Chart(GTLS) - 2024 Q4 - Annual Results

Financial Performance - Full year 2024 sales totaled $4.16 billion, reflecting a 17.5% organic growth, excluding foreign exchange impacts[9] - Adjusted operating income for full year 2024 was$ 876.3 million, resulting in a 21.1% adjusted operating income margin, an increase of 400 basis points compared to 2023[10] - Fourth quarter 2024 EBITDA was $283.6 million, representing a 25.6% margin, an increase of 190 basis points[4] - Q4 2024 sales reached$ 1,106.8 million, a 9% increase from $1,015.0 million in Q4 2023[37] - Full year 2024 sales totaled$ 4,160.3 million, up 24% from $3,352.5 million in 2023[37] - Gross profit for Q4 2024 was$ 372.3 million, compared to $334.3 million in Q4 2023, reflecting an increase of 11%[37] - Operating income for Q4 2024 was$ 188.3 million, a 20% increase from $156.0 million in Q4 2023[37] - Net income attributable to Chart Industries, Inc. for Q4 2024 was$ 79.6 million, up 60% from $49.8 million in Q4 2023[38] - Diluted earnings per share for Q4 2024 was$ 1.58, compared to $0.92 in Q4 2023, representing a 72% increase[38] - Adjusted earnings attributable to Chart Industries, Inc. for 2024 are projected to be$ 8.36 per share, reflecting strong operational performance[54] Orders and Backlog - Fourth quarter 2024 orders reached $1.55 billion, a 29.4% increase, contributing to a backlog of$ 4.85 billion[4] - Specialty Products orders in fourth quarter 2024 increased by 27.7% to $509.3 million, driven by significant growth in carbon capture and space exploration[21] - Heat Transfer Systems (HTS) orders in fourth quarter 2024 increased 66.3% to$ 536.1 million, marking a record for the segment[18] - Orders for consolidated products totaled $1,553.1 million in Q4 2024, a 28.5% increase from$ 1,209.1 million in Q4 2023[50] - The backlog as of December 31, 2024, was $4,845.1 million, up from$ 4,535.3 million as of September 30, 2024[50] Cash Flow and Assets - Full year 2024 free cash flow was $387.9 million, contributing to a net leverage ratio of 2.80 as of December 31, 2024[15] - Net cash provided by continuing operating activities reached$ 281.5 million in Q4 2024, compared to $128.7 million in Q4 2023, marking a 118.3% increase[41] - Cash and cash equivalents at the end of the period were$ 310.5 million, up from $201.1 million in 2023, a 54.4% increase[42] - Total current assets rose to$ 2,465.4 million as of December 31, 2024, compared to $2,214.4 million in 2023, reflecting an increase of 11.3%[46] - Inventories decreased to$ 490.5 million in 2024 from $576.3 million in 2023, a reduction of 14.9%[46] Debt and Investments - Long-term debt increased to$ 3,640.7 million in 2024 from $3,576.4 million in 2023, an increase of 1.8%[46] - The company reported a net cash used in investing activities of$ (19.7) million in Q4 2024, compared to a net cash provided of $164.8 million in Q4 2023[41] - Capital expenditures for the year ended December 31, 2024, were$ 120.8 million, down from $135.6 million in 2023[59] Strategic Focus and Outlook - The company anticipates 2025 sales in the range of$ 4.65 billion to $4.85 billion, with adjusted EBITDA between$ 1.175 billion and $1.225 billion[25] - The company has over$ 2.0 billion in customer commitments not yet booked into backlog, supporting a strong demand outlook for 2025[12] - The company is focused on integrating the Howden acquisition to achieve anticipated revenue and earnings benefits[29] - Future growth may be impacted by supply chain challenges and geopolitical risks, including conflicts in the Middle East and Ukraine[29] - The company plans to discuss its Q4 2024 financial results in a conference call scheduled for February 28, 2025[33] Operational Efficiency - Full year 2024 gross margin improved to 33.4%, reflecting the positive impact of Chart Business Excellence initiatives[9] - Gross profit margin improved to 33.6% in Q4 2024, compared to 32.9% in Q4 2023[48] - Adjusted operating income (non-GAAP) for Q4 2024 was $243.4 million, compared to$ 213.4 million in Q4 2023, reflecting a 14.1% increase[64] - The operating income margin for Q4 2024 was 17.0%, up from 15.4% in Q4 2023[61] - Corporate operating loss decreased to $(45.0) million in Q4 2024 from$ (39.3) million in Q4 2023, indicating improved cost management[48]