Chart Industries Reports Fourth Quarter and Full Year 2024 Financial Results
Chart Industries (NYSE: GTLS) reported strong Q4 and full year 2024 results, with Q4 orders reaching $1.55 billion, up 29.4% year-over-year, including the Woodside Louisiana LNG phase one order. Q4 sales grew 10.8% to $1.11 billion, with adjusted EBITDA margin expanding 190bps to 25.6%.
Full year 2024 performance showed orders of $5.01 billion (up 13.2%) and sales of $4.16 billion (up 17.5%). The company achieved significant margin improvements, with adjusted operating margin increasing 400bps to 21.1%. Free cash flow reached $387.9 million for the year.
Notable achievements include reaching a 2.80 net leverage ratio, signing key partnerships with ExxonMobil and Bloom Energy, and strong performance across segments. The company maintains its 2025 outlook with expected sales of $4.65-4.85 billion and adjusted EBITDA of $1.175-1.225 billion.
Chart Industries (NYSE: GTLS) ha riportato risultati solidi per il quarto trimestre e per l'intero anno 2024, con ordini nel Q4 che hanno raggiunto 1,55 miliardi di dollari, in aumento del 29,4% rispetto all'anno precedente, inclusi gli ordini per la fase uno del LNG di Woodside Louisiana. Le vendite del Q4 sono cresciute del 10,8% fino a 1,11 miliardi di dollari, con un margine EBITDA rettificato in espansione di 190 punti base, raggiungendo il 25,6%.
Le performance dell'intero anno 2024 hanno mostrato ordini per 5,01 miliardi di dollari (in aumento del 13,2%) e vendite per 4,16 miliardi di dollari (in aumento del 17,5%). L'azienda ha raggiunto miglioramenti significativi nei margini, con un margine operativo rettificato in aumento di 400 punti base, pari al 21,1%. Il flusso di cassa libero ha raggiunto 387,9 milioni di dollari per l'anno.
Tra i risultati notevoli ci sono il raggiungimento di un rapporto di leva finanziaria netto di 2,80, la firma di importanti partnership con ExxonMobil e Bloom Energy, e una forte performance in tutti i segmenti. L'azienda mantiene le previsioni per il 2025 con vendite attese tra 4,65 e 4,85 miliardi di dollari e un EBITDA rettificato tra 1,175 e 1,225 miliardi di dollari.
Chart Industries (NYSE: GTLS) reportó resultados sólidos para el cuarto trimestre y el año completo 2024, con pedidos en el Q4 que alcanzaron 1.55 mil millones de dólares, un aumento del 29.4% interanual, incluyendo el pedido de la fase uno de LNG de Woodside Louisiana. Las ventas del Q4 crecieron un 10.8% hasta 1.11 mil millones de dólares, con un margen EBITDA ajustado que se expandió 190 puntos base, alcanzando el 25.6%.
El rendimiento del año completo 2024 mostró pedidos de 5.01 mil millones de dólares (un aumento del 13.2%) y ventas de 4.16 mil millones de dólares (un aumento del 17.5%). La compañía logró mejoras significativas en los márgenes, con un margen operativo ajustado que aumentó 400 puntos base, alcanzando el 21.1%. El flujo de caja libre alcanzó los 387.9 millones de dólares para el año.
Logros notables incluyen alcanzar una relación de apalancamiento neto de 2.80, firmar asociaciones clave con ExxonMobil y Bloom Energy, y un sólido desempeño en todos los segmentos. La compañía mantiene su perspectiva para 2025 con ventas esperadas de entre 4.65 y 4.85 mil millones de dólares y un EBITDA ajustado de entre 1.175 y 1.225 mil millones de dólares.
차트 인더스트리(뉴욕증권거래소: GTLS)는 2024년 4분기 및 연간 실적이 강력하다고 보고했으며, 4분기 주문은 15억 5천만 달러에 달해 전년 대비 29.4% 증가했으며, 우드사이드 루이지애나 LNG 1단계 주문이 포함되었습니다. 4분기 매출은 10.8% 증가하여 11억 1천만 달러에 도달했으며, 조정된 EBITDA 마진은 190bp 확대되어 25.6%에 이릅니다.
2024년 전체 실적은 50억 1천만 달러의 주문(13.2% 증가)과 41억 6천만 달러의 매출(17.5% 증가)을 보였습니다. 회사는 조정된 운영 마진이 400bp 증가하여 21.1%에 도달하는 등 상당한 마진 개선을 달성했습니다. 연간 자유 현금 흐름은 3억 8,790만 달러에 달했습니다.
주목할 만한 성과로는 2.80의 순 레버리지 비율 달성, 엑손모빌 및 블룸 에너지와의 주요 파트너십 체결, 모든 부문에서의 강력한 성과가 포함됩니다. 회사는 2025년 매출을 46억 5천만 달러에서 48억 5천만 달러로 예상하고 조정된 EBITDA를 11억 7,500만 달러에서 12억 2,500만 달러로 예상하며 전망을 유지하고 있습니다.
Chart Industries (NYSE: GTLS) a annoncé de solides résultats pour le quatrième trimestre et l'année complète 2024, avec des commandes au Q4 atteignant 1,55 milliard de dollars, en hausse de 29,4 % par rapport à l'année précédente, y compris la commande de la phase un du LNG de Woodside Louisiana. Les ventes du Q4 ont augmenté de 10,8 % pour atteindre 1,11 milliard de dollars, avec une marge EBITDA ajustée en hausse de 190 points de base, atteignant 25,6 %.
Les performances de l'année complète 2024 ont montré des commandes de 5,01 milliards de dollars (en hausse de 13,2 %) et des ventes de 4,16 milliards de dollars (en hausse de 17,5 %). L'entreprise a réalisé des améliorations significatives des marges, la marge opérationnelle ajustée ayant augmenté de 400 points de base pour atteindre 21,1 %. Le flux de trésorerie disponible a atteint 387,9 millions de dollars pour l'année.
Les réalisations notables comprennent l'atteinte d'un ratio d'endettement net de 2,80, la signature de partenariats clés avec ExxonMobil et Bloom Energy, et une forte performance dans tous les segments. L'entreprise maintient ses prévisions pour 2025 avec des ventes attendues de 4,65 à 4,85 milliards de dollars et un EBITDA ajusté de 1,175 à 1,225 milliard de dollars.
Chart Industries (NYSE: GTLS) berichtete von starken Ergebnissen für das vierte Quartal und das gesamte Jahr 2024, wobei die Bestellungen im Q4 1,55 Milliarden Dollar erreichten, was einem Anstieg von 29,4% im Vergleich zum Vorjahr entspricht, einschließlich der Bestellung für die erste Phase des LNG von Woodside Louisiana. Die Verkäufe im Q4 stiegen um 10,8% auf 1,11 Milliarden Dollar, während die bereinigte EBITDA-Marge um 190 Basispunkte auf 25,6% anstieg.
Die Ergebnisse des gesamten Jahres 2024 zeigten Bestellungen von 5,01 Milliarden Dollar (ein Anstieg von 13,2%) und Verkäufe von 4,16 Milliarden Dollar (ein Anstieg von 17,5%). Das Unternehmen erzielte signifikante Margenverbesserungen, wobei die bereinigte operative Marge um 400 Basispunkte auf 21,1% anstieg. Der freie Cashflow erreichte 387,9 Millionen Dollar für das Jahr.
Bemerkenswerte Erfolge umfassen das Erreichen eines Netto-Verschuldungsgrads von 2,80, das Unterzeichnen wichtiger Partnerschaften mit ExxonMobil und Bloom Energy sowie starke Leistungen in allen Segmenten. Das Unternehmen hält an seinem Ausblick für 2025 fest, mit erwarteten Verkäufen von 4,65 bis 4,85 Milliarden Dollar und bereinigtem EBITDA von 1,175 bis 1,225 Milliarden Dollar.
