Why Chart Industries Rallied by a Double-Digit Percentage Today

Core Insights - Chart Industries' shares increased by 11% following the release of first-quarter earnings that exceeded bottom-line expectations, with notable growth in new orders and a reaffirmation of guidance [1][3] - The company experienced only a modest impact from tariffs, alleviating investor concerns that arose after the announcement of global tariffs by President Trump [2][5] Financial Performance - In Q1, Chart's sales grew by 5.3% to $1.0 billion, slightly below analyst expectations, while adjusted earnings per share rose by 38.8% to $1.86, surpassing expectations by $0.03 [3] - New orders increased by 17.3%, and the backlog reached over $5 billion, marking an 18.8% rise [3] Guidance and Debt Management - Chart reiterated its EPS and free cash flow guidance for 2025, which is crucial as the company is managing debt from its acquisition of Howden in early 2023 [4] - Management projects adjusted EPS of $12 to $13 in 2025, indicating the stock is trading at approximately 12 times this year's forecast earnings, despite a 32% decline from late January levels [6] Market Position and Outlook - As a U.S.-based equipment supplier with a significant LNG equipment business, Chart is positioned to perform well this year, contingent on the absence of a recession [7]