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Core Viewpoint - Chart Industries, Inc. has announced a share buyback program authorized by its board of directors, allowing the repurchase of up to $250 million worth of shares, indicating a commitment to returning value to shareholders [3]. Company Details - The company's shares closed at $197.86, showing relative stability in the market [2]. - The share buyback can be executed through various methods including open market purchases and privately negotiated transactions, adhering to specific SEC rules [3]. - Chart Industries has reiterated its financial policy of refraining from share buybacks or significant cash acquisitions until its net leverage ratio falls below 2.5, with a target to reduce debt to $3 billion by the end of 2025 [4]. - As of the end of Q3 2024, the net leverage ratio stood at 3.04 [4]. Market Performance - Chart Industries has a market capitalization of $8.5 billion and currently holds a Zacks Rank of 3 (Hold) [5]. - The company has experienced a share price increase of 50.7% over the past year, outperforming the industry average growth of 19.9% [6]. - The Zacks Consensus Estimate for the company's 2024 earnings remains stable at $8.91 per share [6].

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ATLANTA, Dec. 11, 2024 (GLOBE NEWSWIRE) -- Chart Industries, Inc. (NYSE: GTLS) (“Chart”), a global leader in clean energy and industrial gas solutions, today announced that its Board of Directors has authorized a share repurchase program of up to $250.0 million of its common stock. Under the stock repurchase program, Chart may purchase shares of its common stock through various means, including open market transactions, block purchases, privately negotiated transactions or otherwise in accordance with appli ...

ATLANTA, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Chart Industries, Inc. (NYSE: GTLS) (“Chart”), a global leader in clean energy and industrial gas solutions, is hosting a Capital Markets Day, today, November 12, 2024, at 9:00 am ET. A supplemental presentation was released this morning which will be discussed during the event and webcast. On November 13, 2024, Chart’s management will participate in the Baird 2024 Global Industrial Conference in Chicago. Capital Markets Day Webcast Information An audio live webcas ...

Industry Overview - US electricity demand is projected to increase at a 2.4% annualized rate through 2030, largely driven by AI data centers [1] - There is a debate among investors about whether nuclear energy or natural gas will serve as the baseload fuel to meet the rising demand, with renewables also in the mix [2] Company Overview - Chart Industries (GTLS) manufactures equipment for cooling, heating, and purifying molecules, including cryogenic tanks, heat exchangers, industrial fans, and turbines [3] - The company expanded its portfolio significantly with the 2022 acquisition of Howden, enabling it to enter various energy-related markets, including LNG, hydrogen, and nuclear power [3][4] - Chart Industries also has exposure to clean mining applications, particularly in lithium and copper markets, which are critical for solar and electrification [4] Financial Performance - Chart Industries reported Q3 earnings that missed expectations due to timing issues with high-margin projects, but incoming orders grew and margins expanded [5] - The company provided early 2025 guidance, anticipating 12% revenue growth and 39% EPS growth compared to its 2024 outlook, driven by delayed order fulfillment [6] - Free cash flow surged to $175 million in Q3, with full-year 2024 guidance of $400 million and 2025 guidance of $550-$600 million, helping reduce its $3.9 billion debt [14] Market Opportunities - Chart Industries is benefiting from the growing demand for nuclear energy, with orders from major customers like EDF of France and small modular reactor (SMR) companies [7] - The company is also a key player in the LNG market, with robust orders for its IPSMR LNG technology from ExxonMobil, Woodside Energy, and Viability Gap in Tanzania [11] - Hydrogen is another growth area, with Chart securing significant orders in Egypt and Europe, supported by the US government's funding of seven hydrogen hubs [12] - The company is entering the data center market, winning orders for air-cooled heat exchangers to manage the heat generated by AI servers [13] Valuation and Investor Interest - Chart Industries trades at around 10 times its 2025 earnings guidance, making it an attractive value stock despite its significant debt from the Howden acquisition [14] - The company is hosting a capital markets day on November 12 to provide more insights for investors [15]

