Is SPX Technologies’ Earnings Strength Shifting Its Capital Allocation Priorities for SPXC Investors?

• SPX Technologies recently reported third quarter 2025 results, posting year-over-year increases in sales to US$592.8 million and net income to US$62.7 million, with improvements in both basic and diluted earnings per share.
• During the same period, the company did not repurchase any shares under its previously announced buyback programs, signaling a focus on operational performance over capital returns in the recent quarter.
• With strong earnings growth and rising analyst optimism in focus, we’ll explore how these operational gains may influence the company’s investment outlook.

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SPX Technologies Investment Narrative Recap

To be a shareholder in SPX Technologies, an investor needs to believe in the company’s ability to sustain growth amid cyclical construction markets and maintain its momentum in project-driven Detection & Measurement sales. The recent news of strong third-quarter results bolsters confidence in near-term earnings, but the absence of share repurchases does not materially impact the biggest short-term catalyst, visibility in the project pipeline, or address the main risk, which remains exposure to project timing volatility.

Among recent announcements, the October earnings report stands out for its relevance to current investor sentiment. It highlighted robust sales and earnings growth across both HVAC and Detection & Measurement segments, aligning closely with the positive outlook surrounding high-margin, project-driven revenue streams. These operational gains reinforce the company’s main catalyst: expansion into data center cooling and custom HVAC solutions, which should be watched as new capacity comes online in 2026.

By contrast, investors should pay close attention to the risk of uneven revenue if large Detection & Measurement projects are concentrated in a single year…

Read the full narrative on SPX Technologies (it's free!)

SPX Technologies' outlook anticipates $2.6 billion in revenue and $388.1 million in earnings by 2028. This is based on a projected 8.9% annual revenue growth rate and reflects a $176.5 million increase in earnings from the current $211.6 million.

Uncover how SPX Technologies' forecasts yield a $229.00 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Two Simply Wall St Community fair value estimates for SPX Technologies span US$212.47 to US$229, reflecting individual projections for future growth. With project-driven volatility still a meaningful factor, readers may find a variety of forecasts worth exploring for a more complete view.

Explore 2 other fair value estimates on SPX Technologies - why the stock might be worth as much as $229.00!

Build Your Own SPX Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SPX Technologies research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free SPX Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SPX Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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