SPXC - Earnings call transcript Q2 2024

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Operator

Thank you for standing by, and welcome to SPX Technologies Second Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to hand the call over to Paul Clegg, VP, Investor Relations and Communications. Please go ahead.

Paul Clegg

Thank you, operator, and good afternoon, everyone. Thanks for joining us. call Officer; Gene Chief and the and our Financial on Executive Chief Mark me today Lowe, are President Officer. With Carano, our issued release after press containing second results A our market was close. quarter today

the find a in at as the a as to Relations section can earnings of slide release You link this of spx.com. presentation webcast live Investor well our call website and our

the review results to be to until you the our presentation with in follow press encourage discussion of GAAP X. disclosure August prepared I of available our and the release along replay website remarks. slide during and on A our will webcast

our presentation to recent As a Please SEC the provisions. our are in forward-looking note and safe of most harbor and subject reminder, filings. also portions factors comments risk

will focus comparisons operations only. financial results today to results comments adjusted largely of and the on continuing be will Our

the measures detailed today's presentation. You respective their can historical GAAP from find adjusted appendix to figures reconciliations in of

items, costs, Our adjusted earnings pension other per amortization acquisition-related share nonservice and items. expense mark-to-market exclude changes,

will Industrial in we with the on third at investor I various virtual Seaport Seaport with be September on over the (sic) call investors And Gene. the [ the including and Jefferies XX Investor conference to Conference quarter, August Annual New events ] turn York. Conference X during meeting that, Finally, will

Eugene Lowe

Thanks, Paul. Good afternoon, everyone, for joining and thank us. you

in significant substantial growth key of continued quarter. QX, company drove We're execute quarter results margin. profit the XXXX. with on for year-on-year to well consolidated our our of results once our the strong and all update the for provide an On the increases today, second In you year. we'll had measures, with call We and segment again full in for our guidance also increasing

robust initiatives. we We demand in XXXX continuous and raising our key improvement momentum guidance. are our Today, year across continue markets full gain experience to

of XX% EBITDA year-on-year reflects and in in adjusted Our EPS. new adjusted midpoint growth XX%

to high-level results. our Turning

including XX% by with revenue adjusted firsts income of the quarter of basis operating revenue in million. than spin year-on-year we achieved first $XXX points by quarter, and quarter, EBITDA second $XXX XX.X% margin grew the the expansion. this million adjusted with since For several and of We XXX more excess in with

and $XXX XX.X%, achieved which our highest million margin, EBITDA and reached respectively. post-spin We EBITDA also

usage As to efforts the for had the adiabatic for you our a our cooling OlympusV optimizes we value on with usage number always, number unit, I'd power which new quarter. and orders during products. received cooling water like our of QX, introduced update creation In and a successes of we multiple different In business, between newly balance quotes applications.

& Inspection In our process This upgraded our to utilities. of underground continued our with to new product speeds & Measurement locators customers up gain instant Detection mapping precision segment, mapping traction, and converting the capabilities. Location simplifies platform

our customers We between and which further also on equipment, acceptance water gained the risk areas utility facilitates cross-border inspection gas among location lines. of

operational market to well acquisitions are our reach. the recent cross-selling our channels allowing opportunities, On sales well-established we leverage on expand front, to their executing

health and to are markets such We robust our centers data care. broadening growth exposure further as

in We to Mark in over our our continue further including momentum facilities. results. also review HVAC continuous see financial now call to turn gains throughput to initiatives, the improvement I'll our And in

Mark Carano

quarter strong was EPS Thanks, $X.XX. for Year-on-year, Gene. QX another grew adjusted to very XX% Technologies. our SPX

a payment an per the charge litigation of $X.XX was earn-out to dispute. adjusted a typical related for our The impact the earnings The settlement resolution after-tax legal to this owner addition of to adjustments, to former In resolved adjusted ULC. exclude quarter share. all EPS

increased to driven and grew $XXX.X $XX.X HVAC, drove segment or by margin a For a points. million income revenue XXX the quarter, by year-on-year. XX.X% increase acquisitions total X.X% segment Consolidated slight basis increased Organically, revenue was XX.X% X%, FX company headwind. million, while while grew

