SPX Technologies Eyes 50% Data Center Growth with $100M HVAC Investment
JPMorgan initiated coverage of SPX Technologies with an Overweight rating and $260 price target, citing data center cooling strength. Q4 revenue rose 19.4% to $637.3M with HVAC segment sales up 16.4%, and the company plans $100M capacity expansion to capture $700M incremental revenue.
1. Coverage Initiation
JPMorgan initiated coverage on SPX Technologies with an Overweight rating and a $260 price target, highlighting its strategic position in data center cooling and engineered air movement infrastructure.
2. Q4 Financial Results
SPX reported Q4 2025 revenue of $637.3M, up 19.4% year-over-year; its HVAC segment generated $431.1M, a 16.4% increase, while data center revenue reached approximately $200M, or 9% of total.
3. Capacity Expansion Strategy
The company plans a $100M HVAC manufacturing capacity expansion in 2026, adding to $92.1M of FY2025 capital expenditures, aiming to unlock about $700M in incremental revenue potential, with $550M linked to data center demand.
4. Analyst Consensus and Price Targets
SPX carries a Moderate Buy consensus across nine brokerages with no sell ratings; the average target stands at $266.70, with individual projections ranging from $244 to $262.67 as firms raise outlooks for the stock.