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Apr 03, 2021

SPX Q1 2021 Earnings Report

SPX reported solid first quarter results with strong revenue and earnings growth in HVAC and Detection & Measurement segments. The company updated its full-year guidance for the Sealite acquisition, anticipating adjusted EPS in the range of $3.06-$3.26.

Key Takeaways

SPX Corporation reported first-quarter revenue of $398.5 million and operating income of $31.7 million. GAAP EPS was $0.60, and adjusted EPS was $0.68. The company is updating its full-year 2021 Adjusted EPS guidance to a range of $3.06-$3.26 due to the acquisition of Sealite.

HVAC and Detection & Measurement segments delivered strong revenue and earnings growth.

Significant organic and inorganic contributions were observed.

Substantial cash flow was generated, and the balance sheet was improved.

Full-year 2021 Adjusted EPS is anticipated in a range of $3.06-$3.26, reflecting approximately 13% year-on-year earnings growth at the midpoint.

Total Revenue
$399M
Previous year: $369M
+7.9%
EPS
$0.68
Previous year: $0.62
+9.7%
HVAC Organic Revenue Growth
22.9%
Previous year: -15.7%
-245.9%
Detection/Measurement Organic Revenue Growth
6.7%
Previous year: 6.4%
+4.7%
Gross Profit
$125M
Previous year: $114M
+9.7%
Cash and Equivalents
$107M
Previous year: $163M
-34.5%
Total Assets
$2.3B
Previous year: $2.22B
+3.4%

SPX

SPX

SPX Revenue by Segment

Forward Guidance

SPX is updating its 2021 guidance for the acquisition of Sealite Pty and related entities. SPX now anticipates Adjusted earnings per share in a range of $3.06 to $3.26, and continues to anticipate 2021 adjusted revenue of approximately $1.6 billion, and adjusted operating income margin of 11-12%.

Positive Outlook

  • HVAC growth of mid-to-high single digits %.
  • HVAC modest increase in segment income margin.
  • Detection & Measurement growth of high teens-to-low 20s % including 2020 and 2021 acquisitions impact.
  • Engineered Solutions growth of low-single digits %.
  • Total SPX Adjusted Growth of mid-to-high single digits %.

Challenges Ahead

  • Detection & Measurement modest decrease in segment income margin.
  • Engineered Solutions approximately flat to a modest decrease in segment income margin.

Revenue & Expenses

Visualization of income flow from segment revenue to net income