Chart Industries Reports First Quarter 2025 Financial Results
- Record backlog of $5.14 billion, first time exceeding $5 billion
- Strong order growth of 17.3% YoY to $1.32 billion
- Organic sales growth of 6.6% to $1.00 billion
- Gross profit margin improved 210 bps to 33.9%
- Adjusted operating income margin increased 190 bps to 19.9%
- Company maintains full year 2025 guidance despite uncertainties
- Negative free cash flow of $80.1 million in Q1 2025
- Net leverage ratio at 2.91, above target range of 2.0-2.5
- Potential ~$50 million gross tariff impact expected
- Facing uncertain global environment for remainder of 2025
- CTS orders decreased 4.2% YoY
- HTS orders declined 7.0% YoY
Insights
Chart Industries delivers 17.3% order growth and 190 basis point margin expansion while maintaining 2025 guidance despite global economic uncertainties.
Chart Industries has delivered impressive Q1 2025 results that demonstrate both top-line growth and operational efficiency improvements. Orders increased 17.3% to
The company achieved sales of
While free cash flow was negative
Segment performance shows broad-based improvement, with three of four segments achieving gross margin increases exceeding
The net leverage ratio stands at 2.91, with management maintaining their year-end target of 2.0-2.5. The company's acknowledgment of potential tariff impacts (~
Chart's operational excellence drives margin expansion across segments with strategic manufacturing flexibility positioning them well against tariff challenges.
Chart's Q1 results reveal exceptional supply chain and manufacturing execution across their global operations. The
The
The Specialty Products segment's performance is particularly noteworthy, with
Chart's global manufacturing footprint provides crucial flexibility in navigating potential tariff impacts. Management emphasized their ability to manufacture nearly all products in multiple locations across different geographies – a strategic advantage in the current trade environment. Their stated approach of developing regional supply chains while leveraging global best-cost sources represents a sophisticated dual strategy.
The consistent SG&A expenses at
Working capital at
ATLANTA, May 01, 2025 (GLOBE NEWSWIRE) -- Chart Industries, Inc. (NYSE: GTLS) today reported results for the first quarter 2025 ended March 31, 2025.
First quarter 2025 highlights compared to first quarter 2024:
- Orders of
$1.32 billion , increased17.3% , with record Repair, Service & Leasing (“RSL”) orders - Backlog of
$5.14 billion , the first time greater than$5 billion - Sales of
$1.00 billion , an organic increase of6.6% ; foreign exchange (“FX”) impact of (1.3% ) - Reported gross profit margin of
33.9% increased 210 bps - Reported operating income of
$152.3 million (15.2% of sales) was$198.8 million when adjusted for integration related and restructuring items, resulting in19.9% adjusted operating income margin, an increase of 190 bps - EBITDA of
$215.2 million (21.5% of sales) was$231.1 million when adjusted for the items described above, resulting in23.1% adjusted EBITDA margin, an increase of 80 bps - Reported diluted earnings per share (“EPS”) of
$0.99 was$1.86 when adjusted - Reported net cash from operating activities of negative
$60.0 million less capital expenditures of$20.1 million resulted in negative$80.1 million of free cash flow (“FCF”) - Reiterate full year 2025 guidance
“We delivered strong order and organic sales growth of
Summary of first quarter 2025.
First quarter 2025 orders of
Sales of
Reported operating income of
In the first quarter 2025, FCF was negative
In February 2025, we shared that we signed a letter of intent (with a new counterparty) to replace our HTEC put/call option that could have been exercised by I Squared Capital on or after May 1, 2025. The new agreement was executed this week, on April 30, 2025. Based on the put option triggers in the new agreement (which are substantially similar to the previous arrangement), we do not expect any balance sheet or cash impact with respect to such option prior to 2028.
First quarter 2025 segment results (as compared to the first quarter 2024).
Cryo Tank Solutions (“CTS”): First quarter 2025 CTS orders of
Heat Transfer Systems (“HTS”): First quarter 2025 HTS orders of
Specialty Products: First quarter 2025 Specialty Products orders of
Repair, Service and Leasing: RSL first quarter 2025 orders of
April 2025 demand commentary.
April orders were in line with expectations, and based on early indications we currently anticipate a second quarter book to bill of greater than 1.0. The start of the second quarter 2025 and our customers’ feedback for specific end markets reflects expectations for continued positive trends in marine, metals, mining, energy, natural gas, space exploration, nuclear, data centers, aftermarket, carbon capture and hydrogen in Europe.
