The 5 Most Interesting Analyst Questions From SPX Technologies's Q2 Earnings Call

SPX Technologies delivered a second quarter that surpassed Wall Street’s expectations, highlighted by robust year-on-year sales growth and a significant improvement in non-GAAP profitability. Management credited recent acquisitions and strength in its Detection & Measurement segment for driving top-line momentum, with CEO Gene Lowe noting, “We grew revenue by 10%, largely driven by the benefit of recent acquisitions and project sales in our Detection & Measurement segment.” Additionally, operational execution and favorable project mix in the HVAC division contributed to margin stability, while the company continued to make progress on capacity expansion and new product launches.

Is now the time to buy SPXC? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From SPX Technologies’s Q2 Earnings Call

• Bryan Francis Blair (Oppenheimer) asked about the growth outlook for data center cooling and the contribution of OlympusV Max. CEO Eugene Lowe shared that data center revenue is expected to exceed 9% of company sales in 2026, with strong early bookings.
• Damian Mark Karas (UBS) questioned whether project activity in Detection & Measurement is being pulled forward from 2026 into 2025. CFO Mark Carano clarified that timing dynamics shifted some projects into the current year, but underlying demand remains strong.
• Ross Riley Sparenblek (William Blair) asked about the market positioning and product mix for OlympusV Max. CEO Lowe highlighted the competitive advantages of modularity and performance validation, estimating a mix of two-thirds adiabatic to one-third dry systems.
• Stephen Michael Ferazani (Sidoti) pressed management on the impact of tariffs and how they are managing supply chain risks. CFO Carano acknowledged a minor headwind from tariffs but emphasized successful pricing actions and localized manufacturing to mitigate exposure.
• Damian Mark Karas (UBS) inquired about the integration of recent acquisitions. CEO Lowe reported that both KTS and Sigma & Omega are progressing well, with early synergies realized through technology integration and channel expansion.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be closely tracking (1) order momentum and customer adoption for OlympusV Max and other data center cooling solutions, (2) continued execution on recent acquisitions, especially integration progress and synergy realization, and (3) backlog trends and project delivery cadence in both HVAC and Detection & Measurement. Developments in tariff policy and the pace of production capacity expansion will also be important markers for future performance.

SPX Technologies currently trades at $191.17, up from $182.19 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

Our Favorite Stocks Right Now

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.