SPX Technologies: 2Q Wrap and Model Update: Beat & Raise Story Continues

Research evidence excerpt

SPX Technologies: 2Q Wrap and Model Update: Beat & Raise Story Continues

Piyush Khaitan AC North America Equity Research

(1-212) 622-0605 03 August 2026 J P M O R G A N

piyush.khaitan@jpmchase.com

• Datacenter outlook revised further upwards. DC volumes have scaled rapidly, with an

initial plan of $300mm this year, subsequently raised to $350mm last quarter and again

to $430mm for the full year, representing growth of ~115%. Underpinning the raised

outlook is greater production efficiency. Total DC capacity at full production is now

expected to be ~$1.1B (up from ~$750mm prior). The uplift this year comes from two

broad areas: first, Olympus Max - a large, complicated product with complex controls,

where lean projects, productivity work, and flow optimization over the past six months

have driven higher than anticipated throughput across Olathe facility; and second, the

core cooling business - most commonly the Everest product, or cooling towers, where

high demand has been met through more space, better flow, lean projects, and augmented

staffing to increase output. However, management clarified that increased DC outlook

this year vs prior quarter is coming more from other cooling products than Olympus Max,

implying broad-based demand. Learnings from Olympus Max production at Olathe gives

management confidence that Madison facility will ramp up smoothly and on track.

Management is seeing significant activity across a variety of customers, with the market

shifting toward SPX's solutions – a larger portion of the market is becoming addressable.

Dry cooling is the favored solution for SPX's products, alongside solid demand for

adiabatic solutions and cooling towers.

• Capacity additions, throughput and supply chain dynamics. SPX remains on track