our $XX the HVAC the higher cooling revenues of prior cooling increased $XXX including revenues income organic year cooling benefit was For improvement year-on-year. quarters quarter and million XX.X%, basis acquisitions XXX in or and platform. an XXXX FX organically delivery backlog no period. while from and approximately basis, the including XX.X% The grew of roughly organic sales, sales, operating period. growth to in the included nominal. Segment service $XX.X Segment year driven by margin in from quarter contributed of initiatives. large million continuous prior increases our XX.X% leverage segment, margin On on our XX% end in platform higher project in income by were heating The segment ASPEQ increased Acquisitions impact the equivalent in grew the million, Ingénia at that flat cooling was remaining points. a due or has in and segment

margins income continue from project which decrease of delivered Segment quarter segment project, well the XXX Absent QX the backlog $X.X income of efforts and project. quarter to Year-on-year half. from due the into basis project higher-margin margin forward For in margin Detection which deliveries pass-through project year. as up & by during million, quarter. typical QX, into efficiency we benefited shift some this structure, year brought X.X% end points. Segment was mix to decreased a schedules, year-on-year. segment increased The as and and in revenue pass-through expect was the down mid-single enhance in also lower prior our this the pass-through driven the the large lower organically CommTech in XXXX grew second delivered was XX% a in at sales digits. to delivery $XXX Measurement, was year favorable on revenues sales projects backlog FX prior had associated with than We by negligible. of driven million in the largely

financial to quarter. debt QX We $XXX the of million now $XXX ended of and Turning cash our million. of at with end the position total

X.Xx declining no additional below Our the lower quarter by ratio million. $XX bank to leverage under X.Xx. Adjusted our leverage free range ratio target assuming as deployment. our the for our agreement We end year-end, was calculated cash approximately capital flow of of X.X was credit anticipate

our Moving guidance. on to

to particularly adjusted prior range for approximately range outlook, reflects a $X.XX to to In of on mix. The half guidance guidance points reflect a production are guidance $X.XX cooling second HVAC, favorable efficient We volumes our $X.XX. margin new our XX%. more EPS of by raising more we XQ strong to growth and sales with are performance stronger and margins. This million guidance that reflect year-on-year of $X.XX increasing $X XX update basis revenue compared reflects midpoint and increasing by

raising our segment the this a anticipate initiative segment to growth we reflects adjusted EBITDA year-on-year by total historical in and margins levels. range points continue a midpoint, company XX% to of level, as we a for a million At of million. basis we In At approximately margin $XXX are income to margin guidance Measurement, drive Detection our outlook & and XX increasing $XXX XX%. of

to respect revenue QX. With margin second in out half to QX to weighted higher revenue HVAC, while sequentially is ], be anticipated to as expect QX large expect QX. than called down D&M, to highest modestly we in be revenue be [ project is project and service typical, In to quarter more margin we we gaining our QX cooling due

review to presentation. comments. for in his the find of now end considerations call appendix over to closing the and turn always, I'll our back As you our a modeling markets will Gene

Eugene Lowe

Current market continue and to Within facilities, market our remained demand we're In we semiconductor Mark. demand facilities. In business conditions climate-conscious orders products regional and seeing XXXX stable, our variation flattish industrial overall experience end while project heating, data global introductions. including strong solution set traction Measurement, demand on to & continue plants HVAC, centers, see in healthy. broad we short-cycle initial outlook. remain with updated Thanks, health Detection our across cooling a for support of applications, care

summary, achieve businesses, pipeline. momentum, guidance, With in our I'm our see growing very In implies to operational both through multiple XX% EBITDA. our year acquisition growth full significant organically positioned and and QX our we're which opportunities demand with updated attractive to adjusted We continue well pleased robust performance.

