SPX Technologies at Oppenheimer Conference: Strategic Growth Focus

On Thursday, 08 May 2025, SPX Technologies (NYSE:SPXC) presented at the Oppenheimer 20th Annual Industrial Growth Conference, showcasing its strategic initiatives and robust financial performance. While highlighting resilience and growth, the company addressed both opportunities and challenges, emphasizing strategic mergers and acquisitions (M&A) and digital advancements as key growth drivers.

Key Takeaways

• SPX Technologies aims for 15% annual EBITDA growth, leveraging strategic M&A and digital initiatives.
• The company reported strong order rates with book-to-bill ratios above 1 in HVAC and 1.5 in Detection & Measurement (D&M).
• SPX plans to expand U.S. manufacturing to mitigate tariff risks and address capacity constraints.
• Recent acquisitions, including Canadian businesses Tamco and Ingenia, are fueling growth.
• The company targets doubling its 2023 EBITDA over the medium term.

Financial Results

• Annual revenue is approximately $2.2 billion, with 83% generated in the Americas.
• HVAC revenue stands at about $1 billion with a 24% segment margin.
• Detection & Measurement segment contributes approximately $710 million with a 22% margin.
• EBITDA is approaching $500 million, with a midpoint of $4.83 for the current year.
• SPX has invested $2.1 billion in strategic M&A since 2018, resulting in $812 million in revenue at 20% margins before synergies.

Operational Updates

• The HVAC segment is heavily focused on North America, while D&M has a stronger European presence.
• SPX holds a leading market position in 90% of the markets it serves.
• Recent acquisitions, like Sigma and Omega, expand the HVAC product line to include heat pumps.
• The KTS acquisition enhances the Comtech platform with advanced digital technologies.
• Capacity expansion is planned for Tamco and Ingenia to better serve the Americas market.

Future Outlook

• SPX is tracking around 300 companies for potential acquisitions, maintaining a strong M&A pipeline.
• The company anticipates growth in the data center market, with significant bookings expected in 2025.
• Strategic initiatives will continue to focus on digital advancements, continuous improvement, and talent development.

Q&A Highlights

• SPX is confident in navigating economic downturns due to its high replacement revenue and mandated products.
• The company reports healthy order rates, with strong demand in both HVAC and D&M segments.
• SPX plans to establish U.S. manufacturing for Canadian businesses to mitigate potential tariff impacts.
• M&A momentum is expected to continue with a focus on smaller, mid-market deals.

For more detailed insights, refer to the full transcript below.

Full transcript - Oppenheimer 20th Annual Industrial Growth Conference:

Brian, Oppenheimer Analyst, Oppenheimer: Good morning, everyone. Welcome to the final day of the twentieth Annual Oppenheimer Industrial Growth Conference. We’re closing out on a high note. We have, outperform rated and top pick SPX Technologies. CEO, Gene Lowe, you know, waiting today.

CFO, Mark Carano, is with him as well, as well as VP of IR, Paul Craig. Jan, I believe you have some slides to walk through, introduce the SPX story, then we’ll get to questions after.

Gene Lowe, CEO, SPX Technologies: That sounds good. Thanks, Brian. So I’ll get started. We have a couple of slides here. We’ll go through an overview of SPX Technologies, who we are and then we’ll open it up to Q and A.

An overview of who we are, this gives a good snapshot. We’re based in Charlotte, North Carolina, really two segments HVAC and Detection and Measurement. I’ll dive into those a little bit further in some upcoming slides, about $2,200,000,000 of revenue. And you can see we’re predominantly North American based, about 83% of our revenue is The Americas, with some in Europe about 11%, a little bit smaller in Asia Pac. 1 of the things we launched last year to give people an easier understanding of who we are is what we call the Fisher Price Charts.

And this kind of highlights our breadth of products and how it all fits together. I’ll start on the right side on HVAC. What we have here is an example hospital. This could be a data center, this could be an office building, this could be an airport, a stadium, really anything where there’s typically a large application. And you can see the breadth of products that we provide to these end markets.

So anything from cooling towers to hydronics, boilers, floor heaters, custom air handlers, dampers, duct heating, critical exhaust, some examples of the range of engineered products that we would provide on a typical solution like this. If you look on the other side, detection and measurement, we have four platforms. Here’s where we have typically very good measurement technologies that are typically paired with software almost always in an outdoor environment. Our biggest segment here or our biggest platform here is location inspection. This should be things like precision locators.

