Chart Industries: Panic Over Moving Orders

Core Viewpoint - Chart Industries adjusted its guidance due to expected order delays related to large projects, which led to a negative market reaction despite record earnings growth [1][2][10]. Orders and Backlog - Orders and backlog continue to grow at a healthy pace, with management stating that order cancellation rates are well under 1% [4][10]. - The company has long lead times, meaning profits for the year are largely secured by the backlog, and the market's reaction to guidance changes overshadowed the positive order growth [4][10]. Earnings - Earnings doubled to record levels, indicating strong business performance despite the market's negative perception [2][12]. - The adjusted earnings per share guidance for the year is robust, reflecting a significant increase from the previous fiscal year [11][12]. Debt and Financial Health - The debt ratio improved to 3.25 due to rapid EBITDA growth, with expectations for further reduction as business continues to grow [8][9]. - The company maintains a strong capital structure with liquidity of $980 million and a long-dated debt maturity profile [9]. Market Reaction - The market's negative reaction was primarily due to a perceived earnings miss caused by the timing of order fulfillment rather than a fundamental decline in business [10][13]. - Despite the stock price dip, the price-earnings ratio remains attractive at approximately 12, suggesting potential for future growth [11][12].