Shares of SPX Technologies (SPXC +10.20%) rallied on Friday after the heating, ventilation, and air conditioning (HVAC) products supplier highlighted its AI-fueled expansion prospects.
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Helping to keep AI data centers cool
SPX's revenue jumped 23% year over year to $679 million in its fiscal second quarter ended June 27.
SPX's $430 million acquisition of Neptronic bolstered its leadership position within the fast-growing thermal management solutions market. Management now sees the potential for $1.1 billion of total data center equipment sales when it reaches full production, up from a prior projection of $750 million.
"The acquisition of Neptronic expands our HVAC portfolio with highly complementary product categories that leverage our established sales channels," CEO Gene Lowe said. "At the same time, we're increasing manufacturing capacity to support growing demand."
NYSE: SPXC
Key Data Points
All told, SPX's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 20% to $152 million. The HVAC leader's adjusted earnings per share increased 22% to $2.02.
Demand trends remain favorable
These strong results prompted SPX to heighten its full-year financial targets. Management now expects revenue and adjusted earnings per share to grow roughly 21% and 24%, respectively, to $2.7 billion and $8.40.
"Our updated outlook reflects continued strength in data center demand, the impact of the Neptronic acquisition, and stronger performance from our detection and measurement segment, positioning us well for the balance of the year," Lowe said.
