Chart(US:GTLS)2023-07-28 18:18Financial Performance - Q2 2023 book-to-bill ratio was 1.17[16] - Q2 2023 ending record backlog reached $3.96 billion, a 24.1% increase compared to proforma Q2 2022[16] - Record reported gross profit margin of 30.9% and record adjusted gross profit margin of 32.5% were achieved in Q2 2023[16] - Adjusted EBITDA reached a record of $195.3 million with a record adjusted EBITDA margin of 21.5% in Q2 2023[16] - Free cash flow was $76.2 million, with an adjusted free cash flow of $86.6 million, resulting in a net leverage of 3.86X (3.72X proforma for divestitures)[16] Synergy and Divestitures - $96.5 million of annualized cost savings were achieved through July 27, 2023, compared to $50.9 million at Q1 2023[16] - Commercial synergies reached $94.3 million through July 27, 2023, compared to $11.4 million at Q1 2023[16] - The commercial synergies pipeline increased to approximately $1 billion from approximately $800 million[16] - A definitive agreement was signed to sell the Roots™ business to Ingersoll Rand for $300 million in cash, with regulatory clearance received and closing expected no later than August 18, 2023[12, 16] - A definitive agreement was signed to sell Cofimco for $80 million, with closing expected in the second half of 2023[16] Outlook and Strategy - The company is updating its 2023 outlook and reiterating its 2024 adjusted EBITDA target of approximately $1.3 billion[16] - The company expects to reach a net leverage ratio of 2.5-2.9X by midyear 2024, ahead of the previous target of year-end 2024[16] - The company anticipates total proceeds of approximately $500 million from anticipated defined asset perimeter of divestitures[16]