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Chart Industries, Inc. (GTLS)
:GTLS
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Chart Industries
(NYSE:GTLS)
73Outperform
Positive Factors
Guidance
GTLS was the lone company to reiterate consolidated FY25 guidance in 1Q—a testament to the value its defensive, diverse portfolio offers at this point in the cycle.
Order Growth
Management noted that it expects to book over $1 billion of LNG orders in the next 12 months.
Negative Factors
Backlog Scheduling
There is concern about the downside risk to guidance due to a 4Q miss and backlog scheduling update.
Tariff Impacts
Expect tariff impacts of ~$50MM all prior to mitigation.
Chart Industries (GTLS) vs. S&P 500 (SPY)
Market Cap
$7.85B
Dividend YieldN/A
Average Volume (3M)793.82K
Price to Earnings (P/E)34.7
Beta (1Y)2.24
Revenue Growth11.65%
EPS Growth340.94%
CountryUS
Employees11,928
SectorIndustrials
Sector Strength91
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.86
Shares Outstanding45,699,350
10 Day Avg. Volume584,135
30 Day Avg. Volume793,815
Financial Highlights & Ratios
PEG Ratio1.35
Price to Book (P/B)2.31
Price to Sales (P/S)0.00
P/FCF Ratio15.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$207.85Price Target Upside20.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
Chart Industries Business Overview & Revenue Model
Company DescriptionChart Industries, Inc. manufactures and sells engineered equipment for the energy and industrial gas industries worldwide. The company operates through four segments: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products, and Repair, Service & Leasing. It provides bulk and packaged gas cryogenic solutions for the storage, distribution, vaporization, and application of industrial gases; cryogenic trailers, ISO containers, bulk storage tanks, loading facilities, and regasification equipment for delivering liquefied natural gas (LNG) into virtual pipeline applications; and large vacuum insulated storage tanks as equipment for purchasers of standard liquefaction plants. The company also offers process technology, liquefaction train, and critical equipment for the LNG, including small to mid-scale facilities, floating LNG applications, and large base-load export facilities; brazed aluminum, Core-in-Kettle, heat exchangers, cold boxes, air cooled heat exchangers, pressure vessels, and pipe works; and air cooled heat exchangers and axial cooling fans for the power, heating, ventilation, air conditioning, and refining applications. In addition, it provides highly engineered equipment that is used in specialty end-market applications for hydrogen, LNG, biogas, CO2 Capture, food and beverage, aerospace, lasers, cannabis, and water treatment; and cryogenic components, including vacuum insulated pipes, specialty liquid nitrogen, end-use equipment, and cryogenic flow meters. Additionally, it provides extended warranties, plant start-up, parts, 24/7 support, monitoring and process optimization, repairing, maintenance, and upgrading services; plant services on equipment, including brazed aluminum heat exchangers, cold boxes, etc.; and service locations that undertake installation, service, repair, maintenance, and refurbishment of cryogenic products, as well as equipment leasing solutions. The company was founded in 1859 and is based in Ball Ground, Georgia.
How the Company Makes MoneyChart Industries generates revenue primarily through the sale of its cryogenic and gas processing equipment and systems. Key revenue streams include the production and sale of cryogenic storage tanks, heat exchangers, liquefaction systems, and related components for the LNG, hydrogen, and industrial gas markets. The company benefits from long-term contracts with major energy and industrial gas companies, providing equipment and services essential for the storage and processing of gases. Additionally, Chart Industries engages in strategic partnerships and acquisitions to enhance its product offerings and expand its market reach, contributing to its earnings. Service and aftermarket support, such as maintenance and repair services for its equipment, also provide a recurring revenue stream for the company.
