Chart Industries (GTLS) Q4 2024 earnings summary

Executive summary

• Q4 2024 orders reached $1.553B, 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 2024 sales were $1.11B, up 10.8% excluding FX, and full-year sales reached $4.16B, up 17.5% organically.

• Adjusted Q4 operating income was $243.4M (22% margin); adjusted EBITDA was $283.6M (25.6% margin), and full-year adjusted EBITDA was $1.014B (24.4% margin).

• Q4 free cash flow was $261M, up 143.2%, with full-year free cash flow at $388M; net leverage ratio improved to 2.8 at year-end.

• Q4 adjusted diluted EPS was $2.66, with full-year adjusted diluted EPS at $8.36; Q4 reported diluted EPS was $1.60.

Financial highlights

• Q4 2024 book-to-bill ratio was 1.4; backlog increased 13.2% to $4.85B.

• Gross margin was 33.6% in Q4 2024; full-year gross margin was 33.4%.

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

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

• Net cash from operations in Q4 2024 was $281.5M.

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 $550–$600M; tax rate expected at ~22%.

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

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

• FX could have a 2% negative impact on 2025 sales if current rates persist.