You can see scanning underground for identifying potential conflicts if you’re digging robotics, underground robotics for water and wastewater, underground robotics for managing your natural gas. We have an Aton segment, which does obstruction lighting, marine lighting. We also have a Comtech business, where I’ll talk about a little bit further in some upcoming slides, but some really good technologies that are typically paired with software as I had mentioned earlier. This is just another slice, a little bit more data about our segments. HVAC is about $1,000,000,000 around 24% segment margin this year.

Detection and measurement, those are the four platforms listed below. They’re around $710,000,000 around 22% margins. Couple of things of note about SP X is we get a substantial amount of our revenue from replacement sales. It’s very nice. We have very large installed bases across our platform.

In many of our businesses, we actually created the industry that we’re talking about. For example, cooling towers, we invented the cooling tower. So more than one hundred years ago, every cooling tower that is in the world today really is spawned off of our cooling towers and many of our innovations over the years. So as you might imagine, we have a tremendous install base out there. And the other thing I’ll mention is in terms of market leadership, we’ll tell you that we play in engineered niches.

And typically, we’re the market leader. We’re typically number one or two and approximately 90% of the revenue of the markets that we serve. We lead with our trade brands. So for example, I mentioned cooling towers, Marley is our brand in cooling towers. Radio detection is our brand for underground locators.

Ques is our brand for underground robotics for water and wastewater maintenance. And these trade brands are very well known in the markets that they serve. So these are some more characteristics of our portfolio. Again, another snapshot here. We’re approaching a $05,000,000,000 in EBITDA.

We’re around $4.83 this year at the midpoint. You can kind of see our composition of revenue by segment and geography. And I think the next slide will give a little more color in terms of how it all fits together or on the slide after. But anyway, the point here on this slide is the financial performance. So you’ve seen our improvement in EBITDA and in margins.

We’ve had a very strong couple of years. I think a lot of the work we’ve done on CI, a lot of the work we’ve done on commercial excellence as well as a lot of the M and A we’ve done has really strengthened our company and it’s really changed who we are. And you can see the momentum we have on both the profit line and also the EPS line over the past five years. Last year in Q1 of twenty twenty four, we hadn’t done an Investor Day in five years. And we laid out really our forward vision for where we are and then where we’re going.

And so what we laid out then was if you looked at our ’23 EBITDA, we saw a very clear path to doubling this over the medium term. And so what we said here is here’s how we’re gonna double it. And it’s really driving digital, driving CI, driving talent, driving NPD, commercial excellence, and strategic M and A. And I would say, if you look at where we are in 2025, we are tracking very nicely on this and we feel very good about where we’re going here. This is really our one page strategy in a box.

And again, what you start with is on the left is really what defines our businesses. And our businesses are really defined by the fact that we are engineered niches. We are typically market leaders in the markets that we served. We are typically tech enabled. We don’t play in commodity areas.

We typically have some unique value prop differentiation. We typically have nice moats in our businesses, some nice barriers that kind of make it hard for a lot of competition to compete with us because we’ve created so much innovation and so much uniqueness over the years. And then if you look at our portfolio, I think it’s a very sustainable portfolio. If you look at it where we’re going to be in twenty years, we feel very good that we’re positioned where the puck is going. And we are generally serving markets that have good trends behind them.

On the right side is really how we drive value. And we really think about this in terms of excellence and in terms of growth. Excellence would be how we drive more efficiency, how we drive better performance, digital, we do digital everywhere. It is a critical initiative for us. And I think we’ve really upped our game.

This could be anything from the software we provide to customers, the configurators that make it very easy to create an engineered solution that you’re going to buy from us. It’s a lot of ways we touch customers. CI is lean. We do lean across all of our businesses. We have many full time professionals doing this in every business, very important to us and talent is probably the most important area that we focus on.

On growth, strategic M and A is an important part of our value creation framework. We’ve done a fair amount of acquisitions over the past five years, I think in the neighborhood of 16, and these have really benefited us. We also spend an enormous amount of time on product management and new product development and commercial excellence. And the bulk of all this is we would target 15% EBITDA growth every year over the cycle. And we feel very good.

We have achieved that over the past decade. And we actually think that that this model will give us that opportunity to continue our trajectory. So I’ll drill down a little bit into the segments, give a little bit more color. If you look at the HVAC segment, cooling is the majority of the business there. It’s almost two thirds of the business.