- Record Q4 orders of $1.55B, up 29.4% YoY
- Full year sales grew 17.5% to $4.16B
- Adjusted operating margin improved 400bps to 21.1%
- Strong free cash flow generation of $387.9M in 2024
- Net leverage ratio improved to 2.80
- Strategic partnerships secured with ExxonMobil and Bloom Energy
- Q4 sales faced $17M negative impact from foreign exchange
- CTS segment orders decreased 11.9% in Q4
- Specialty Products gross margin declined 120bps in Q4
- Anticipated 2% negative FX impact on 2025 sales
Insights
Chart Industries delivered robust Q4 results that capped off a strong 2024, marked by significant margin expansion and accelerating order momentum. The company's Q4 orders surged 29.4% to
The 400 basis point expansion in full-year adjusted operating margin to
Segment performance reveals divergent trends. Heat Transfer Systems posted record results across all metrics, with orders up
The company's
Chart's Q4 results confirm its strengthening position at the intersection of traditional energy infrastructure and energy transition technologies. The Woodside Louisiana LNG order represents a significant validation of Chart's IPSMR® process technology in a competitive market and highlights accelerating momentum in U.S. LNG export capacity expansion.
The company's strategic positioning across multiple energy vectors is evident in their order book. Carbon capture orders more than doubled year-over-year, with notable partnerships with GCC for cement plant decarbonization and Reliant for power station applications using Chart's Cryogenic Carbon Capture™ technology. The Bloom Energy partnership for fuel cells with carbon capture capability addresses the critical need for low-carbon dispatchable power, particularly for data centers.
The global master agreement with ExxonMobil establishes Chart as a preferred supplier for LNG equipment and technology across ExxonMobil's global project portfolio, providing potential long-term recurring business. Their support of Cheniere's ahead-of-schedule Corpus Christi Stage 3 project demonstrates the operational advantages of their technology in accelerating project timelines.
The
Recent statements from India, Japan, and the Philippines regarding U.S. LNG imports suggest sustained demand for Chart's LNG infrastructure solutions. Meanwhile, Chart's diversification into hydrogen, helium, water treatment, and space exploration markets (all growing
ATLANTA, Feb. 28, 2025 (GLOBE NEWSWIRE) -- Chart Industries, Inc. (NYSE: GTLS) today reported results for the fourth quarter and full year ended December 31, 2024. Results shown are from continuing operations. When referring to any comparative period, all metrics are pro forma for continuing operations of the combined business of Chart and Howden (pro forma excludes the following businesses that were divested in 2023: Roots™, American Fan, Cofimco and Cryo Diffusion). The Howden acquisition closed on March 17, 2023.
Fourth quarter 2024 highlights compared to fourth quarter 2023, pro forma:
- Orders of
$1.55 billion , increased29.4% and included phase one Woodside Louisiana LNG order - Sales of
$1.11 billion , increased10.8% excluding foreign exchange (“FX”) - Reported operating income of
$188.3 million (17.0% of sales) or$243.4 million when adjusted for unusual items primarily related to integration and restructuring, resulted in22.0% adjusted operating income margin, an increase of 90 bps - EBITDA of
$260.7 million (23.6% of sales) was$283.6 million (25.6% of sales) when adjusting for the items described above, an increase of 190 bps - Reported net cash from operating activities of
$281.5 million less capital expenditures of$20.5 million resulted in$261.0 million of free cash flow (“FCF”)
Full year 2024 highlights compared to full year 2023, pro forma:
- Orders of
$5.01 billion , increased13.2% - Sales of
$4.16 billion , increased17.5% excluding FX - Reported operating income of
$647.5 million (15.6% of sales) or$876.3 million when adjusted for unusual items primarily related to integration and headcount restructuring, resulted in21.1% adjusted operating income margin, an increase of 400 bps - EBITDA of
$914.0 million (22.0% of sales) was$1,013.8 million (24.4% of sales) when adjusted for the above-mentioned items, an increase of 330 bps - Reported net cash from operating activities of
$508.7 million less capital expenditures of$120.8 million resulted in$387.9 million of FCF
“Increasing demand for energy globally and a renewed focus on U.S. LNG contributed to record orders in the fourth quarter 2024 of
Summary of fourth quarter and full year 2024.
Fourth quarter 2024 orders of
Sales of
Fourth quarter 2024 gross margin of
Fourth quarter reported diluted earnings per share (“EPS”) was
Full year 2024 orders of
Full year gross margin of
Our expectation is to continue to grow our aftermarket business, contributing to our anticipated further improvement in operating margin. In 2024, assets under management increased by
Full year 2024 reported operating income of
Continuing to build partnerships that support our growth outlook.
With over
- We signed a global master goods and services agreement with ExxonMobil (NYSE: XOM) to set the terms, conditions and commercial framework for us to provide LNG equipment, technology and services for ExxonMobil’s global portfolio of projects.
- Bloom Energy (NYSE: BE), a global leader in fuel cell electricity generation recently announced our carbon capture partnership that will use natural gas and fuel cells to generate near zero-carbon, always-on power. Together, we intend to offer a solution to customers, like data centers and manufacturers, who are seeking power solutions that can be deployed rapidly without compromising reliability or emission goals. In conjunction with this partnership, Bloom Energy Company placed an order in fourth quarter 2024 for a CO2 capture plant at their facility.
- We are proud to partner with GCC on their Front-End Engineering Design (FEED) study phase utilizing our Cryogenic Carbon Capture™ Technology at the GCC Odessa cement plant. The captured carbon will be utilized in enhanced oil recovery operations in the Permian Basin.
- Chart has entered a partnership with Reliant Carbon Capture & Storage to implement post combustion CO2 capture facilities at multiple power stations using Chart’s Cryogenic Carbon Capture solutions.
LNG demand is strong.
Our LNG end market ended 2024 with strength, with the order for Woodside Louisiana LNG phase one booked in the fourth quarter. We are seeing an expanded commercial pipeline of global opportunities, and additional projects that are now looking to move ahead given the increasing demand for natural gas. India, Japan, and the Philippines have recently shared their intent to import U.S. LNG, supported by the current U.S. Administration’s support of growing American energy production.
We are pleased to support Cheniere Energy, Inc. (“Cheniere” (NYSE: LNG)) and Bechtel Energy, Inc. on the Corpus Christi Stage 3 Liquefaction Project (“CCL Stage 3”) with our IPSMR® process technology for LNG liquefaction and associated equipment. Cheniere’s first cargo out of CCL Stage 3 was meaningfully ahead of schedule. We are also supporting Cheniere over the coming years with our recently executed Master Services Agreement.
FCF of
Our 2017 seven-year convertible notes and warrants settled in full in the fourth quarter of 2024 via paying the principal in cash and delivery of shares for the settlement of premium.
Fourth quarter and full year 2024 segment results (as compared to the fourth quarter and full year 2023, pro forma continuing operations unless noted otherwise).
Cryo Tank Solutions (“CTS”): Fourth quarter 2024 CTS orders of
Full year 2024 CTS orders of
Heat Transfer Systems: Fourth quarter 2024 HTS orders, sales, gross profit, gross margin, operating income, operating income margin and EBITDA and EBITDA margin were all records for the segment for any quarter in our history. Fourth quarter 2024 HTS orders of
Full year 2024 HTS orders of
Specialty Products: Fourth quarter 2024 Specialty Products orders of
Full year 2024 Specialty Products orders of
Repair, Service and Leasing: Fourth quarter 2024 RSL orders of
Full year RSL orders, sales, gross profit, gross margin, operating income, operating income margin and EBITDA and EBITDA margin were all records for the segment for the full year 2024. Full year 2024 RSL orders of
Reiterate our 2025 outlook.
We reiterate our prior 2025 outlook. Our 2025 sales are anticipated to be in the range of
Our strong December 31, 2024 backlog, including the Woodside Louisiana LNG phase one order that was received in December 2024 as well as a large
FORWARD-LOOKING STATEMENTS
Certain statements made in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the Company’s business plans, including statements regarding objectives, future orders, revenues, margins, earnings, performance or outlook, liquidity and cash flow, capital expenditures, supply chain challenges, inflationary pressures including material cost and pricing increases, business trends, clean energy market opportunities, and governmental initiatives, including executive orders and changes to trade policy and other information that is not historical in nature. Forward-looking statements may be identified by terminology such as "may," "will," "should," "could," "expects," "anticipates," "believes," "projects," "forecasts," “outlook,” “guidance,” "continue," “target,” or the negative of such terms or comparable terminology.