Chart Industries Financial Statement Overview
Summary
Chart Industries demonstrates commendable financial performance with significant revenue and profit growth. The company shows robust cash flow improvements and effective cost management, although there is room for operational efficiency enhancements and prudent debt management.Income Statement
Chart Industries demonstrates strong revenue growth with a significant increase from $1.61 billion in 2022 to $4.21 billion in TTM (Trailing-Twelve-Months). The gross profit margin is robust at approximately 32.8% in TTM, indicating effective cost management. Net profit margin improved to 6.2% in TTM, reflecting enhanced profitability. However, monitoring the stability of EBIT and EBITDA margins, which are at 16.4% and 21.4% respectively, is essential as they suggest room for operational efficiency improvements.85
Very Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of 1.24 in TTM, indicating a balanced leverage position. The return on equity is fairly strong at 8.7%, showcasing decent profitability relative to shareholder equity. The equity ratio stands at 32.2%, suggesting a reasonable level of financial stability. Continued focus on managing debt levels will be beneficial to maintain financial health.76
Positive
Cash Flow
Chart Industries shows a commendable free cash flow growth rate, with an increase to $443.3 million in TTM from $316 million in 2023. The operating cash flow to net income ratio is solid at 2.06, highlighting efficient cash generation from operations. The free cash flow to net income ratio also improved, indicating a strong cash position relative to profitability. Sustaining these trends will be crucial for financial flexibility.79
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.21B | 4.16B | 3.35B | 1.61B | 1.32B | 1.18B | Gross Profit |
| 1.38B | 1.39B | 1.04B | 407.40M | 324.20M | 332.10M | EBIT |
| 691.20M | 647.50M | 390.70M | 151.50M | 88.50M | 108.20M | EBITDA |
| 902.60M | 928.10M | 578.20M | 212.50M | 173.70M | 192.40M | Net Income Common Stockholders |
| 256.70M | 218.50M | 47.30M | 83.00M | 59.10M | 82.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 296.20M | 308.60M | 201.10M | 663.60M | 122.20M | 125.10M | Total Assets |
| 9.31B | 9.12B | 9.10B | 5.90B | 3.04B | 2.59B | Total Debt |
| 3.73B | 3.64B | 3.90B | 2.30B | 600.80M | 221.60M | Net Debt |
| 3.43B | 3.33B | 3.70B | 1.64B | 478.60M | 96.50M | Total Liabilities |
| 6.15B | 6.13B | 6.16B | 3.22B | 1.42B | 995.20M | Stockholders Equity |
| 3.00B | 2.83B | 2.79B | 2.68B | 1.63B | 1.59B |
| Cash Flow | Free Cash Flow | ||||
| 443.30M | 382.20M | 31.60M | 6.60M | -74.00M | 134.80M | Operating Cash Flow |
| 538.10M | 503.00M | 167.20M | 80.80M | -21.30M | 172.70M | Investing Cash Flow |
| -110.60M | -141.30M | -3.99B | -101.60M | -361.20M | 185.00M | Financing Cash Flow |
| -321.90M | -243.70M | 1.41B | 2.50B | 381.90M | -363.40M |
Chart Industries Technical Analysis
Positive
171.86
Price Trends
144.23
Positive
170.26
Positive
155.64
Positive
Market Momentum
8.98
Negative
66.67
Neutral
82.63
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTLS, the sentiment is Positive. The current price of 171.86 is above the 20-day moving average (MA) of 149.32, above the 50-day MA of 144.23, and above the 200-day MA of 155.64, indicating a bullish trend. The MACD of 8.98 indicates Negative momentum. The RSI at 66.67 is Neutral, neither overbought nor oversold. The STOCH value of 82.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GTLS.
Chart Industries Risk Analysis
Chart Industries disclosed 31 risk factors in its most recent earnings report. Chart Industries reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Chart Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $7.29B | 36.07 | 15.24% | ― | 10.78% | 30.05% | |
78 Outperform | $8.15B | 27.95 | 17.61% | 0.70% | 3.89% | 8.17% | |
73 Outperform | $7.85B | 34.68 | 9.07% | ― | 11.65% | 340.94% | |
70 Outperform | $6.75B | 24.21 | 14.00% | 1.63% | 4.23% | 20.40% | |
68 Neutral | $9.38B | 40.29 | 3.69% | 0.99% | -10.19% | ― | |
67 Neutral | $7.65B | 22.54 | 14.29% | ― | 8.07% | 58.67% | |
64 Neutral | $4.43B | 12.01 | 5.16% | 249.23% | 4.03% | -11.73% |
* Industrials Sector Average
Performance Comparison
GTLS
Chart Industries
171.86
15.84
10.15%
FLS
Flowserve
51.62
2.52
5.13%
GNRC
Generac Holdings
129.44
-21.78
-14.40%
RRX
Regal Rexnord
141.43
-17.16
-10.82%
SPXC
SPX
156.02
12.24
8.51%
WTS
Watts Water Technologies
244.11
28.63
13.29%
Chart Industries Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 27.32%|
Next Earnings Date:Jul 25, 2025
Earnings Call Sentiment Positive
Chart Industries reported strong order and sales growth with consistent gross margins and robust demand across diverse end markets. However, challenges include negative free cash flow, tariff impacts, and declines in specific segments like Cryo Tank Solutions and Heat Transfer Systems.Q1-2025 Updates
Positive Updates
Strong Order Growth
Orders increased by 17.3% year-over-year to $1.32 billion, driven by notable projects like Woodside Louisiana LNG Phase 2.
