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Dec 31, 2021

SPX Q4 2021 Earnings Report

SPX reported solid performance in Q4 2021, driven by strong demand in end markets, but offset by supply constraints.

Key Takeaways

SPX Corporation reported Q4 2021 revenue of $350.0 million, a slight increase from $348.3 million in Q4 2020. Operating income was $13.9 million, compared to $29.1 million in the same period last year. Adjusted earnings per share was $0.88, down from $0.94 in Q4 2020.

SPX closed 2021 with solid performance, reflecting strong demand in our end markets, offset by continued supply constraints.

The sale of Transformer Solutions simplified and strengthened our portfolio, allowing us to focus on our higher margin, higher growth HVAC and Detection & Measurement segments.

SPX continued to execute on our value creation roadmap, closing on three strategic acquisitions that expand our long-term growth opportunities.

End market demand remains strong for our highly-engineered products, as evidenced by robust orders and backlog.

Total Revenue
$350M
Previous year: $457M
-23.4%
EPS
$0.88
Previous year: $0.89
-1.1%
HVAC Organic Revenue Growth
-9%
Previous year: -7.9%
+13.9%
Detection/Measurement Organic Revenue Growth
4.2%
Previous year: 2.6%
+61.5%
Gross Profit
$129M
Previous year: $143M
-9.6%
Cash and Equivalents
$388M
Previous year: $64M
+506.6%
Total Assets
$2.63B
Previous year: $2.33B
+12.6%

SPX

SPX

SPX Revenue by Segment

Forward Guidance

SPX is targeting adjusted consolidated revenue of approximately $1.34-$1.41 billion and adjusted earnings per share in a range of $2.50-$2.80 for 2022.

Positive Outlook

  • SPX is targeting adjusted consolidated revenue of approximately $1.34-$1.41 billion
  • Adjusted operating income margin of approximately 11%-12%
  • Adjusted earnings per share in a range of $2.50-$2.80
  • HVAC revenue $855-$890 million
  • Detection & Measurement $485-$520 million

Challenges Ahead

  • Challenging supply chain
  • Challenging labor environment
  • Impacts from further spread of COVID-19
  • Asbestos liability charges
  • Environmental and litigation charges

Revenue & Expenses

Visualization of income flow from segment revenue to net income