-to-equity ratio can be calculated using the total liabilities and shareholder equity figures from its balance sheet. As of December 28, 2024, the company's total liabilities were $1.32 billion and total equity was $1.20 billion. This results in a liabilities-to-equity ratio of approximately 1.10. While not a direct debt-to-equity ratio, it provides insight into the proportion of liabilities used to finance the company relative to equity.

Industry standards for debt-to-equity ratios vary, but generally, a ratio below 1.0 is considered healthy, indicating that a larger portion of the company's assets are funded by equity rather than debt. SPX Technologies, Inc. (SPXC)'s ratio of 1.10 suggests a balanced approach to financing, though it's essential to compare this to industry peers and historical trends to gauge whether the company is taking on excessive risk.

SPX Technologies, Inc. (SPXC) strategically balances debt financing with equity funding to support its growth initiatives and operational needs. This balance is evident in their approach to acquisitions and organic investments, where they utilize a mix of debt and equity to maintain financial stability while pursuing growth opportunities. The company's ability to manage its debt levels effectively is reflected in its credit ratings and investor confidence.

For further insights into SPX Technologies, Inc. (SPXC)'s investor profile, you might find this resource helpful: Exploring SPX Technologies, Inc. (SPXC) Investor Profile: Who’s Buying and Why?

SPX Technologies, Inc. (SPXC) Liquidity and Solvency

When evaluating a company's financial health, liquidity and solvency are critical factors. Liquidity refers to the ability of a company to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations. Let's assess SPX Technologies, Inc. (SPXC)'s liquidity and solvency based on available data.

Assessing SPX Technologies, Inc.'s Liquidity:

Analyzing liquidity involves examining key ratios and trends that indicate the company's ability to cover its immediate liabilities.

• Current and Quick Ratios:
• For the fiscal year 2024, SPX Technologies has a current ratio of 1.87.
• The quick ratio for 2024 is 1.23.
• These ratios suggest that SPX Technologies possesses sufficient liquid assets to cover its short-term liabilities.

These ratios, compared to previous years, show a fluctuating but generally healthy liquidity position. For instance, the current ratio was 1.77 in 2023, 2.16 in 2022, and 2.06 in 2021, indicating a slight decrease in 2024 but still within a reasonable range.

• Analysis of Working Capital Trends:

Net working capital change refers to the amount of cash generated in operations through lower working capital requirements.

During the last fiscal year (2024), SPXC's Net Working Capital change was primarily driven by:

• A $5.7 million decrease in Inventory
• A $28.5 million increase in Receivables
• A $9.4 million increase in Creditors
• A $5.6 million decrease in Other Current Assets
• A $114.3 million increase in Other Current Liabilities
• A $133.3 million increase in Others

• Cash Flow Statements Overview:

SPX Technologies' cash flow statements provide insights into the company's ability to generate cash from its operations, investments, and financing activities.

Key highlights from the 2024 cash flow statement include:

• Net operating cash from continuing operations for the full year of 2024 was $313.1 million.
• Capital expenditures for continuing operations for the full year of 2024 were $38.0 million.

The company’s ability to generate significant cash from operations indicates a strong capacity to meet its obligations and invest in future growth.

The consolidated statements of cash flows reveal the following (in millions of dollars):

• Potential Liquidity Concerns or Strengths:

While SPX Technologies generally exhibits a healthy liquidity position, some factors warrant attention:

• As of December 31, 2024, SPX had total outstanding debt of $614.7 million and total cash of $161.4 million.
• This indicates a significant debt burden relative to its cash reserves, which could pose a liquidity risk if not managed carefully.

Despite these concerns, the company's strong cash flow from operations and reasonable current and quick ratios suggest it is well-positioned to meet its short-term obligations.

For more insights into SPX Technologies, Inc. (SPXC), consider exploring this resource: Exploring SPX Technologies, Inc. (SPXC) Investor Profile: Who’s Buying and Why?

SPX Technologies, Inc. (SPXC) Valuation Analysis

Determining whether SPX Technologies, Inc. (SPXC) is overvalued or undervalued involves analyzing several key financial metrics and market indicators.

Key valuation ratios:

• Price-to-Earnings (P/E) Ratio: As of April 20, 2025, SPX Technologies' P/E ratio is 28.08. A P/E ratio assesses the current share price relative to its per-share earnings. SPX Technologies' P/E Ratio (Normalized) is 23.04. The Forward P/E 1 Yr is 20.90.
• Price-to-Book (P/B) Ratio: The Price to Book ratio for SPX Technologies is 4.39. The P/B ratio compares a company's market capitalization to its book value of equity.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio for SPX Technologies is 16.11. This ratio is a valuation multiple that measures the value of a company, inclusive of debt, against its earnings before interest, taxes, depreciation, and amortization.

SPX Technologies, Inc.'s current P/E Non-GAAP (TTM) sector relative grade is D+.

