SPX Technologies (SPXC) Stock Forecast & Price Target

SPX Technologies is well positioned for sustained profitable growth because its core HVAC franchise is benefiting from strong backlog, brand leadership, and a favorable Americas-heavy revenue mix, while data center demand is emerging as a powerful incremental driver. The company’s recent quarter showed adjusted EPS of $1.69 on $567 million of sales, with HVAC revenue up 22% to $394 million and Detection & Measurement revenue up 8.3% to $173 million, alongside margin expansion in D&M to 27.0%. Management’s disciplined M&A, solid leverage profile, and capacity expansion investments support double-digit earnings and cash flow growth, reinforcing its compounder status.

SPX Technologies is facing a weaker near-term earnings profile as FY2026 guidance now embeds a $0.05-$0.10 EPS tariff headwind, or about $10M of gross cost, concentrated in its HVAC businesses in Canada and landing mostly in 2Q’26 and 3Q’26. While management expects to offset roughly half through pricing and other mitigation, that still leaves margin pressure in the company’s largest revenue driver, and the stated risk set around macro deterioration, organic growth, competition, price/cost, and tariffs underscores a fragile operating backdrop. Although D&M posted $47M of operating income and a 27.0% margin, aided by higher SaaS revenue, backlog of $333M was modestly down y/y, limiting confidence in sustained growth momentum.