SPX Technologies (SPXC) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2024 results, with adjusted EBITDA up 36% to $421M and adjusted EPS up 29% to $5.58, near the upper end of guidance.

• Adjusted free cash flow conversion was 108% of adjusted net income, reflecting robust cash generation.

• Completed acquisitions of KTS and Ingénia, significantly expanding the detection and measurement and HVAC segments, and scaling the CommTech platform.

• Introduced innovative products in HVAC and detection and measurement, enhancing efficiency, safety, and sustainability.

• Maintains an active and attractive acquisition pipeline.

Financial highlights

• Q4 2024 revenue increased 13.7% year-over-year to $533.7M; full-year revenue up 13.9% to $1,983.9M.

• Q4 adjusted EPS grew 21% year-over-year to $1.51; full-year adjusted EPS up 29% to $5.58.

• Q4 adjusted EBITDA increased 28.1% year-over-year to $116M, with margin expanding to 21.8%.

• Full-year adjusted EBITDA reached $421M, margin up to 21.2%.

• Adjusted free cash flow for FY 2024 was $284M, converting 108% of adjusted net income.

Outlook and guidance

• 2025 guidance: revenue of $2.13–$2.19B, segment income margin of 23–24%, adjusted EBITDA of $460–$490M (13% growth at midpoint), and adjusted EPS of $6.00–$6.25 (10% growth at midpoint).

• HVAC segment 2025 revenue expected at $1.44–$1.48B, margin 23.5–24.5%.

• Detection and measurement segment 2025 revenue expected at $690–$710M, margin 22–23%.

• Q1 2025: modest revenue growth from KTS and Ingenia, flat organic revenue, margins similar year-over-year.

• Corporate expense projected at $48–$52M; capex at $35–$50M; tax rate at 25%–26%.