- Full-Year Adjusted EBITDA & EPS Growth Achieved 21% growth in full-year adjusted EBITDA and adjusted EPS, driven by organic and inorganic growth.
- Capacity Expansion Acquired a 459,000 sq. ft. facility in Madison, Alabama, to meet rising demand for HVAC solutions.
- Data Center Revenue Growth Data center revenue reached ~$200M in 2025 (~9% of total revenue) and is projected to grow ~50% in 2026, reaching ~12% of revenue.
- Detection & Measurement Revenue Shift $20M project pull-forward in 2025 reduced 2026 guidance by $20M, impacting mid-single-digit growth assumptions for 2026.
- 2026 Guidance Midpoint Targets $590M–$620M adjusted EBITDA, $7.60–$8.00 adjusted EPS, and $2,535M–$2,605M total revenue, implying ~20% EBITDA growth.
Segment Performance
The HVAC segment continued to demonstrate strong demand, with revenue growth driven by both inorganic growth and a modest FX tailwind. The Detection and Measurement segment also showed promising signs, with a record year-end backlog of $350 million, up more than 40% organically. The company's guidance for 2026 implies significant growth, with adjusted EBITDA expected to grow by approximately 20% at the midpoint.
Valuation and Growth Prospects
Analysts estimate next year's revenue growth at 6.7%. With a current P/E Ratio of 47.68, P/B Ratio of 5.2, and EV/EBITDA of 27.78, the market appears to be pricing in significant growth expectations. The company's return on equity (ROE) stands at 13.26%, and return on invested capital (ROIC) at 10.6%, indicating a strong ability to generate returns. The net debt to EBITDA ratio is a comfortable 0.3, suggesting a healthy balance sheet.
Outlook and Key Drivers
The company's 2026 guidance is supported by strong demand in key end markets, particularly in data centers, where revenue is expected to grow by around 50%. The HVAC segment is expected to benefit from increasing production capacity and a strong backlog of highly engineered solutions. The Detection and Measurement segment is also poised for growth, driven by improving global market conditions. With a full pipeline of M&A opportunities and a strong track record of integration, SPX Technologies is well-positioned for continued growth and value creation.