Forward-looking statements contained in this press release or in other statements made by the Company are made based on management's expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors relating to the Company's operations and business environment, all of which are difficult to predict and many of which are beyond the Company's control, that could cause the Company's actual results to differ materially from those matters expressed or implied by forward-looking statements. Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements include: the Company’s ability to continually successfully integrate the Howden acquisition and other recent acquisitions and achieve the anticipated revenue, earnings, accretion and other benefits from these acquisitions; 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 regional conflicts and unrest, including the recent turmoil in the Middle East and the conflict between Russia and Ukraine including potential energy shortages in Europe and elsewhere, the unknown impact of recent or threatened changes to U.S. governmental trade policies, including tariffs on China, certain products, and potentially other countries, as well as the possible impact of any retaliatory tariffs on products from the United States, and the other factors discussed in Item 1A (Risk Factors) in the Company’s most recent Annual Report on Form 10-K filed with the SEC, which should be reviewed carefully. The Company undertakes no obligation to update or revise any forward-looking statement.
USE OF NON-GAAP FINANCIAL INFORMATION
This press release contains non-GAAP financial information, including adjusted net income, adjusted operating income and margin, adjusted earnings per diluted share, net income attributable to Chart Industries, Inc. adjusted, free cash flow and EBITDA and adjusted EBITDA. For additional information regarding the Company's use of non-GAAP financial information, as well as reconciliations of non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States ("GAAP"), please see the reconciliation pages at the end of this news release.
The Company believes these non-GAAP measures are of interest to investors and facilitate useful period-to-period comparisons of the Company’s financial results, and this information is used by the Company in evaluating internal performance. With respect to the Company’s 2025 full year earnings outlook, the Company is not able to provide a reconciliation of the adjusted EBITDA, FCF or adjusted diluted EPS because certain items may have not yet occurred or are out of the Company’s control and/or cannot be reasonably predicted.
CONFERENCE CALL
As previously announced, the Company has scheduled a conference call for Friday, February 28, 2025 at 8:30 a.m. ET to discuss its fourth quarter and full year 2024 financial results. Participants wishing to join the live Q&A session must dial-in with the following information:
PARTICIPANT INFORMATION:
Toll-Free – North America: (+1) 800 549 8228
Toll North America and other locations: (+1) 289 819 1520
Conference ID: 69605
A live webcast and replay, as well as presentation slides, will be available on the Company’s investor relations website through the following link: Q4 2024 Webcast Registration. A telephone replay of the conference call can be accessed approximately two hours following the end of the call at 1-888-660-6264 with passcode 69605 through March 28, 2025.
About Chart Industries, Inc.
Chart Industries, Inc. is a global leader in the design, engineering, and manufacturing of process technologies and equipment for gas and liquid molecule handling for the Nexus of Clean™ - clean power, clean water, clean food, and clean industrials, regardless of molecule. The company’s unique product and solution portfolio across stationary and rotating equipment is used in every phase of the liquid gas supply chain, including engineering, service and repair and from installation to preventive maintenance and digital monitoring. Chart is a leading provider of technology, equipment and services related to liquefied natural gas, hydrogen, biogas and CO2 capture among other applications. Chart is committed to excellence in environmental, social and corporate governance issues both for its company as well as its customers. With 64 global manufacturing locations and over 50 service centers from the United States to Asia, Australia, India, Europe and South America, the company maintains accountability and transparency to its team members, suppliers, customers and communities. To learn more, visit www.chartindustries.com
For more information, click here:
http://ir.chartindustries.com/
Chart Industries Investor Relations Contact:
John Walsh
Senior Vice President, Investor and Government Relations
1-770-721-8899
john.walsh@chartindustries.com
| CHART INDUSTRIES, INC. AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||
| (Dollars and shares in millions, except per share amounts) | |||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Sales | $ | 1,106.80 | $ | 1,015.00 | $ | 4,160.30 | $ | 3,352.50 | |||
| Cost of sales | 734.5 | 680.7 | 2,771.50 | 2,312.10 | |||||||
| Gross profit | 372.3 | 334.3 | 1,388.80 | 1,040.40 | |||||||
| Selling, general and administrative expenses | 134 | 129.9 | 547.4 | 486.3 | |||||||
| Amortization expense | 50 | 48.4 | 193.9 | 163.4 | |||||||
| Operating expenses | 184 | 178.3 | 741.3 | 649.7 | |||||||
| Operating income | 188.3 | 156 | 647.5 | 390.7 | |||||||
| Acquisition related finance fees | — | — | — | 26.1 | |||||||
| Interest expense, net | 79.8 | 86.4 | 328.5 | 289.1 | |||||||
| Other (income) expense, net | -3.7 | 11.1 | 0.5 | 17.5 | |||||||
| Income from continuing operations before income taxes and equity in (loss) earnings of unconsolidated affiliates, net | 112.2 | 58.5 | 318.5 | 58 | |||||||
| Income tax expense, net | 27.7 | 7.2 | 78.6 | 3 | |||||||
| Income from continuing operations before equity in earnings of unconsolidated affiliates, net | 84.5 | 51.3 | 239.9 | 55 | |||||||
| Equity in (loss) earnings of unconsolidated affiliates, net | -1.2 | 0.1 | -3.6 | 2.5 | |||||||
| Net income from continuing operations | 83.3 | 51.4 | 236.3 | 57.5 | |||||||
| (Loss) income from discontinued operations, net of tax | -0.7 | 2 | -3.5 | -0.6 | |||||||
| Net income | 82.6 | 53.4 | 232.8 | 56.9 | |||||||
| Less: Income attributable to noncontrolling interests of continuing operations, net of taxes | 3 | 3.6 | 14.3 | 9.6 | |||||||
| Net income attributable to Chart Industries, Inc. | $ | 79.60 | $ | 49.80 | $ | 218.50 | $ | 47.30 | |||
| CHART INDUSTRIES, INC. AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) — (Continued) | |||||||||||
| (Dollars and shares in millions, except per share amounts) | |||||||||||
| Amounts attributable to Chart common stockholders | |||||||||||
| Income from continuing operations | $ | 80.30 | $ | 47.80 | $ | 222.00 | $ | 47.90 | |||
| Less: Mandatory convertible preferred stock dividend requirement | 6.8 | 6.8 | 27.2 | 27.3 | |||||||
| Income from continuing operations attributable to Chart | 73.5 | 41 | 194.8 | 20.6 | |||||||
| (Loss) income from discontinued operations, net of tax | -0.7 | 2 | -3.5 | -0.6 | |||||||
| Net income attributable to Chart common stockholders | $ | 72.80 | $ | 43.00 | $ | 191.30 | $ | 20.00 | |||
| Basic earnings per common share attributable to Chart Industries, Inc. | |||||||||||
| Income from continuing operations | $ | 1.73 | $ | 0.98 | $ | 4.62 | $ | 0.49 | |||
| (Loss) income from discontinued operations | -0.02 | 0.04 | -0.08 | -0.01 | |||||||
| Net income attributable to Chart Industries, Inc. | $ | 1.71 | $ | 1.02 | $ | 4.54 | $ | 0.48 | |||
| Diluted earnings per common share attributable to Chart Industries, Inc. | |||||||||||
| Income from continuing operations | $ | 1.60 | $ | 0.88 | $ | 4.17 | $ | 0.44 | |||
| (Loss) income from discontinued operations | -0.02 | 0.04 | -0.07 | -0.01 | |||||||
| Net income attributable to Chart Industries, Inc. | $ | 1.58 | $ | 0.92 | $ | 4.10 | $ | 0.43 | |||
| Weighted-average number of common shares outstanding: | |||||||||||
| Basic | 42.47 | 41.99 | 42.15 | 41.97 | |||||||
| Diluted (1) (2) | 46.02 | 46.74 | 46.67 | 46.82 | |||||||
_______________
(1) Includes an additional 3.29 and 4.31 shares related to the convertible notes due 2024 and associated warrants in our diluted earnings per share calculation for the fourth quarter and full year 2024, respectively. The associated hedge, which helps offset this dilution, cannot be taken into account under U.S. generally accepted accounting principles (“GAAP”). If the hedge could have been considered, it would have reduced the additional shares by 1.25 and 2.21 for the fourth quarter and full year 2024, respectively.
