Download PDF

1. Company Snapshot

1.a. Company Description

Chart 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.

Show Full description

1.b. Last Insights on GTLS

Chart Industries' recent performance has been influenced by several factors. The company's Q2 2025 earnings release revealed $2.59 per share, slightly missing estimates. Despite this, its revenue and key metrics indicate a strong business performance. A proposed sale to Baker Hughes for $210 per share in cash has sparked shareholder interest and investigations into the deal's fairness. The company's presentation at the J.P. Morgan Energy, Power, Renewables & Mining Conference and upcoming earnings announcements are anticipated events.

1.c. Company Highlights

2. Chart Industries Delivers Strong Q1 2025 Results with Robust LNG and Data Center Demand

Chart Industries reported a stellar Q1 2025, with orders surging 17.3% year-over-year to $1.32 billion, driven by significant LNG projects such as Woodside Louisiana LNG Phase 2. Organic sales climbed 6.6% to $1 billion, with three out of four segments contributing to the growth. The gross margin remained strong at 33.9%, marking the fourth consecutive quarter above 33%. Adjusted operating income margin expanded by 190 basis points, benefiting from cost synergies following the Howden integration. Adjusted EBITDA rose to $231.1 million, representing 23.1% of sales, while adjusted diluted EPS jumped 38.8% to $1.86, surpassing consensus estimates of $1.84.

Publication Date: May -02

📋 Highlights
  • Record Q1 Orders: Orders reached $1.32 billion, up 17.3% year-over-year, driven by LNG projects like Woodside Louisiana LNG Phase 2.
  • Organic Sales Growth: Organic sales grew 6.6% to $1 billion, with three of four segments reporting increases.
  • Strong Profitability: Gross margin of 33.9%, the fourth consecutive quarter above 33%, with adjusted EBITDA at $231.1 million.
  • Earnings Per Share Surge: Adjusted diluted EPS rose 38.8% to $1.86, reflecting improved operational efficiency and cost synergies.
  • Robust Commercial Pipeline: The commercial pipeline stands at $24 billion, with large LNG projects expected to convert into backlog in 2025.

Strong Demand Across Multiple End Markets

The company highlighted robust demand across various end markets, with Q1 orders in space exploration, hydrogen liquefaction vehicle tanks, nuclear, and marine sectors exceeding full-year 2024 levels. Notable projects included Woodside Louisiana LNG Phase 2, Volvo Aker’s first serial order for hydrogen liquefaction tanks, and multiple orders for regas plants and carbon capture retrofits. The commercial pipeline remains strong at $24 billion, with potential large LNG projects expected to convert into backlog in 2025. Aftermarket services, representing a third of revenue, showed continued strength, with service agreements and e-commerce spares orders growing.

Segment Performance and Tariff Mitigation

Segment performance varied: Cryo Tank Solutions (CTS) saw a 4.2% order decline but improved margins; Heat Transfer Systems (HTS) reported robust demand in LNG and data centers; Specialty Products achieved record orders and a 30.3% gross margin; and Repair Service & Leasing (RSL) grew orders 36.1%, though margins decreased due to timing of spare sales. The company also addressed tariff impacts, estimating a $50 million annual effect, but has implemented mitigation strategies like global sourcing and price adjustments.

Guidance and Strategic Priorities

Looking ahead, Chart reiterated its 2025 guidance, expecting full-year sales of $4.65-$4.85 billion and adjusted EBITDA of $1.175-$1.225 billion. The company remains focused on operational efficiency, debt reduction, and leveraging its aftermarket and data center opportunities. The company discussed its strategic priorities, including investments in automation, R&D, and returning value to shareholders through share repurchases. It highlighted a simplified balance sheet and capital structure. Management emphasized the strength of its backlog-driven newbuild business and growing aftermarket service repair segment, which provides visibility and stability.

Valuation Metrics and Future Outlook

With a P/E ratio of 26.02 and a free cash flow yield of 6.51%, the stock appears to be pricing in the company's strong growth prospects. The company expressed confidence in managing tariff impacts and maintaining its financial outlook. Seasonality and cash flow are expected to follow historical patterns, with no significant disruptions anticipated. Jillian Evanko discussed the company's performance, highlighting strong aftermarket service (RSL) growth, with orders up due to broad-based demand, including a mining project in South Africa and a CCUS retrofit. RSL's resilience is underpinned by its mission-critical nature, with consistent performance even during economic downturns.

