Chart Industries (GTLS) Q4 2024 earnings summary

Executive summary

• Q4 2024 orders reached $1.55B, up 29.4% year-over-year, with full-year orders at $5.01B, up 13.2%, driven by LNG and diversified end-market demand.

• Q4 sales were $1.11B, up 10.1% year-over-year (ex-FX), with full-year sales at $4.16B, a 17.5% organic increase.

• Adjusted Q4 operating income was $243.4M, with a 22% margin; adjusted EBITDA for Q4 was $283.6M (25.6% of sales), and adjusted diluted EPS was $2.66.

• Free cash flow was $261M in Q4 and $388M for the year; net leverage ratio improved to 2.8 at year-end.

• Margin expansion and operational improvements reflected integration synergies and strong execution.

Financial highlights

• Q4 book-to-bill ratio was 1.4; backlog increased 13.2% to $4.85B.

• Q4 gross margin was 33.6%; full-year gross margin was 33.4%, with mid-30s targeted medium-term.

• Adjusted operating margin for 2024 was 21.1%, up 400 bps; adjusted EBITDA margin was 24.4%, up 330 bps.

• Net working capital as a % of trailing 12-month sales improved to 13.4%.

• Reported diluted EPS for Q4 was $1.60 (+88.2%); full-year adjusted diluted EPS was $8.36.

Outlook and guidance

• 2025 sales guidance: $4.65–$4.85B; adjusted EBITDA: $1.175–$1.225B; adjusted diluted EPS: $12.00–$13.00.

• Free cash flow guidance for 2025 is $550M–$600M; tax rate expected at ~22%.

• Net leverage ratio targeted below 2.5 by end of 2025, with net debt around $3B.

• Second half of 2025 expected to be stronger than the first half; Q1 typically lowest quarter.

• Book-to-bill expected above one for 2025.