You can find the release and our earnings slide presentation, as well as a link to a live webcast of this call in the news section of our website at spx.com. Our adjusted earnings per share exclude intangible amortization expense, acquisition and integrated related costs, and non-service pension items, among other items. On the call today, we'll provide you with an update on our consolidated and segment results for the second quarter of 2026, as well as an update on our full-year outlook. We had a strong second quarter with year-over-year growth in adjusted EBITDA of 20% and adjusted EPS of 22%.
Inorganically, we recently announced the addition of Neptronic to the HVAC segment. This strategic acquisition complements our existing product offering and expands our capabilities into new adjacencies. Touching on our full-year guidance, we are increasing the midpoint of our range to reflect higher data center volume, stronger performance from our Detection & Measurement Segment, and the Neptronic acquisition. The midpoint of our updated guidance now implies 27% adjusted EBITDA growth.
We grew revenue by 23% and adjusted EBITDA increased 20% year-over-year, primarily driven by strong organic growth in both segments and the benefit of recent acquisitions. As always, I'd like to update you on our value creation initiatives, starting with our organic growth activities. The capacity expansions across our HVAC facilities to meet the strong demand for our data center and constant air handling solutions are progressing well. They remain on track with the timeline and capital requirements previously outlined.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year adjusted EPS | FY2026 | raised $0.45 to a midpoint of $8.40 |
| Implied adjusted EBITDA growth | FY2026 | ~27% at the midpoint |
| Full-year data center revenue | FY2026 | $430M (~115% growth) |
| Total data center capacity at full production | Long-term (2H 2028) | ~$1.1B |
| D&M segment margin | FY2026 | ~26.5% for the year (~25% structural after normalizing project mix) |
| Full-year capex | FY2026 | $135M-$165M, back-half weighted (regular-way ~1.5%-2% of sales plus expansion) |
| Neptronic contribution | FY2026 (~5 months) | ~$75M annual revenue; ~$0.05-$0.06 of accretion; +25 bps to HVAC full-year margin |
| Metric | YoY | Note |
|---|---|---|
| Total company revenue | +23% (17% organic) | Strong organic growth in both segments plus the benefit of recent acquisitions. |
| Adjusted EPS | +22% to $2.02 | Higher volume and segment income across HVAC and D&M. |
| Consolidated segment income | +23% to $167.1M (margin flat at 24.6%) | HVAC volume growth and D&M margin expansion offset HVAC startup/tariff costs. |
| HVAC revenue | +27.6% (18.9% organic, 8.5% inorganic) | Double-digit growth in both cooling and heating, driven by strong data center demand. |
| HVAC segment income / margin | +15% ($14M); margin -260 bps | Higher volume offset by capacity-expansion startup costs, net tariffs, a tough comp and modest inflation. |
| HVAC backlog | +59% organic to $919M | Primarily strong data center demand. |
| Detection & Measurement revenue | +13% | High-margin project volumes including a project pulled forward, plus continued run-rate demand. |
| D&M segment income / margin | +43%; margin +610 bps | Favorable project mix (~half), a ~$15M project shifted from Q3, and platform synergy initiatives. |
| D&M backlog | Down to $312M | Higher project volumes executed in the quarter; book-to-bill just below 1x. |
| Adjusted free cash flow | ~$72M in Q2 | Strong operational cash generation; leverage 0.7x (1.4x pro forma for Neptronic). |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Data center cooling capacity ramp | ~$750M capacity target; $350M FY revenue | $1.1B capacity target (full production ~2H 2028); FY revenue raised to $430M; OlympusMAX and Everest throughput exceeding expectations via lean/flow work at Olathe, Springfield, Madison (just started) and Tamco (Tennessee). | — |
| M&A / capital deployment | Active acquisition pipeline | Neptronic added to HVAC; leverage 1.4x pro forma (below 1.5x-2.5x target); active pipeline across engineered air movement, electric heat, D&M location/inspection, Comtech and transportation with more expected in the next six months. | — |
| Neptronic strategic fit | — | About half the business overlaps SPX core (electric duct heating, humidification); the newest piece is advanced third-party/OEM configured controls, moving SPX up the controls stack; expected high-single-digit growth, low-40%s segment income margin, mid-40%s EBITDA margin, with data center exposure similar to or slightly above HVAC. | — |
| Data center customer relationships & LTAs | — | Long-term agreements in place with several hyperscaler customers (with protections that free capacity if POs are not placed); wins with hyperscalers, colos and neo-clouds; market shifting toward SPX's dry, adiabatic and cooling-tower solutions as liquid cooling grows. | — |
| Supply chain resilience | — | In-house engineering of fans, gear reducers and heat exchangers gives supply-chain flexibility; a strong supply-chain team scrubs every bill-of-material item before taking large data center orders given hyperscaler concentration. | — |
| Leadership / board changes | John Swann leading D&M | John Swann to retire year-end; Eric Kaled (transportation/contact platform lead since 2019) succeeds him; Brian Deck (CEO of JBT Marel) joins the board as an independent director. | — |