Looking our remain ahead, very about future. excited I

experienced back see Paul. With opportunity I that, team, highly years the With and to to come. significant continue the strategy to I'll turn value driving call right capable, for a

Paul Clegg

to Thanks, now Gene. questions. go Operator, we will

Operator

the William first of Blair. question Our from of line Instructions] [Operator Ross Sparenblek comes

Ross Sparenblek

quarter I know there thus quarter, the Dodge just far index, to sounds like a any know weaker this on we are segments like solid strong. [indiscernible] decent been went of tower HVAC it should the there? think mix coming considering the you that's of out changes Is some cooling maybe right. another also within imminent end spend still are here. cooling. and how It through But Congrats in I EVs sounds previously. Maybe within commentary the about markets around sliding utility

Eugene Lowe

feeling very actually at Yes, our seeing think if look about Ross, you market it, end we're we're strength. I what good in

serve but Health markets and now We end know, very been we're very our very Institutional lot customers specifically lot pharma there. diverse. wins, a the there. tailwinds you some seeing As very care, continued new of trends we of nice very significant provide did that are and a nice strong, has remains a strong data of nice strong, we're us, some different tailwinds business. number see portion is for center larger very of markets,

battery referred Industrial plants, a last as And about like tech be large to, industrial seen those, out be X some government, orders the things inconsistent there. schools, would talking EVs. And traction like be, tech. yes, chip will then still timing industrial things there's We've but You're you on plants, that. nice and there. there would

in us, about year, year both if HVAC, also the looking across good feel then think you very for it look well. we next of see to ahead that I front this demand as environment at but we still

Ross Sparenblek

heard half, right. that what to that us would to first is relative speak you margin was color on impact you And disparate is but just probably you some a knowing know very more help gave of gross expectations, it second sense of there & color get time I've just helpful. be the I this Detection On maybe great. any your All the guys Measurement, mix? platforms. continuous improvement, Can That's

Eugene Lowe

I'll start out.

focus Measurement. in & Detection John there's been a nice I and say his team job. of a have think I'd lot really Swann margins done on

segment think the that strategy I is working.

to that some things through numbers. way is starting that really -- are leverage smarter the flow in really in how in more seeing productive do we we software, it a us makes We that how seeing in you're develop

I in we're & say So good. very seeing look progress. platforms, in you nice virtually It's that would very it our all at of Detection Measurement,, if

as there's things throughput and like or the focused initiatives to value the bidding of there's of tend & As and more much on NPI be, facility, engineering outside you manufacturing our Most Measurement, processes, not say, more front end, light in optimizing pushing I would assembly. Lean know, Detection engineering, more software our processes.

than -- improvement and there, but different bit some in optimization supply seeing little our are because there's really a nice our less there. it's So engineering we chain in

You little I of a lot add spent on view. more, know Mark, point a your from time you that. of

Mark Carano

we think I we levels key a just really good Ross, think just back initiative mean I -- to XX% enunciated margin us we as to Yes, been mean XX% there. Gene about those for a efforts. as level. driving had traction it's with respect to I

really So it's you haven't that And someone a will but I'm of lot which asked you guidance, at good there. question, work go look the that sure front. on when

our expectation driven year, drive of can and that D&M. If for at initiatives implied the in the in half businesses think benefit that margin for you value of guide the the for by the and more that back is these line the reason margin one the lot a about

Ross Sparenblek

Got it.

nothing the So the that imply saw would incrementals second quarter from divert we to in that really here? call healthy levels out there's should

Paul Clegg

Ross, just that of benefits is year. sorry, this a some of margin are Maybe in there you the D&M in sense within Well, timing there's -- take A that a back a this few and lot quarter parts really saw XQ that. to bit step Paul. was make moving little unpack the may the

average also then with income and And million, half. the But the think our $X the increase there. a so QX out had margin. I'll second catch had, that look if what for of second it, And guidance million margin dollars really -- $X couple good said, here we're spending up let's half million that delayed $X.X segment that's others and add of let's do get progress And of made you year, quarter talking on through you the an update we margin push full into the million, the projects had the initiatives. the as we that's we higher initiatives, about quarter on move about on some implied of the in in And and it. we call we'll at spread really there, we've some to call year,

Operator

from next Blair Bryan the question comes Our of of line Oppenheimer.

