NYSE$GTLS

Chart Industries Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported record sales, record backlog, broad-based demand, and year-over-year improvement in margins.

Chart Industries reported strong first quarter 2023 results, including record sales of $537.9 million and record backlog of $3.9 billion. The company's adjusted EBITDA margin reached 19.0%, driven by price/cost improvements, Howden's contribution, full solution project offerings, and record RSL gross profit and operating profit. Increased sales outlook to $3.66B - $3.80B and associated adjusted EBITDA of $780M - $810M.

  • Record backlog for Chart of $3.9 billion.
  • Orders of $747.7 million, driven by broad-based demand.
  • Sales of $537.9 million, including record sales in Heat Transfer Systems and Repair, Service and Leasing.
  • Adjusted diluted EPS was $1.41.

Headline financials

Total Revenue

$538M

Previous: $354M+51.9%
EPS (adj)

$1.41

Previous: $0.65+116.9%
Capital Expenditures

-$31.4M

Previous: -$12.6M-149.2%
Free Cash Flow

-$46.4M

Previous: -$2.4M-1833.3%
Net Income

-$15M

Previous: $10.2M-247.1%
Operating Income

$36.2M

Previous: $20.1M+80.1%
Gross Profit

$152M

Previous: $83.7M+81.0%
Cash & Equivalents

$167M

Previous: $99.7M+67.4%
Total Assets

$9.25B

Previous: $3.09B+199.7%

Revenue & EPS history

Chart · Revenue · Quarterly

$538M

Q1 2023+51.9%vs Q1 2022
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Forward guidance

Increasing our 2023 sales outlook to $3.66 billion to $3.80 billion and associated adjusted EBITDA of $780 million to $810 million. Reiterating our 2024 adjusted EBITDA outlook of approximately $1.3 billion.

Tailwinds

  • Strong start to our synergy achievement
  • Continued demand in our commercial pipeline of the combined business
  • First quarter 2023 record backlog
  • Expect to book two to three additional Big LNG orders in 2023
  • Expect to see the normal second quarter sequential increase in both Chart legacy and Howden’s business

Headwinds

  • 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 relating to the outbreak and continued uncertainty associated with the coronavirus (COVID-19)
  • Conflict between Russia and Ukraine including potential energy shortages in Europe and elsewhere
  • 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

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+2.4%

Avg return

Earnings day

+3.9%

Avg return

5 days after

+4.5%

Avg return

30 days after

62%

42 / 68 earnings

Positive

+19.3%

Q2 2020

Best reaction

-24.7%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%-0.1%-0.5%
Q4 2025-0.0%-0.3%-0.3%
Q3 2025+0.0%-0.1%+2.2%
Q1 2025+12.2%+12.1%+16.2%
Q4 2024+4.6%-8.9%-19.2%
Q3 2024+17.2%+37.5%+60.1%
Q2 2024-24.7%-26.5%-20.4%
Q1 2024+9.0%+8.2%+8.3%
Q4 2023+8.6%+9.0%+25.3%
Q3 2023-17.2%-21.7%-8.8%
Q2 2023+14.9%+7.9%+4.7%
Q1 2023-1.3%-9.7%-14.4%
Q4 2022+3.2%+3.4%-14.8%
Q3 2022+9.2%+7.2%-33.7%
Q2 2022+5.9%+5.5%+9.0%
Q1 2022+8.5%+19.6%+18.8%
Q4 2021+18.3%+30.6%+70.2%
Q3 2021-6.2%-5.7%-0.1%
Q2 2021-7.0%-8.7%+13.2%
Q1 2021+12.7%+17.9%+9.1%
Q4 2020-13.4%-11.5%-4.8%
Q3 2020+6.1%+3.9%+19.8%
Q2 2020+19.3%+17.1%+31.3%
Q1 2020+16.6%+29.3%+28.8%
Q4 2019+12.0%+8.6%-63.4%
Q3 2019-1.2%+0.9%-3.5%
Q2 2019+10.2%+9.5%-11.7%
Q1 2019-4.1%-0.9%-10.4%
Q4 2018+6.9%+2.6%+10.2%
Q3 2018+3.4%+2.4%-1.4%
Q2 2018+13.1%+10.5%+13.2%
Q1 2018+2.4%-4.3%+6.2%
Q4 2017+18.1%+14.4%+16.2%
Q3 2017+6.8%+3.4%+10.7%
Q2 2017+1.9%-1.5%-3.0%
Q1 2017+0.6%-0.8%-1.2%
Q4 2016-5.9%-7.6%-14.2%
Q3 2016-5.5%-9.7%+12.8%
Q2 2016+12.5%+8.4%+15.3%
Q1 2016+4.6%
Q4 2015+16.1%
Q3 2015-20.5%
Q2 2015-12.9%
Q1 2015-12.3%
Q4 2014+8.4%
Q3 2014+0.6%
Q2 2014-10.3%
Q1 2014-7.7%
Q4 2013-6.5%
Q3 2013-16.5%
Q2 2013+14.9%
Q1 2013-0.1%
Q4 2012+18.4%
Q3 2012-8.6%
Q2 2012+6.9%
Q1 2012+12.2%
Q4 2011-0.3%
Q3 2011+2.7%
Q2 2011-9.7%
Q1 2010-5.8%
Q1 2011-0.7%
Q4 2008-3.5%
Q4 2010-3.5%
Q3 2009+14.3%
Q3 2010+14.3%
Q2 2010+0.2%
Q2 2009+0.2%
Q4 2009+0.2%

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