Generally, water treatment, general industrial, HLNG vehicle tanks, and food and beverage are in line with original expectations coming into 2025. Finally, we are watching uncertainty driven by tariffs in the industrial gas and hydrogen in Americas. Broadly, although we have not yet seen it in our results, we recognize we face an uncertain global environment for the remainder of 2025.
Tariff-Related Actions.
Our team remains agile to respond to commercial and cost uncertainties resulting from the tariff situations. Our business has a strong project backlog and approximately one-third of our revenue is from aftermarket, service and repair activities. Additionally, the RSL segment contributed approximately half of our adjusted operating income in the full year 2024 before corporate expenses.
Based on communicated tariff rates as of April 30, 2025 including the implementation of those currently suspended we anticipate a gross tariff impact of ~
Since the supply chain crisis of 2021, we have focused on a regional as well as global supply chain. We developed “in region” supply sources and leverage our global best cost where possible. We also have a strong global manufacturing footprint with flexibility to make nearly all of our products in more than one location and one geography. We have updated long-term agreements for specific pricing mechanisms and also passed pricing through where applicable, including a recent price increase in April 2025. We purchase most project-based materials at the time of order, so have largely locked in our raw material costs for existing project backlog.
Reiterate 2025 outlook.
Though we have not yet seen it in our results, we recognize we face an uncertain global environment for the remainder of 2025. Based on our backlog of
Our full year 2025 anticipated sales are expected to be in the range of
We continue to anticipate our tax rate will be approximately
FORWARD-LOOKING STATEMENTS
Certain statements made in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the Company’s business plans, including statements regarding completed acquisitions, divestitures, and investments, cost and commercial synergies and efficiency savings, objectives, future orders, revenues, margins, segment sales mix, earnings or performance, liquidity and cash flow, inventory levels, capital expenditures, supply chain challenges, inflationary pressures including material cost and pricing increases, business trends, clean energy market opportunities including addressable markets, and governmental initiatives, including executive orders and changes to trade policy and other information that is not historical in nature. Forward-looking statements may be identified by terminology such as "may," "will," "should," "could," "expects," "anticipates," "believes," "projects," "forecasts," “outlook,” “guidance,” "continue," “target,” or the negative of such terms or comparable terminology.
Forward-looking statements contained in this press release or in other statements made by the Company are made based on management's expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors relating to the Company's operations and business environment, all of which are difficult to predict and many of which are beyond the Company's control, that could cause the Company's actual results to differ materially from those matters expressed or implied by forward-looking statements. Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements include: the Company’s ability to successfully integrate the Howden acquisition and other recent acquisitions and achieve the anticipated revenue, earnings, accretion and other benefits from these acquisitions; slower than anticipated growth and market acceptance of new clean energy product offerings; inability to achieve expected pricing increases or continued supply chain challenges including volatility in raw materials and supply, risks related to regional conflicts and unrest, including the recent turmoil in the Middle East and the conflict between Russia and Ukraine including potential energy shortages in Europe and elsewhere; the unknown or difficult to quantify impact of enacted or threatened change to U.S. governmental trade policies, including the introduction of global tariffs on all U.S. trading partners, with certain nations, including China and, certain products, subject to substantially higher tariffs rates, as well as the possible impacts of retaliatory tariffs on products from the United States; and the other factors discussed in Item 1A (Risk Factors) in the Company’s most recent Annual Report on Form 10-K filed with the SEC, which should be reviewed carefully. The Company undertakes no obligation to update or revise any forward-looking statement.
USE OF NON-GAAP FINANCIAL INFORMATION
This press release contains non-GAAP financial information, including adjusted net income, adjusted operating income, adjusted operating income margin, adjusted earnings per diluted share, net income attributable to Chart Industries, Inc. adjusted, and EBITDA and adjusted EBITDA. For additional information regarding the Company's use of non-GAAP financial information, as well as reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States ("GAAP"), please see the reconciliation pages at the end of this news release.
The Company believes these non-GAAP measures are of interest to investors and facilitate useful period-to-period comparisons of the Company’s financial results, and this information is used by the Company in evaluating internal performance. With respect to the Company’s 2025 full year earnings outlook, the Company is not able to provide a reconciliation of the adjusted EBITDA, FCF or adjusted EPS because certain items may have not yet occurred or are out of the Company’s control and/or cannot be reasonably predicted.
