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Jun 30, 2022
SPX Q2 2022 Earnings Report
SPX Corporation had a strong second quarter, driven by robust project deliveries in Detection & Measurement and overall strength across end markets.
Key Takeaways
SPX Corporation reported strong Q2 results with revenue growth driven by both HVAC and Detection & Measurement segments. Adjusted operating income increased by 47%, and margin increased by 220 basis points. The company raised its full-year adjusted EPS guidance to reflect the strong Q2 results, outlook for the second half, and impact of stock repurchases.
HVAC and Detection & Measurement segments generated strong organic and acquisition revenue growth.
Total adjusted operating income grew 47%, with margin up 220 basis points.
The company plans to implement a new holding company structure to better align legal entities with business objectives.
Adjusted EPS guidance for the full year was raised to reflect strong Q2 results and outlook.
SPX
SPX
SPX Revenue by Segment
Revenue by Segment
HVAC Revenue
CapyFin.comDetection & Measurement Revenue
CapyFin.com Forward Guidance
SPX Corporation increased its full-year 2022 guidance to reflect the strength of Q2 results and solid second-half demand. The company now anticipates higher full-year revenue in both HVAC and Detection & Measurement, and it has increased its midpoint adjusted EPS guidance to a range of $2.70 to $2.85.
Positive Outlook
- HVAC: Expect Q3 results to be similar to Q2 with a significant increase in Q4.
- HVAC: Expect full year margin of approximately 14% due to continued supply challenges, partially offset by higher pricing.
- Detection & Measurement: anticipate second half results to reflect continued strength with Q3 being similar to Q2 results, followed by an even stronger Q4.
- Detection & Measurement: Continue to expect full year margin in the 19% to 21% range.
- The company anticipates the bulk of its cash generation in this year is coming in the second half.
Challenges Ahead
- HVAC: Continued supply challenges.
- HVAC: Labor challenges in Olathe plant and Bennettsville facility.
- Modestly higher corporate costs in Q3.
- Higher tax rate in Q3.
- Risk areas in supply chain.
Revenue & Expenses
Visualization of income flow from segment revenue to net income