Chart Industries Reports First Quarter 2025 Financial Results

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]