We also have a heating platform, a good amount of replacement revenue here about 60%. And you can see this is North American focused, north of 90% of our revenue is really in The Americas with a smaller percentage in Europe and some in Southeast Asia and China. You can see our progression here on the right. We’ve had very nice growth over the past couple of years and we believe we’ve structurally reset the margins in this segment. So we’re approximately 24% this year.

We feel like we have a really good set of businesses with some real competitive strength. And frankly, we see a lot more runway to keep building our HVAC segment. So switching to D and M, these businesses, there’s four platforms in D and M. Location and inspection is the largest platform. It’s approximately 42%.

That would be our locators. That would be our underground inspection equipment, components like that. What you see here is we’re a little bit more global. It’s still predominantly North American, but you see more European presence here and a smaller amount of Asia Pac. And then really where we are is in the neighborhood of $700,000,000 around 22% margins this year.

We see some opportunities to continue to drive those up, but a very good business that we’ve grown over time at the time of spin, which is about nine years ago, this is around $200,000,000 And so we have more than tripled that business over the past nine years. We would like to significantly increase this size going forward. And we actually think there’s some very nice opportunities to continue building this platform. Just a quick note on balance sheet. We’ve been very disciplined on our balance sheet.

Those lines, if you can see them, the bottom and the top, we target to keep our net debt between one point five and two point five times and we’ve been very consistent about that. You see a big dip down. One of the things we did was we exited power at the time of spin and that was the final sale, which was our transformer business, which we have since redeployed our capital into HVAC and detection and measurement. And so today where we sit today, with the acquisition, our most recent acquisition pro form a Sigma and Omega are about 1.9 times. Below in the bold, you can see the amount of capital deployment every year of how much we’ve invested in strategic M and A.

Now there’s a little bit the Sigma and Omega is actually listed here under 24. It’s actually in ’25, but we don’t have a year end there yet, but that’s a little bit being counted in 2024, it’s a little bit more of Q1 of twenty twenty five, but a very good model for us. And the point being, we have consistently managed our balance sheet very smartly and we have the opportunity to continue investing our cash flow for growth. Here’s some metrics of our program. If you look at it, we’ve invested about $2,000,000,000 2 point 1 billion dollars since 2018.

We’ve brought in a good amount of our revenues, about $812,000,000 This has come in at attractive margins around 20%. That’s actually before synergies. Our average deal size is around a hundred and $30,000,000. Our average deal price is a little below 11 times. It’s between 10 and a half and 11 times, and that is before synergies.

Typically, we capture some real synergies from these businesses, which will trade that down one and a half to two times. So we believe on a blended basis, these very good acquisitions. If you look acquisitions, I really think we have some fantastic companies that were brought into the fold. We’ve on average been getting them after synergies at around nine times. So not only have these been value accretive to shareholders, but these have expanded our TAM pretty materially.

So we are now a bigger company with a bigger TAM and more opportunities for growth organically as well as inorganically. The most recent one we just announced is Sigma and Omega. What I really like about this one is if you look at multi story pretty common building type, You’ll oftentimes have this type of solution in a hospital, a hotel, you’ll see it in commercial, you’ll see it in residential buildings where you’ll have our products on the top and the bottom, you’ll typically have cooling towers on the roof, you’ll typically have our boilers in the bottom, but we were not doing the heat pumps in the middle. And with the acquisition of Sigma and Omega, we now provide that solution. And as you might imagine, there’s a lot of overlap here in terms of channel overlap.

The way that most of our businesses compete is we work with the engineers, we try to become the basis of design and then you typically work with the contractor who’s installing it is where you get your purchase orders from. So we see a lot of synergy here with Sigma and Omega who’s very strong in Canada, about two thirds of their revenues in Canada. We can help them grow very significantly, we believe, in the in in in America. If you look at our Marley channel, we have an exceptional rep network. You look at our Patterson Kelley rep network again, two very strong rep networks, which we think can help accelerate the revenue growth here.

And the dollars on these systems are not small. If you look at it on an average hospital, for example, you’ll see two x the value in the heat pumps as in the cooling towers and boiler combined. So this actually has some meaningful revenue associated with it. So it’s pretty exciting opportunity for us. There’s a couple of examples here of how we’ve built our platforms to give a little more color.

