Company Performance - Chart Industries reported quarterly earnings of $1.86 per share, exceeding the Zacks Consensus Estimate of $1.84 per share, and up from $1.49 per share a year ago, representing an earnings surprise of 1.09% [1] - The company posted revenues of $1 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.10%, compared to year-ago revenues of $950.7 million [2] - Over the last four quarters, Chart Industries has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during the same period [2] Stock Performance - Chart Industries shares have declined approximately 29.3% since the beginning of the year, while the S&P 500 has decreased by 5.3% [3] - The current Zacks Rank for Chart Industries is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.90 on revenues of $1.14 billion, and for the current fiscal year, it is $12.03 on revenues of $4.65 billion [7] - The outlook for the Manufacturing - General Industrial industry, to which Chart Industries belongs, is currently in the bottom 42% of over 250 Zacks industries, which may impact the stock's performance [8]

Financial Data and Key Metrics Changes - Orders increased by 17.3% year-over-year to $1,320,000,000, including contributions from Woodside Louisiana LNG phase two [5] - Organic sales grew by 6.6% to $1,000,000,000, with a gross margin of 33.9%, marking the fourth consecutive quarter above 33% [6][7] - Adjusted EBITDA was $231,100,000, representing 23.1% of sales, an increase of 80 basis points [7] - Adjusted diluted earnings per share rose by 38.8% to $0.99, while free cash flow was negative $80,100,000, though improved by $55,600,000 compared to the previous year [7][8] - The net leverage ratio stood at 2.91, with a target of 2 to 2.5 expected to be achieved in 2025 [8] Business Line Data and Key Metrics Changes - Cryotank Solutions (CTS) orders decreased by 4.2% to $152,600,000, but showed a sequential increase of over 10% from Q4 2024 [18] - Heat Transfer Systems (HTS) orders declined by 7% to $220,700,000, while sales increased by 5.4% to $267,300,000 [19] - Specialty Products saw a 24.6% increase in orders to $487,700,000, with sales rising by 16.7% to $276,100,000 [20] - Repair Service and Leasing (RSL) orders grew by 36.1% to $454,600,000, with sales increasing by 1.3% [21] Market Data and Key Metrics Changes - The commercial pipeline remains robust at approximately $24,000,000,000, with strong demand across various sectors including space exploration, nuclear, and marine [10] - The company anticipates significant LNG work opportunities in 2025, supported by U.S. administration policies [11] - The aftermarket service repair segment constitutes about one-third of the business, showing resilience despite economic uncertainties [11] Company Strategy and Development Direction - The company is focused on leveraging its backlog and aftermarket service repair to drive growth, with a commitment to maintaining a simplified balance sheet [30] - Plans to expand capital expenditures for value creation, including automation and R&D activities, once within the target net leverage ratio [30] - The company is actively addressing tariff impacts through flexible manufacturing and regional supply strategies [25][26] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about demand trends despite global uncertainties, reiterating full-year guidance for 2025 [9][28] - The company expects second-half 2025 performance to exceed the first half, driven by project timing and backlog [28] - Management highlighted the importance of diverse end markets and the resilience of the aftermarket service repair business in uncertain economic conditions [49] Other Important Information - The company has received exemptions on certain tariffs, reducing gross exposure by about 40% [35] - The anticipated gross impact from tariffs for 2025 is approximately $50,000,000, with ongoing mitigation efforts [25][62] Q&A Session Summary Question: Exposure to China and major sales verticals - The company manufactures primarily cryogenic tanks and trailers in China, with minimal imports from the U.S. [34] Question: Confidence in EBITDA guidance amid tariffs - The company is confident in its backlog-driven business model and aftermarket service repair, which provide visibility and stability [37][39] Question: Potential macroeconomic risks - The company is monitoring industrial gas and hydrogen markets for potential impacts, but remains optimistic due to strong order growth in other sectors [46][49] Question: Data center opportunities - The data center market has shown accelerated opportunities, with a tangible pipeline of $400,000,000 over the next 12-18 months [54] Question: Tariff mitigation efforts - The guidance does not reflect any mitigation efforts yet, but the company is actively working on strategies to manage tariff impacts [61][62] Question: Seasonal expectations for revenue and cash flow - The company expects no significant changes in seasonality for 2025 compared to previous years [66] Question: Confidence in end markets - The company has seen a shift towards more consistent order flow in various end markets, including space exploration and LNG [82]