(2) Includes an additional 4.56 and 4.87 shares related to the convertible notes due 2024 and associated warrants in our diluted earnings per share calculation for the fourth quarter and full year 2023, respectively. The associated hedge, which helps offset this dilution, cannot be taken into account under U.S. generally accepted accounting principles (“GAAP”). If the hedge could have been considered, it would have reduced the additional shares by 2.49 and 2.53 for the fourth quarter and full year 2023, respectively.
| CHART INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in millions) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| OPERATING ACTIVITIES | |||||||||||||||
| Net income | $ | 82.6 | $ | 53.4 | $ | 232.8 | $ | 56.9 | |||||||
| Less: (Loss) income from discontinued operations, net of tax | (0.7 | ) | 2.0 | (3.5 | ) | (0.6 | ) | ||||||||
| Income from continuing operations | 83.3 | 51.4 | 236.3 | 57.5 | |||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
| Bridge loan facility fees | — | — | — | 26.1 | |||||||||||
| Depreciation and amortization | 69.9 | 67.9 | 269.9 | 231.1 | |||||||||||
| Employee share-based compensation expense | 4.6 | 3.4 | 18.9 | 12.6 | |||||||||||
| Financing costs amortization | 4.9 | 5.2 | 19.1 | 17.2 | |||||||||||
| Deferred income tax benefit | (26.1 | ) | (79.3 | ) | (26.1 | ) | (79.3 | ) | |||||||
| Other non-cash operating activities | (5.5 | ) | (1.1 | ) | (8.2 | ) | 3.8 | ||||||||
| Changes in assets and liabilities, net of acquisitions: | |||||||||||||||
| Accounts receivable | 30.5 | (14.6 | ) | (14.5 | ) | (76.5 | ) | ||||||||
| Inventories | 30.5 | 18.2 | 54.9 | 20.8 | |||||||||||
| Unbilled contract revenue | (72.0 | ) | (32.6 | ) | (267.7 | ) | (166.0 | ) | |||||||
| Prepaid expenses and other current assets | 20.8 | (6.4 | ) | 4.4 | 27.6 | ||||||||||
| Accounts payable and other current liabilities | 80.5 | 151.0 | 190.1 | 237.2 | |||||||||||
| Customer advances and billings in excess of contract revenue | 9.3 | (77.3 | ) | (4.0 | ) | (58.2 | ) | ||||||||
| Long-term assets and liabilities | 50.8 | 42.9 | 35.6 | (19.1 | ) | ||||||||||
| Net Cash Provided By Continuing Operating Activities | 281.5 | 128.7 | 508.7 | 234.8 | |||||||||||
| Net Cash (Used In) Provided By Discontinued Operating Activities (1) | (0.1 | ) | 1.6 | (5.7 | ) | (67.6 | ) | ||||||||
| Net Cash Provided By Operating Activities | 281.4 | 130.3 | 503.0 | 167.2 | |||||||||||
| INVESTING ACTIVITIES | |||||||||||||||
| Acquisition of business, net of cash acquired | — | — | — | (4,322.3 | ) | ||||||||||
| Proceeds from sale of businesses, net of cash divested | — | 182.9 | — | 474.8 | |||||||||||
| Capital expenditures | (20.5 | ) | (20.2 | ) | (120.8 | ) | (135.6 | ) | |||||||
| Investments | — | (2.8 | ) | (13.1 | ) | (11.6 | ) | ||||||||
| Other investing activities | 0.8 | 4.9 | (4.9 | ) | 7.2 | ||||||||||
| Net Cash (Used In) Provided By Continuing Investing Activities | (19.7 | ) | 164.8 | (138.8 | ) | (3,987.5 | ) | ||||||||
| Net Cash Used In Discontinued Investing Activities | — | — | (2.5 | ) | (2.6 | ) | |||||||||
| Net Cash (Used In) Provided By Investing Activities | (19.7 | ) | 164.8 | (141.3 | ) | (3,990.1 | ) | ||||||||
| FINANCING ACTIVITIES | |||||||||||||||
| Borrowings on credit facilities | 1,448.4 | 560.8 | 3,735.1 | 1,895.1 | |||||||||||
| Repayments on credit facilities | (1,380.7 | ) | (666.9 | ) | (3,627.2 | ) | (1,901.2 | ) | |||||||
| Repayment of convertible notes | (258.7 | ) | — | (258.7 | ) | — | |||||||||
| Borrowings on term loan | — | 0.1 | — | 1,747.3 | |||||||||||
| Repayments on term loan | (50.0 | ) | (150.1 | ) | (50.0 | ) | (158.3 | ) | |||||||
| Payments for debt issuance costs | (0.1 | ) | (2.7 | ) | (10.2 | ) | (136.2 | ) | |||||||
| Proceeds from issuance of common stock, net | — | — | — | 11.7 | |||||||||||
| Dividend distribution to noncontrolling interests | — | — | — | (12.2 | ) | ||||||||||
| Dividends paid on mandatory convertible preferred stock | (6.8 | ) | (6.8 | ) | (27.2 | ) | (27.3 | ) | |||||||
| Other financing activities | (2.6 | ) | 0.1 | (5.5 | ) | (6.4 | ) | ||||||||
| Net Cash (Used in) Provided By Financing Activities | (250.5 | ) | (265.5 | ) | (243.7 | ) | 1,412.5 | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | (13.2 | ) | 6.6 | (8.6 | ) | 6.2 | |||||||||
| Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents including cash classified within current assets held for sale | (2.0 | ) | 36.2 | 109.4 | (2,404.2 | ) | |||||||||
| Less: net decrease in cash classified within current assets held for sale | — | 5.0 | — | — | |||||||||||
| Net (decrease) increase in cash, cash equivalents, restricted cash, and restricted cash equivalents | (2.0 | ) | 41.2 | 109.4 | (2,404.2 | ) | |||||||||
| Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period (2) | 312.5 | 159.9 | 201.1 | 2,605.3 | |||||||||||
| CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS AT END OF PERIOD | $ | 310.5 | $ | 201.1 | $ | 310.5 | $ | 201.1 | |||||||
_______________
(1) Includes the settlement of claims related to the Pacific Fertility Clinic lawsuits in the amount of
(2) Includes restricted cash of
| CHART INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in millions) | |||||||
| December 31, | |||||||
| 2024 | 2023 | ||||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 308.6 | $ | 188.3 | |||
| Accounts receivable, less allowances of | 752.3 | 758.9 | |||||
| Inventories, net | 490.5 | 576.3 | |||||
| Unbilled contract revenue | 735.1 | 481.7 | |||||
| Other current assets | 178.9 | 209.2 | |||||
| Total Current Assets | 2,465.4 | 2,214.4 | |||||
| Property, plant and equipment, net | 864.2 | 837.6 | |||||
| Goodwill | 2,899.9 | 2,906.8 | |||||
| Identifiable intangible assets, net | 2,540.6 | 2,791.9 | |||||
| Other assets | 353.8 | 351.7 | |||||
| TOTAL ASSETS | $ | 9,123.9 | $ | 9,102.4 | |||
| LIABILITIES AND EQUITY | |||||||
| Current Liabilities | |||||||
| Accounts payable | 1,058.9 | 811.0 | |||||
| Customer advances and billings in excess of contract revenue | 362.2 | 376.6 | |||||
| Accrued interest | 110.4 | 92.5 | |||||
| Current portion of long-term debt | 0.9 | 258.5 | |||||
| Other current liabilities | 257.4 | 327.6 | |||||
| Total Current Liabilities | 1,789.8 | 1,866.2 | |||||
| Long-term debt | 3,640.7 | 3,576.4 | |||||
| Deferred tax liabilities | 544.9 | 568.2 | |||||
| Other long-term liabilities | 153.3 | 152.6 | |||||
| Total Liabilities | 6,128.7 | 6,163.4 | |||||
| Equity | |||||||
| Preferred stock, par value | — | — | |||||
| Common stock, par value | 0.5 | 0.4 | |||||
| Additional paid-in capital | 1,889.3 | 1,872.5 | |||||
| Treasury stock; 760,782 shares at both December 31, 2024 and 2023 | (19.3 | ) | (19.3 | ) | |||
| Retained earnings | 1,113.4 | 922.1 | |||||
| Accumulated other comprehensive (loss) income | (155.1 | ) | 10.8 | ||||
| Total Chart Industries, Inc. Shareholders' Equity | 2,828.8 | 2,786.5 | |||||
| Noncontrolling interests | 166.4 | 152.5 | |||||