The most recent acquisition before Sigma and Omega was KTS. KTS does advanced digital interoperability and tactical networking. It’s a great strategic fit in our Comtech platform. Really our Comtech platform is TCI, a bolt on in The UK, ECS and now KTS, which is really built it from a more niche high-tech, very good tech business, does a lot of drone detection, a lot of drone management that has gotten some real scale by being $200,000,000 with a very strong customer base, a very strong value proposition and a good profitability profile here. One of the things we really like about KTS, KTS has great technology.

We actually think they can help us on the technology side on both ECS and TCI. We see some real R and D synergies there. And then we also see some real commercial synergies from TCI and ECS. ECS is very strong in The UK and in NATO and in Europe. TCI is very global with some very long standing customer relationships that we think we can help KTS grow.

And two other ones, I’m not going to get into details here, but engineered air movement is just I am so excited about this platform. This shows up in our cooling business, but we really have a really good set of businesses here. Feel we saw air movement is something we do all day in cooling towers. We saw a great opportunity to continue to expand that. This oftentimes goes to the same channel as our cooling tower business.

With these acquisitions, we’ve gotten into some very strong adjacencies with some great opportunities to build. I actually think Engineered Air Movement, we can double this again, very good businesses with some good organic growth prospects with some good opportunities for further strategic M and A. And then electric heat, Marley Engineered Products is a business we’ve been in for a long time, very strong spec position, very good products, very established. Aspect is a great addition, in particular, their duct heating. They have the original patents on duct heating and a very strong market position there.

So we see a very nice combination there. Also electric heat, we see some nice opportunities for further growth. Just some examples of how we build our platforms and get them to scale, which we think gives them more competitive heft. We also see synergies typically across the product categories that we’re bringing together. So in summary, what I would say is we really like our portfolio of businesses, our detection and measurement and our HVAC businesses are very good businesses, very strong competitive positions.

We actually have had very strong growth as I’ve shared earlier. Our business system is where the magic lies. That’s how we drive improvement in our core businesses, but it’s also how we drive improvement in our acquired companies and how we integrate these into our businesses. A very important linchpin of our value creation framework. We feel very good about our pipeline.

We actually see some very, very attractive opportunities as I look out to the back half of 2025 as well as into 2026. And as I pointed out earlier, we generate one of the things about our businesses, we generate a ton of cash. We’re typically in the 95% of net income and we’ve been very careful with our balance sheet management. So that’s all I had, Brian. I’d be glad to dive in if you have any questions.

Brian, Oppenheimer Analyst, Oppenheimer: Thanks, Jay. Very helpful. I have covered the stock since early March twenty twenty, which is relevant for a couple of reasons. One of which is quite obvious in terms of your team navigating through the time frame. The other is that it’s since it’s been since about that time that the word asynchronous has been a regular part of.

You mentioned the placement sales base that SPX enjoys, and you’ve always sounded very confident that regardless of accounts in terms of macro that that your team’s ready. And maybe speak to the historical cyclicality of the platforms that you have and your team’s readiness if the recession fears that are somewhat prevalent now do come to pass.

Gene Lowe, CEO, SPX Technologies: Yes, that’s a great question, Brian. And I do think, as you look at the macro, there’s a little bit of choppiness out there. I think our team is managing very well. But yes, perfect data point for us when you look at this, I think you’ve highlighted on one a couple of elements. If you look at our business, a big chunk of it is replacement revenue, which is very stable, right?

That’s something that is very low beta. If your cooling tower goes down and you’re a hospital or you’re a stadium or you’re a data center, you need cooling. That is not a discretionary area. You need what we provide is typically very, very mission critical and those replacements are very steady. If you look at the new, one of the things that I think is worthwhile noting is a lot of our products are mandated.

Take our Aeton business. You have to have obstruction lighting no matter what, right? It goes down or you put up a new building. I mean, it’s something you have to do. You have to maintain your water and your wastewater.

You have to do some of the things that we provide. So I think that buffers us from some market fluctuations up or down. A good data point that I would share is if you look at the industrial tech companies that we will oftentimes get grouped with, when COVID hit in 2020, a lot of people lost about 20% of their revenue, in going into 2020. We certainly felt a lot of pain. I mean, it was a it was a horrible time.

But just for example, our revenues were flat during that time. And I think that that shows to the resiliency of our of our revenue streams and the fact that we are I would consider us a lower beta type of stock. And Mark, why don’t you give a little more color in how this would break down and how you think about it?