Financial Data and Key Metrics Changes - Orders increased to $1,320,000,000, a 17.3% rise compared to Q1 2024, including Woodside Louisiana LNG phase two [4] - Sales reached $1,000,000,000, reflecting a 6.6% organic growth [5] - Gross margin was 33.9%, marking the fourth consecutive quarter above 33% [5] - Adjusted EBITDA was $231,100,000, representing 23.1% of sales, an increase of 80 basis points [6] - Adjusted diluted earnings per share rose to 99¢, with adjusted earnings at $1.86, a 38.8% increase [6] - Free cash flow was negative $80,100,000, but improved by $55,600,000 compared to Q1 2024 [6] - Net leverage ratio stood at 2.91, with a target of 2 to 2.5 expected to be achieved in 2025 [6] Business Line Data and Key Metrics Changes - Cryotank Solutions (CTS) orders decreased by 4.2% to $152,600,000, but increased over 10% sequentially from Q4 2024 [17] - Heat Transfer Systems (HTS) orders declined by 7% to $220,700,000, while sales increased by 5.4% to $267,300,000 [18] - Specialty Products orders increased by 24.6% to $487,700,000, with sales rising by 16.7% to $276,100,000 [19] - Repair Service and Leasing (RSL) orders grew by 36.1% to $454,600,000, with sales increasing by 1.3% [20] Market Data and Key Metrics Changes - The commercial pipeline remains robust at approximately $24,000,000,000, with strong demand across various sectors [9] - LNG makes up about a quarter of the backlog, with significant orders in space exploration, nuclear, and marine sectors [10] - The company anticipates a meaningful pipeline of potential large global LNG work in 2025 [10] Company Strategy and Development Direction - The company is focused on leveraging its backlog and aftermarket service repair, which constitutes about a third of its business [7] - Continued emphasis on cost synergies and operational efficiencies to improve margins [5][14] - Plans to evaluate capital allocation conservatively once within the target net leverage ratio [29] Management's Comments on Operating Environment and Future Outlook - Management sees positive demand trends across most business lines despite uncertainties related to global tariffs and economic conditions [6][10] - The company reiterates its full-year guidance for 2025, expecting sales between $4,650,000,000 and $4,850,000,000 [27] - Management remains optimistic about the LNG market and expects to achieve a sub-2.5 net leverage ratio in 2025 [28] Other Important Information - The company has implemented various strategies to mitigate tariff impacts, including leveraging in-region supply sources and flexible manufacturing [24][25] - The anticipated gross impact from tariffs is approximately $50,000,000 for the year, with efforts underway to reduce this figure [24][60] Q&A Session Summary Question: Exposure to China and major sales verticals - The company manufactures primarily cryogenic tanks and trailers in China, with minimal imports from the US [33] Question: Confidence in EBITDA guidance amid tariffs - The company maintains confidence in its guidance due to a backlog-driven business model and growth in aftermarket service repair [35][38] Question: Potential macroeconomic risks - The company identifies industrial gas and hydrogen markets as areas of concern but remains confident in diverse end markets [44][46] Question: Data center opportunities - The data center pipeline has expanded to approximately $400,000,000, driven by increased demand for cooling solutions [50][52] Question: Tariff mitigation efforts - The guidance does not reflect any mitigation efforts yet, but the company is actively working to reduce tariff impacts [58][60] Question: Seasonal expectations for Q2 - The company expects typical seasonal patterns to continue, with no significant deviations anticipated [63] Question: LNG market activity - The company has observed an acceleration in LNG project activity, with a potential $1,000,000,000 in orders expected in the next twelve months [93]