3. NewsRoom

Card image cap

Boston Partners Buys Shares of 8,756 Chart Industries, Inc. $GTLS

Dec -01

Source: defenseworld.net

Card image cap

Chart Industries, Inc. $GTLS Shares Sold by Advantage Alpha Capital Partners LP

Nov -28

Source: defenseworld.net

Card image cap

Chart Industries, Inc. $GTLS Shares Sold by Creative Planning

Nov -26

Source: defenseworld.net

Card image cap

Penn Capital Dumps Entire Chart Industries Stake

Nov -25

Source: fool.com

Card image cap

Chart Industries Announces CEO Jill Evanko to Assume Senior Advisor Role in 2026

Nov -17

Source: globenewswire.com

Card image cap

Why One Fund Cut $80 Million in Chart Industries Stock Ahead of Baker Hughes Buyout

Nov -15

Source: fool.com

Card image cap

Roubaix Capital Just Ditched More Than 42,000 Shares of Chart Industries. Here's What It Means.

Nov -13

Source: fool.com

Card image cap

Paramount Global: Mario Gabelli's Strategic Exit with a -0.62% Portfolio Impact

Nov -12

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.00%)

6. Segments

Repair, Service & Leasing

Expected Growth: 8.5%

The growth is slightly below the global average due to the mature nature of the service and leasing market, but it remains stable due to recurring contracts and the essential nature of the services provided.

Specialty Products

Expected Growth: 10.0%

The expected growth is higher than the global average because the segment benefits from the increasing demand for specialized cryogenic and gas processing solutions, driven by technological advancements and the expansion of end-user industries.

Cryo Tank Solutions

Expected Growth: 9.5%

The growth is slightly above the global average due to the increasing demand for cryogenic liquids and the need for safe and efficient storage solutions. The segment is poised to benefit from the expanding applications of cryogenic liquids.

Heat Transfer Systems

Expected Growth: 8.0%

The expected growth is slightly below the global average due to the cyclical nature of some of the industries served, such as energy and petrochemical. However, the demand for energy-efficient solutions provides a growth opportunity.

Corporate & Intersegment Eliminations

Expected Growth: 9.0%

The growth is assumed to be at the global average rate, as the segment's performance is not directly tied to the operational growth of the other segments but rather to corporate decisions and the scale of intersegment eliminations.

7. Detailed Products

LNG Equipment

Chart Industries, Inc. provides a range of liquefied natural gas (LNG) equipment, including liquefaction plants, regasification terminals, and LNG fueling stations.

Industrial Gas Equipment

The company offers a variety of industrial gas equipment, including air cooled heat exchangers, cold boxes, and gas processing equipment.

Energy and Cryogenic Solutions

Chart Industries, Inc. provides energy and cryogenic solutions, including cryogenic storage tanks, trailers, and vaporizers.

Biomedical Storage and Transport

The company offers biomedical storage and transport solutions, including cryogenic freezers, liquid nitrogen storage tanks, and cryogenic transport trailers.

Clean Energy Hydrogen Solutions

Chart Industries, Inc. provides clean energy hydrogen solutions, including hydrogen fueling stations, hydrogen liquefaction plants, and hydrogen storage tanks.

8. Chart Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Chart Industries, Inc. is medium due to the presence of alternative products and services in the market, but the company's strong brand reputation and customer loyalty mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Chart Industries, Inc. due to the company's diverse customer base and lack of concentration, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Chart Industries, Inc. due to the presence of multiple suppliers, but the company's large scale of operations and long-term contracts mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low for Chart Industries, Inc. due to the high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for Chart Industries, Inc. due to the presence of several established competitors in the market, leading to intense competition and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 58.03%
Debt Cost 7.81%
Equity Weight 41.97%
Equity Cost 12.65%
WACC 9.84%
Leverage 138.29%

11. Quality Control: Chart Industries, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Chart Industries

A-Score: 4.8/10

Value: 3.7

Growth: 8.6

Quality: 4.5

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
John Bean Technologies

A-Score: 4.4/10

Value: 4.4

Growth: 5.1

Quality: 3.0

Yield: 0.0

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Mirion Technologies

A-Score: 4.1/10

Value: 1.1

Growth: 4.4

Quality: 5.4

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Generac

A-Score: 4.1/10

Value: 2.8

Growth: 6.7

Quality: 6.2

Yield: 0.0

Momentum: 4.5

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Regal Rexnord

A-Score: 3.8/10

Value: 5.1

Growth: 4.0

Quality: 4.8

Yield: 2.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Enovis

A-Score: 3.5/10

Value: 9.2

Growth: 1.6

Quality: 3.3

Yield: 0.0

Momentum: 2.5

Volatility: 4.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

205.12$

Current Price

205.12$

Potential

-0.00%

Expected Cash-Flows