SPX Technologies, Inc. (NYSE:SPXC) Q3 2023 Earnings Call Transcript

Mark Carano: I think you covered it.

Damian Karas: And then one last quick one. So speaking of Hydronics, so the DOE has proposed some rules recently on water heater efficiency. I’m curious if that proposal could move at all kind of into your business or any discussions out there that might be happening on the regulatory front for gas boilers.

Eugene Lowe: Yes. No, I think the DOE very, very systematically regulates hydronics. And typically, they do 5 years. We actually just finished upgrading all of our residential line to the appropriate app use [ph], the appropriate efficiency. And then after that was the commercial update which, again, is moving towards more high efficiencies. So yes and I think that’s a part of the never-ending part of what’s going on in our business. Typically, the standards are always getting higher. The efficiencies are getting higher. And we actually view that as something that typically benefits us. What you see is a lot of those new specifications are very hard to do and it takes a lot of engineering, a lot of rework. And so you have to have some scale to be able to build those new higher-efficiency solutions.

So I think this is true in Hydronics but I think this is true in almost all the markets that we serve. Because we’re typically leaders in the markets that we serve, when you see the standards being raised, we’re typically the company that’s most well-positioned to take advantage of that and then, typically, I would view as a net positive. So yes, those are still going on and we would anticipate those to continue going on. Typically with the EPA, it’s a 5-year cycle.

Operator: And I see no further questions at this time. I will now turn the call back over to Paul Clegg.

Paul Clegg: Thank you all for joining us and we look forward to catching up with you at upcoming conferences. Please reach out if you have questions.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.