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Dec 31, 2022

SPX Q4 2022 Earnings Report

SPX Technologies reported mixed Q4 2022 results with a GAAP loss per share but a significant increase in adjusted EPS, driven by strong organic growth in HVAC and Detection & Measurement segments.

Key Takeaways

SPX Technologies reported a revenue increase to $429.3 million for Q4 2022, up from $350.0 million in Q4 2021. However, the company experienced an operating loss of $24.9 million, primarily due to a loss related to the divestiture of the asbestos portfolio. Adjusted EPS was $1.17, compared to $0.88 in the prior year.

Revenue increased by 22.7% year-over-year, reaching $429.3 million.

Adjusted earnings per share increased to $1.17 from $0.88 in the prior year.

HVAC segment revenue increased by 29.5%, driven by organic growth and the acquisition of Cincinnati Fan.

Detection & Measurement segment revenue increased by 12.2%, driven by organic growth and the acquisition of International Tower Lighting (ITL).

Total Revenue
$429M
Previous year: $350M
+22.7%
EPS
$1.17
Previous year: $0.88
+33.0%
HVAC Organic Revenue Growth
21.1%
Previous year: -9%
-334.4%
Detection/Measurement Organic Revenue Growth
14.4%
Previous year: 4.2%
+242.9%
Gross Profit
$162M
Previous year: $129M
+25.4%
Cash and Equivalents
$148M
Previous year: $388M
-61.9%
Total Assets
$1.93B
Previous year: $2.63B
-26.5%

SPX

SPX

SPX Revenue by Segment

Forward Guidance

SPX is targeting consolidated revenue of approximately $1.50 to $1.54 billion, an adjusted operating income margin of approximately 13.0% to 14.0%, and adjusted earnings per share in a range of $3.30 to $3.55 for 2023.

Positive Outlook

  • Targeting consolidated revenue of approximately $1.50 to $1.54 billion.
  • Adjusted operating income margin* of approximately 13.0% to 14.0%.
  • Adjusted earnings per share* in a range of $3.30 to $3.55.
  • HVAC revenue between $935-$955 million.
  • Detection & Measurement revenue between $565-$585 million.

Challenges Ahead

  • Mixed macro indicators
  • Potential non-cash income or expense items associated with changes in market interest rates
  • Potential non-cash income or expense items associated with actuarial or other data related to pension and postretirement plans
  • Impacts from future acquisitions
  • Impacts from future dispositions

Revenue & Expenses

Visualization of income flow from segment revenue to net income