Q3 2024 SPX Technologies Inc Earnings Call Transcript
Key Points
- SPX Technologies Inc (SPXC) reported a solid revenue growth of 7.8% for Q3 2024, driven by strength in the HVAC cooling segment.
- The company achieved a significant margin expansion of 320 basis points, reflecting strong operational performance.
- Adjusted EBITDA increased by approximately 27% year-on-year, showcasing effective cost management and operational efficiency.
- SPX Technologies Inc (SPXC) achieved a 30% reduction in carbon intensity, demonstrating progress in sustainability initiatives.
- The company is well-positioned to achieve its full-year guidance, with expected growth in adjusted EBITDA of 35% and adjusted EPS of 28%.
- The Detection & Measurement segment experienced a 7% year-on-year revenue decline, primarily due to lower contract sales from a large pass-through project.
- Segment backlog in the Detection & Measurement segment decreased by 5.8% sequentially, indicating potential challenges in future project deliveries.
- The HVAC heating platform faced flat growth due to a slower start to the heating season and normalized lead times.
- Despite strong cash flow, the company anticipates a leverage ratio below its target range, which may limit flexibility for future capital deployment.
- The wide guidance range for the Detection & Measurement segment suggests uncertainty in project timing and revenue realization.
Good afternoon, and welcome to the SPX Technologies Q3 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Paul Clegg, Vice President, Investor Relations and Communications. Please go ahead.
Thank you, operator, and good afternoon, everyone. Thanks for joining us. With me on the call today are Gene Lowe, our President and Chief Executive Officer; and Mark Carano, our Chief Financial Officer.
A press release containing our third quarter results was issued today after market close. You can find the release and our earnings slide presentation as well as a link to a live webcast of this call in the Investor Relations section of our website at spx.com.
I encourage you to review our disclosure and discussion of GAAP results in the press release and to follow along with the slide presentation during our prepared remarks. A replay of the webcast will be available on our website.
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