NYSE$GTLS

Chart Industries Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Chart Industries reported a strong third quarter in 2024, marked by increased sales, orders, and profitability, driven by growth across all segments and successful synergy realization.

Chart Industries reported a strong Q3 2024 with sales of $1.06 billion, a 22.4% increase year-over-year, and orders of $1.17 billion, up 5.4%. The company achieved a record gross profit margin of 34.1% and an adjusted operating margin of 22.2%. Adjusted EPS was $2.18, and free cash flow was $174.6 million. The company is reiterating its full year 2024 free cash flow outlook of approximately $400 million.

  • Sales increased by 22.4% to $1.06 billion, driven by growth in all segments.
  • Orders increased by 5.4% to $1.17 billion, with strong demand in Heat Transfer Systems and Repair, Service and Leasing.
  • Adjusted operating margin reached a record 22.2%, reflecting cost synergy achievements and operational performance.
  • Free cash flow was $174.6 million, contributing to a net leverage ratio decrease to 3.04.

Headline financials

Total Revenue

$1.06B

Previous: $898M+18.3%
EPS

$1.33

Previous: $1.28+3.9%
Total Orders

$1.17B

No prior period
Total Backlog

$4.54B

No prior period
Gross Profit Margin

34.1%

No prior period
Operating Income Margin

16.8%

No prior period
Adjusted Operating Income

$236M

No prior period
Adjusted Operating Income Margin

22.2%

No prior period
EBITDA

$248M

No prior period
Adjusted EBITDA

$261M

No prior period
Net Leverage Ratio

3.04

No prior period
Capital Expenditures

-$100M

Previous: -$118M+15.0%
Free Cash Flow

-$31.3M

Previous: -$115M+72.7%
Net Income

$69M

Previous: $3.4M+1929.4%
Operating Income

$179M

Previous: $104M+71.0%
Gross Profit

$363M

Previous: $276M+31.3%
Cash & Equivalents

$310M

Previous: $147M+110.9%
Total Assets

$9.5B

Previous: $9.02B+5.3%

Revenue & EPS history

Chart · Revenue · Quarterly

$1.06B

Q3 2024+18.3%vs Q3 2023
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Forward guidance

Chart Industries anticipates full year 2024 sales of approximately $4.20 billion to $4.30 billion, adjusted EBITDA of approximately $1.015 billion to $1.045 billion, and adjusted diluted EPS of approximately $9.00. FCF is anticipated to be approximately $400 million.

Tailwinds

  • Full year 2024 sales outlook is approximately $4.20 billion to $4.30 billion, an increase of 18.0% to 20.5% when compared with full year 2023, proforma.
  • Anticipate full year 2024 adjusted EBITDA of approximately $1.015 billion to $1.045 billion, approximately 24.2% to 24.3% EBITDA margin.
  • Full year 2024 adjusted diluted EPS is expected to be approximately $9.00 based on a tax rate of approximately 22% and a diluted share count of approximately 46.5 million shares for the full year 2024.
  • FCF is anticipated to be approximately $400 million.
  • 2025 sales are anticipated to be in the range of $4.65 billion to $4.85 billion with associated adjusted EBITDA between $1.175 billion and $1.225 billion.

Headwinds

  • Changes to the 2024 outlook are primarily due to timing of larger orders and their associated revenue recognition (timing and mix).
  • Foreign exchange impact.
  • Tax rate change.
  • Share count change.
  • Net leverage ratio target of 2.0 to 2.5

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 Q3 2024

Historical avgQ3 2024

+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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