D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
Introduction & Market Context
SPX Technologies (NYSE:SPXC) released its Q2 2025 earnings presentation on July 31, 2025, revealing strong financial performance that exceeded analyst expectations. The company reported significant growth in both revenue and profitability, continuing its positive momentum in the engineered products market. Following the earnings announcement, SPX’s stock rose by 1.34% in aftermarket trading, closing at $183.69, near its 52-week high of $183.83.
The presentation highlighted the company’s continued success in its key market segments, with particular strength in HVAC solutions and detection and measurement technologies. SPX’s strategic focus on engineered niches and leading market positions has enabled it to maintain robust growth despite varying regional market conditions.
Quarterly Performance Highlights
SPX Technologies delivered impressive financial results for Q2 2025, with revenue increasing by 10% year-over-year to $552 million, compared to $501 million in Q2 2024. Adjusted EBITDA grew even faster at 16%, reaching $127 million with an improved margin of 22.9%, up from 21.7% in the prior year period.
As shown in the following chart comparing Q2 2024 and Q2 2025 results, both revenue and adjusted EBITDA demonstrated substantial growth:
The company’s adjusted earnings per share reached $1.65, representing a 16% increase from $1.42 in Q2 2024. This performance exceeded the analyst consensus forecast of $1.45, resulting in a 13.79% earnings surprise according to market data. The strong results were driven by a combination of organic growth (2.1%), acquisitions (7.8%), and favorable currency impact (0.3%).
SPX’s consolidated segment income increased by $18 million year-over-year to $136 million, with margin expansion of 110 basis points to 24.6%. The following chart illustrates this performance:
Segment Analysis
The HVAC segment, which represents the largest portion of SPX’s business, delivered revenue growth of 5.7% year-over-year to $377 million. This increase was primarily driven by acquisitions, which contributed 4.9% to growth, while organic growth added 0.7%. Segment income rose by $12 million to $96 million, with margins expanding by 190 basis points to 25.4%.
The following chart details the HVAC segment’s performance:
The Detection & Measurement segment demonstrated even stronger growth, with revenue increasing by 21.3% year-over-year to $176 million. This growth was driven by a combination of organic growth (5.5%) and acquisitions (14.9%), with a small positive currency impact (0.9%). Segment income increased by $6 million to $40 million, though the margin decreased slightly to 22.8% from 23.4% in the prior year period, which the company attributed to a more favorable mix in the prior year.
The segment’s performance is illustrated in this chart:
Financial Position and Guidance
SPX Technologies’ financial position remains solid, with the company reporting a slight increase in leverage. Total (EPA:TTEF) debt stood at $1,019 million at the end of Q2 2025, up from $960 million in Q1 2025. Net debt increased to $882 million from $778 million, resulting in a bank net leverage ratio of 1.7x, up slightly from 1.6x in the previous quarter but still within the company’s target range of 1.5x-2.5x.
Management expressed confidence that leverage would fall below the low end of the target range by year-end, indicating strong expected cash flow generation in the second half of the year.
Based on the strong first-half performance, SPX raised its full-year 2025 guidance. The updated outlook projects total revenue of $2.225-$2.275 billion, with the HVAC segment expected to contribute $1,500-$1,530 million and Detection & Measurement adding $725-$745 million. The company also raised its adjusted EBITDA and adjusted EPS guidance, as shown in the following slide:
The midpoint of the adjusted EPS guidance range ($6.35-$6.65) implies 16.5% growth year-over-year, while the adjusted EBITDA guidance suggests 18% growth at the midpoint.
Strategic Initiatives and Market Outlook
SPX Technologies continues to execute its value creation framework, which focuses on maintaining a strong foundation in engineered niches while driving growth through strategic acquisitions, new product development, and commercial excellence. The company aims to achieve 15%+ adjusted EBITDA growth through this approach.
The value creation framework is illustrated in the following slide:
In terms of market outlook, SPX reported solid backlog and demand in core verticals for its cooling products, with both residential and non-residential demand remaining steady for heating products. In the Detection & Measurement segment, the company noted significant project activity continuing for 2026 and beyond, though with mixed global demand showing regional variations.
"We feel like we’re very well positioned with our product portfolio," said Gene Lowe, CEO of SPX Technologies, during the earnings call. He emphasized that "M&A is a critical component of our value creation strategy" and expressed confidence in the company’s market momentum, noting, "We continue to see solid momentum in our end markets."
The company’s recent acquisitions, including KTS, Sigma, and Omega, were highlighted as performing well and contributing to overall growth. Management also mentioned an attractive pipeline of additional acquisition opportunities, suggesting continued focus on inorganic growth alongside organic initiatives.
SPX Technologies concluded its presentation with an optimistic outlook, stating that it is "Well-Positioned to Continue Value Creation Journey" based on its strong Q2 performance, solid demand in key end markets, robust M&A pipeline, and raised full-year guidance.
Full presentation:
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