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 include intangible amortization expense, acquisition, and integration-related costs, non-service pension items, among other items. On the call today, we'll provide you with an update on our consolidated and segment results for the first quarter of 2026, as well as an update on our full-year outlook. We had a strong start to the year with year-over-year growth and adjusted EBITDA of 23% and adjusted EPS of 22%.
We continued to execute well, driving significant profit growth in both segments and making meaningful progress on several key initiatives. Looking ahead, we remain well-positioned to continue executing on our organic and inorganic value creation initiatives supported by our robust M&A pipeline. We grew revenue by 17.4%, driven by the benefit of recent acquisitions and organic growth in both segments. Adjusted EBITDA increased 23% year-over-year, with 90 basis points of margin expansion.
The capacity expansions across our HVAC facilities to meet the strong demand for our data center cooling and custom air handling solutions are progressing well. They remain on track with the timeline and capital requirements outlined last quarter. In Q1, we began producing highly engineered aluminum dampers in TAMCO's new Tennessee facility and expect production to steadily increase throughout the year. For the quarter, total company revenue increased 17.4% year-over-year, primarily driven by the benefit of acquisitions and strong organic growth in HVAC.
| Metric | Period | Current guidance |
|---|---|---|
| Adjusted EPS (full year 2026) | FY2026 | Midpoint $7.95 (raised $0.15) |
| Adjusted EBITDA growth (implied) | FY2026 | approximately 21% at the midpoint |
| Data center revenue growth | FY2026 | approximately 70% |
| Section 232 tariff impact | FY2026 | $0.05-$0.10 headwind, predominantly Q2 HVAC |
| Metric | YoY | Note |
|---|---|---|
| Adjusted EPS | +22% to $1.69 | Profit growth in both segments, higher volume, and acquisition contribution. |
| Total revenue | +17.4% | Benefit of recent acquisitions and strong organic growth in HVAC. |
| Adjusted EBITDA | +23% | Margin expansion of 90 basis points alongside revenue growth. |
| HVAC revenue | +22% (9.6% organic, 11.5% inorganic) | Recent acquisitions, organic growth in cooling and heating, and modest FX tailwind. |
| Detection & Measurement revenue | +8.3% (3% organic) | One month of KTS inorganic revenue (3.9%), higher transportation platform volumes, and modest FX. |
| HVAC segment income | +20% (+$15 million) | Higher volume, partially offset by capacity-expansion startup costs. |
| D&M segment income | +28% (+$10 million) | Higher volume and favorable mix including greater-than-typical high-margin software. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Data center demand and capacity | Data center growth outlook of about 50%; Olathe facility ramping | Raised to about 70% growth as demand accelerates; Olathe online earlier than expected, TAMCO Tennessee shipping, Madison build-out underway; capacity to serve circa $550 million incremental data center revenue | — |
| Tariffs | Modest exposure managed largely through price and sourcing | New Section 232 changes create a $0.05-$0.10 headwind concentrated in Q2 HVAC; no expected impact on 2027 | — |
| M&A pipeline | Robust pipeline in engineered air movement and electric heat | Still robust with leverage at 0.9x; seeing more Detection & Measurement opportunities in transportation, CommTech, and AtoN; discipline maintained at roughly 10.5x-11x pre-synergy | — |
| Acquisition integration | KTS and Sigma & Omega added in prior year | Air Enterprises, Rahn, and Thermolec off to a strong start; Crawford United non-core businesses sold for approximately $60 million in proceeds | — |