Mark Carano, CFO, SPX Technologies: Yes, you touched on a lot of good points there. And I think one other comment I would add to Gene’s is, you think about this asynchronous dynamic and some of the trends that are driving our businesses that are somewhat interrelated. I mean, not directly related rather, I think about some of the megatrends around data centers and the opportunity there that we participate in. You think about decarbonization and some of the process industries that are moving into electric related heat sources for their process industries. I think about our transportation business that is benefiting.

We’ve said this in a couple of calls from some of this infrastructure money that is flowing out there, that is benefiting as municipalities and cities are out there upgrading their bus fleets and their transportation fleets. So you have some unique streams of activity that are while they’re connected to the broader economy, obviously, they’re sort of on their own cycle as well. So we benefit from that. And then maybe the last thing I’ll say just around being prepared for any weakness, right? This is something that we look at as part of our annual operating plans.

As our teams are developing their forecasts and their budgets for next year, a core part of that is making sure we understand if there is weakness, what levers do we have to pull to make sure that we’re best positioned to navigate whether it’s the policy uncertainty we’re seeing today in tariffs or other dynamics.

Brian, Oppenheimer Analyst, Oppenheimer: That all makes sense. It’s very helpful color. Given the backdrop that your teams now, you’re navigating everyone’s week by week, month by month, trying to get a sense of, you know, what playing field may be there going forward. There’s understandably a lot of concern from investors on, you know, the the possibility of, you know, meaningful demands at serial creation as more prices push through channel by channel and, you know, the, you know, customer set of each business, you know, adjust accordingly. So with that in mind, maybe just offer some color on, you know, what you guys have seen, what your businesses have seen late q one, early q ’2 in terms of order rates and, you know, whether there’s been any any shifts, you know, in in trend, anything of concern that you would call out at this point.

Gene Lowe, CEO, SPX Technologies: Yeah. Brian, I would, you know, what I would say is it’s something we’re watching very closely. In the markets that we serve, we have not seen really any impacts. We would not have raised our guidance if we had some concerns or we had some slowing order rates or anything going on. What I would say, typically the business that we use as our canary in the coal mine, our earliest cycle business would be our radio detection business is feeling good with what we’re seeing in terms of demand profile there.

So right now, I would say we feel good. As a reminder, to take our biggest segment cooling towers, A lot of these cooling towers, you know, are projects that really got launched two years ago. They got funding and by the time, you know, so if there were to be a material slowdown in, in, let’s say, the Dodge index for new towers, it would take some time to work its way to get to us. Typically, some of our product categories would trail the Dodge index by seven, eight months. And so once these projects get going, you’re typically good.

But I’d say the signs we see are right now we feel good. I don’t know, Mark, you have any other color you’d like to add?

Mark Carano, CFO, SPX Technologies: Yes. I mean, we came out, I think we mentioned this on our call, right, book to bills north of one when I think about orders in Q1, north of that in HVAC and closer to 1.5 times on the D and M side. So and that’s largely being driven by some of these project opportunities that we are seeing. I mentioned that on the Genfare side, but we’re watching it very closely. As Gene said, we’re watching the key indicators out there that we track within the business.

Things feel stable for the moment. So, we’re not seeing any degradation today. That’s good. Stable is encouraging.

Brian, Oppenheimer Analyst, Oppenheimer: And Jean, you mentioned data centers. And it’s been a hot topic for a while. The key focus for for investors, for better or worse, in terms of trade at SPFC, you’re sometimes viewed as a data center play, which I think it is fundamentally a tad unfair, but DCs have a growth driver. And the way that your teams frame opportunity, I think that that likely remains the case. Maybe speak to what what you’re seeing in terms of data center opportunity, you know, where you’re playing now.

I know there are a couple of newer technologies that your team has developed. Maybe touch on those and then the opportunity that was done.

Gene Lowe, CEO, SPX Technologies: Yeah, I think data centers, as we’ve talked about at a company levels, maybe 7%, eight %. If you look at it segment level of HVAC 11%, twelve % and that’s grown. Where we play predominantly our biggest areas cooling. We have some very strong relationships, very long term relationships with some large technology companies. And so that is really take our Marley Everest is the predominant product used there.

We sell this globally and a very nice market position. I would say over the past three months, we actually feel stronger in terms of data centers, and we’re actually seeing more activity in data centers. So if I look at it, our two biggest areas are cooling towers and then engineered dampers or kind of the actuated dampers are very strong position there with some very nice growth as well. Two new products that we’ve launched that are very exciting is on the cooling side. We’ve entered the dry adiabatic side.