Bryan Blair

set, details in fantastic accretive How volume, for improvement you're of cooling basis mix specifically if Another expansion on to HVAC, and quarter level year-on-year. attributable profit to the willing price/cost, be To your point contribution? platform. much deal XXX share the would productivity

Paul Clegg

is notable year-over-year Bryan, had of Yes, this points. kind increase We X Paul. basis drivers XXX the of of about

really up organic XX%, Organically, was on the were operating leverage first The about increase. XX%. we

And and mentioned. was then service that project the the outperformance were so of really it points. rest acquisitions X/X, largest that of driver, half basis XXX almost next that the we maybe The about is on

favorable up or year a caught benefits that ago. In seeing is the terms we of leverage tailwind price/cost, -- would are it the it But operating we're as in benefit. as was large a It's not get saw so not a there.

Bryan Blair

appreciate offer and for interested color how a of particularly D&M QX. perhaps orders on business. early trends canary more quarter I little nature the run Understood. that And detail. the I'm rate given the in into Okay. somewhat radio trended

Eugene Lowe

Yes.

I It's flattish steady. rate is been it's overall, Bryan, I businesses, on would is businesses. healthy. the project say I'd run then the And very D&M think say what on

to set for significantly expect us 'XX year We a backlog which to higher, finish going for and very think we well the 'XX. up is strong at D&M,

kind steady. radio there. things and we're of L&I But in actually, mine, are our you're a is radio but positive typically right, a few coal canary a radio that seeing platforms, is holding And

Europe, good inclinations pretty we small just positive some this -- we're positive loosening a we're Continental So us, was fact, is and seeing about where there. I talking for morning, some to matter as the which feel radio some GM of but seeing signs is and on

U.K. I a seeing thing believe, market you're U.K., meaningful more I is radio point. And cut would there. detection. just slightly, for be Second believe, X.XX activity

signals So I'd flattish say with there. positive potentially early some

Operator

Damian Karas from Next comes of the question line of UBS.

Damian Karas

the quarter. on Congrats

Eugene Lowe

thanks. Yes, Damian. Hey,

Damian Karas

I on has wanted a follow-up your performance been margins ask because to you the just impressive.

straight and XXX quarters, You're that's basis year. raising few of guidance so a last or after the expansion points

been little you those juice you've So how just do I where of maybe was left outsized of if you driving in expected. hone really it's better tank, Gene? on execution that and initiatives kind kind bit the could wondering think in got much than margin of a the are And Any performance? the

Mark Carano

this Damian, I'll start. I quarters. few over mean, we have the last talked about

targeted to a tremendous amount As capital that's we've of million you This investing of plus, to year, know, close where we've historically. relative been revenue. been $XX I X% think and we've

drive So of a investments where been. incremental across efficiencies as above we as strategic we've in labor can cooling good areas been the drive platform just very well kind have both reduce where throughput, those content. X.X% And

of activities not facilities throughout continue really has it for footprint. That is seeing kind There of if kind we're it. really across year. will So to more months. been XX-plus We're the ongoing those like, that and with through you upgrades, the

wouldn't we all of that particular broad then And of overlay really the change about stroke, really the within made. CI it of one kind thinking a a as I there's that's driving activities it. we're combination what's that that. these suggest mentality kind plants. of in It's So to you

Eugene Lowe

it business And And should really one and work to that good XX%. target that, would I is, Management, operate always see our has a We thing get there. believe reminder, to there Detection it's as small been really nice XX% add & there. back

lot we or that work other was good time really chain, little you're some is to and business, doing XX% the some the it HVAC, challenges remember, jumping of suppressed of has number impacted bit the been at COVID that's point were But talking areas. around about was hidden historically I the think The changed the labor a and had changed. had structurally supply probably those segment we that where that that's which a by off think has a of of due you

As the the operational the XXX line. in productivity, think, the about leverage, don't in Mark of to growth the you're in of points demand added, over lot has and neighborhood XXX we investments neighborhood alluded lot to, has X talking of years, M&A to that in past M&A. the but also a a forget basis

structurally, team the done HVAC's do business couple much so of years, unit. and job a And we believe past good there. Sean stronger the a phenomenal we feel future over have the and about

Damian Karas

year. of That's great. now. that's segue, your the HVAC acquisitions, ones to segment And kind past that's ask over X actually pretty the Gene. a chunk good sizable about I you a wanted Combined, notable of

early performing but to a of I Ingénia, So in. on kind of how these you're relative your year ASPEQ TAMCO initial thoughts about acquisitions expectations? guess have and kind

appreciate any color So on that.

