Chart(US:GTLS)2025-10-29 11:25Financial Performance - Third quarter 2025 orders reached a record $1.68 billion, an increase of 43.9% compared to the third quarter 2024[5] - Sales for the third quarter 2025 were $1.10 billion, reflecting a 3.6% increase year-over-year[3] - Gross profit for Q3 2025 was $375.2 million, compared to $362.6 million in Q3 2024, reflecting a gross margin improvement[28] - Operating loss for Q3 2025 was $(88.5) million, a significant decline from an operating income of $178.5 million in Q3 2024[28] - Net loss attributable to Chart Industries, Inc. for Q3 2025 was $(138.5) million, compared to a net income of $69.0 million in Q3 2024[28] - Basic earnings per share from continuing operations for Q3 2025 was $(3.23), down from $1.49 in Q3 2024[29] - Total sales for Q3 2025 reached $1,100.6 million, an increase from $1,062.5 million in Q3 2024[49] - The operating margin for Q3 2025 was (8.0)%, down from 16.8% in Q3 2024[49] Cash Flow and Liquidity - Free cash flow for the quarter was $94.7 million, after capital expenditures of $23.3 million[15] - Net cash provided by continuing operating activities for Q3 2025 was $118.0 million, a decrease from $200.7 million in Q3 2024[32] - Net cash used in investing activities was $2.5 million, compared to $2.6 million in the previous period, indicating a slight decrease[33] - The net cash provided by financing activities was $36.2 million, a significant increase from $12.1 million in the prior period[33] - The net increase in cash and cash equivalents was $56.8 million, up from $61.9 million, reflecting strong liquidity[33] - At the end of the period, restricted cash amounted to $400.8 million, consistent with prior periods, ensuring liquidity for operational needs[33] Orders and Backlog - Heat Transfer Systems orders increased by 79.1% to $760.8 million, driven by demand in data centers and LNG markets[11] - Specialty Products orders grew 84.4% year-over-year to $438.5 million, with significant increases in carbon capture and nuclear markets[12] - Repair, Service and Leasing segment saw orders decrease by 3.4% to $365.0 million, impacted by a non-repeat of large aftermarket equipment orders[13] - Orders for the consolidated segments reached $1,680.4 million for the three months ended September 30, 2025, a significant increase of 43.8% from $1,167.5 million in the same period in 2024[39] - Backlog as of September 30, 2025, totaled $6,049.5 million, up from $4,535.3 million as of September 30, 2024, indicating a year-over-year increase of 33.4%[39] Expenses and Costs - Adjusted operating income margin was 22.9%, with reported operating loss of $88.5 million due to deal-related costs[3][9] - EBITDA adjusted for deal-related costs was $277.1 million, representing 25.2% of sales[3][9] - The company incurred a termination fee expense of $266.0 million associated with the terminated merger with Flowserve for both the three and nine months ended September 30, 2025[37] - Total depreciation and amortization expenses were $71.4 million in Q3 2025, up from $68.1 million in Q3 2024[54] - Interest expense, net, decreased slightly to $77.1 million in Q3 2025 from $80.6 million in Q3 2024[54] - Non-recurring costs included $17.6 million in deal-related and integration costs, primarily associated with the pending acquisition of Chart by Baker Hughes[54] Shareholder Returns and Capital Allocation - The company reported a decrease in common stock repurchases from $0.6 million to $0.2 million, reflecting a strategic shift in capital allocation[33] - Dividend distributions to non-controlling interests were $6.2 million, maintaining a steady return to shareholders[33] Acquisition and Integration - The acquisition of Chart by Baker Hughes is expected to close by mid-2026, with shareholders entitled to $210 per share in cash[18] - Deal related and integration costs were $17.6 million in Q3 2025, up from $8.2 million in Q3 2024[44] - Adjusted operating income (loss) (non-GAAP) for Q3 2025 was $251.5 million, compared to $235.9 million in Q3 2024[49]