SPX Powers Up
SPX Technologies Shares Jump on Robust Q2 Earnings and Data Center Outlook
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Key Points
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OlympusMAX assembly began in July at SPX's new Madison, Alabama facility, with production capabilities expected to be added there in the first half of 2027; engineering aluminum dampers at Tamco's Tennessee facility are also ramping, with full Tamco capacity anticipated in 2027 and Madison reaching full capacity in the second half of 2028.
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SPX increased its data center production capacity outlook to about $1.1 billion when fully operational, up from a prior estimate of about $750 million, underpinned by throughput gains at Olathe and Springfield facilities and related production improvements.
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HVAC backlog reached about $919 million, up 59% organically, with HVAC revenue up 27.6% and organic growth near 19%, underscoring durable demand and a strong run-rate in this segment.
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The Neptronic acquisition is positioned to move SPX into higher-value HVAC controls, expanding its controls portfolio and complementing ongoing capacity and growth initiatives.
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GF Value notes SPXC is modestly overvalued with a high GF Score (94/100) and a momentum rank of 10/10, signaling strong fundamentals but a valuation that may already be pricing in continued growth.
SPX Technologies (NYSE: SPXC) surged as much as 13.7% on Wednesday after the company posted a blowout second quarter and raised its full-year outlook, according to Yahoo Finance. Shares settled around $219.62, rewarding investors who bet on a continued boom in data center cooling demand.
Revenue climbed 23% year-over-year, while adjusted earnings per share rose about 22%, both beating Wall Street forecasts. Management lifted its data center revenue target to roughly $430 million for the full year, up from prior guidance, signaling that the company's biggest growth driver is accelerating, Yahoo Finance reported.
Data Center Cooling Demand Fuels Historic Backlog
SPX's HVAC segment is running hot. The company's HVAC backlog hit about $919 million — a 59% organic increase. HVAC revenue jumped 27.6%, with organic growth near 19%, according to Watchlist News. Hyperscale cloud providers, colocation operators, and so-called neo-cloud customers are all driving orders.
SPX also raised its data center production capacity outlook to about $1.1 billion when fully operational. That is up sharply from a prior estimate of $750 million. The increase reflects throughput gains at its Olathe and Springfield facilities, Watchlist News noted.
New Factories in Alabama and Tennessee Ramp Up
Assembly of SPX's OlympusMAX cooling product began in July at a brand-new facility in Madison, Alabama. The company plans to add full production capabilities there in the first half of 2027, with the site reaching maximum capacity in the second half of 2028, Watchlist News reported.
Engineering aluminum dampers are also ramping at Tamco's facility in Tennessee. Full Tamco capacity is expected in 2027. Together, these expansions give SPX the physical infrastructure to meet multi-year demand commitments from its largest customers.
Neptronic Deal Pushes SPX Into Higher-Value Controls
Beyond cooling hardware, SPX is moving up the value chain. The company's acquisition of Neptronic positions it in HVAC controls — software and sensors that manage airflow and temperature precisely. Controls carry higher margins than the physical equipment alone, and the deal complements SPX's ongoing capacity build-out.
Adjusted EBITDA rose 20% from a year earlier, Watchlist News said. The balance sheet and margins remain healthy, giving SPX room to fund more capacity spending and future acquisitions without stretching its finances.
Strong Momentum, but Valuation Raises Some Flags
Not everyone is purely bullish. GF Value rates SPXC as modestly overvalued, even while awarding it a near-perfect GF Score of 94 out of 100 and a momentum rank of 10 out of 10, according to Yahoo Finance. The stock's current price-to-earnings ratio sits around 39.5 times — below its five-year median of 43 times, but still elevated.
That means the stock is already pricing in a lot of good news. Investors will need SPX to keep converting booming data center demand into earnings growth quarter after quarter. For now, the market is voting yes — but the margin for error is thin.
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