| Total Equity | 2,995.2 | 2,939.0 | |||||
| TOTAL LIABILITIES AND EQUITY | $ | 9,123.9 | $ | 9,102.4 | |||
| CHART INDUSTRIES, INC. AND SUBSIDIARIES OPERATING SEGMENTS (UNAUDITED) (Dollars in millions) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Sales | |||||||||||||||
| Cryo Tank Solutions | $ | 150.2 | $ | 205.6 | $ | 637.9 | $ | 640.8 | |||||||
| Heat Transfer Systems | 288.8 | 255.2 | 1,035.3 | 891.2 | |||||||||||
| Specialty Products | 316.9 | 217.0 | 1,114.3 | 819.9 | |||||||||||
| Repair, Service & Leasing | 350.7 | 340.7 | 1,372.7 | 1,029.2 | |||||||||||
| Intersegment eliminations | 0.2 | (3.5 | ) | 0.1 | (28.6 | ) | |||||||||
| Consolidated | $ | 1,106.8 | $ | 1,015.0 | $ | 4,160.3 | $ | 3,352.5 | |||||||
| Gross Profit | |||||||||||||||
| Cryo Tank Solutions | $ | 36.6 | $ | 46.5 | $ | 143.5 | $ | 132.0 | |||||||
| Heat Transfer Systems | 91.7 | 76.7 | 299.0 | 246.8 | |||||||||||
| Specialty Products | 86.8 | 62.5 | 301.1 | 221.4 | |||||||||||
| Repair, Service & Leasing | 157.2 | 148.6 | 645.2 | 440.2 | |||||||||||
| Consolidated | $ | 372.3 | $ | 334.3 | $ | 1,388.8 | $ | 1,040.4 | |||||||
| Gross Profit Margin | |||||||||||||||
| Cryo Tank Solutions | 24.4 | % | 22.6 | % | 22.5 | % | 20.6 | % | |||||||
| Heat Transfer Systems | 31.8 | % | 30.1 | % | 28.9 | % | 27.7 | % | |||||||
| Specialty Products | 27.4 | % | 28.8 | % | 27.0 | % | 27.0 | % | |||||||
| Repair, Service & Leasing | 44.8 | % | 43.6 | % | 47.0 | % | 42.8 | % | |||||||
| Consolidated | 33.6 | % | 32.9 | % | 33.4 | % | 31.0 | % | |||||||
| Operating Income (Loss) | |||||||||||||||
| Cryo Tank Solutions | $ | 21.1 | $ | 22.6 | $ | 74.6 | $ | 54.5 | |||||||
| Heat Transfer Systems | 75.7 | 55.3 | 233.3 | 175.8 | |||||||||||
| Specialty Products | 51.1 | 35.1 | 173.1 | 119.7 | |||||||||||
| Repair, Service & Leasing | 85.4 | 82.3 | 350.5 | 203.3 | |||||||||||
| Corporate | (45.0 | ) | (39.3 | ) | (184.0 | ) | (162.6 | ) | |||||||
| Consolidated | $ | 188.3 | $ | 156.0 | $ | 647.5 | $ | 390.7 | |||||||
| Operating Margin | |||||||||||||||
| Cryo Tank Solutions | 14.0 | % | 11.0 | % | 11.7 | % | 8.5 | % | |||||||
| Heat Transfer Systems | 26.2 | % | 21.7 | % | 22.5 | % | 19.7 | % | |||||||
| Specialty Products | 16.1 | % | 16.2 | % | 15.5 | % | 14.6 | % | |||||||
| Repair, Service & Leasing | 24.4 | % | 24.2 | % | 25.5 | % | 19.8 | % | |||||||
| Consolidated | 17.0 | % | 15.4 | % | 15.6 | % | 11.7 | % | |||||||
| CHART INDUSTRIES, INC. AND SUBSIDIARIES ORDERS AND BACKLOG (UNAUDITED) (Dollars in millions) | |||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Orders | |||||||||||||
| Cryo Tank Solutions | $ | 138.5 | $ | 157.6 | $ | 582.9 | $ | 608.8 | |||||
| Heat Transfer Systems | 536.1 | 324.7 | 1,467.7 | 1,114.2 | |||||||||
| Specialty Products | 509.3 | 399.8 | 1,562.0 | 1,341.6 | |||||||||
| Repair, Service & Leasing | 369.2 | 328.4 | 1,393.3 | 1,100.8 | |||||||||
| Intersegment eliminations | — | (1.4 | ) | 0.9 | (25.2 | ) | |||||||
| Consolidated | $ | 1,553.1 | $ | 1,209.1 | $ | 5,006.8 | $ | 4,140.2 | |||||
| As of | |||||||||||
| December 31, 2024 | September 30, 2024 | December 31, 2023 | |||||||||
| Backlog | |||||||||||
| Cryo Tank Solutions | $ | 290.3 | $ | 316.5 | $ | 361.9 | |||||
| Heat Transfer Systems | 2,097.4 | 1,878.0 | 1,716.5 | ||||||||
| Specialty Products | 1,888.1 | 1,755.3 | 1,631.1 | ||||||||
| Repair, Service & Leasing | 577.1 | 593.4 | 587.9 | ||||||||
| Intersegment eliminations | (7.8 | ) | (7.9 | ) | (18.6 | ) | |||||
| Consolidated | $ | 4,845.1 | $ | 4,535.3 | $ | 4,278.8 | |||||
| CHART INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF EARNINGS AND EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CHART INDUSTRIES, INC. – CONTINUING OPERATIONS TO ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CHART INDUSTRIES, INC. - CONTINUING OPERATIONS (UNAUDITED) (Dollars in millions, except per share amounts) | |||||||||||||||||||||||
| Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | 2024 | ||||||||||||||||||
| Amounts attributable to Chart common stockholders | |||||||||||||||||||||||
| Net income attributable to Chart Industries, Inc. | $ | 49.8 | $ | 11.3 | $ | 58.6 | $ | 69.0 | $ | 79.6 | $ | 218.5 | |||||||||||
| Less: Income (loss) from discontinued operations, net of tax | 2.0 | (2.2 | ) | (0.2 | ) | (0.4 | ) | (0.7 | ) | (3.5 | ) | ||||||||||||
| Income from continuing operations | 47.8 | 13.5 | 58.8 | 69.4 | 80.3 | 222.0 | |||||||||||||||||
| Less: Mandatory convertible preferred stock dividend requirement | 6.8 | 6.8 | 6.8 | 6.8 | 6.8 | 27.2 | |||||||||||||||||
| Income from continuing operations attributable to Chart (U.S. GAAP) | 41.0 | 6.7 | 52.0 | 62.6 | 73.5 | 194.8 | |||||||||||||||||
| Unrealized loss (gain) on investments in equity securities and loss from strategic equity method investments(1) | 2.6 | 4.3 | 2.4 | (11.0 | ) | 3.9 | (0.4 | ) | |||||||||||||||
| Deal related and integration costs (3) | 5.5 | 14.3 | 7.4 | 8.2 | 4.5 | 34.4 | |||||||||||||||||
| Step up amortization on inventory, intangibles and fixed assets from Howden acquisition | 46.3 | 46.6 | 46.9 | 46.3 | 42.2 | 182.0 | |||||||||||||||||
| Restructuring & related costs | 2.3 | 5.1 | 4.3 | 1.7 | 4.6 | 15.7 | |||||||||||||||||
| Other one-time items (2) | 7.8 | — | 2.0 | 3.9 | 5.3 | 11.2 | |||||||||||||||||
| Tax effects | (11.3 | ) | (14.4 | ) | (11.8 | ) | (9.8 | ) | (11.6 | ) | (47.6 | ) | |||||||||||
| Adjusted earnings attributable to Chart Industries, Inc. (non-GAAP) | $ | 94.2 | $ | 62.6 | $ | 103.2 | $ | 101.9 | $ | 122.4 | $ | 390.1 | |||||||||||
| Q4 2023 Diluted EPS | Q1 2024 Diluted EPS | Q2 2024 Diluted EPS | Q3 2024 Diluted EPS | Q4 2024 Diluted EPS | 2024 Diluted EPS | ||||||||||||||||||
| Reported income from continuing operations attributable to Chart (U.S. GAAP) | $ | 0.88 | $ | 0.14 | $ | 1.10 | $ | 1.34 | $ | 1.60 | $ | 4.17 | |||||||||||
| Unrealized loss (gain) on investments in equity securities and loss from strategic equity method investments (1) | 0.06 | 0.09 | 0.05 | (0.24 | ) | 0.08 | (0.01 | ) | |||||||||||||||
| Deal related and integration costs (3) | 0.11 | 0.31 | 0.15 | 0.18 | 0.10 | 0.74 | |||||||||||||||||
| Step up amortization on inventory, intangibles and fixed assets from Howden acquisition | 0.99 | 1.00 | 1.00 | 0.99 | 0.92 | 3.90 | |||||||||||||||||
| Restructuring & related costs | 0.05 | 0.11 | 0.09 | 0.04 | 0.10 | 0.34 | |||||||||||||||||
| Other one-time items (2) | 0.16 | — | 0.04 | 0.08 | 0.11 | 0.24 | |||||||||||||||||
| Tax effects | (0.24 | ) | (0.31 | ) | (0.25 | ) | (0.21 | ) | (0.25 | ) | (1.02 | ) | |||||||||||
| Adjusted earnings attributable to Chart Industries, Inc. (non-GAAP) | $ | 2.01 | $ | 1.34 | $ | 2.18 | $ | 2.18 | $ | 2.66 | $ | 8.36 | |||||||||||
| Share count | 46.74 | 46.73 | 47.25 | 46.67 | 46.02 | 46.67 | |||||||||||||||||
_______________
(1) Includes the mark-to-market of our inorganic investments in Avina, McPhy, Stabilis and certain of our minority investments as well as losses from strategic equity method investments.