Stock price trends:

• Over the last year, SPX Technologies, Inc. has shown a 6.95% increase.
• The 52-week high was $183.83, reached on November 24, 2024, while the 52-week low was $115.00, set on April 07, 2025.
• As of April 14, 2025, the stock price increased by +1.76% to $134.38.
• As of April 17, 2025, the closing price was $128.33.

Dividend yield and payout ratios:

• SPX Technologies Inc. does not currently pay dividends. Therefore, the dividend yield is 0%.
• The last dividend was paid on July 1, 2015.

Analyst consensus:

• The consensus rating for SPX Technologies is 'Strong Buy'.
• The average analyst price target in the past 3 months is $170.00.
• Based on 5 Wall Street analysts, the average twelve-month stock price forecast for SPX Technologies is $174.75, with a high forecast of $199.00 and a low forecast of $160.00.

Here is a summary of analyst ratings for SPX Technologies Inc. (SPXC):

For insights into the company's core values, refer to Mission Statement, Vision, & Core Values of SPX Technologies, Inc. (SPXC).

Other key statistics for SPX Technologies include:

• Market Capitalization: $6.00 Billion
• Revenue (TTM): $1.98 Billion
• Earnings Per Share (EPS): $4.26
• Revenue Per Employee: $461,372
• Return on Equity (ROE): 15.65%

SPX Technologies will release its Q1, 2025 results on May 01, 2025.

SPX Technologies, Inc. (SPXC) Risk Factors

Understanding the risks SPX Technologies, Inc. (SPXC) faces is crucial for investors. These risks can stem from both internal and external factors, significantly impacting the company’s financial health. Key areas of concern include industry competition, regulatory changes, and overall market conditions.

Here's an overview of the risks:

• Industry Competition: The industries in which SPX Technologies, Inc. (SPXC) operates are highly competitive. This competition can put pressure on pricing and margins, potentially impacting profitability.
• Regulatory Changes: Changes in regulations, particularly environmental and safety regulations, can increase compliance costs and affect the company’s operations.
• Market Conditions: Economic downturns or shifts in market demand can reduce the demand for SPX Technologies, Inc. (SPXC)'s products and services, affecting revenue and earnings.

Operational, financial, and strategic risks are often detailed in SPX Technologies, Inc. (SPXC)'s earnings reports and filings. These documents provide insights into specific challenges the company is addressing.

Examples of risks include:

• Supply Chain Disruptions: Disruptions in the supply chain can lead to increased costs and delays in delivering products, affecting revenue and customer satisfaction.
• Cybersecurity Threats: The increasing threat of cyberattacks can compromise sensitive data and disrupt operations, leading to financial losses and reputational damage.
• Integration Risks: Risks associated with integrating acquired businesses can impact the expected synergies and financial performance.

Mitigation strategies are crucial for managing these risks. SPX Technologies, Inc. (SPXC) may implement various plans to address these challenges. Examples include:

• Diversification: Diversifying product offerings and markets can reduce the impact of downturns in specific areas.
• Operational Efficiencies: Improving operational efficiencies can help reduce costs and improve margins, making the company more competitive.
• Risk Management Programs: Implementing comprehensive risk management programs can help identify, assess, and mitigate potential risks.

Here's a look at potential mitigation strategies in a table format:

For further insights into SPX Technologies, Inc. (SPXC)'s financial health, you can explore: Breaking Down SPX Technologies, Inc. (SPXC) Financial Health: Key Insights for Investors

SPX Technologies, Inc. (SPXC) Growth Opportunities

SPX Technologies, Inc. (SPXC) demonstrates promising future growth prospects driven by several key factors. These include strategic initiatives, market expansion, and technological innovation.

Key growth drivers for SPX Technologies, Inc. (SPXC) are:

• Product Innovations: Continuous development and launch of new and improved products.
• Market Expansions: Extending the company's reach into new geographic regions and industries.
• Acquisitions: Strategic acquisitions of other companies to enhance product offerings and market presence.

Future revenue growth projections and earnings estimates suggest a positive trajectory for SPX Technologies, Inc. (SPXC). While specific figures may vary depending on the source and economic conditions, the overall outlook remains optimistic. The company is focused on:

• Expanding its presence in attractive markets.
• Driving margin expansion through operational efficiencies.
• Pursuing strategic acquisitions to complement organic growth.

Strategic initiatives and partnerships are crucial for SPX Technologies, Inc. (SPXC) future growth. These collaborations can lead to new market opportunities and technological advancements. The company's focus on innovation and customer solutions positions it favorably in the market.

SPX Technologies, Inc. (SPXC) possesses several competitive advantages that support its growth potential:

• Strong Market Position: Established presence in key markets.
• Diverse Product Portfolio: A wide range of products catering to various industries.
• Technological Expertise: Expertise in developing and manufacturing advanced technologies.

To provide a clearer picture, here's a hypothetical projection table for SPX Technologies, Inc. (SPXC) revenue growth:

These projections are based on current growth trends and market conditions. Actual results may vary.

For more insights into SPX Technologies, Inc. (SPXC) financial health, you can check: Breaking Down SPX Technologies, Inc. (SPXC) Financial Health: Key Insights for Investors