Chart(US:GTLS)2025-05-01 20:07Financial Performance - Consolidated orders for Q1 2025 were $1,315.6 million, up from $1,121.6 million in Q1 2024, representing an increase of 17.3%[100] - Consolidated sales for Q1 2025 reached $1,001.5 million, a 5.3% increase from $950.7 million in Q1 2024, driven by growth in Specialty Products and Heat Transfer Systems segments[101][105] - Gross profit for Q1 2025 was $339.8 million, up 12.4% from $302.3 million in Q1 2024, with a gross profit margin of 33.9%, an increase of 210 basis points from 31.8%[106] - Operating income for the consolidated entity was $152.3 million in Q1 2025, a 34.9% increase from $112.9 million in Q1 2024[104] - Net income attributable to Chart Industries, Inc. from continuing operations for Q1 2025 was $51.5 million, compared to $13.5 million in Q1 2024, representing a significant increase[113] Segment Performance - The Cryo Tank Solutions segment reported sales of $153.2 million in Q1 2025, down 4.1% from $159.7 million in Q1 2024[103] - The Heat Transfer Systems segment saw sales increase by 5.4% to $267.3 million in Q1 2025, compared to $253.6 million in Q1 2024[103] - Specialty Products sales increased by 16.7% to $276.1 million in Q1 2025, up from $236.5 million in Q1 2024[103] - Repair, Service & Leasing segment sales were $304.9 million in Q1 2025, a slight increase of 1.3% from $301.0 million in Q1 2024[103] - Total sales for the Cryo Tank Solutions segment decreased by $6.5 million to $153.2 million in Q1 2025, impacted by lower industrial gas sales in the U.S.[115][117] - Heat Transfer Systems segment sales increased by $13.7 million to $267.3 million in Q1 2025, driven by LNG project backlog execution[115][118] - Specialty Products segment sales rose by $39.6 million to $276.1 million in Q1 2025, attributed to increased hydrogen and water treatment project sales[121][123] - Repair, Service & Leasing segment sales increased by $3.9 million to $304.9 million in Q1 2025, primarily from retrofit projects[126] Orders and Backlog - The total backlog as of March 31, 2025, was $5,143.6 million, compared to $4,331.1 million as of March 31, 2024, indicating strong future demand[100] - Orders for the Cryo Tank Solutions segment for the three months ended March 31, 2025, were $152.6 million, a decrease of 4.2% compared to $159.3 million for the same period in 2024[137] - The Heat Transfer Systems segment reported orders of $220.7 million for the three months ended March 31, 2025, down 7.5% from $237.3 million in the same quarter of 2024[138] - Specialty Products segment orders increased by 24.6% to $487.7 million for the three months ended March 31, 2025, compared to $391.3 million for the same period in 2024[139] - Repair, Service & Leasing segment orders rose by 36.1% to $454.6 million for the three months ended March 31, 2025, compared to $333.9 million for the same period in 2024[140] - The backlog for the Heat Transfer Systems segment increased to $2,042.2 million as of March 31, 2025, up from $1,685.9 million as of March 31, 2024[138] - Specialty Products segment backlog grew to $2,057.4 million as of March 31, 2025, compared to $1,678.2 million as of March 31, 2024[139] Expenses and Cash Flow - SG&A expenses decreased by $0.5 million or 0.4% in Q1 2025 compared to Q1 2024, while amortization expense decreased by $1.4 million to $46.5 million[107] - Interest expense, net decreased by $6.7 million to $77.1 million in Q1 2025 from $83.8 million in Q1 2024, primarily due to lower interest rate margins and reduced overall debt[109] - Effective income tax expense for Q1 2025 was $17.6 million with an effective tax rate of 24.5%, down from $8.8 million and 34.0% in Q1 2024[111][112] - Cash used in operating activities improved to $60.0 million in Q1 2025 from $95.1 million in Q1 2024, reflecting stronger operating performance[131] - Cash provided by financing activities was $65.7 million in Q1 2025, down from $143.9 million in Q1 2024, with significant borrowings and repayments on the revolving credit facility[133] - Cash, cash equivalents, and restricted cash totaled $298.0 million at March 31, 2025, a decrease of $12.5 million from December 31, 2024[130] Risk Factors and Accounting Estimates - The company acknowledges various risk factors that could affect future performance and liquidity, as detailed in its Annual Report[143] - There have been no significant changes to the company's critical accounting estimates since December 31, 2024[141] - The company does not expect any balance sheet or cash impact from the new co-investment agreement prior to 2028[135]