Core Insights - Chart Industries reported revenue of $1 billion for the quarter ended March 2025, reflecting a year-over-year increase of 5.3% [1] - The earnings per share (EPS) for the quarter was $1.86, up from $1.49 in the same quarter last year, with an EPS surprise of +1.09% compared to the consensus estimate of $1.84 [1] Financial Performance - The reported revenue was slightly below the Zacks Consensus Estimate by -0.10% [1] - Chart Industries' stock has returned -10.8% over the past month, while the Zacks S&P 500 composite saw a change of -0.7% [3] - The company currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3] Backlog and Orders - Total backlog for Chart Industries reached $5.14 billion, exceeding the two-analyst average estimate of $5.02 billion [4] - Backlog for Cryo Tank Solutions was $318.70 million, above the average estimate of $300.98 million [4] - Backlog for Heat Transfer Systems was $2.04 billion, slightly below the average estimate of $2.18 billion [4] - Orders for Heat Transfer Systems were reported at $220.70 million, below the average estimate of $346.48 million [4] - Orders for Specialty Products were $487.70 million, exceeding the average estimate of $369.25 million [4] Sales Performance - Sales for Cryo Tank Solutions were $153.20 million, representing a year-over-year decrease of -4.1% [4] - Sales for Repair, Service & Leasing were $304.90 million, showing a year-over-year increase of +1.3% [4] - Sales for Specialty Products reached $276.10 million, reflecting a significant year-over-year increase of +16.7% [4] - Sales for Heat Transfer Systems were $267.30 million, marking a year-over-year increase of +5.4% [4]

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 ...

Group 1 - The article discusses the analysis of oil and gas companies, specifically focusing on Chart Industries, and highlights the search for undervalued companies in the sector [1] - Following Chart Industries' acquisition of Howden, there has been significant market volatility, attributed to tariff disputes and trade war threats, leading to a sell-off in the stock [2] - The oil and gas industry is characterized as a cyclical sector that requires patience and experience for successful investment [2] Group 2 - The analyst holds a beneficial long position in Chart Industries (GTLS) through various financial instruments [3] - The article is presented as an opinion piece and does not constitute investment advice [4] - Seeking Alpha emphasizes that past performance does not guarantee future results and that the views expressed may not reflect the platform's overall stance [5]

Company Overview - Chart Industries, Inc. (GTLS) shares increased by 14.3% to close at $131.55, following a period of 22% loss over the past four weeks, indicating a significant recovery in stock performance [1][2]. Market Influence - The surge in Chart Industries' stock was driven by the Trump administration's announcement of a temporary halt on reciprocal tariffs for most countries, aimed at alleviating market sell-off concerns and recession fears [2]. Earnings Expectations - The company is projected to report quarterly earnings of $1.93 per share, reflecting a year-over-year increase of 29.5%. Revenue is expected to reach $1.01 billion, marking a 6.3% rise from the previous year [3]. Earnings Estimate Revisions - The consensus EPS estimate for Chart Industries has been revised down by 1.2% over the last 30 days, which typically does not correlate with price appreciation, suggesting caution in future stock performance [4]. Industry Context - Chart Industries operates within the Zacks Manufacturing - General Industrial industry, where another company, Luxfer (LXFR), saw a 9.2% increase in its stock price, although it has experienced a -22.9% return over the past month [4].