Model Update - Maintain PT

Research evidence excerpt

Model Update - Maintain PT

TD Cowen SPX Technologies

Global Research May 26, 2026

AT A GLANCE

Our Investment Thesis Forthcoming Catalysts

SPX is capitalizing both organically and inorganically as it aligns the portfolio towards ■ Deployment of balance sheet.

themes like engineered air movement, communications / location technology, and defense ■ Continued data center buildout.

interoperability. Data center has garnered significant attention, for good reason, and should ■ Capacity expansions in the US are

pace HVAC growth for the next several years. Recent deals have had early success and completed, allowing company to leverage

management is working to expand production capacity to meet end-demand. Recent financing existing demand appropriately.

provides meaningful flexibility to continue deployment, but deals likely getting more expensive ■ Integration of cooling tower, dry, and

and valuation already reflects healthy multiple even considering potential M&A. We like the adiabatic cooling technologies.

story, but will look for better entry. ■ Trend towards more advanced military

communication networks.

Base Case Assumptions Upside Scenario Downside Scenario

■ Data center remains the fastest growth ■ Pacing of M&A accelerates with attractive ■ Credit markets do not allow management

portion of HVAC. targets. to execute on its M&A strategy.

■ Capacity additions for TAMCO and ■ Early signs of success integrating new ■ Deals acquired to date fail to reach

Ingénia roll in over the next 2 years. HVAC offerings with existing portfolio. targets and pressure the multiple.

■ Consistent (but not modeled) capital ■ Capacity expansions completed earlier ■ Data center growth expectations are

deploying into M&A to supplement than anticipated. lowered.

organic profile.