CONFERENCE CALL
As previously announced, the Company has scheduled a conference call for Thursday, May 1, 2025 at 8:30 a.m. ET to discuss its first quarter 2025 financial results. Participants wishing to join the live Q&A session must dial-in with the following information:
PARTICIPANT INFORMATION:
Toll-Free – North America: (+1) 800 549 8228
Toll North America and other locations: (+1) 289 819 1520
A live webcast and replay, as well as presentation slides, will be available on the Company’s investor relations website through the following link: Q1 2025 Earnings Webcast. A telephone replay of the conference call can be accessed approximately two hours following the end of the call at 1-646-517-3975 with passcode 68945 through May 8, 2025.
About Chart Industries, Inc.
Chart Industries, Inc. is a global leader in the design, engineering, and manufacturing of process technologies and equipment for gas and liquid molecule handling for the Nexus of Clean™ - clean power, clean water, clean food, and clean industrials, regardless of molecule. The company’s unique product and solution portfolio across stationary and rotating equipment is used in every phase of the liquid gas supply chain, including engineering, service and repair from installation to preventive maintenance and digital monitoring. Chart is a leading provider of technology, equipment and services related to liquefied natural gas, hydrogen, biogas and CO2 capture amongst other applications. Chart is committed to excellence in environmental, social and corporate governance issues both for its company as well as its customers. With 64 global manufacturing locations and over 50 service centers from the United States to Asia, Australia, India, Europe and South America, the company maintains accountability and transparency to its team members, suppliers, customers and communities. To learn more, visit www.chartindustries.com
For more information, click here:
http://ir.chartindustries.com/
Chart Industries Investor Relations Contact:
John Walsh
SVP, Investor and Government Relations
1-770-721-8899
john.walsh@chartindustries.com
| CHART INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Dollars and shares in millions, except per share amounts) | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Sales | $ | 1,001.5 | $ | 950.7 | |||
| Cost of sales | 661.7 | 648.4 | |||||
| Gross profit | 339.8 | 302.3 | |||||
| Selling, general and administrative expenses | 141.0 | 141.5 | |||||
| Amortization expense | 46.5 | 47.9 | |||||
| Operating expenses | 187.5 | 189.4 | |||||
| Operating income | 152.3 | 112.9 | |||||
| Interest expense, net | 77.1 | 83.8 | |||||
| Other expense | 3.3 | 3.2 | |||||
| Income from continuing operations before income taxes and equity in loss of unconsolidated affiliates, net | 71.9 | 25.9 | |||||
| Income tax expense | 17.6 | 8.8 | |||||
| Income from continuing operations before equity in loss of unconsolidated affiliates, net | 54.3 | 17.1 | |||||
| Equity in loss of unconsolidated affiliates, net | — | (0.3 | ) | ||||
| Net income from continuing operations | 54.3 | 16.8 | |||||
| Loss from discontinued operations, net of tax | (2.0 | ) | (2.2 | ) | |||
| Net income | 52.3 | 14.6 | |||||
| Less: Income attributable to noncontrolling interests of continuing operations, net of taxes | 2.8 | 3.3 | |||||
| Net income attributable to Chart Industries, Inc. | $ | 49.5 | $ | 11.3 | |||
| Amounts attributable to Chart common shareholders | |||||||
| Income from continuing operations | $ | 51.5 | $ | 13.5 | |||
| Less: Mandatory convertible preferred stock dividend requirement | 6.8 | 6.8 | |||||
| Income from continuing operations attributable to Chart | 44.7 | 6.7 | |||||
| Loss from discontinued operations, net of tax | (2.0 | ) | (2.2 | ) | |||
| Net income attributable to Chart common shareholders | $ | 42.7 | $ | 4.5 | |||
| Basic earnings per common share attributable to Chart Industries, Inc. | |||||||
| Income from continuing operations | $ | 0.99 | $ | 0.16 | |||
| Loss from discontinued operations | (0.04 | ) | (0.05 | ) | |||
| Net income attributable to Chart Industries, Inc. | $ | 0.95 | $ | 0.11 | |||
| Diluted earnings per common share attributable to Chart Industries, Inc. | |||||||
| Income from continuing operations | $ | 0.99 | $ | 0.14 | |||
| Loss from discontinued operations | (0.05 | ) | (0.04 | ) | |||
| Net income attributable to Chart Industries, Inc. | $ | 0.94 | $ | 0.10 | |||
| Weighted-average number of common shares outstanding: | |||||||
| Basic | 44.93 | 42.03 | |||||
| Diluted (1) | 45.20 | 46.73 | |||||
_______________
(1) Includes an additional 4.53 shares related to the convertible notes due 2024 and associated warrants in our diluted earnings per share calculation for the three months ended March 31, 2024. The associated hedge, which helps offset this dilution, cannot be taken into account under U.S. generally accepted accounting principles (“GAAP”). If the hedge could have been considered, it would have reduced the additional shares by 2.48 for the three months ended March 31, 2024.