(2) Other one-time items includes costs associated with the termination of a pension plan and other plan expenses, asset impairments, pre-Howden acquisition related tax assessments and legal costs associated with a non-recurring item
(3) Deal related and integration costs primarily includes costs associated with integrating Howden and impacts from the 2023 divestitures. Q4 2023 includes an adjustment to non-recurring costs to exclude the impacts of the American Fan, Cofimco and Cryo Diffusion divestitures.
_______________
Adjusted earnings per common share attributable to Chart Industries, Inc. is not a measure of financial performance under U.S. GAAP and should not be considered as an alternative to earnings per share in accordance with U.S. GAAP. Management believes that adjusted earnings per common share attributable to Chart Industries, Inc. facilitates useful period-to-period comparisons of our financial results and this information is used by us in evaluating internal performance. Our calculation of these non-GAAP measures may not be comparable to the calculations of similarly titled measures reported by other companies. Prior to the second quarter of 2024, the impacts of the mandatory convertible preferred stock dividend were excluded from adjusted earnings per common share attributable to Chart Industries, Inc. (non-GAAP). The impacts are now included in adjusted earnings per common share attributable to Chart Industries, Inc. (non-GAAP) and historical periods have been restated to reflect the change in treatment.
| RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS TO FREE CASH FLOW FROM CONTINUING OPERATIONS AND RECONCILIATION OF NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS TO FREE CASH FLOW FROM DISCONTINUED OPERATIONS (UNAUDITED) (Dollars in millions) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net cash provided by operating activities from continuing operations | $ | 281.5 | $ | 128.7 | $ | 508.7 | $ | 234.8 | |||||||
| Capital expenditures | (20.5 | ) | (20.2 | ) | (120.8 | ) | (135.6 | ) | |||||||
| Free cash flow (non-GAAP) | 261.0 | 108.5 | 387.9 | 99.2 | |||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net cash (used in) provided by operating activities from discontinued operations | $ | (0.1 | ) | $ | 1.6 | $ | (5.7 | ) | $ | (67.6 | ) | |||
| Capital expenditures | — | — | — | (2.6 | ) | |||||||||
| Free cash flow (non-GAAP) | (0.1 | ) | 1.6 | (5.7 | ) | (70.2 | ) | |||||||
_______________
Free cash flow is not a measure of financial performance under U.S. GAAP and should not be considered as an alternative to net cash (used in) provided by operating activities in accordance with U.S. GAAP. Management believes that free cash flow facilitates useful period-to-period comparisons of our financial results and this information is used by us in evaluating internal performance. Our calculation of this non-GAAP measure may not be comparable to the calculations of similarly titled measures reported by other companies.
| CHART INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATIONS OF OPERATING INCOME (LOSS) TO ADJUSTED OPERATING INCOME (LOSS) (UNAUDITED) (Dollars in millions) | |||||||||||||||||||||||||||
| Three Months Ended December 31, 2024 | |||||||||||||||||||||||||||
| Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Intersegment Eliminations | Corporate | Consolidated | |||||||||||||||||||||
| Sales | $ | 150.2 | $ | 288.8 | $ | 316.9 | $ | 350.7 | $ | 0.2 | $ | — | $ | 1,106.8 | |||||||||||||
| Operating income (loss) as reported (U.S. GAAP) | $ | 21.1 | $ | 75.7 | $ | 51.1 | $ | 85.4 | $ | — | $ | (45.0 | ) | 188.3 | |||||||||||||
| Operating margin | 14.0 | % | 26.2 | % | 16.1 | % | 24.4 | % | — | % | 17.0 | % | |||||||||||||||
| Restructuring & related costs | $ | — | $ | — | $ | 0.1 | $ | 4.1 | $ | — | $ | 0.4 | $ | 4.6 | |||||||||||||
| Deal related & integration costs (1) | — | — | — | — | — | 4.5 | 4.5 | ||||||||||||||||||||
| Step-up amortization on intangibles and fixed assets from Howden acquisition | 1.0 | 2.6 | 3.7 | 34.9 | — | — | 42.2 | ||||||||||||||||||||
| Other (2) | 0.5 | 0.1 | 0.2 | 1.1 | — | 1.9 | 3.8 | ||||||||||||||||||||
| Adjusted operating income (loss) (non-GAAP) | $ | 22.6 | $ | 78.4 | $ | 55.1 | $ | 125.5 | $ | — | $ | (38.2 | ) | $ | 243.4 | ||||||||||||
| Adjusted operating margin (non-GAAP) | 15.0 | % | 27.1 | % | 17.4 | % | 35.8 | % | 22.0 | % | |||||||||||||||||
______________
(1) Deal related & integration costs primarily includes costs associated with integrating Howden and impacts from the 2023 divestitures
(2) Other includes asset impairments, pre-Howden acquisition related tax assessments and other employee plan expenses.
| Three Months Ended December 31, 2023 | |||||||||||||||||||||||||||
| Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Intersegment Eliminations | Corporate | Consolidated | |||||||||||||||||||||
| Sales | $ | 205.6 | $ | 255.2 | $ | 217.0 | $ | 340.7 | $ | (3.5 | ) | $ | — | $ | 1,015.0 | ||||||||||||
| Operating income (loss) as reported (U.S. GAAP) | $ | 22.6 | $ | 55.3 | $ | 35.1 | $ | 82.3 | $ | — | $ | (39.3 | ) | $ | 156.0 | ||||||||||||
| Operating margin | 11.0 | % | 21.7 | % | 16.2 | % | 24.2 | % | 15.4 | % | |||||||||||||||||
| Restructuring & related costs | $ | 0.4 | $ | 0.2 | $ | 0.8 | $ | 1.6 | $ | — | $ | (0.7 | ) | $ | 2.3 | ||||||||||||
| Deal related & integration costs (1) | — | — | — | 0.3 | — | 8.1 | 8.4 | ||||||||||||||||||||
| Step-up amortization on inventory, intangibles and fixed assets from Howden acquisition | 2.0 | 1.1 | 5.0 | 38.0 | — | — | 46.1 | ||||||||||||||||||||
| Other | — | — | 0.6 | — | — | — | 0.6 | ||||||||||||||||||||
| Adjusted operating income (loss) (non-GAAP) | $ | 25.0 | $ | 56.6 | $ | 41.5 | $ | 122.2 | $ | — | $ | (31.9 | ) | $ | 213.4 | ||||||||||||
| Adjusted operating margin (non-GAAP) | 12.2 | % | 22.2 | % | 19.1 | % | 35.9 | % | 21.0 | % | |||||||||||||||||
_____________
(1) Deal related & integration costs primarily includes costs associated with integrating Howden and impacts from the 2023 divestitures.
| Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | 2024 | ||||||||||||||||
| Sales | $ | 950.7 | $ | 1,040.3 | $ | 1,062.5 | $ | 1,106.8 | $ | 4,160.3 | ||||||||||
| Operating income as reported | 112.9 | 167.8 | 178.5 | 188.3 | 647.5 | |||||||||||||||
| Operating income margin | 11.9 | % | 16.1 | % | 16.8 | % | 17.0 | % | 15.6 | % | ||||||||||
| Restructuring & related costs, deal related & integration costs, Step-up amortization from Howden acquisition and other one-time costs | 58.4 | 57.9 | 57.4 | 55.1 | 228.8 | |||||||||||||||
| Adjusted operating income (non-GAAP) | $ | 171.3 | $ | 225.7 | $ | 235.9 | $ | 243.4 | $ | 876.3 | ||||||||||
| Adjusted operating income margin (non-GAAP) | 18.0 | % | 21.7 | % | 22.2 | % | 22.0 | % | 21.1 | % | ||||||||||
_____________
Adjusted operating income (loss) is not a measure of financial performance under U.S. GAAP and should not be considered as an alternative to operating income (loss) in accordance with U.S. GAAP. Management believes that adjusted operating income (loss) facilitates useful period-to-period comparisons of our financial results and this information is used by us in evaluating internal performance. Our calculation of these non-GAAP measures may not be comparable to the calculations of similarly titled measures reported by other companies.
| CHART INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF OPERATING SEGMENT ORDERS TO PRO FORMA ORDERS, SALES TO PRO FORMA SALES AND GROSS PROFIT TO PRO FORMA GROSS PROFIT (UNAUDITED) (Dollars in millions) | ||||||||||||||||||||||||||
| Three months ended December 31, 2023 | ||||||||||||||||||||||||||
| Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Intersegment Eliminations | Corporate | Consolidated | ||||||||||||||||||||
| Orders | $ | 157.6 | $ | 324.7 | $ | 399.8 | $ | 328.4 | $ | (1.4 | ) | $ | — | $ | 1,209.1 | |||||||||||
| Less: Orders from businesses divested in the fourth quarter 2023 | (0.4 | ) | (2.3 | ) | (0.9 | ) | (5.2 | ) | — | — | (8.8 | ) | ||||||||||||||
| Pro forma orders (non-GAAP) | $ | 157.2 | $ | 322.4 | $ | 398.9 | $ | 323.2 | $ | (1.4 | ) | $ | — | $ | 1,200.3 | |||||||||||
| Sales | $ | 205.6 | $ | 255.2 | $ | 217.0 | $ | 340.7 | $ | (3.5 | ) | $ | — | $ | 1,015.0 | |||||||||||
| Less: Sales from businesses divested in the fourth quarter 2023 | (1.4 | ) | (2.4 | ) | (2.4 | ) | (3.7 | ) | — | (9.9 | ) | |||||||||||||||
| Pro forma sales (non-GAAP) | $ | 204.2 | $ | 252.8 | $ | 214.6 | $ | 337.0 | $ | (3.5 | ) | $ | — | $ | 1,005.1 | |||||||||||
| Gross Profit | $ | 46.5 | $ | 76.7 | $ | 62.5 | $ | 148.6 | $ | — | $ | — | $ | 334.3 | ||||||||||||
| Gross Profit Margin | 22.6 | % | 30.1 | % | 28.8 | % | 43.6 | % | — | % | 32.9 | % | ||||||||||||||
| Less: Gross profit from businesses divested in the fourth quarter 2023 | (0.9 | ) | (0.8 | ) | (1.1 | ) | (3.1 | ) | — | (5.9 | ) | |||||||||||||||
| Pro forma gross profit (non-GAAP) | $ | 45.6 | $ | 75.9 | $ | 61.4 | $ | 145.5 | $ | — | $ | — | $ | 328.4 | ||||||||||||
| Pro forma gross profit margin (non-GAAP) | 22.3 | % | 30.0 | % | 28.6 | % | 43.2 | % | — | % | 32.7 | % | ||||||||||||||
| Twelve months ended December 31, 2023 | ||||||||||||||||||||||||||
| Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Intersegment Eliminations | Corporate | Consolidated | ||||||||||||||||||||
| Orders | $ | 608.8 | $ | 1,114.2 | $ | 1,341.6 | $ | 1,100.8 | $ | (25.2 | ) | $ | — | $ | 4,140.2 | |||||||||||
| Howden standalone orders, net of Roots, American Fan, Cofimco and Cryo Diffusion divestiture impacts | 20.2 | 12.9 | 89.4 | 159.9 | (0.2 | ) | — | 282.2 | ||||||||||||||||||
| Pro forma orders (non-GAAP) | $ | 629.0 | $ | 1,127.1 | $ | 1,431.0 | $ | 1,260.7 | $ | (25.4 | ) | $ | — | $ | 4,422.4 | |||||||||||
| Sales | $ | 640.8 | $ | 891.2 | $ | 819.9 | $ | 1,029.2 | $ | (28.6 | ) | $ | — | $ | 3,352.5 | |||||||||||
| Howden standalone sales, net of Roots, American Fan, Cofimco and Cryo Diffusion divestiture impacts | 7.0 | 7.8 | 73.7 | 122.4 | (4.7 | ) | — | 206.2 | ||||||||||||||||||
| Pro forma sales (non-GAAP) | $ | 647.8 | $ | 899.0 | $ | 893.6 | $ | 1,151.6 | $ | (33.3 | ) | $ | — | $ | 3,558.7 | |||||||||||
| Gross Profit | $ | 132.0 | $ | 246.8 | $ | 221.4 | $ | 440.2 | $ | — | $ | — | $ | 1,040.4 | ||||||||||||
| Gross Profit Margin | 20.6 | % | 27.7 | % | 27.0 | % | 42.8 | % | — | % | 31.0 | % | ||||||||||||||
| Howden standalone gross profit, net of Roots, American Fan, Cofimco and Cryo Diffusion divestiture impacts | 4.4 | 3.7 | 28.4 | 23.3 | (0.1 | ) | — | 59.7 | ||||||||||||||||||
| Pro forma gross profit (non-GAAP) | $ | 136.4 | $ | 250.5 | $ | 249.8 | $ | 463.5 | $ | (0.1 | ) | $ | — | $ | 1,100.1 | |||||||||||
| Pro forma gross profit margin (non-GAAP) | 21.1 | % | 27.9 | % | 28.0 | % | 40.2 | % | 0.3 | % | 30.9 | % | ||||||||||||||
_______________
Businesses divested in the fourth quarter of 2023 include American Fan, Cofimco and Cryo Diffusion. Pro forma orders, pro forma sales, pro forma gross profit and pro forma gross profit margin are not measures of financial performance under U.S. GAAP and should not be considered as an alternative to orders, sales, gross profit and gross profit margin in accordance with U.S. GAAP. Management believes that pro forma orders, pro forma sales, pro forma gross profit and pro forma gross profit margin facilitate useful period-to-period comparisons of our financial results and this information is used by us in evaluating internal performance. Our calculation of these non-GAAP measures may not be comparable to the calculations of similarly titled measures reported by other companies.
