Chart Industries, Inc. (GTLS) shares soared 14.3% in the last trading session to close at $131.55. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22% loss over the past four weeks.Chart Industries’ 14.3% was fueled by the Trump administration’s announcement of a temporary halt on reciprocal tariffs for most countries. This policy shift was aimed to counteracting the sharp sell-off in the market and easing worries that higher tar ...

Group 1 - Chart Industries, Inc. has scheduled a conference call for May 1, 2025, at 8:30 a.m. ET to discuss its first quarter 2025 financial results [1] - The earnings release for the first quarter 2025 will be issued prior to market open on May 1, 2025 [1] - Participants can join the live Q&A session by dialing the provided toll-free and toll numbers [2] Group 2 - Chart Industries is a global leader in the design, engineering, and manufacturing of process technologies and equipment for gas and liquid molecule handling [3] - The company offers a unique product and solution portfolio used in every phase of the liquid gas supply chain, including engineering, service, repair, installation, preventive maintenance, and digital monitoring [3] - Chart is a leading provider of technology, equipment, and services related to liquefied natural gas, hydrogen, biogas, and CO2 capture [3] - The company operates 64 global manufacturing locations and over 50 service centers across various regions including the United States, Asia, Australia, India, Europe, and South America [3]

Core Insights - Chart Industries has been selected by Blue Spruce Operating LLC to provide a Nitrogen Rejection Unit and helium process technology for the Dry Piney Helium and Carbon Sequestration Project in Sublette County, WY [1][2] - The project is expected to produce over 800 million cubic feet per year of bulk liquid helium and approximately 80 million cubic feet per day of natural gas, while sequestering up to 4.5 million metric tons of CO2 annually [3] Company Overview - Chart Industries is a global leader in designing, engineering, and manufacturing process technologies and equipment for gas and liquid molecule handling, focusing on clean power, water, food, and industrial applications [4] - The company operates 64 global manufacturing locations and over 50 service centers, ensuring accountability and transparency across its operations [4] Project Details - The completion of the front-end engineering design for the NRU and helium plant is a significant milestone for Blue Spruce Operating, enabling it to become a major domestic resource for bulk liquid helium and natural gas in the western U.S. [3] - Chart Industries aims to deliver the project on time over the next two years and provide operational support for decades [2]

Investment Rating - The report maintains a positive outlook for Chart Industries, reaffirming its revenue guidance for fiscal year 2025, with expected revenue between $4.65 billion and $4.85 billion [2][3]. Core Insights - Despite revenue and earnings falling short of consensus expectations for Q4 2024, the company reported strong backlog and new order performance, emphasizing optimism regarding liquefied natural gas contracts [1][2]. - The adjusted net income for Q4 2024 was $80 million, with revenue at $1.107 billion, reflecting a 9% year-over-year increase, although it was below the consensus estimate of $1.168 billion [2][5]. - The company reported a record backlog of $4.85 billion, up from $4.535 billion in Q3 2024, with total orders for the quarter reaching $1.55 billion, compared to $1.17 billion in the previous quarter [2][3]. Summary by Sections Financial Performance - Adjusted net income for Q4 2024 was $80 million, with revenue of $1.107 billion, and an adjusted EBITDA of $284 million, slightly below consensus estimates [2][5]. - Gross margin was approximately 34%, aligning with the company's mid-term guidance of 30% [2][5]. Guidance and Outlook - The company reaffirmed its fiscal year 2025 revenue guidance of $4.65 billion to $4.85 billion, with adjusted EBITDA expected to be between $1.175 billion and $1.225 billion [2][3]. - The expected earnings per share for 2025 is projected to be between $12 and $13, with free cash flow anticipated to be between $550 million and $600 million, an increase from $388 million in fiscal year 2024 [2][3]. Leverage and Financial Policy - The net leverage ratio stands at 2.80 times, down from 3.04 times in Q3 2024, with the company aiming to reach its target leverage ratio of 2.0 to 2.5 times this year [3]. - The company maintains its mid-term guidance of double-digit organic revenue growth, a gross margin midpoint of 30%, and a free cash flow conversion rate of 95% to 100% [3].

Group 1 - The article discusses the analysis of oil and gas companies, focusing on identifying undervalued names within the industry [1] - The author emphasizes the importance of understanding the balance sheet, competitive position, and development prospects of these companies [1] - The cyclical nature of the oil and gas industry is highlighted, indicating that it experiences boom and bust cycles, requiring patience and experience for successful investment [2] Group 2 - The author has a beneficial long position in shares of specific companies, indicating a personal investment interest in the sector [3] - The article is presented as an analysis rather than a recommendation for stock purchases or sales, urging investors to conduct their own research [4] - Seeking Alpha clarifies that past performance does not guarantee future results, and the views expressed may not represent the platform as a whole [5]