| CHART INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in millions) | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| OPERATING ACTIVITIES | |||||||
| Net income | $ | 52.3 | $ | 14.6 | |||
| Less: Loss from discontinued operations, net of tax | (2.0 | ) | (2.2 | ) | |||
| Net income from continuing operations | 54.3 | 16.8 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 66.2 | 65.9 | |||||
| Employee share-based compensation expense | 6.2 | 6.0 | |||||
| Financing costs amortization | 4.8 | 4.7 | |||||
| Other non-cash operating activities | (0.6 | ) | (1.9 | ) | |||
| Changes in assets and liabilities, net of acquisitions: | |||||||
| Accounts receivable | 23.3 | (51.0 | ) | ||||
| Inventories | (8.9 | ) | (4.1 | ) | |||
| Unbilled contract revenue | (89.0 | ) | (76.7 | ) | |||
| Prepaid expenses and other current assets | (16.6 | ) | (48.5 | ) | |||
| Accounts payable and other current liabilities | (62.9 | ) | (17.2 | ) | |||
| Customer advances and billings in excess of contract revenue | (41.9 | ) | 17.3 | ||||
| Long-term assets and liabilities | 5.1 | (0.9 | ) | ||||
| Net Cash Used In Continuing Operating Activities | (60.0 | ) | (89.6 | ) | |||
| Net Cash Used In Discontinued Operating Activities | — | (5.5 | ) | ||||
| Net Cash Used In Operating Activities | (60.0 | ) | (95.1 | ) | |||
| INVESTING ACTIVITIES | |||||||
| Capital expenditures | (20.1 | ) | (46.1 | ) | |||
| Investments | (1.4 | ) | (6.0 | ) | |||
| Other investing activities | 0.4 | 0.3 | |||||
| Net Cash Used In Investing Activities | (21.1 | ) | (51.8 | ) | |||
| FINANCING ACTIVITIES | |||||||
| Borrowings on credit facilities | 746.2 | 634.2 | |||||
| Repayments on credit facilities | (666.6 | ) | (479.3 | ) | |||
| Common stock repurchases from share-based compensation plans | (3.9 | ) | (3.0 | ) | |||
| Dividends paid on mandatory convertible preferred stock | (6.8 | ) | (6.8 | ) | |||
| Other financing activities | (3.2 | ) | (1.2 | ) | |||
| Net Cash Provided By Financing Activities | 65.7 | 143.9 | |||||
| Effect of exchange rate changes on cash and cash equivalents | 2.9 | (2.6 | ) | ||||
| Net decrease in cash, cash equivalents, restricted cash and restricted cash equivalents | (12.5 | ) | (5.6 | ) | |||
| Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period (includes restricted cash of | 310.5 | 201.1 | |||||
| CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS AT END OF PERIOD (includes restricted cash of | $ | 298.0 | $ | 195.5 | |||
| CHART INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in millions) | |||||||
| March 31, 2025 | December 31, 2024 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 296.2 | $ | 308.6 | |||
| Accounts receivable, less allowances of | 738.0 | 752.3 | |||||
| Inventories, net | 505.7 | 490.5 | |||||
| Unbilled contract revenue | 834.0 | 735.1 | |||||
| Prepaid expenses | 131.2 | 108.6 | |||||
| Other current assets | 72.2 | 70.3 | |||||
| Total Current Assets | 2,577.3 | 2,465.4 | |||||
| Property, plant, and equipment, net | 880.0 | 864.2 | |||||
| Goodwill | 2,950.2 | 2,899.9 | |||||
| Identifiable intangible assets, net | 2,550.0 | 2,540.6 | |||||
| Other assets | 355.8 | 353.8 | |||||
| TOTAL ASSETS | $ | 9,313.3 | $ | 9,123.9 | |||
| LIABILITIES AND EQUITY | |||||||
| Current Liabilities | |||||||
| Accounts payable | $ | 1,064.1 | $ | 1,058.9 | |||
| Customer advances and billings in excess of contract revenue | 325.4 | 362.2 | |||||
| Accrued interest | 67.7 | 110.4 | |||||
| Other current liabilities | 252.2 | 258.3 | |||||
| Total Current Liabilities | 1,709.4 | 1,789.8 | |||||
| Long-term debt | 3,727.6 | 3,640.7 | |||||
| Deferred tax liabilities | 544.6 | 544.9 | |||||
| Other long-term liabilities | 165.1 | 153.3 | |||||