Eugene Lowe

Yes.

are with these very we X pleased Just acquisitions.

So linked all And of great great And some we very are competitive seen centers. think we have very then positions. have to X these there's Ingénia, growth. businesses of X propositions, businesses, which them nice value good are just very data also

I Ingénia, So ASPEQ and think TAMCO.

pharma. reminder, That Ingénia linked focus sure on handling. to very is our making enough. situation product, health have our fast We're our care, a we air for demand a capacity much where is can there we so in is expand As

good solid there. of and market. lot our and We truly are better We at have product. the a time have a building very are enhancing really effort we believe solution that do TAMCO in capacity-constrained also we is level. And our because ASPEQ performing a a and very

are profit look say revenue our if X in I put but think would of plans, at neighborhood I exceeding our we levels. these is you the together, in

we're that seeing, only capture. thing there is performance but nice some these think to actually individually, say not starting and would I we the good synergies And of other really is there's we're

handling downstream times when example, of they unit, specification influence into specification. can you the get often Ingénia, an air For the

as air our Strobic They influence can get a also into products, base they can unit. the air which oftentimes example, influence handling will actually TAMCO product line, design. For built our

our categories hospital a know other We also going is we'll up there. going because leads pharmaceutical is up get for product or a here

some And like very of have coverage. we Cooling, businesses good Marley our

in to a don't that not meaningful. but able lot the engineers get early we [ there's being is So influence meet see, ] and

biggest And that early capturing I see we're very we're in are businesses pleased of say there. I'd They real across say some deployed would size. our we're our say company year by interestingly, we to all of synergistic. our the very that. of very capital, be X.Xx we X million But And still synergies year-end. for days So these. we had last the of a materially big where with year $XXX And going north below I'd

a And generate it so to and invest I model a our cash, testament to allows we cash just lot think in it's of growth. where us that

good year think I as the of to we rolling. example it that feel little last stepping as, years, well had think, prior back But good is X kind And about a this of bit. a we I year

were I'd Detection We very X we're to growth it. on on One you is, interesting see activity & of our a the opportunities some continue going it's good, HVAC actually in our are seeing on pipeline and side. But our questions all we M&A what last our is the common and side, Measurement for strategy, on say healthy. front? believe market healthy And executing

Operator

comes of Steve Our the from line Sidoti. Ferazani of next question

Steve Ferazani

I Gene. the your want last tonight. appreciate detail follow I comments, all up to

up this build, bit. there you thinking uses probably back your you little bit Working the the generated of of until getting significant of net way well debt along quarter. deal bit are looks It little a I a cash? on in little There cash mean, was that next How a leverage range. to you're below on quarter. a was like capital comes of amount flow You reduction out pointed but -- still target a was the

Mark Carano

we're I M&A are we that's there whether mean, deploy pipeline of our and out about use to space, inorganic. in the that. in I obviously organic feel capital right, opportunities Steve, think going forward for or capital of seeing we And when the Yes, and are I priorities, about opportunity growth, right, where what think good the

is been year. the in has the back-end flow first to continues of loaded cash and be half more our than So it

through Gene's we year in a do that the year. of third have But fairly signaled the first you CapEx to substantial point, plan into at X So we overall I When referenced and or about coming think deleveraging that this the that. earlier, will halfway our fourth million. about we Street we're see what as to roll year-to-date you months, spend $XX and about through we're quarter the as

So pay that. there deployed be you'll then of continue any we'll see And down other continue debt term. the to in just to aren't near capital opportunities, to the to extent kind

