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Jul 03, 2021
SPX Q2 2021 Earnings Report
SPX's second quarter results positioned the company well to deliver significant full-year earnings growth.
Key Takeaways
SPX Corporation reported Q2 2021 revenue of $296.7 million and operating income of $12.9 million. GAAP EPS was $0.32 and adjusted EPS was $0.49. The company is updating its full-year guidance to adjusted EPS in a range of $2.25-$2.45 and is on track for 'SPX 2025' targets.
HVAC segment delivered another strong quarter.
Strong bookings and backlog across a number of Detection & Measurement businesses.
Balance sheet remains solid, providing significant investment capacity for future growth.
Company announced an agreement to sell its Transformer Solutions business and laid out a strategy to accelerate growth and further enhance margin profile.
SPX
SPX
SPX Revenue by Segment
Revenue by Segment
HVAC Revenue
CapyFin.comDetection & Measurement Revenue
CapyFin.com Forward Guidance
SPX is updating its 2021 guidance for an anticipated stronger full-year performance and for the acquisition of ECS. SPX now anticipates Adjusted earnings per share in a range of $2.25 to $2.45. The company continues to anticipate 2021 adjusted revenue of approximately $1.25 billion, and adjusted operating income margin of 11-12%.
Positive Outlook
- HVAC revenue ~$770-780 million
- HVAC segment income margin ~14.5%
- Detection & Measurement revenue ~$465-475 million
- Detection & Measurement segment income margin ~20.5%
- Total SPX Adjusted revenue ~$1.25 billion
Challenges Ahead
- Total SPX Adjusted segment income margin ~17.0%
- impact of the COVID-19 pandemic and governmental and other actions taken in response
- the uncertainty of claims resolution with respect to the large power projects in South Africa, as well as claims with respect to asbestos, environmental and other contingent liabilities
- cyclical changes and specific industry events in the company’s markets
- changes in anticipated capital investment and maintenance expenditures by customers
Revenue & Expenses
Visualization of income flow from segment revenue to net income