| Total Liabilities | 6,146.7 | 6,128.7 | |||||
| Equity | |||||||
| Preferred stock, par value | — | — | |||||
| Common stock, par value | 0.5 | 0.5 | |||||
| Additional paid-in capital | 1,891.9 | 1,889.3 | |||||
| Treasury stock; 760,782 shares at both March 31, 2025 and December 31, 2024 | (19.3 | ) | (19.3 | ) | |||
| Retained earnings | 1,156.1 | 1,113.4 | |||||
| Accumulated other comprehensive loss | (32.3 | ) | (155.1 | ) | |||
| Total Chart Industries, Inc. Shareholders’ Equity | 2,996.9 | 2,828.8 | |||||
| Noncontrolling interests | 169.7 | 166.4 | |||||
| Total Equity | 3,166.6 | 2,995.2 | |||||
| TOTAL LIABILITIES AND EQUITY | $ | 9,313.3 | $ | 9,123.9 | |||
| CHART INDUSTRIES, INC. AND SUBSIDIARIES OPERATING SEGMENTS (UNAUDITED) (Dollars in millions) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2025 | March 31, 2024 | December 31, 2024 | |||||||||
| Sales | |||||||||||
| Cryo Tank Solutions | $ | 153.2 | $ | 159.7 | $ | 150.2 | |||||
| Heat Transfer Systems | 267.3 | 253.6 | 288.8 | ||||||||
| Specialty Products | 276.1 | 236.5 | 316.9 | ||||||||
| Repair, Service & Leasing | 304.9 | 301.0 | 350.7 | ||||||||
| Intersegment eliminations | — | (0.1 | ) | 0.2 | |||||||
| Consolidated | $ | 1,001.5 | $ | 950.7 | $ | 1,106.8 | |||||
| Gross Profit | |||||||||||
| Cryo Tank Solutions | $ | 37.2 | $ | 32.8 | $ | 36.6 | |||||
| Heat Transfer Systems | 82.6 | 70.1 | 91.7 | ||||||||
| Specialty Products | 83.7 | 58.9 | 86.8 | ||||||||
| Repair, Service & Leasing | 136.3 | 140.5 | 157.2 | ||||||||
| Consolidated | $ | 339.8 | $ | 302.3 | $ | 372.3 | |||||
| Gross Profit Margin | |||||||||||
| Cryo Tank Solutions | 24.3 | % | 20.5 | % | 24.4 | % | |||||
| Heat Transfer Systems | 30.9 | % | 27.6 | % | 31.8 | % | |||||
| Specialty Products | 30.3 | % | 24.9 | % | 27.4 | % | |||||
| Repair, Service & Leasing | 44.7 | % | 46.7 | % | 44.8 | % | |||||
| Consolidated | 33.9 | % | 31.8 | % | 33.6 | % | |||||
| Operating Income (Loss) | |||||||||||
| Cryo Tank Solutions | $ | 17.6 | $ | 14.0 | $ | 21.1 | |||||
| Heat Transfer Systems | 66.9 | 51.2 | 75.7 | ||||||||
| Specialty Products | 48.3 | 25.1 | 51.1 | ||||||||
| Repair, Service & Leasing | 62.7 | 65.1 | 85.4 | ||||||||
| Corporate | (43.2 | ) | (42.5 | ) | (45.0 | ) | |||||
| Consolidated | $ | 152.3 | $ | 112.9 | $ | 188.3 | |||||
| Operating Margin | |||||||||||
| Cryo Tank Solutions | 11.5 | % | 8.8 | % | 14.0 | % | |||||
| Heat Transfer Systems | 25.0 | % | 20.2 | % | 26.2 | % | |||||
| Specialty Products | 17.5 | % | 10.6 | % | 16.1 | % | |||||
| Repair, Service & Leasing | 20.6 | % | 21.6 | % | 24.4 | % | |||||
| Consolidated | 15.2 | % | 11.9 | % | 17.0 | % | |||||
| CHART INDUSTRIES, INC. AND SUBSIDIARIES ORDERS AND BACKLOG (UNAUDITED) (Dollars in millions) | |||||||||
| Three Months Ended | |||||||||
| March 31, 2025 | March 31, 2024 | December 31, 2024 | |||||||
| Orders | |||||||||
| Cryo Tank Solutions | $ | 152.6 | $ | 159.3 | $ | 138.5 | |||
| Heat Transfer Systems | 220.7 | 237.3 | 536.1 | ||||||
| Specialty Products | 487.7 | 391.3 | 509.3 | ||||||
| Repair, Service & Leasing | 454.6 | 333.9 | 369.2 | ||||||
| Intersegment eliminations | — | (0.2 | ) | — | |||||
| Consolidated | $ | 1,315.6 | $ | 1,121.6 | $ | 1,553.1 | |||
| As of | ||||||||||
| March 31, 2025 | March 31, 2024 | December 31, 2024 | ||||||||
| Backlog | ||||||||||
| Cryo Tank Solutions | $ | 318.7 | $ | 367.5 | $ | 290.3 | ||||
| Heat Transfer Systems | 2,042.2 | 1,685.9 | 2,097.4 | |||||||
| Specialty Products | 2,057.4 | 1,678.2 | 1,888.1 | |||||||
| Repair, Service & Leasing | 725.3 | 611.3 | 577.1 | |||||||
| Intersegment eliminations | — | (11.8 | ) | (7.8 | ) | |||||
| Consolidated | $ | 5,143.6 | $ | 4,331.1 | $ | 4,845.1 | ||||