Eugene Lowe

have Yes. believe and of next look And I it it's at and would been I to dividend it's flywheel say, couple a has really, focus you We of our growth. been over our model. at if of unlikely all look And part would our say historically, years. the our investments

did we buyback smallish But ago. deployed wouldn't XX% know, really time I you growth. do a as over couple the over I frame I years, change would made a past capital of that to the been And couple been next years X ago, of our or has plus Steve. anticipate X years say on of the

Mark Carano

our that views shared are Investor think the Day I on front. with what at consistent we've Yes,

Steve Ferazani

wouldn't you need to one of capacity are we acquisitions. to to this really I one you I constraints for should acquisitions? about faster capacity, think, response that? Yes, add that's I CapEx? to these capacity some you be Do mentioned Gene, on HVAC your Right. anticipate expect add growth need but thinking in Absolutely. will of And earlier How the anything of we some noticeable. questions, think

business, cooling grow. significant which us allowed we for really which normally and CapEx of think of punches, around significant really of amount as a a lot think at a drove We lasers in X.Xx. our our capital us, did of to investments has amount I primary revenue,

we've range. could get in continue would If capacity-constrained. expect of measure, had a -- we start areas in large that that maintain elevated to to have see But X% I growth. the certain lot we in I CapEx think

plan HVAC significant this X years, you That's organic of -- amount growth the the of see X, else, color growth. add for year's other to last anything look you'd large any add? XX% past out of you'd the ahead the And was ordinary. like there? a And I as and but we at 'XX like Mark, alone organic color year If don't for and any any look to growth,

Mark Carano

I Yes. mean highest the where think we're largely the mean, it, you there can will return. I covered opportunities, of -- to just going to to capital kind And be we'll invest. some I we continue organic deploy generate front continue Gene. on I think, to

historically. and could elevated you slightly the a forefront be. it been see ultimately, will will relative focus growth to continue my So expectation to we've be where is at But it's and M&A

Eugene Lowe

drive improved say we that it been, was will it I more structurally the only has throughput, think but to labor. tremendous margin but only deployed, we And had. not at as that I the capital ability return. out, I the pointed was capital, And quality, had and a believe, you projects the Lean less a have not has higher

It's think been the -- a have side. structural in portion our HVAC the nice profile. I do very a had programs meaningful margins, that have change that undertaken is particularly of on And our return we

Steve Ferazani

limited by capacity able these Have out? ability market your some out much, may When you get of and reach. wider are their you projects to take at acquisitions point? Or I been you platform, reach full like be to think that have your which Ingénia, about a on to this much

Eugene Lowe

have limited equipment humongous by there lot that multiyear They had They in we're plan. operationalizing. a facility. a There's of actually we're capacity. now, Right a

So now, this is is But strong demand the plan. right very a very good there.

network. they number of You're where of and regions. as have if to with They those it, smaller the of each but is a we as good states strength we our Marley not number only U.S. mechanical in contractors with very Canada. our strong to everywhere, very strong a -- well tend presence, about exactly service engineers, lies in a right. think the you professionals -- could they're They where service the We brand tend have are states, but in serve

actually starting we synergies. -- want talking to have are right that to to as those capture can sure the capacity. very now, commercial believe about are we we really in which business, high. we that there, are capacity, we meet going So make expand we're do think demand We synergies, and But that particular we levels, you're where

Operator

line Our of Research. Walter from Seaport of next the Liptak question comes

Walter Liptak

ask or wanted the -- market guys quarter. I growth color. I is with sort Do versus Great wonder think provide But talk share? guess, touched it on I gaining of if from why you the could growth. it this the market? could some you And new If you're market is to your about you expansion products? you

Eugene Lowe

Yes.

So are you think talking Walt? are -- talking I the overall, about segment or company one you

Walter Liptak

on and focused stay I'd Sorry, cooling the HVAC business.

