Chart(US:GTLS)2024-11-01 20:44Financial 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].