SPX Technologies, Inc. (SPXC) Income Statement

The sequential acceleration from 17.4% in 2026Q1 to 22.9% in 2026Q2 suggests strengthening end-market demand, possibly driven by infrastructure spending and non-residential construction. The consistent double-digit growth over the past four quarters indicates a durable upcycle, though investors should monitor whether this pace is sustainable given potential cyclicality in construction.

The 320 basis point year-over-year expansion in gross margin suggests that SPXC is successfully passing through input costs and benefiting from higher-margin product lines. This outperformance relative to peers like GNRC (38.3%) and FELE (35.5%) indicates a competitive advantage, though the sustainability of this margin level warrants monitoring as input costs fluctuate.

While operating margin remained flat sequentially, the absolute growth in operating income indicates that SG&A expenses are scaling efficiently relative to revenue. The slight dip from 17.7% in 2025Q3 to 16.9% in 2026Q2 suggests some reinvestment in selling and administrative activities, but the overall trend shows improving cost discipline, as evidenced by the 15.2% operating margin in 2025Q1.

The 70 basis point reduction in SG&A intensity demonstrates management's ability to control costs while scaling the business. This is particularly notable given the 22.9% revenue growth, suggesting that the company is not proportionally increasing its fixed cost base. However, the sequential uptick from 19.7% in 2026Q1 to 19.1% in 2026Q2 may indicate some reinvestment in growth initiatives.

Prior to 2025Q1, revenue growth had been decelerating, but the subsequent quarters show a clear acceleration, with growth reaching 22.9% by 2026Q2. This inflection likely reflects successful strategic initiatives or market tailwinds, and the sustained improvement in operating margin from 13.9% in 2024Q1 to 16.9% in 2026Q2 indicates that the company has achieved a new, higher profitability plateau.