SPX Technologies : William Blair What’s Next for Industrials
September 28, 2023 at 07:32 pm
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SPX Technologies
William Blair's
What's Next for Industrials?
September 2023
SPX Corporation 2019 Investor Event - New York
SPX Technologies Overview
2022 Revenue by Region†
Headquartered in Charlotte, NC
~85%
~10%
9%
Focused, market-leading platforms:
6%
HVAC
Detection & Measurement
~5%
$1.74B Revenue*
+4,000 employees
NYSE Ticker: SPXC
Midpoint of 2023 guidance as presented August 2, 2023
†Based on management esfimates.
A Leading Supplier of HVAC and Detection & Measurement Products and Technologies;
The Majority of Revenue is Generated by North American Sales
September 2023
2
Value Creation Framework
Organic Growth
SPX Business System
•
New products
•
Digital initiatives
•
Channel expansion
•
Continuous Improvement
•
Adjacent markets
•
Due diligence/integration
Inorganic Growth
Culture & Values
•
Strategic platform focus
•
Integrity
•
Significant capital to deploy
•
Results/accountability
•
Large target pipeline
•
Diversity & Inclusion
•
Employee development
September 2023
3
Focused, Market-Leading Growth Platforms
Detection & Measurement ($598M)(1)
Location & Inspection
$1.74 Billion(1)
HVAC ($1,135M)(1)
Cooling
Aids to Navigation
ITL SEALITE
CommTech / Transportation
ECS
Premium engineered niches
Technology / innovation focus
~90% Market Leadership (#1 or #2)
High replacement revenue (~2/3)
Mandated / spec-driven markets
Less cyclical / capital-intensive
Diverse end markets
Heating
1) Mid-Point of 2023E Guidance as presented August 2, 2023
Simplified, Higher-Return Portfolio
September 2023
4
SPX Business Value Model
Disciplined Business System
Strategic Organic Sales Growth
(Innovation, Product Mgmt.)
Continuous Improvement
(Lean, 80/20)
Talent Development
(360 Leadership)
Digital
(Software, Productivity)
Strategic Acquisition Approach
SPX has acquired ~$535M of
revenue in ~5 years
SEALITE
ITL ECS
Average EV/EBITDA Multiple Paid:
Pre-SynergyPost-Synergy
~10.6x ~9x
Superior Performance
Organic / Inorganic
Revenue Growth
Margin Expansion
Cash Flow Generation
Established Model for Sustainable Growth
September 2023
5
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Disclaimer
SPX Corporation published this content on 28 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 September 2023 18:31:51 UTC.
SPX Technologies, Inc. is a diversified, global supplier of engineered products and technologies in the heating, ventilation, and air conditioning (HVAC) and detection and measurement markets. HVAC solutions offered by its businesses include package and process cooling equipment, residential and commercial boilers, comfort heating and ventilation products, and engineered air movement solutions. Its segments include HVAC, which engineers, designs, manufactures, installs and services package and process cooling products and engineered air movement solutions for the HVAC industrial and power generation markets, as well as heating and ventilation products for the residential, industrial, and commercial markets, and Detection and Measurement segment that engineers, designs, manufactures, services, and installs underground pipe and cable locators, inspection and rehabilitation equipment, robotic systems, transportation systems, communication technologies, and obstruction lighting.
SPX TECHNOLOGIES, INC. 
