Yahoo Finance

• Orders: $1.32 billion, a 17.3% increase from Q1 2024.

• Sales: $1 billion, organically grew 6.6%.

• Gross Margin: 33.9%, marking the fourth consecutive quarter above 33%.

• Adjusted Operating Income Margin: Expanded by 190 basis points.

• Adjusted EBITDA: $231.1 million, 23.1% of sales, an increase of 80 basis points.

• Adjusted Diluted EPS: $1.86, a 38.8% increase.

• Free Cash Flow: Negative $80.1 million, improved by $55.6 million compared to Q1 2024.

• Net Leverage Ratio: 2.91, with a target of 2 to 2.5 by the end of 2025.

• CTS Orders: $152.6 million, decreased 4.2% from Q1 2024.

• HTS Orders: $220.7 million, declined 7% from Q1 2024.

• Specialty Products Orders: $487.7 million, increased 24.6% from Q1 2024.

• RSL Orders: $454.6 million, grew 36.1% from Q1 2024.

• Capital Expenditures: Anticipated to be 2% to 2.5% of sales for 2025.

• 2025 Sales Guidance: $4.65 billion to $4.85 billion.

• 2025 Adjusted EBITDA Guidance: $1.175 billion to $1.225 billion.

• Warning! GuruFocus has detected 4 Warning Signs with GTLS.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Chart Industries Inc (NYSE:GTLS) reported a 17.3% increase in orders compared to the first quarter of 2024, driven by significant projects like Woodside Louisiana LNG Phase 2.

• The company achieved a gross margin of 33.9%, marking the fourth consecutive quarter above 33%, indicating strong operational efficiency.

• Adjusted EBITDA increased by 80 basis points to 23.1% of sales, reflecting improved profitability.

• The company has a robust commercial pipeline of approximately $24 billion, with significant potential LNG projects expected to enter the backlog in 2025.

• Chart Industries Inc (NYSE:GTLS) maintained its full-year guidance for 2025, demonstrating confidence in its business outlook despite global uncertainties.

Negative Points

• Free cash flow was negative $80.1 million in the first quarter, although it showed improvement compared to the previous year.

• The company's net leverage ratio was 2.91, with a target to reduce it to 2 to 2.5 by the end of 2025, indicating ongoing financial leverage concerns.

• There is uncertainty in the industrial gas and hydrogen markets, particularly in the Americas, which could impact future demand.

• The company faces potential gross impacts from tariffs, estimated at approximately $50 million annually, which could affect profitability if not mitigated.

• Orders in the Cryo Tank Solutions segment decreased by 4.2% compared to the first quarter of 2024, indicating potential challenges in this area.