Chart Industries (GTLS) Reports Strong Q3 Financial Results

By Bobby Samwell • Friday, November 01 10:26 • Permanent Link

Chart Industries, Inc. (NYSE: GTLS) has reported its financial results for the third quarter ended September 30, 2024. The company's orders increased by 5.4% to $1.17 billion, while sales saw a substantial 22.4% increase to $1.06 billion compared to the third quarter of 2023. Reported gross margin also showed significant improvement, increasing by 350 basis points to 34.1%.

The company's reported operating income for the third quarter of 2024 was $178.5 million, representing 16.8% of sales. However, when adjusted for unusual items primarily related to the Howden integration and headcount restructuring, the operating margin rose to 22.2%, an increase of 450 basis points.

Furthermore, reported EBITDA for the quarter was $248.4 million, representing 23.4% of sales, marking a notable increase of 53.9%. Adjusted EBITDA, when accounting for the mentioned items, stood at $260.7 million, representing 24.5% of sales – a 39.3% increase.

The reported diluted earnings per share (EPS) for the quarter was $1.34. Adjusted diluted EPS was $2.18, which would have been $2.48 when considering the negative $9.3 million foreign exchange impact and a higher than originally anticipated tax rate driven by geographic mix.

Chart Industries' net cash from operating activities for the third quarter of 2024 was $200.7 million, resulting in $174.6 million of free cash flow. The company reiterated its anticipated approximately $400 million full-year 2024 free cash flow outlook.

The company's sales outlook for the full year 2024 is approximately $4.20 billion to $4.30 billion, reflecting an 18.0% to 20.5% increase over the previous year. Likewise, the adjusted EBITDA for the full year 2024 is anticipated to be approximately $1.015 billion to $1.045 billion, with an expected EBITDA margin of approximately 24.2% to 24.3%.

Looking ahead to 2025, Chart Industries anticipates sales in the range of $4.65 billion to $4.85 billion, along with an adjusted EBITDA between $1.175 billion and $1.225 billion. The company also expects to end 2025 with approximately $3 billion of net debt, based on full-year 2025 free cash flow generation of approximately $550 to $600 million.

Today the company's shares have moved 10.0% to a price of $132.8. Check out the company's full 8-K submission here.

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