This is a very big market that we have not participated in. We are very busy bidding this, and our target would be to get substantial meaningful bookings into ’25 with substantial revenue into ’26. And I’m talking tens of millions of dollars for that new product. And we’re getting some very good signals there. We believe we have the right product.

We have a number of patents pending. It’s a I think we have a winner there. On the other side with TAMCO, TAMCO is growing with its existing customers, but they’ve also created some new products that have helped them get into a new space called Building Envelope. And that has gone from zero to, $10,000,000 very quickly. We actually see that as a nice growth platform.

So when I think about data centers for us, there’s our core products winning with our existing businesses, serving them well and growing with them. And I think that’s going very well. But we’ve also launched a number of new products that we’re very excited about that we think are going to position us very well for ’26 and beyond.

Brian, Oppenheimer Analyst, Oppenheimer: That’s fantastic. Now you mentioned Tampco. So you know, Tampco, Ingenia, now, Sigma and Omega, Canadian businesses, great technologies, obviously have a great position in the market. There are understandable concerns about tariff and trade policy. Has that affected or perhaps accelerated your team’s plans to establish U.

S. Manufacturing for those assets?

Gene Lowe, CEO, SPX Technologies: Yeah, that’s a good question. What I would say is, I mean, we’re in a really good situation with with these businesses because Tamco, we’ve I mean, since we’ve acquired them, we’ve approximately doubled their business. I mean, it shows you the value of coming in and expanding your channel. We are completely capacity constrained. They have a small manufacturing in The U.

S. We need a lot more. We are very heavily in the middle of that process of expanding their capabilities in The U. S. Same thing for Ingenia.

Ingenia has doubled. We actually see the opportunity to double that business again. That business really has a better solution, I believe than anything else out there in the market. And to do that, we are completely out of capacity. All of our time and effort is being focused on expanding capacity because a lot of people want what they have to offer.

What I would say is we’ve always planned to put assembly operations into The US. I would say the some of the tariff uncertainty has certainly, you know, we have kept that moving very briskly, but we actually believe by the end of the year, we will be in a very good position on both those product categories to serve The Americas really from The Americas. As you know right now, there’s no tariff, the USMCA, but if that were to change in the future, we’d want to be able to handle that. But irregardless, we need to expand capacity to serve that market because we have a very strong momentum on both of those businesses and we see some very attractive areas for growth there. Mark, anything I missed?

Mark Carano, CFO, SPX Technologies: No, you got it. I mean, I think it’s a key focus. We’re spending a lot of time making sure we get that right. And it’s a key priority because the opportunity is in front of us, right in front of us today.

Brian, Oppenheimer Analyst, Oppenheimer: Understood. We’re almost out of time. I think a good one to close on would be just an update on your M and A strategy flywheel momentum. You’ve done two nice deals already this year. Is there any reason to expect that momentum to wane in this environment?

How are you feeling about the actionability of the pipeline, the opportunities at hand, both HVAC and D and A?

Gene Lowe, CEO, SPX Technologies: Yeah. What I would say is, yeah, we’re very pleased with these two acquisitions. We think they really strengthen us both in detection measurement and HVAC. If you look at the market data, M and A volume has come down pretty dramatically. If you listen to the bankers or those guys.

As a reminder, a lot of our M and A, probably half are proprietary deals. These are one on one negotiated transactions without anyone in between. As a reminder, this all comes out of our strategic planning process where we look at the full potential of our businesses, and then we look at how we can strengthen our businesses with M and A. So it’s a very strategic process, very proprietary. What I’ll tell you and what we’ve shared previously is we have a target list of about 300 companies that we track.

Many of these are family owned businesses in various stages of where they are and their interest level. But what I would say with what I see for the back half of ’25 and ’26 for our level of deals, which is smaller deals, mid market smaller deals, activity remains very healthy. And I actually feel very good that we’re going to continue to keep our momentum going as we look in the back half twenty twenty five and going into 2026. So yes, very positive.

Brian, Oppenheimer Analyst, Oppenheimer: That’s exciting. Good to hear. We’re at time. Gene, Mark, thank you very much for your time this morning.

Gene Lowe, CEO, SPX Technologies: Thanks. You have a good day.

Mark Carano, CFO, SPX Technologies: Thank you, Brian.

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