SPX Technologies shares climbed 5.2% in mid-June 2026 after the company announced an expansion of its HVAC manufacturing capacity specifically aimed at meeting accelerating demand for data center cooling solutions — the latest in a string of capacity and guidance increases tied to the same underlying trend reshaping much of the commercial HVAC equipment sector this year.
The capacity move builds directly on SPX's first quarter 2026 results, where the company raised its full-year revenue guidance to a range of $2.575 billion to $2.645 billion, up from a prior range of $2.535 billion to $2.605 billion, driven by stronger-than-expected contributions from both its HVAC and Detection & Measurement segments. Management specifically credited increased data center demand and higher throughput from expanded capacity as the primary driver of the guidance raise.
Just How Much Data Centers Are Now Driving SPX's Growth
The scale of the shift inside SPX's own business is striking: the company's expected data center-related growth range for fiscal 2026 was increased from approximately 50% to as high as approximately 70%, with these investments projected to contribute nearly half of the HVAC segment's total revenue growth for the year and add roughly $700 million of incremental manufacturing capacity. By 2028, SPX expects its capacity expansions to unlock approximately $550 million in incremental data center revenue potential.
This acceleration is happening alongside the launch of the Marley OlympusMAX Fluid Cooler, a new platform specifically engineered for mission-critical cooling needs in data centers and industrial facilities. The product introduction ties directly into the same data center HVAC theme underpinning the company's guidance upgrade, giving a concrete commercial vehicle to the capacity expansion story rather than leaving it as an abstract capital allocation decision.
The Tariff Headwind Tempering the Story
SPX's management has been candid that the picture isn't purely upside: the company expects a $0.05 to $0.10 per-share headwind in 2026 from Section 232 tariff changes, primarily affecting the HVAC segment in the company's second quarter. Management's expectation is that 2027 earnings will be unaffected by current tariff headwinds as manufacturing shifts and pricing adjustments take full effect — suggesting the tariff drag is viewed internally as a temporary, one-year transition cost rather than a structural problem.
M&A also remains a core pillar of SPX's growth strategy alongside organic capacity expansion. The company's leverage ratio of 0.9x sits well below its long-term target range of 1.5x to 2.5x, giving SPX meaningful additional balance sheet capacity to pursue further acquisitions in HVAC and adjacent categories without straining its capital structure.