| RECONCILIATION OF NET CASH USED IN OPERATING ACTIVITIES FROM CONTINUING OPERATIONS TO FREE CASH FLOW FROM CONTINUING OPERATIONS AND RECONCILIATION OF NET CASH USED IN OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS TO FREE CASH FLOW FROM DISCONTINUED OPERATIONS (UNAUDITED) (Dollars in millions) | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Net cash used in operating activities from continuing operations | $ | (60.0 | ) | $ | (89.6 | ) | |
| Capital expenditures | (20.1 | ) | (46.1 | ) | |||
| Free cash flow (non-GAAP) | $ | (80.1 | ) | $ | (135.7 | ) | |
| Three Months Ended March 31, | ||||||
| 2025 | 2024 | |||||
| Net cash used in operating activities from discontinued operations | $ | — | $ | (5.5 | ) | |
| Capital expenditures | — | — | ||||
| Free cash flow (non-GAAP) | $ | — | $ | (5.5 | ) | |
_______________
Free cash flow is not a measure of financial performance under U.S. GAAP and should not be considered as an alternative to net cash used in operating activities in accordance with U.S. GAAP. Management believes that free cash flow facilitates useful period-to-period comparisons of our financial results, and this information is used by us in evaluating internal performance. Our calculation of this non-GAAP measure may not be comparable to the calculations of similarly titled measures reported by other companies.
| CHART INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF EARNINGS AND EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CHART INDUSTRIES, INC. – CONTINUING OPERATIONS TO ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CHART INDUSTRIES, INC. - CONTINUING OPERATIONS (UNAUDITED) (Dollars in millions, except per share amounts) | ||||||||
| Q1 2025 | Q1 2024 | |||||||
| Amounts attributable to Chart common stockholders | ||||||||
| Net income attributable to Chart Industries, Inc. | $ | 49.5 | $ | 11.3 | ||||
| Less: Loss from discontinued operations, net of tax | (2.0 | ) | (2.2 | ) | ||||
| Income from continuing operations | 51.5 | 13.5 | ||||||
| Less: Mandatory convertible preferred stock dividend requirement | 6.8 | 6.8 | ||||||
| Income from continuing operations attributable to Chart (U.S. GAAP) | 44.7 | 6.7 | ||||||
| Unrealized loss on investments in equity securities and loss from strategic equity method investments (1) | 1.1 | 4.3 | ||||||
| Deal related and integration costs (2) | 4.0 | 14.3 | ||||||
| Step up amortization on inventory, intangibles and fixed assets from Howden acquisition | 38.1 | 46.6 | ||||||
| Restructuring & related costs | 2.0 | 5.1 | ||||||
| Other one-time items (3) | 2.7 | — | ||||||
| Tax effects | (8.5 | ) | (14.4 | ) | ||||
| Adjusted earnings attributable to Chart Industries, Inc. (non-GAAP) | $ | 84.1 | $ | 62.6 | ||||
| Q1 2025 Diluted EPS | Q1 2024 Diluted EPS | |||||||
| Reported income from continuing operations attributable to Chart (U.S. GAAP) | $ | 0.99 | $ | 0.14 | ||||
| Unrealized loss on investments in equity securities and loss from strategic equity method investments (1) | 0.02 | 0.09 | ||||||
| Deal related and integration costs (2) | 0.09 | 0.31 | ||||||
| Step up amortization on inventory, intangibles and fixed assets from Howden acquisition | 0.84 | 1.00 | ||||||
| Restructuring & related costs | 0.04 | 0.11 | ||||||
| Other one-time items (3) | 0.07 | — | ||||||
| Tax effects | (0.19 | ) | (0.31 | ) | ||||
| Adjusted earnings attributable to Chart Industries, Inc. (non-GAAP) | $ | 1.86 | $ | 1.34 | ||||
| Share count | 45.20 | 46.73 | ||||||
_______________
(1) Includes the mark-to-market of our inorganic investments in Avina, McPhy, Stabilis and certain of our minority investments as well as losses from strategic equity method investments.