Financial Performance - First quarter 2025 orders reached $1.32 billion, an increase of 17.3% compared to the first quarter 2024, contributing to a backlog of $5.14 billion, the first time exceeding $5 billion [4] - Sales for the first quarter 2025 were $1.00 billion, reflecting an organic increase of 6.6%, with a foreign exchange impact of (1.3%) [5] - Reported gross profit margin was 33.9%, an increase of 210 basis points year-over-year, marking the fourth consecutive quarter above 33% [5] - Adjusted operating income margin for the first quarter 2025 was 19.9%, an increase of 190 basis points compared to the first quarter 2024 [8] - First quarter 2025 EBITDA was $215.2 million, representing 21.5% of sales, with an adjusted EBITDA margin of 23.1%, an increase of 80 basis points [8] - Sales for Q1 2025 reached $1,001.5 million, a 5.8% increase from $950.7 million in Q1 2024 [35] - Gross profit for Q1 2025 was $339.8 million, up 12.4% from $302.3 million in Q1 2024 [35] - Operating income increased to $152.3 million in Q1 2025, compared to $112.9 million in Q1 2024, reflecting a 34.9% growth [35] - Net income attributable to Chart Industries, Inc. was $49.5 million in Q1 2025, significantly higher than $11.3 million in Q1 2024, marking a 338.5% increase [35] - Basic earnings per share from continuing operations rose to $0.99 in Q1 2025, compared to $0.16 in Q1 2024 [35] - Consolidated sales for Q1 2025 reached $1,001.5 million, a 5.5% increase from $950.7 million in Q1 2024 [41] - Operating income for Q1 2025 increased to $152.3 million, compared to $112.9 million in Q1 2024, reflecting an operating margin of 15.2% [41] - Adjusted earnings attributable to Chart Industries, Inc. for Q1 2025 were $84.1 million, up from $62.6 million in Q1 2024 [48] - Reported EPS from continuing operations for Q1 2025 was $0.99, significantly higher than $0.14 in Q1 2024 [48] - Net income from continuing operations for Q1 2025 was $54.3 million, significantly higher than $16.8 million in Q1 2024, marking a year-over-year increase of approximately 223.8% [55] - EBITDA for Q1 2025 was reported at $215.2 million, compared to $175.3 million in Q1 2024, which is an increase of about 22.8% [55] - Adjusted EBITDA for Q1 2025 was $231.1 million, up from $212.2 million in Q1 2024, representing an increase of approximately 8.9% [55] Cash Flow and Assets - Free cash flow for the first quarter 2025 was negative $80.1 million, influenced by typical first quarter cash outlays [9] - Cash and cash equivalents at the end of Q1 2025 were $298.0 million, up from $195.5 million at the end of Q1 2024 [37] - Total assets increased to $9,313.3 million as of March 31, 2025, compared to $9,123.9 million at December 31, 2024 [39] - Long-term debt stood at $3,727.6 million as of March 31, 2025, up from $3,640.7 million at December 31, 2024 [39] - The company reported a net cash used in operating activities of $60.0 million for Q1 2025, an improvement from $95.1 million in Q1 2024 [37] - Free cash flow for Q1 2025 was $(80.1) million, an improvement from $(135.7) million in Q1 2024 [45] Orders and Backlog - Specialty Products orders increased by 24.6% year-over-year to $487.7 million, with sales growing 16.7% to $276.1 million [14] - Repair, Service and Leasing (RSL) orders grew 36.1% year-over-year to $454.6 million, with new long-term service agreements increasing by 10.7% compared to December 31, 2024 [15] - Orders for Q1 2025 totaled $1,315.6 million, a significant increase of 17.3% from $1,121.6 million in Q1 2024 [43] - Backlog as of March 31, 2025, was $5,143.6 million, up 18.7% from $4,331.1 million as of March 31, 2024 [43] Integration and Costs - The company continues to focus on integrating Howden, with related costs impacting earnings and cash flow metrics [48] - The company incurred deal-related and integration costs of $3.9 million in Q1 2025, down from $14.3 million in Q1 2024, indicating a reduction in integration expenses [55] - Restructuring and related costs for Q1 2025 were $2.0 million, compared to $5.1 million in Q1 2024, showing a decrease in restructuring expenses [55] - The company expects a gross tariff impact of approximately $50 million due to current tariff rates, before any cost mitigations [19] Operational Efficiency - The adjusted operating margin for Q1 2025 was 19.9%, up from 18.0% in Q1 2024, indicating improved operational efficiency [50] - The operating income margin for the consolidated results in Q1 2025 was 15.2%, an improvement from 11.9% in Q1 2024, reflecting better profitability [50] - Chart Industries operates 64 global manufacturing locations and over 50 service centers, enhancing its market presence across multiple regions [32]

Financial Performance Highlights - Orders increased by 173% to $13156 million, with record aftermarket orders[11] - Record backlog reached $51436 million, exceeding $5 billion for the first time[11] - Sales increased by 53% to $10015 million, or 66% excluding foreign exchange impacts[11] - Adjusted operating income margin increased by 190bps to 199%[11] - Adjusted EBITDA increased by 89% to $2311 million[11] - Adjusted EBITDA margin increased by 80bps to 231%[11] Cash Flow and Capital Structure - Free cash flow was negative $801 million, compared to negative $1357 million in Q1 2024[18] - The company aims to generate over $550 million in free cash flow in 2025 to reduce net leverage to the target range of 20-25x[38] Segment Results - Cryo Tank Solutions orders decreased by 42% and sales decreased by 41%, but the adjusted operating income margin increased by 220bps to 127%[28] - Specialty Products orders increased by 246% and sales increased by 167%, with an adjusted operating income margin increase of 560bps to 189%[28] Outlook - The company projects revenue between $465 billion and $485 billion, adjusted EBITDA between $1175 billion and $1225 billion, and adjusted diluted earnings per share between $1200 and $1300 for 2025[37]

