SPX Technologies, Inc.’s SPXC HVAC business appears well positioned to sustain growth over the next several years, supported by a sharp increase in backlog, capacity expansion initiatives, strategic acquisitions and durable demand from data center cooling and commercial HVAC markets. The company ended the first quarter of 2026 with an HVAC backlog of $755 million, up 38% organically year over year, providing strong revenue visibility while reinforcing confidence that favorable market conditions can extend well beyond 2026.
One of the strongest structural growth drivers remains the rapid expansion of AI infrastructure and hyperscale data centers. SPXC continues to benefit from elevated demand for cooling products used in these facilities, where higher computing densities require increasingly sophisticated thermal-management solutions. During the first quarter, HVAC organic growth benefited from higher data center cooling volumes and improved throughput from recent capacity additions. These trends indicate that demand is being supported by both favorable end-market conditions and the company's improved manufacturing capabilities.
To meet rising demand, SPX Technologies has continued investing in manufacturing expansion across its HVAC operations. The company began producing highly engineered aluminum dampers at TAMCO’s new Tennessee facility in the first quarter and expects production to ramp through the year. It also started OlympusMAX production in Olathe, KS. Its Madison, AL, build-out is also progressing, with assembly expected in the second half of 2026 and initial production in the first half of 2027. These investments should improve throughput and help SPXC convert backlog into revenues.
Organic growth is also being complemented by targeted acquisitions that strengthen SPXC's HVAC platform. Over the past year, the company added Sigma & Omega, Thermolec and Crawford's commercial air-handling operations, expanding its presence across hydronic heating, electric duct heating, commercial air handling and engineered HVAC equipment. Beyond broadening the product portfolio, these acquisitions create opportunities for commercial synergies, procurement efficiencies and expanded manufacturing capabilities that should support long-term growth.
Taken together, SPXC's $755 million HVAC backlog, manufacturing investments, strategic acquisitions and exposure to durable secular growth trends suggest that its HVAC business is supported by more than a temporary surge in orders. Successful execution on capacity expansion and acquisition integration will remain important, but the company's strong backlog visibility provides a solid foundation that could sustain HVAC growth well into 2028.
How SPXC Stacks Up Against HVAC Peers
SPX Technologies operates in a competitive HVAC market where demand for data center cooling, modular construction and high-performance building systems is drawing strong participation from peers such as Comfort Systems USA, Inc. FIX and AAON, Inc. AAON. Like SPXC, both companies are benefiting from strong technology-sector demand, expanding backlog and capacity investments tied to data center and advanced HVAC opportunities.
Comfort Systems is gaining from robust demand across mechanical and electrical solutions for technology customers. The company ended the first quarter of 2026 with a record backlog of $12.5 billion, up $5 billion from a year ago, supported by strong tech-sector demand. Advanced technology, dominated by data center work, accounted for 56% of revenues, while modular revenues represented 17% of total revenues. Comfort Systems is also expanding modular capacity, targeting 4 million square feet by the end of 2026, strengthening its ability to support large-scale data center construction.
AAON is also benefiting from strong data center thermal-management demand through its highly engineered HVAC and cooling solutions. The company reported a backlog of $2.1 billion, more than double year over year, with Basics-branded orders up 160% from the prior year and book-to-bill above 2. Basic sales grew 72% year over year, supported by data center demand and higher production from expanded facilities in Longview, Memphis and Redmond. AAON continues investing in capacity and expects Basics revenues to reach roughly $1 billion in 2026, with longer-term capacity potential above $2 billion.
SPXC Stock’s Price Performance & Valuation Trend
Shares of SPXC have climbed 31.6% in the past year, outperforming the broader Construction sector and the S&P 500 Index but underperforming the Zacks Building Products - Air Conditioner and Heating industry.
SPXC stock is currently trading at a discount compared with the industry, with a forward 12-month price-to-earnings (P/E) ratio of 26.79, as evidenced by the chart below.
Earnings Estimate Trend for SPXC
SPXC’s earnings estimates for 2026 and 2027 have trended upward in the past 60 days. The estimated figures for 2026 and 2027 imply year-over-year growth of 18.1% and 12.9%, respectively.
SPX Technologies stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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