SPX Technologies (SPXC) Stock Forecast & Price Target

SPX Technologies is supported by a strong HVAC growth runway, highlighted by 1Q backlog of $755M, 38% organic growth, and guided 2026 data center revenue growth of about 70%, while the rest of HVAC is still expected to grow in the mid-single digits. Its profitability profile is also improving, with 1Q sales up 17.4% to $567M, adjusted operating income up 21.6% to $135M, and EBITDA margin expanding to 22.2%, even after tariff headwinds. The case is further strengthened by D&M momentum, a $333M backlog, a disciplined M&A record of about $2.5B across 18 acquisitions since 2018, and an >80% Americas revenue mix that supports resilient, high-quality earnings growth.

SPX Technologies is exposed to a material downturn in U.S. commercial construction, including a possible reversal in data center and semiconductor investment, which would pressure its HVAC-led revenue base and amplify its dependence on the U.S. market. Persistent inflation in petroleum-based products, steel, and copper could outpace pricing actions, while weaker organic growth, tariff and trade tensions, and technology competition would further strain margins and execution. Although D&M posted $47M of operating income with a 27.0% margin and backlog was $333M, the modest backlog decline and M&A integration risk suggest recent strength may not be durable.