You can find the release and our earnings slide presentation, as well as a link to a live webcast of this call in the Investor Relations section of our website at spx.com. Our adjusted earnings per share exclude amortization expense, acquisition-related costs, non-service pension items, mark-to-market changes, and other items. We grew third-quarter adjusted EPS by 32% and drove significant profit and margin growth in both segments. To reflect our strong performance in Q3 and the outlook for the fourth quarter, we are raising our full-year guidance range.
We now anticipate adjusted EBITDA to exceed $500 million, at the midpoint of our updated range, implying approximately 20% growth year-over-year. During Q3, we raised additional capital through an equity offering and increased the capacity of our revolving credit facility. These actions provide us with more than $1 billion of additional liquidity to support our organic and inorganic value creation initiatives and do not have a dilutive effect on our 2025 EPS. We also continue to progress on several key organic initiatives, including the expansion plans for our engineered air movement businesses and launch of the Olympus Max product, a new large-scale cooling solution.
Turning to our high-level results, in the third quarter, we grew revenue by 23%, driven by strong organic growth in both segments and the benefit of recent acquisitions. Adjusted EBITDA increased by approximately 31% year-over-year, with 150 basis points of margin expansion. Over the past quarter, we've continued to gain traction on our growth and new product initiatives. We're making meaningful progress on expansion plans for our engineered air movement businesses, where we see significant demand in excess of our current production capacity.
| Metric | Period | Current guidance |
|---|---|---|
| Adjusted EPS (full year 2025) | FY2025 | $6.55-$6.80 (about 21% growth at midpoint) |
| Adjusted EBITDA (implied) | FY2025 | expected to exceed $500 million, about 20% growth |
| Detection & Measurement full-year margin | FY2025 | 23.25%-23.75% (midpoint raised to 23.5%, up 140 bps YoY) |
| HVAC revenue and margin | FY2025 | maintained, confident in Q4 forecast |
| Metric | YoY | Note |
|---|---|---|
| Adjusted EPS | +32% to $1.84 | Significant profit growth in both segments. |
| Total revenue | +23% | Higher project sales in D&M plus inorganic growth from KTS and Sigma & Omega. |
| Adjusted EBITDA | approximately +31% | 150 basis points of margin expansion on higher volume. |
| HVAC revenue | +15.5% (9% organic, 6.7% inorganic) | Solid growth in cooling and heating with nominal FX impact. |
| HVAC segment income | +18% (+$14 million) | Higher volume and associated operating leverage; margin up 50 basis points. |
| D&M revenue | +38.4% (26.5% organic) | Higher compact project volumes plus 11.6% from the KTS acquisition and modest FX. |
| D&M segment income | +53% (+$18 million) | Operating leverage on higher organic sales and the KTS acquisition; margin up 240 basis points. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Capacity expansion | Expansion plans for engineered air movement businesses progressing | Tennessee leased facility (150,000 sq ft) for TAMCO production closed, starting late next quarter; Ingenia U.S. site targeted in the Southeast with details next quarter (Ingenia $140 million run rate targeted in Q4, $300 million combined run rate by Q4 2027) | — |
| Olympus Max | Receiving excellent feedback and engagement | On track to book $50 million of orders in 2025 for 2026 revenue; market shifting toward water-cooled chiller solutions that expand SPX's addressable opportunity | — |
| Balance sheet and capital | Leverage expected to decline below target range | $575 million equity offering and revolver increase to $1.5 billion add more than $1 billion of liquidity with no 2025 EPS dilution; leverage about 0.5x; available capacity exceeds $1.6 billion | — |
| M&A pipeline | Robust pipeline with several attractive opportunities | Very high activity with multiple processes underway, most active in HVAC (engineered air movement, electric heat) plus some D&M; no change in strategy or discipline (about 11x average multiple) | — |