Core Insights - Chart Industries, Inc. reported strong order and organic sales growth of 17.3% and 6.6% respectively in Q1 2025, marking the fourth consecutive quarter of gross profit margin above 33% [3][4] - The company aims to achieve a net leverage ratio below 2.5 by the end of 2025, supported by expected free cash flow exceeding $550 million for the full year [3][7] Orders and Backlog - Q1 2025 orders totaled $1.32 billion, a 17.3% increase compared to Q1 2024, contributing to a record backlog of $5.14 billion [4][8] - Significant orders included projects in space exploration, HLNG vehicle tanks, nuclear, and marine sectors [4] Financial Performance - Sales for Q1 2025 reached $1.00 billion, reflecting a 6.6% organic increase, with a reported gross profit margin of 33.9%, up 210 basis points from Q1 2024 [5][8] - Adjusted operating income margin increased by 190 basis points to 19.9%, with reported operating income of $152.3 million [6][8] Segment Performance - Cryo Tank Solutions (CTS) orders decreased by 4.2% to $152.6 million, while sales declined by 4.1% to $153.2 million, but gross profit margin improved to 24.3% [11] - Heat Transfer Systems (HTS) orders fell by 7.0% to $220.7 million, but sales increased by 5.4% to $267.3 million, with gross profit margin rising to 30.9% [12] - Specialty Products saw a 24.6% increase in orders to $487.7 million and a 16.7% increase in sales to $276.1 million, with gross profit margin improving to 30.3% [13] - Repair, Service and Leasing (RSL) orders grew by 36.1% to $454.6 million, while sales increased by 1.3% to $304.9 million, despite a decline in gross profit margin to 44.7% [14] Cash Flow and Leverage - Free cash flow for Q1 2025 was negative $80.1 million, primarily due to seasonal cash outlays [7][38] - The net leverage ratio as of March 31, 2025, was 2.91, with a target of 2.0 to 2.5 by the end of 2025 [7][22] 2025 Outlook - The company reiterated its full-year 2025 guidance, anticipating sales between $4.65 billion and $4.85 billion, with adjusted EBITDA between $1.175 billion and $1.225 billion [21][22] - The anticipated adjusted diluted EPS is projected to be between $12.00 and $13.00 [22]

The current level reflects a downward revision of 1.9% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently sh ...

I analyze oil and gas companies and related companies like Chart Industries in my service, Oil & Gas Value Research, where I look for undervalued names in the oil and gas space. I break down everything you need to know about these companies -- the balance sheet, competitive position and development prospects. This article is an example of what I do. But for Oil & Gas Value Research members, they get it first and they get analysis on some companies that is not published on the free site. Interested? Sign up ...

Chart Industries, Inc. (GTLS) shares soared 14.3% in the last trading session to close at $131.55. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22% loss over the past four weeks.Chart Industries’ 14.3% was fueled by the Trump administration’s announcement of a temporary halt on reciprocal tariffs for most countries. This policy shift was aimed to counteracting the sharp sell-off in the market and easing worries that higher tar ...

Group 1 - Chart Industries, Inc. has scheduled a conference call for May 1, 2025, at 8:30 a.m. ET to discuss its first quarter 2025 financial results [1] - The earnings release for the first quarter 2025 will be issued prior to market open on May 1, 2025 [1] - Participants can join the live Q&A session by dialing the provided toll-free and toll numbers [2] Group 2 - Chart Industries is a global leader in the design, engineering, and manufacturing of process technologies and equipment for gas and liquid molecule handling [3] - The company offers a unique product and solution portfolio used in every phase of the liquid gas supply chain, including engineering, service, repair, installation, preventive maintenance, and digital monitoring [3] - Chart is a leading provider of technology, equipment, and services related to liquefied natural gas, hydrogen, biogas, and CO2 capture [3] - The company operates 64 global manufacturing locations and over 50 service centers across various regions including the United States, Asia, Australia, India, Europe, and South America [3]