Financial Data and Key Metrics Changes - In Q4 2024, the company generated $281.5 million of net cash from operating activities, with free cash flow of $261 million after $20.5 million of CapEx spend, contributing to full-year 2024 free cash flow of $388 million [8] - Full-year 2024 sales reached $4.16 billion, representing a year-over-year organic increase of 17.5% [24] - Adjusted operating margin for full-year 2024 was 21.1%, an increase of 400 basis points compared to the previous year [11][24] - Adjusted EBITDA for Q4 2024 was $283.6 million, contributing to full-year adjusted EBITDA of $1.014 billion, with an EBITDA margin of 24.4%, a year-over-year increase of 330 basis points [11][25] Business Line Data and Key Metrics Changes - Cryo Tank Solutions (CTS) orders in Q4 2024 were $138.5 million, a decrease of 11.9% compared to Q4 2023, with sales of $150 million down 26.4% [30][31] - Heat Transfer Systems (HTS) orders in Q4 2024 were $536 million, an increase of over 66% compared to Q4 2023, with sales of $288.8 million growing 14.2% [32] - Specialty Products orders in Q4 2024 were $509 million, an increase of 27.7% compared to Q4 2023, with sales of $317 million up 47.7% [33] - Repair Service and Leasing (RSL) orders were $369 million, an increase of 14.2% compared to Q4 2023, with sales of $351 million up 4% [35][36] Market Data and Key Metrics Changes - The company has approximately $24 billion in its commercial pipeline of opportunities not yet in backlog, with $2 billion of customer commitments not yet in backlog [19] - The global nitrogen rejection unit (NRU) market is expected to grow at a 6.3% CAGR from 2025 to 2033, indicating a growing opportunity for the company [15] - The LNG end market ended 2024 strong, with expectations for expanded commercial pipeline opportunities in regions like India, the Philippines, and Japan [19] Company Strategy and Development Direction - The company aims to achieve a net leverage ratio target of 2 to 2.5% by 2025, with no share repurchases or material cash acquisitions until that target is met [26] - The company is focusing on expanding its service arrangements and partnerships, such as with ExxonMobil and Cheniere, to enhance its market position [21] - The company is committed to optimizing its capital structure and has taken steps to mitigate impacts from tariffs and supply chain disruptions [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth across all four segments in 2025 compared to 2024, with specific expectations for RSL, HTS, CTS, and specialty segments [52] - The company anticipates that the first quarter of 2025 will be its lowest quarter of the year, typical for the company, with expectations for sequential growth in the second half of 2025 [41] - Management highlighted the importance of backlog conversion and the potential impact of foreign exchange on sales, estimating a 2% negative impact if current rates hold [39] Other Important Information - The company has seen strong demand in the data center market, with plans to hire a dedicated team member to focus on this sector [92] - The company reported record orders in the hydrogen market in Europe for 2024, indicating strong growth potential in this area [18] Q&A Session Summary Question: 2025 guidance and segment performance - Management reiterated that RSL is expected to grow high single-digit to 10%, with HTS and LNG also anticipated to contribute positively to growth in 2025 [49][50] Question: CTS performance and China exposure - Management noted a good start to 2025 for CTS, despite previous declines, and emphasized a diversified supply chain that is not heavily reliant on China [64][66] Question: Aftermarket growth outlook - Management expressed confidence in the growth outlook for the aftermarket segment, with strong visibility to service and repair projects for 2025 [78] Question: Data center market discussions - Management indicated consistent discussions with data center providers regarding their increasing energy needs and the company's plans to capitalize on this opportunity [90][92] Question: LNG orders and commitments - Management estimated that LNG orders constituted approximately 20 to 25% of total orders in 2024, with expectations for similar levels in 2025 [102] Question: Impact of inefficiencies on margins - Management clarified that inefficiencies related to the Teddy 2 facility impacted margins in 2024, but these costs are not expected to recur [110][111]