Financial Data and Key Metrics Changes - In Q3 2024, the company generated $200.7 million in net cash from operating activities, with free cash flow of $174.6 million after $26 million in capital expenditures [8][32] - Sales reached $1.06 billion, a 22.4% increase compared to Q3 2023, with an adjusted EPS of $2.18, impacted by foreign exchange and tax rate changes [9][10] - Year-to-date sales increased by 19.6% compared to the same period in 2023, with all segments showing growth in sales and gross margins [10][11] Business Line Data and Key Metrics Changes - Cryo Tank Solutions (CTS) orders decreased by 17.5% to $126.2 million, while sales increased by 4.6% to $162.5 million, with a gross profit margin of 25% [22][23] - Heat Transfer Systems (HTS) orders surged by 151% to $424.7 million, with record sales of $256.2 million, and a gross profit margin of 29.8% [25][26] - Specialty Products orders fell by approximately 49% to $237.8 million, but sales increased by 25.9% to $283 million, with a gross profit margin of approximately 26% [27][28] - Repair, Service and Leasing (RSL) orders increased by 16.5% to $377.9 million, with sales up 36% to $360.5 million and a gross profit margin of 47% [29][30] Market Data and Key Metrics Changes - The company has a commercial pipeline of over $23 billion, with $1.95 billion in customer commitments not yet in backlog [13][14] - Demand remains strong across most end markets, except for a slowdown in China, particularly in industrial gas [50] Company Strategy and Development Direction - The company aims to optimize its balance sheet and reduce net leverage to a target of 2x to 2.5x, with a goal of $3 billion in net debt by the end of 2025 [8][32] - The focus is on enhancing operational throughput and improving cash culture within the organization [75][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the 2025 outlook, citing strong backlog coverage and anticipated growth from larger orders [40][41] - The company expects 2024 sales to be approximately $4.2 billion to $4.3 billion, with adjusted EBITDA of $1.015 billion to $1.045 billion [35][36] Other Important Information - The company is experiencing a growing interest in nuclear technologies and is well-positioned to serve this market [66][70] - There are ongoing efforts to enhance digital offerings and aftermarket services, with a focus on increasing customer engagement [58][75] Q&A Session Summary Question: 2025 guidance and backlog coverage - Management discussed the incorporation of learnings from previous quarters into the 2025 outlook, emphasizing strong backlog coverage [40][41] Question: Order outlook and pipeline context - Management noted continued good demand across most markets, with a strong pipeline bolstered by recent project acceptances [46][47] Question: Fourth quarter sales uplift expectations - Management anticipates a typical seasonal uplift in Q4, with strength expected across multiple segments [54][55] Question: Specialty segment gross margins - Management expressed expectations for specialty margins to improve in the near term, targeting low-30s percentages [67][68] Question: Hydrogen liquefaction technology capacity - Management indicated no upper limit to hydrogen liquefaction capacity, with ongoing projects exploring larger scales [87]

