A press release containing our fourth quarter and full year results was issued today after market close. You can find the release in 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 intangible amortization expenses, acquisition and integration-related costs, non-service pension items, changes in estimated value of equity security, among other items. On the call today, we'll provide you with an update on our consolidated and segment results for the fourth quarter and full year of 2025.
We grew full year adjusted EBITDA and adjusted EPS by 21%, with a strong performance by both segments. Organically, we made further progress on our efforts to expand capacity within our HVAC segment to meet the growing demand for our highly engineered solutions. Inorganically, we recently announced the additions of Thermelec, Air Enterprises, and Rahn Industries to the HVAC segment. Today, we are introducing our 2026 midpoint guidance, which implies approximately 20% Adjusted EBITDA growth at the midpoint.
For the fourth quarter, we grew revenue by 19.4%, driven by the benefit of recent acquisitions and organic growth in both segments. Adjusted EBITDA increased by approximately 22% year-over-year, with 50 basis points of margin expansion. Demand for our customer handling and data center cooling products remains strong. During last quarter's call, we announced the addition of a facility in Tennessee that will produce TAMCO highly engineered aluminum dampers, which are seeing strong demand within the data center market.
| Metric | Period | Current guidance |
|---|---|---|
| Total company revenue | FY2026 | $2.535 billion-$2.605 billion |
| Adjusted EBITDA | FY2026 | $590 million-$620 million (about 20% growth at midpoint, ~23.5% margin) |
| Adjusted EPS | FY2026 | $7.60-$8.00 (about 15% growth at midpoint) |
| HVAC revenue | FY2026 | $1.8 billion-$1.84 billion; segment margin 24.5%-25% |
| Detection & Measurement revenue | FY2026 | $735 million-$765 million; segment margin 24.75%-25.25% |
| Metric | YoY | Note |
|---|---|---|
| Q4 adjusted EPS | +25% to $1.88 | Higher volume, operating leverage, and acquisition contribution. |
| Full-year adjusted EPS | +21% to $6.76 | Strong performance by both segments through the year. |
| Q4 total revenue | +19.4% | KTS and Sigma & Omega acquisitions plus organic growth in both segments. |
| Q4 HVAC revenue | +16.4% (10.3% organic, 5.5% inorganic) | Higher volume in cooling and heating, plus modest FX tailwind. |
| Q4 D&M revenue | +26.3% (1.7% organic) | KTS acquisition contributed 23.2%, with higher project volumes and modest FX. |
| Q4 HVAC segment income | +18% (+$17 million) | Higher volume and associated operating leverage; margin up 40 basis points. |
| Q4 D&M segment income | +27% (+$10 million) | Higher volume including the benefit of KTS; margin up 20 basis points. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Capacity expansion | Tennessee facility for TAMCO announced; Ingenia Mirabel and Olathe expansions underway | Madison, Alabama 459,000 sq ft facility purchased in Q4; roughly $100 million of expansion capital planned for 2026 (plus ~$60 million in 2025), adding roughly $700 million of incremental capacity at full production | — |
| Data center | About $200 million (7%) of revenue, growing | About 9% of 2025 revenue (a little over $200 million); expected to grow about 50% in 2026 to roughly low double digits (around 12%) of revenue | — |
| M&A | KTS and Sigma & Omega closed in 2025 | Thermelec, Air Enterprises, and Rahn Industries closed in Q1 2026 (about $110 million combined revenue for 11 months); pipeline remains very full in engineered air movement, electric heat, and D&M | — |
| OlympusMAX product | Targeting $50 million of bookings in 2025 | Achieved the $50 million booking target, converting to revenue in 2026; awarded with three customers, one with multiple years of locked-up demand; management more bullish | — |