Infrastructure equipment supplier SPX Technologies (NYSE: SPXC) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 19.4% year on year to $637.3 million. The company’s full-year revenue guidance of $2.57 billion at the midpoint came in 3.8% above analysts’ estimates. Its non-GAAP profit of $1.88 per share was 0.7% above analysts’ consensus estimates.

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Company Overview

With roots dating back to 1912 as the Piston Ring Company, SPX Technologies (NYSE: SPXC) supplies specialized infrastructure equipment for HVAC systems and detection and measurement applications across industrial, commercial, and utility markets.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, SPX Technologies’s 12.8% annualized revenue growth over the last five years was excellent. Its growth surpassed the average industrials company and shows its offerings resonate with customers, a great starting point for our analysis.

Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. SPX Technologies’s annualized revenue growth of 14.1% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated.

We can dig further into the company’s sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, SPX Technologies’s organic revenue averaged 4.5% year-on-year growth. Because this number is lower than its two-year revenue growth, we can see that some mixture of acquisitions and foreign exchange rates boosted its headline results.

This quarter, SPX Technologies reported year-on-year revenue growth of 19.4%, and its $637.3 million of revenue exceeded Wall Street’s estimates by 1.5%.

Looking ahead, sell-side analysts expect revenue to grow 9.6% over the next 12 months, a deceleration versus the last two years. Still, this projection is noteworthy and implies the market sees success for its products and services.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

SPX Technologies has managed its cost base well over the last five years. It demonstrated solid profitability for an industrials business, producing an average operating margin of 11.6%. This result isn’t surprising as its high gross margin gives it a favorable starting point.

Analyzing the trend in its profitability, SPX Technologies’s operating margin rose by 9.4 percentage points over the last five years, as its sales growth gave it immense operating leverage.

This quarter, SPX Technologies generated an operating margin profit margin of 15.7%, down 1.2 percentage points year on year. Since SPX Technologies’s operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

SPX Technologies’s EPS grew at an astounding 19.3% compounded annual growth rate over the last five years, higher than its 12.8% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Diving into SPX Technologies’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, SPX Technologies’s operating margin declined this quarter but expanded by 9.4 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For SPX Technologies, its two-year annual EPS growth of 25.3% was higher than its five-year trend. We love it when earnings growth accelerates, especially when it accelerates off an already high base.

In Q4, SPX Technologies reported adjusted EPS of $1.88, up from $1.51 in the same quarter last year. This print was close to analysts’ estimates. Over the next 12 months, Wall Street expects SPX Technologies’s full-year EPS of $6.75 to grow 13.1%.

Key Takeaways from SPX Technologies’s Q4 Results

We were impressed by SPX Technologies’s optimistic full-year revenue guidance, which blew past analysts’ expectations. We were also glad its full-year EBITDA guidance exceeded Wall Street’s estimates. On the other hand, its organic revenue slightly missed. Overall, we think this was still a solid quarter with some key areas of upside. The stock traded up 1.2% to $245.89 immediately following the results.

SPX Technologies put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).