Sales and Customer Relationships - Sales to the top ten customers accounted for 26%, 25%, and 38% of consolidated sales in 2024, 2023, and 2022, respectively[45]. Employee and Labor Relations - As of January 31, 2025, the company had 11,928 employees, including 3,938 domestic and 7,990 international employees[49]. - The company is party to a five-year collective bargaining agreement with the IAM covering 387 employees, which expires on February 6, 2026[50]. - The company prioritizes employee safety and wellness, aiming for zero accidents through a dedicated Global Safety Council[54]. - The company invests in employee development programs, including the Emerging Leaders program and Engineering Fellows[56]. Financial Position and Debt - Total indebtedness as of December 31, 2024, was $3,757.5 million, with $277.5 million in letters of credit and bank guarantees outstanding[110]. - The company has a senior secured revolving credit facility with commitments of up to $1,250.0 million, of which $767.5 million was available for future borrowings as of December 31, 2024[112]. - The senior secured revolving credit facility due April 2029 requires compliance with certain financial ratios, and a breach could result in a default under debt agreements[116]. - If unable to repay or refinance the indebtedness, lenders could sell collateral securing the senior secured revolving credit facility, which includes substantially all domestic wholly-owned subsidiaries' assets[117]. - The Senior Secured Notes due 2030 and Senior Unsecured Notes due 2031 have change in control features that may adversely affect financial condition, requiring repurchase at 101% of principal plus accrued interest upon certain triggers[118]. Pension and Benefit Obligations - The projected benefit obligation under the Chart defined benefit pension plan was $39.5 million, with assets valued at $43.1 million as of December 31, 2024[104]. - The aggregate projected benefit obligation for defined benefit plans outside the U.S. was $39.2 million, with assets valued at $42.4 million, resulting in an overfunded status of $3.2 million[105]. Environmental and Regulatory Compliance - The company has ongoing environmental compliance and monitoring activities and believes it is in substantial compliance with all known regulations[59]. - The company is subject to potential liabilities under environmental, health, and safety laws, which could increase costs and affect profitability[93]. - The company is subject to regulations governing the export of products, with compliance being critical to avoid penalties[99]. Strategic Acquisitions and Investments - The company has made several acquisitions in the past three years, including the Howden Acquisition, which complements existing LNG and gas technologies[83]. - The company has a strategy of no material cash acquisitions until net leverage is below 2.5 times[85]. Risks and Uncertainties - The company faces risks related to data privacy and security, which could impact business operations[90]. - The company is exposed to risks related to third-party insolvency, which could adversely affect financial position and liquidity[92]. - Future capital expenditures may be required due to operations in hurricane-susceptible areas, potentially impacting sales and profitability[97]. Taxation - The effective tax rate may be impacted by changes in tax laws, with the Tax Cuts and Jobs Act reducing the federal corporate income tax rate from 35% to 21%[101]. Stock and Dividend Information - The company has issued 8,050,000 depositary shares of Series B Mandatory Convertible Preferred Stock, with future dividends dependent on business conditions and financial health[107]. - Common stock ranks junior to Mandatory Convertible Preferred Stock regarding dividends and liquidation preferences, meaning no dividends may be declared on common stock until preferred dividends are paid[120]. - No distribution of assets to common stockholders can occur until the liquidation preference of $1,000 per share plus accumulated dividends for Mandatory Convertible Preferred Stock is paid[121]. - The conversion of 6.75% Series B Mandatory Convertible Preferred Stock could dilute existing stockholders, with automatic conversion occurring on or around December 15, 2025[119].

Fourth Quarter and Full Year 2024 Earnings Call February 28, 2025 © 2025 Chart Industries, Inc. Confidential and Proprietary Forward Looking Statements (1/2) Certain statements made in this investor presentation are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning Chart's business plans, including statements regarding objectives, future orders, revenues, margins, earnings, performance or outlook, b ...

Chart Industries, Inc. (NYSE:GTLS) Q4 2024 Earnings Conference Call February 28, 2025 8:30 AM ET Company Participants Jill Evanko - Chief Executive Officer Joe Brinkman - Chief Financial Officer Conference Call Participants Saurabh Pant - Bank of America Ben Nolan - Stifel Scott Gruber - Citigroup Manav Gupta - UBS Marc Bianchi - TD Cowen Arun Jayaram - JPMorgan Chase Eric Stine - Craig-Hallum Rob Brown - Lake Street Capital Sherif Elmaghrabi - BTIG Doug Becker - Capital One Operator Good morning, and welco ...

Core Insights - Chart Industries reported strong growth in order volumes but fell short of earnings and revenue expectations for Q4 2024 [2][9] - Adjusted EPS was $2.66, missing the estimate of $3.10, while revenue reached $1.11 billion against an anticipated $1.16 billion [2][3] Financial Performance - Adjusted EPS increased by 32.3% year-over-year from $2.01 in Q4 2023 [3] - Revenue grew by 10.8% compared to Q4 2023, which was $1.01 billion [3] - Free Cash Flow surged by 140.5% to $261 million from $108.5 million in Q4 2023 [3] - Adjusted Operating Margin improved by 1 percentage point to 22% [3][8] Business Overview - Chart Industries focuses on solutions for the clean energy transition, including LNG, hydrogen, and carbon capture technologies [4] - The company aims to enhance market penetration and technological innovation to meet sustainable practices demands [4] Recent Initiatives - The company is expanding operations to meet surging demand in clean energy sectors and has acquired Howden to enhance capacity and innovation [5] - Strategic partnerships with companies like ExxonMobil and Bloom Energy are part of its clean energy solutions engagement [8] Quarterly Highlights - Order volume increased by 29.4% year-over-year to $1.55 billion, driven by major LNG projects [6] - Sales rose by 10.8%, excluding foreign exchange impacts, with strong performances in Specialty Products and Heat Transfer Systems [6] Segment Performance - The Heat Transfer Systems sector saw orders increase by 66.3% and sales growth of 14.2% [7] - Specialty Products experienced a sales surge of 47.7%, driven by growth in carbon capture and space exploration sectors [7] - Cryo Tank Solutions faced a 26.4% sales drop due to declining demand in EMEA [7] Future Outlook - Management projects 2025 sales between $4.65 billion and $4.85 billion, with adjusted EPS forecasted between $12.00 and $13.00 [10] - The company emphasizes operational improvements as a foundation for continued growth [10]