SPX Technologies (SPXC) Stock Forecast & Price Target

SPX Technologies is well positioned for durable profitable growth because its HVAC segment is still the primary engine, with 2Q HVAC revenue up 22.9% and backlog of $919M supporting strong orders into 3Q26 and beyond. Its growth story is reinforced by capacity expansion at TAMCO Tennessee and Madison, AL, plus new HVAC platform additions such as Neptronic and FIS Water, while management’s leverage near 0.7x at quarter end and estimated ~$210M of FY26 free cash flow preserve ample balance-sheet flexibility for further M&A. Although near-term gross margin may be pressured by supply-chain shortages, freight, and ramp costs, the company’s diversified U.S.-heavy mix, strong brand positions, and history of high-fit acquisitions since 2018 support continued earnings and cash flow expansion.

SPX Technologies is facing a challenging outlook in its D&M segment, where 3Q26 revenue is modeled at $182.8M versus $205.4M in 3Q25 and backlog fell to $312.4M, down 14.5% year over year, leaving book-to-bill slightly below 1x. Although management raised FY26 D&M revenue guidance to $750M-$770M and expects 2H improvement, the segment’s margin strength has been distorted by a one-time ~$15M project pull-forward, with normalized margins nearer 25% versus the guided 26.25%-26.75%. The bearish view is reinforced by exposure to a potential pullback in U.S. commercial construction, including data center and semiconductor demand, plus persistent inflation in steel, copper, and petroleum-based inputs that could pressure profitability.