(2) Deal related and integration costs primarily includes costs associated with integrating Howden.
(3) Other one-time items includes costs associated with one time charges for a specific employment plan in South Africa, charges related to Howden costs incurred prior to the acquisition and other costs not related to current continuing operations.
______________
Adjusted earnings per common share attributable to Chart Industries, Inc. is not a measure of financial performance under U.S. GAAP and should not be considered as an alternative to earnings per share in accordance with U.S. GAAP. Management believes that adjusted earnings per common share attributable to Chart Industries, Inc. facilitates useful period-to-period comparisons of our financial results, and this information is used by us in evaluating internal performance. Our calculation of these non-GAAP measures may not be comparable to the calculations of similarly titled measures reported by other companies. Prior to the second quarter of 2024, the impacts of the mandatory convertible preferred stock dividend were excluded from adjusted earnings per common share attributable to Chart Industries, Inc. (non-GAAP). The impacts are now included in adjusted earnings per common share attributable to Chart Industries, Inc. (non-GAAP) and historical periods have been restated to reflect the change in treatment.
| CHART INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATIONS OF OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS) (UNAUDITED) (Dollars in millions) | ||||||||||||||||||||||||||
| Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||
| Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Intersegment Eliminations | Corporate | Consolidated | ||||||||||||||||||||
| Sales | $ | 153.2 | $ | 267.3 | $ | 276.1 | $ | 304.9 | $ | — | $ | — | $ | 1,001.5 | ||||||||||||
| Operating income (loss) as reported (U.S. GAAP) | $ | 17.6 | $ | 66.9 | $ | 48.3 | $ | 62.7 | $ | — | $ | (43.2 | ) | $ | 152.3 | |||||||||||
| Operating margin | 11.5 | % | 25.0 | % | 17.5 | % | 20.6 | % | 15.2 | % | ||||||||||||||||
| Restructuring & related costs | $ | 0.3 | $ | 0.2 | $ | 0.4 | $ | 1.0 | $ | — | $ | 0.1 | $ | 2.0 | ||||||||||||
| Deal related & integration costs (1) | — | — | — | 0.6 | — | 3.3 | 3.9 | |||||||||||||||||||
| Step-up amortization on intangibles and fixed assets from Howden acquisition | 1.2 | 1.0 | 3.3 | 32.6 | — | — | 38.1 | |||||||||||||||||||
| Other (2) | 0.3 | 0.1 | 0.3 | 1.8 | — | — | 2.5 | |||||||||||||||||||
| Adjusted operating income (loss) (non-GAAP) | $ | 19.4 | $ | 68.2 | $ | 52.3 | $ | 98.7 | $ | — | $ | (39.8 | ) | $ | 198.8 | |||||||||||
| Adjusted operating margin (non-GAAP) | 12.7 | % | 25.5 | % | 18.9 | % | 32.4 | % | 19.9 | % | ||||||||||||||||
______________
(1) Deal related & integration costs primarily includes costs associated with integrating Howden.
