SPX Technologies, Inc. (SPXC)

SPX Technologies, Inc. is a diversified, global supplier of highly engineered infrastructure equipment serving the heating, ventilation and cooling (HVAC) and detection and measurement markets. It is the successor registrant to SPX Corporation, which was founded in Muskegon, Michigan in 1912 as the Piston Ring Company, following a holding company reorganization completed in August 2022. The company has operations in 15 countries and about 4,100 employees. Over time it has reshaped its portfolio by spinning off SPX FLOW in 2015, exiting power generation-related businesses, selling its Transformer Solutions business in 2021, divesting its asbestos-liability subsidiaries in 2022, and making acquisitions such as Sealite, ECS, Cincinnati Fan, ITL, TAMCO, ASPEQ and Ingénia.

The HVAC segment (2023 revenue of $1,122.3 million, backlog of $306.1 million) engineers, designs, manufactures, installs and services package and process cooling products and engineered air movement solutions, along with residential and commercial boilers, electrical heating and ventilation products. Its brands include Marley, Recold, SGS, Cincinnati Fan, TAMCO and Ingénia for cooling and air movement, and Berko, Qmark, Fahrenheat, Patterson-Kelley, Weil-McLain, INDEECO and others for heating. The Detection and Measurement segment (2023 revenue of $618.9 million, backlog of $244.5 million) makes underground pipe and cable locators, inspection and rehabilitation equipment, robotic systems, transportation systems, communication technologies and aids to navigation. Its brands include Radiodetection, Pearpoint, Schonstedt, Cues, ULC Robotics, Genfare, TCI, ECS, Flash Technology, ITL and Sealite.

HVAC products serve industrial, commercial, residential and power generation customers in North America, Europe and Asia. They are sold directly, through independent manufacturing representatives, third-party distributors and retailers. Detection and Measurement products help utilities, telecommunication providers and regulators, municipalities and transit authorities build, monitor and maintain vital infrastructure. They are sold directly and through distributors to customers in North America, Europe, Africa and Asia. Sales outside the United States were $287.1 million in 2023, and no customer accounted for more than 10% of consolidated revenues.

The company manufactures many of its own components while outsourcing certain components and sub-assemblies where economical. It buys raw materials such as steel and petroleum-based products from numerous sources and is not significantly dependent on any single supplier. Competition comes from many large and small companies and is based on service, product performance, technical innovation and price. SPX owns 160 domestic and 360 foreign patents. About 3,300 of its employees are in the United States, and its businesses tend to be stronger in the second half of the year.