SPX Technologies, Inc.

Hello, and thank you for standing by. Welcome to SPX Technologies' fourth quarter 2023 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, question and answer session. To ask a question during this session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I would now like to hand the conference over to Paul Clegg. You may begin.

Thank you and good afternoon, everyone. Thanks for joining us. With me on the call today are Gene Lowe, our President and Chief Executive Officer, and Mark Carano, our Chief Financial Officer. A press release containing our fourth quarter and full year 2023 results was issued today after market closed. You can find the release and our earnings slide presentation as well as a link to a live webcast of this call in the investor relations section of our website at spx.com. I encourage you to review our disclosure and discussion of GAAP results in the press release and to follow along with the slide presentation during our prepared remarks. A replay of the webcast will be available on our website until February 29th. As a reminder, portions of our presentation and comments are forward-looking and subject to safe harbor provisions. Please also note the risk factors in our most recent SEC filing. Our comments today will largely focus on adjusted financial results and comparisons will be to the results of continuing operations only. You can find detailed reconciliations of historical adjusted figures from their respective gap measures in the appendix to today's presentation. Our adjusted earnings per share exclude primarily acquisition-related costs, non-service pension items, mark-to-market changes, amortization expense, and a charge associated with recent legal settlement. Finally, we will be hosting Investor Day on March 26th in New York. The event will be webcast. If you would like to attend in person, please send a request to our investor relations email as noted at the end of today's press release and on our website. And with that, I'll turn the call over to Gene.

Thanks, Paul. Good afternoon, everyone, and thank you for joining us. On the call today, we'll provide you with an update on our consolidated and segment results for the fourth quarter and full year 2023. We'll also provide our full year guidance for 2024. We had a strong close to the year. We grew adjusted EBITDA 50% and delivered adjusted EPS near the upper end of our guidance range. During Q4, we continued to execute well and saw robust demand continue across most of our end markets. Our HVAC segment in particular achieved excellent margin performance compared with very strong results in the prior year period. I'm proud of our team's accomplishments over the past year. We made great progress on our digital, continuous improvement, and sustainability initiatives. We also completed two strategic acquisitions in our HVAC segment, that helps strengthen our positions in the attractive engineered air movement and electrical heating markets. Recently, we made another significant addition to our HVAC segment with the acquisition of Ingenia, a provider of high-value custom air handling systems that broadens our growth opportunities and geographic reach in engineered air movement. Looking ahead, market conditions support continued robust growth for SPX and remain well positioned to continue our strong operational execution. Today we're providing 2024 midpoint guidance for adjusted EBITDA growth of 25% and adjusted EPS growth of 16%. At the midpoint of $5 per share, our adjusted EPS guidance would achieve a key SPX 2025 target a year ahead of schedule.