(2) Other includes costs associated with one time charges for a specific employment plan in South Africa, charges related to Howden costs incurred prior to the acquisition and other costs not related to current continuing operations.
| Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||
| Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Intersegment Eliminations | Corporate | Consolidated | |||||||||||||||||||||
| Sales | $ | 159.7 | $ | 253.6 | $ | 236.5 | $ | 301.0 | $ | (0.1 | ) | $ | — | $ | 950.7 | ||||||||||||
| Operating income (loss) as reported (U.S. GAAP) | $ | 14.0 | $ | 51.2 | $ | 25.1 | $ | 65.1 | $ | — | $ | (42.5 | ) | $ | 112.9 | ||||||||||||
| Operating margin | 8.8 | % | 20.2 | % | 10.6 | % | 21.6 | % | 11.9 | % | |||||||||||||||||
| Restructuring & related costs | $ | 0.7 | $ | 0.5 | $ | 1.3 | $ | 2.3 | $ | — | $ | 0.3 | $ | 5.1 | |||||||||||||
| Deal related & integration costs (1) | — | — | — | — | — | 6.6 | 6.6 | ||||||||||||||||||||
| Step-up amortization on inventory, intangibles and fixed assets from Howden acquisition | 2.1 | 1.2 | 5.0 | 38.3 | — | — | 46.6 | ||||||||||||||||||||
| Other | — | — | — | — | — | 0.1 | 0.1 | ||||||||||||||||||||
| Adjusted operating income (loss) (non-GAAP) | $ | 16.8 | $ | 52.9 | $ | 31.4 | $ | 105.7 | $ | — | $ | (35.5 | ) | $ | 171.3 | ||||||||||||
| Adjusted operating margin (non-GAAP) | 10.5 | % | 20.9 | % | 13.3 | % | 35.1 | % | 18.0 | % | |||||||||||||||||
_____________
(1) Deal related & integration costs primarily includes costs associated with integrating Howden.
_____________
Adjusted operating income (loss) is not a measure of financial performance under U.S. GAAP and should not be considered as an alternative to operating income (loss) in accordance with U.S. GAAP. Management believes that adjusted operating income (loss) facilitates useful period-to-period comparisons of our financial results, and this information is used by us in evaluating internal performance. Our calculation of these non-GAAP measures may not be comparable to the calculations of similarly titled measures reported by other companies.
| CHART INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS TO EBITDA AND ADJUSTED EBITDA (UNAUDITED) (Dollars in millions) | |||||
| Three Months Ended | |||||
| March 31, 2025 | March 31, 2024 | ||||
| Net income from continuing operations | $ | 54.3 | $ | 16.8 | |
| Income tax expense, net | 17.6 | 8.8 | |||
| Interest expense, net | 77.1 | 83.8 | |||
| Depreciation and amortization | 66.2 | 65.9 | |||
| EBITDA (non-GAAP) | 215.2 | 175.3 | |||
| Non-recurring costs: | |||||
| Deal related & integration costs (1) | 3.9 | 14.3 | |||
| Restructuring & related costs | 2.0 | 5.1 | |||
| Amortization of step-up value of inventory from Howden acquisition | — | 7.1 | |||
| Other one-time items (2) | 2.7 | 0.1 | |||
| Employee share-based compensation expense | 6.2 | 6.0 | |||
| Unrealized loss on investments in equity securities and loss from strategic equity method investments (3) | 1.1 | 4.3 | |||
| Adjusted EBITDA (non-GAAP) | $ | 231.1 | $ | 212.2 | |
_______________
(1) Deal related & integration costs primarily includes costs associated with integrating Howden.
(2) Other one-time items includes costs associated with one time charges for a specific employment plan in South Africa, charges related to Howden costs incurred prior to the acquisition and other costs not related to current continuing operations.
(3) Includes the mark-to-market of our inorganic investments in Avina, McPhy, Stabilis and certain of our minority investments as well as losses from strategic equity method investments.
_______________
The reconciliation from net income from continuing operations to EBITDA (non-GAAP) includes acquisition related finance fees and loss on extinguishment of debt. EBITDA and adjusted EBITDA are not measures of financial performance under U.S. GAAP and should not be considered as an alternative to net income from continuing operations in accordance with U.S. GAAP. Management believes that EBITDA and adjusted EBITDA facilitate useful period-to-period comparisons of our financial results, and this information is used by us in evaluating internal performance. Our calculation of these non-GAAP measures may not be comparable to the calculations of similarly titled measures reported by other companies.
This press release was published by a CLEAR® Verified individual.
FAQ
What were Chart Industries (GTLS) key financial metrics for Q1 2025?
What is Chart Industries (GTLS) full year 2025 guidance?
How much is the expected tariff impact on Chart Industries (GTLS) in 2025?
What was Chart Industries (GTLS) backlog as of Q1 2025?
What is Chart Industries (GTLS) target net leverage ratio for 2025?
