Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 30, 2026 · Beat 7 of last 7 quarters
SPX Technologies, Inc. reported Q2 FY2026 revenue of $679M, a beat of 6.1% against consensus, and EPS of $2.02, a beat of 9.2%.
The Buildout is a website built on agentic AI tools, currently in beta, and could have factual errors.
SPX Technologies continues to be a key supplier of cooling and air handling solutions for AI data centers, with data center capacity expectations raised to $1.1 billion and 2026 data center revenue guidance increased to $430 million. The company's ability to expand capacity and secure long-term agreements with hyperscalers underscores the sustained demand for physical infrastructure in the AI buildout. The Thermolec acquisition further strengthens its position in the HVAC control stack, potentially expanding its addressable market in mission-critical applications.
SPX Technologies delivered strong Q2 results with adjusted EPS of $2.02, up 22% YoY, and revenue of $679M, up 23% (17% organic). HVAC segment revenue grew 27.6% (18.9% organic) with backlog up 59% organically, while D&M revenue grew 13% with segment margin up 610 basis points. The company announced the acquisition of Thermolec, a Canadian electric duct heating and controls company, and raised its data center capacity target to $1.1 billion. Full-year guidance was increased to $8.40 adjusted EPS midpoint.
Management raised full-year 2026 adjusted EPS guidance by $0.45 to a midpoint of $8.40, reflecting higher data center volume, stronger Detection & Measurement performance, and the Thermolec acquisition. The updated guidance implies 27% adjusted EBITDA growth at the midpoint. Data center capacity expectations were increased to $1.1 billion at full production, up from $750 million, with management expressing confidence in continued strong demand and visibility into 2027. Q4 is expected to be larger than Q3, with similar margins across both quarters. D&M margins are expected to remain elevated, with a structural improvement to around 25% on a normalized basis.
“We are increasing the midpoint of our range to reflect higher data center volume, stronger performance from our Detection and Measurement segment, and the Thermolec acquisition.”
on Guidance raise
“we now expect total data center capacity to reach $1.1 billion once at full production up from our prior expectation of approximately $750 million in that--in that trunk.”
on Data center capacity
“I think the punch line is we feel very good about our competitive position in data centers and the demand profile in the business.”
on Data center demand
How much of D&M strength was project timing pull-forward versus a durable step up in demand, and what is the cadence into the back half?
About half of the 610 bps margin increase was favorable project mix, with the balance driven by a $15M high-margin project pulled forward from Q3 into Q2. Q4 is expected to be larger than Q3, with similar margins across both quarters.
Can you elaborate on the increase in data center capacity to $1.1B and the margin impact of capacity additions and tariffs?
Capacity increase driven by improved throughput in OlympusMAX and Everest products through lean projects and flow optimization. Q2 HVAC margin decline of 260 bps was due to startup costs, tariffs, and inflation, each roughly 80 bps and 50 bps respectively. Full-year HVAC margin raise is due to Thermolec.
What are the contribution margins for data center revenue and Thermolec's data center exposure?
Data center incrementals are consistent with HVAC at high-20s to low-30s. Thermolec has data center exposure similar to or slightly higher than HVAC's percentage, with opportunities for growth.