| CHART INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME FROM CONTINUING OPERATIONS TO EBITDA AND ADJUSTED EBITDA (UNAUDITED) (Dollars in millions) | ||||||||||||
| Three Months Ended | Year Ended | |||||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||
| Net income from continuing operations | $ | 83.3 | $ | 51.4 | $ | 236.3 | $ | 57.5 | ||||
| Income tax expense, net | 27.7 | 7.2 | 78.6 | 3.0 | ||||||||
| Interest expense, net | 79.8 | 86.4 | 328.5 | 289.1 | ||||||||
| Acquisition related finance fees | — | — | — | 26.1 | ||||||||
| Loss on extinguishment of debt | — | 7.8 | 0.7 | 7.8 | ||||||||
| Depreciation and amortization | 69.9 | 67.9 | 269.9 | 231.1 | ||||||||
| EBITDA (non-GAAP) | 260.7 | 220.7 | 914.0 | 614.6 | ||||||||
| Non-recurring costs: | ||||||||||||
| Deal related & integration costs (1) | 4.5 | 5.5 | 34.4 | 44.9 | ||||||||
| Restructuring & related costs | 4.6 | 2.3 | 15.7 | 13.5 | ||||||||
| Amortization of step-up value of inventory from Howden acquisition | — | 6.4 | 21.0 | 24.6 | ||||||||
| Other one-time items (2) | 5.3 | — | 10.2 | 4.5 | ||||||||
| Employee share-based compensation expense | 4.6 | 3.4 | 18.9 | 12.6 | ||||||||
| Unrealized loss (gain) on investments in equity securities and loss from strategic equity method investments (3) | 3.9 | 2.6 | (0.4 | ) | 14.3 | |||||||
| Howden FX Hedge | — | — | — | 2.8 | ||||||||
| Adjusted EBITDA (non-GAAP) | $ | 283.6 | $ | 240.9 | $ | 1,013.8 | $ | 731.8 | ||||
_______________
(1) Deal related & integration costs primarily includes costs associated with integrating Howden and impacts from the 2023 divestitures.
(2) Other one-time items includes costs associated with the termination of a pension plan and other plan expenses, asset impairments, pre-Howden acquisition related tax assessments and legal costs associated with a non-recurring item
(3) Includes the mark-to-market of our inorganic investments in Avina, McPhy, Stabilis and certain of our minority investments as well as losses from strategic equity method investments.
_______________
The reconciliation from net income from continuing operations to EBITDA (non-GAAP) includes acquisition related finance fees and loss on extinguishment of debt. EBITDA and adjusted EBITDA are not measures of financial performance under U.S. GAAP and should not be considered as an alternative to net income from continuing operations in accordance with U.S. GAAP. Management believes that EBITDA and adjusted EBITDA facilitate useful period-to-period comparisons of our financial results and this information is used by us in evaluating internal performance. Our calculation of these non-GAAP measures may not be comparable to the calculations of similarly titled measures reported by other companies.
| CHART INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF ORDERS TO PRO FORMA ORDERS, SALES TO PRO FORMA SALES, GROSS PROFIT TO PRO FORMA GROSS PROFIT, ADJUSTED EBITDA TO PRO FORMA ADJUSTED EBITDA, AND OPERATING INCOME TO PRO FORMA ADJUSTED OPERATING INCOME (UNAUDITED) (Dollars in millions) | |||||||
| Three Months Ended December 31, 2023 | Twelve Months Ended December 31, 2023 | ||||||
| Orders | $ | 1,209.1 | $ | 4,140.2 | |||
| Howden standalone orders, net of Roots, American Fan, Cofimco and Cryo Diffusion divestiture impacts | (8.8 | ) | 282.2 | ||||
| Pro forma orders (non-GAAP) (3) | $ | 1,200.3 | $ | 4,422.4 | |||
| Sales | $ | 1,015.0 | $ | 3,352.5 | |||
| Howden standalone sales, net of Roots, American Fan, Cofimco and Cryo Diffusion divestiture impacts | (9.9 | ) | 206.2 | ||||
| Pro forma sales (non-GAAP) (3) | $ | 1,005.1 | $ | 3,558.7 | |||
| Gross profit | $ | 334.3 | $ | 1,040.4 | |||
| Howden standalone gross profit, net of Roots, American Fan, Cofimco and Cryo Diffusion divestiture impacts | (5.9 | ) | 59.7 | ||||
| Pro forma gross profit (non-GAAP) (3) | $ | 328.4 | $ | 1,100.1 | |||
| Pro forma gross profit margin (non-GAAP) | 32.7 | % | 30.9 | % | |||
| Three Months Ended December 31, 2023 | Twelve Months Ended December 31, 2023 | ||||||
| EBITDA (non-GAAP) | $ | 220.7 | $ | 614.6 | |||
| Howden standalone EBITDA, net of Roots, American Fan, Cofimco and Cryo Diffusion divestiture impacts | (2.2 | ) | 17.4 | ||||
| Pro forma EBITDA (non-GAAP) (3) | $ | 218.5 | $ | 632.0 | |||
| Non-recurring costs: | |||||||
| Deal related & integration costs (1) | $ | 5.5 | $ | 44.9 | |||
| Restructuring & related costs | 2.3 | 13.5 | |||||
| Amortization of step-up value of inventory | 6.4 | 24.6 | |||||
| Other one-time items | — | 4.5 | |||||
| Employee share-based compensation expense | 3.4 | 12.6 | |||||
| Unrealized loss on investments in equity securities and loss from strategic equity method investments (2) | 2.6 | 14.3 | |||||
| Howden FX Hedge | — | 2.8 | |||||
| Pro forma adjusted EBITDA (non-GAAP) | $ | 238.7 | $ | 749.2 | |||
| Pro forma adjusted EBITDA margin (non-GAAP) | 23.7 | % | 21.1 | % | |||
| Operating income | $ | 156.0 | $ | 390.7 | |||
| Howden standalone Operating Income, net of Roots, American Fan, Cofimco and Cryo Diffusion divestiture impacts | (1.6 | ) | 8.9 | ||||
| Pro forma operating income (non-GAAP) (3) | $ | 154.4 | $ | 399.6 | |||
| Pro forma operating income margin (non-GAAP) | 15.4 | % | 11.2 | % | |||
| Restructuring related, deal-related, integration and other one time costs | $ | 57.4 | $ | 209.4 | |||
| Pro forma adjusted operating income (non-GAAP) | $ | 211.8 | $ | 609.0 | |||
| Pro forma adjusted operating income margin (non-GAAP) | 21.1 | % | 17.1 | % | |||
_______________
(1) Deal related & integration costs primarily includes costs associated with integrating Howden and impacts from the 2023 divestitures.
(2) Includes the mark-to-market of our inorganic investments in Avina, McPhy, Stabilis and certain of our minority investments as well as losses from strategic equity method investments.
(3) For the three months ended December 31, 2023, the acquisition and divestiture impacts to the GAAP amounts represent the impacts of the businesses divested in the fourth quarter of 2023 (American Fan, Cofimco and Cryo Diffusion). For the twelve months ended December 31, 2023, the acquisition and divestiture impacts to the GAAP amounts represent the Howden standalone impacts prior to March 17, 2023, net of Roots which was divested in the third quarter of 2023 and the impacts of the businesses divested in the fourth quarter of 2023 (American Fan, Cofimco and Cryo Diffusion).
_____________
Businesses divested in the fourth quarter of 2023 include American Fan, Cofimco and Cryo Diffusion. Pro forma orders, pro forma sales, pro forma gross profit, adjusted EBITDA, pro forma adjusted EBITDA, pro forma operating income and pro forma adjusted operating income are not measures of financial performance under U.S. GAAP and should not be considered as an alternative to sales and net income from continuing operations in accordance with U.S. GAAP. Management believes that pro forma orders, pro forma sales, pro forma gross profit, adjusted EBITDA, pro forma adjusted EBITDA, pro forma operating income and pro forma adjusted operating income facilitate useful period-to-period comparisons of our financial results and this information is used by us in evaluating internal performance. Our calculation of these non-GAAP measures may not be comparable to the calculations of similarly titled measures reported by other companies.
This press release was published by a CLEAR® Verified individual.
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