Financial Performance - Consolidated orders for Q3 2024 were $1,167.5 million, compared to $1,127.3 million in Q3 2023 and $1,164.7 million in Q2 2024, driven by higher orders in Heat Transfer Systems and Repair, Service & Leasing segments[173]. - Consolidated sales for Q3 2024 were $1,062.5 million, an increase from $897.9 million in Q3 2023 and $1,040.3 million in Q2 2024, reflecting growth across all four segments[173]. - Sales for Q3 2024 increased by $164.6 million, or 18.3%, year-over-year, reaching $1,062.5 million, driven by growth in all segments, particularly Repair, Service & Leasing and Specialty Products[179]. - Consolidated sales for the nine months ended September 30, 2024 increased by $716.0 million, reaching $3,053.5 million, driven by growth across all segments[194]. - For the nine months ended September 30, 2024, net income attributable to Chart Industries, Inc. was $141.7 million, a significant increase from $0.1 million in the same period of 2023[201]. Profitability - Gross profit margin for Q3 2024 improved to 34.1%, up from 30.8% in Q3 2023 and 33.8% in Q2 2024, attributed to commercial and cost synergies[173]. - Gross profit for Q3 2024 was $362.6 million, an increase of $86.4 million, or 31.3%, compared to Q3 2023, with a gross profit margin of 34.1%, up 330 basis points from 30.8% in Q3 2023[180]. - Gross profit for the first nine months of 2024 increased by $310.4 million or 44.0%, with a gross profit margin of 33.3%, up from 30.2% in the same period of 2023[195]. - Operating income for Q3 2024 was $178.5 million, a 71.0% increase from $104.4 million in Q3 2023, with significant contributions from Repair, Service & Leasing segment[178]. Segment Performance - Cryo Tank Solutions segment sales were $162.5 million, a 2.2% increase from $159.0 million in Q3 2023, while Heat Transfer Systems saw a 10.2% increase to $256.2 million[179]. - Specialty Products segment reported sales of $283.3 million, an 18.0% increase from $240.0 million in Q3 2023, while Repair, Service & Leasing segment sales surged by 32.9% to $360.5 million[179]. - Repair, Service & Leasing segment saw a sales increase of $333.5 million or 48.4% for the nine months ended September 30, 2024[191]. - Specialty Products segment reported a sales increase of $194.5 million or 32.3% for the nine months ended September 30, 2024[191]. Expenses - SG&A expenses rose by $12.9 million, or 10.5%, in Q3 2024 compared to Q3 2023, primarily due to integration costs and IT-related expenses[181]. - SG&A expenses increased by $57.0 million or 16.0% during the first nine months of 2024, primarily due to the inclusion of Howden's SG&A expenses[196]. - SG&A expenses for the Specialty Products segment increased by $17.5 million (29.1%) to $77.7 million for the nine months ended September 30, 2024, compared to $60.2 million in the same period of 2023[218]. - SG&A expenses for the Repair, Service & Leasing segment increased by $27.1 million (31.1%) to $114.2 million for the nine months ended September 30, 2024, compared to $87.1 million in the same period of 2023[224]. Backlog and Orders - Total backlog reached $4,535.3 million as of September 30, 2024, up from $4,140.7 million a year earlier and $4,426.0 million as of June 30, 2024[173]. - The company continues to execute on its LNG and energy-related backlog, contributing to the sales growth across segments[179]. - The Heat Transfer Systems segment backlog was $1,878.0 million as of September 30, 2024, up from $1,657.5 million a year earlier[236]. - Specialty Products segment backlog totaled $1,755.3 million as of September 30, 2024, compared to $1,460.7 million as of September 30, 2023[237]. Environmental and Social Responsibility - Greenhouse gas emissions intensity was reduced by 27% in 2023 compared to 2022, achieving the goal of a 50% reduction by 2030 seven years ahead of schedule[166]. - The company treated over 4.5 billion gallons of water daily in the U.S., providing clean water to approximately one billion people worldwide[169]. - The installed base of gas-gas heaters has doubled since 2022, saving approximately 32 million tons of CO2 emissions annually[169]. - The executive leadership team comprised 38% women in 2023, with a target of 40% by 2030[166]. Tax and Interest - Income tax expense for the three months ended September 30, 2024 was $26.6 million, with an effective tax rate of 26.5%, significantly higher than the 1.0% effective rate of $0.1 million in 2023[186][187]. - The effective income tax rate for the nine months ended September 30, 2024, was 24.7%, compared to an exceptionally high 840.0% for the same period in 2023, primarily due to one-time impacts from acquisitions[200]. - Interest expense, net decreased by $9.9 million to $80.6 million for the three months ended September 30, 2024, primarily due to a $150.0 million prepayment of term loans and reduced interest rates[184]. - Interest expense, net for the nine months ended September 30, 2024 was $248.7 million, an increase from $202.7 million in 2023, mainly due to higher borrowings related to the Howden acquisition[198]. Risks - The company faces interest rate risk, with a potential additional annual expense of approximately $1.4 million if interest rates increase by 100 basis points on its senior secured revolving credit facility[244]. - Foreign currency exchange rate fluctuations impacted the company, with the U.S. dollar weakening against several currencies by 2% to 6% during the third quarter of 2024[247].

For the quarter ended September 2024, Chart Industries (GTLS) reported revenue of $1.06 billion, up 18.3% over the same period last year. EPS came in at $2.18, compared to $1.28 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.12 billion, representing a surprise of -5.55%. The company delivered an EPS surprise of -14.84%, with the consensus EPS estimate being $2.56.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...

Chart Industries (GTLS) came out with quarterly earnings of $2.18 per share, missing the Zacks Consensus Estimate of $2.56 per share. This compares to earnings of $1.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -14.84%. A quarter ago, it was expected that this equipment maker for the energy sector would post earnings of $2.57 per share when it actually produced earnings of $2.18, delivering a surprise of -15.18%.Over the ...