Eugene Lowe

cooling On we're the business, yes, I believe do taking share there.

we the been constructed great projects the engineering. large the just always cooling technical in competence large have done Specifically, I past. in segment because projects. difficult in We say, our strength the has have would solving

are data EV. core. could and be larger I that's centers, that that really growth chip of projects, would seen say we -- we our lot in manufacturers, And that in be So a have be that could could

enhanced say strength. level I particular So been demand of would there's an area in of our

$XXX line, say is past is has would and I That the thing talked Everest pushing we invented had Second million years. to X from from something and the market. revenue, essentially constructed the gone several share product in of taking about approximately that's we've products over that

largest that not have had in in pocket. our a incremental before us in tower truly the Everest, where is that the And cooling that our tonnage world. is been innovation pocket great goes we growth that to we So even would invented the

And XX%. version I to increase we've by it With were our we first the doubled were where and think Everest, versions, even our we current able new before. then with

-- talking truly just pushing tons for X,XXX the X,XXX, chip been X,XXX-plus you're has going that a solution about market data good really centers. So favored particularly tons. it's from And and to by a manufacturers

also function our So why innovation it's I'd the think strength. I X we But you would where share, it's think areas in taken taken of And when think that's a share. I some I we've do say our and we've product and of has that function have real market I those do say together, moved a management. put

Walter Liptak

That's is is center, think wonder makers, do Okay. sort chip if that those just on it? of us I And growth of EV, great. you percentage an HVAC the rate you growth now? And give could what data businesses, what on update

Eugene Lowe

look -- I I would of have three, give pharma; activity across So care, this some data specifically. call institutional. be: areas say, two, But -- you the where lot would biggest health what is, you -- can don't and and out if have we one, and I'll Paul, centers; cooling, a

those are the very big So areas.

center, Data has rate. healthy. Healthcare, has a rate growth there. Institutional very very been attractive positive see we the some strength growth maintained

the what smaller tech, would a say still industrial -- that's I'd that's portion, you growing. On call

some are get You seeing projects delayed.

or here profile, an being demand time line it's in EV We us. seen have overall plant something or as there. out battery to seen I a our to have as But think we material that it plant pertains move been don't

you have want a and into on the chart to each. you color get little -- more overall So Paul, here,

Paul Clegg

Yes.

data that the in I currently around data So entire our makes say, should as a that and it is some the -- that Investor I'm center X%. deck Walt, But has looking breakdowns we of about did being around Day for and company. slide, at call business, out there's XX% cooling center

Eugene Lowe

HVAC. Of

Paul Clegg

care And and X%. about doing total is makes total it the again, around also health Of lab company. quite well of X% which HVAC, X% of Institutional, around yes, the company.

tech some talking broad a where industrial in got -- you've industrial of quite going Gene you're few there, got category and that's So XX%, a to that was that's about. see we've this

Walter Liptak

project had. It like in, the it. that And right? in And Is you a business could detail regarding. Great. quarter maybe in that go is can of gears to that and you you completed that service the that guess, just came switching that get provide Okay. future? that, And what sounds you was like some there I

Mark Carano

was of normally it one a -- call have the completed free profile of This And Paul, an cooling we United size don't Yes, project projects. us and with feel the Sure. it. up given one-off, service don't -- it margin the It that if a in I'll Northeast of because was these kind in. that our normally was I'd for that start a I just to was Walt, States. not see attractive project was something then, know we that it it but in we types had add of

we're win year it. comparable project it the no year. like So like the nothing well in and There that high positioned to balance go of of drove the for There's last that it degree profitability. was looked a

Paul Clegg

have didn't year. because Walt, called other in of just or year let's any the out it said, we Mark prior say in quarters comparable it the the really as

was the So our this of people we just quarter. wanted of forward to backlog in it believe I be in quarter, comparisons out came going in of the backlog it well. aware as terms obviously, prior

Mark Carano

about what when it, sequential and Walt, year-over-year, basis is it in understood people project there. it So you thought we that think was that on a beneficial was that

Operator

now back would I questions to no Clegg further [Operator Instructions] queue, Paul for there appear Sir? be in conference turn remarks. like the to closing As to

Paul Clegg

Thank upcoming and catching with you look the us we and forward up you the conferences today, at call for all investor to joining on engagement. Thanks.

Operator

concludes participating. for today's Thank conference call. This you

You may now disconnect.

SPX (SPXC) 1 Aug 242024 Q2 Earnings call transcript