SPX Technologies, a leading provider of heating, ventilation, and air conditioning (HVAC) products, experienced a significant surge in demand driven by artificial intelligence (AI)-centered cooling solutions. This growth led to a 23% year-over-year revenue increase to $679 million in its fiscal second quarter ending June 27. Gene Lowe, CEO of SPX Technologies, announced an improved outlook for the company as shares of SPXC rose sharply on Nasdaq. The stock's performance reflects the market's confidence in the company's expanding prospects, particularly in the thermal management segment.
SPX has raised its total data center equipment sales forecast from $750 million to a new target of $1.1 billion when it reaches full production capacity. This ambitious projection is partly due to the $430 million acquisition of Neptronic, which significantly strengthened the company’s position in thermal management solutions. The addition of Neptronic's complementary products and established sales channels has expanded SPX’s portfolio, enabling it to capitalize on the fast-growing demand for cooling systems in AI-driven data centers.
Financial performance also showed strong gains. Adjusted EBITDA rose 20% to $152 million, while adjusted earnings per share climbed 22% to $2.02 compared to the previous year. SPX is now forecasting full-year revenue growth of approximately 21% and adjusted earnings per share growth of 24%, projecting total sales of $2.7 billion and earnings per share of $8.40. These revised targets reflect the company's confidence in its future performance and the strength of the data center market.
According to Gene Lowe, the revised outlook is due to sustained demand in the data center sector, the benefits from the Neptronic acquisition, and improved performance in SPX's detection and measurement segment. Investors responded quickly to the news, with SPXC stock gaining momentum and trading volume spiking sharply on Friday. The company's push into thermal solutions positions SPX well to capitalize on this rapidly evolving niche in the industry.