Organic Sales Growth
Sales grew organically by 6.6% to $1 billion, with three out of four segments showing increased sales.
Gross Margin Consistency
The company achieved a gross margin of 33.9%, marking the fourth consecutive quarter above 33%.
Robust Adjusted EBITDA
Adjusted EBITDA was $231.1 million, representing 23.1% of sales and an increase of 80 basis points from the previous year.
EPS Growth
Adjusted diluted earnings per share increased by 38.8% to $1.86.
Diverse End Market Strength
Strong order activity in space exploration, HLNG vehicle tanks, nuclear, and marine sectors, exceeding full-year 2024 orders in Q1 2025.
Positive Demand Trends
Positive demand outlook across most business sectors, including data centers, AI, and LNG.
Data Center Market Expansion
Data center customer pipeline expanded to over $400 million in opportunities, showing strong growth potential.
Negative Updates
Negative Free Cash Flow
Free cash flow was negative $80.1 million, although it represented an improvement from the previous year.
Industrial Gas and Hydrogen Market Concerns
The company is watching uncertainty in the industrial gas and hydrogen markets, particularly in the Americas.
Tariff Impact
Anticipated gross impact from tariffs estimated at approximately $50 million annually, though mitigating efforts are in place.
Cryo Tank Solutions Segment Decline
CTS orders and sales both declined by 4.2% and 4.1%, respectively, compared to the first quarter of 2024.
Heat Transfer Systems Order Decline
HTS orders declined by 7% year-over-year, although future order activity remains promising.
Company Guidance
In the first quarter of 2025, Chart Industries reported several positive financial metrics. Orders increased by 17.3% year-over-year to $1.32 billion, with significant contributions from the Woodside Louisiana LNG Phase 2 project. Sales reached $1 billion, reflecting a 6.6% organic growth, and the gross margin was 33.9%, marking the fourth consecutive quarter above 33%. The company achieved a 190-basis point expansion in adjusted operating income margin, leading to an adjusted EBITDA of $231.1 million, representing 23.1% of sales. Adjusted diluted earnings per share rose by 38.8% to $1.86. Despite a negative free cash flow of $80.1 million, there was an improvement of $55.6 million compared to the same period in 2024. The net leverage ratio stood at 2.91, with a target of 2 to 2.5 expected to be achieved within the year. Chart Industries reiterated its full-year guidance, supported by a robust backlog and strong aftermarket service repair business, which constitutes approximately a third of their operations.Chart Industries Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Chart Industries Forms Co-Investment Agreement with MSD Partners
Neutral
May 5, 2025
Chart Industries, Inc. announced a Co-Investment Agreement with MSD Partners, L.P. regarding the sale of HTEC shares previously owned by ISQ HTEC HoldCo Limited. The agreement includes a Put Option for MSD to sell shares back to Chart Industries under specific conditions, and a Call Option for Chart to repurchase shares from MSD, impacting the company’s strategic positioning in the hydrogen technology sector.
Spark’s Take on GTLS Stock
According to Spark, TipRanks’ AI Analyst, GTLS is a Outperform.
Chart Industries exhibits strong financial performance, highlighted by significant revenue and cash flow growth. While technical analysis offers mixed signals, the company shows resilience with consistent order and sales growth. However, valuation concerns due to a high P/E ratio and absence of a dividend yield, along with the challenges noted in the earnings call, temper the overall outlook.
To see Spark’s full report on GTLS stock, click here.
Executive/Board Changes
Chart Industries Announces Retirement of Chief Accounting Officer
Neutral
May 5, 2025
On May 2, 2025, Chart Industries announced that its Chief Accounting Officer, Ms. Stephanie W. Everett, will retire on May 31, 2025. She will be succeeded by Mr. Mark Durham, the current Senior Vice President of Finance, who has been with the company since May 2023. Mr. Durham’s promotion includes an increase in his base salary and adjustments to his incentive targets for 2025, reflecting his expanded role and responsibilities.
Spark’s Take on GTLS Stock
According to Spark, TipRanks’ AI Analyst, GTLS is a Outperform.
Chart Industries exhibits strong financial performance, highlighted by significant revenue and cash flow growth. While technical analysis offers mixed signals, the company shows resilience with consistent order and sales growth. However, valuation concerns due to a high P/E ratio and absence of a dividend yield, along with the challenges noted in the earnings call, temper the overall outlook.
To see Spark’s full report on GTLS stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.