- Chart Industries‘ fourth-quarter sales for 2024 reached $1.11 billion, showing a 9% increase from the previous year, but missed the estimate of $1.17 billion.
- Cryo tank solutions sales decreased by 27% year-over-year to $150.2 million, falling short of the $173.6 million estimate.
- Heat transfer systems sales rose by 13% year-over-year to $288.8 million, below the expected $302.2 million.
- Specialty products sales increased by 46% to $316.9 million, nearly meeting the $318 million estimate.
- Sales from repair, service, and leasing grew by 2.9% year-over-year to $350.7 million, underperforming against the estimated $382.6 million.
- Orders for the period were $1.55 billion, which were 28% higher year-over-year and exceeded the $1.17 billion estimate.
- Gross profit was $372.3 million, an 11% increase from the previous year, but less than the expected $404.5 million.
- The gross margin for cryo tank solutions improved to 24.4% from 22.6% year-over-year, surpassing the estimate of 24%.
- Adjusted earnings per share (EPS) rose to $2.66 from $2.25 year-over-year but did not meet the projected $3.09.
- Fourth quarter 2024 free cash flow (FCF) was $261.0 million, contributing to a net leverage ratio of 2.80 as of December 31, 2024. The target is a ratio of 2.0 to 2.5 in 2025.
- Chart Industries projects ending 2025 with about $3 billion in net debt, based on full-year 2025 FCF between $550 and $600 million.
- Expected 2025 sales range is between $4.65 billion and $4.85 billion, with adjusted EBITDA anticipated between $1.175 billion and $1.225 billion, and adjusted EPS between $12.00 and $13.00 on approximately 45.5 million shares.
- December 31, 2024, backlog is strong, supported by major orders, offsetting potential 2% negative sales impact from foreign exchange rate fluctuations.
- Analysts’ recommendations include 16 buys, 5 holds, and no sells for Chart Industries.
Chart Industries on Smartkarma
Chart Industries has received positive analyst coverage on Smartkarma from Baptista Research. In their report titled “Chart Industries Inc.: An Analysis Of Its Expansion in Specialty Markets & Other Major Drivers,” Baptista Research highlighted the company’s strong operational and financial performance in the third quarter of 2024. They noted the successful efforts of Chart Industries in improving its balance sheet, with a decrease in net leverage ratio to 3.04 and impressive net cash and free cash flow figures. Baptista Research aims to assess various influencing factors on the company’s stock price and conduct an independent valuation using a Discounted Cash Flow (DCF) methodology.
Furthermore, Baptista Research initiated coverage on Chart Industries with a bullish perspective in their report titled “Chart Industries Inc.: Initiation Of Coverage – A Solid Competitive Advantage Driving Our ‘Buy’ Rating! – Major Drivers.” They emphasized the company’s strong financial performance in the second quarter of 2024, achieving record highs in sales, operating income, and EBITDA margins. This performance underscores Chart Industries‘ exceptional operational execution and strategic growth initiatives. Baptista Research intends to evaluate future price drivers and conduct a detailed valuation of Chart Industries through a DCF methodology.
A look at Chart Industries Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Chart Industries, Inc. has received a varied assessment through the Smartkarma Smart Scores system, indicating a mixed long-term outlook for the company. While scoring high in Growth and Momentum, with scores of 4 and 5 respectively, Chart Industries shows promise in terms of future expansion and market activity. The company’s focus on innovation and forward-thinking strategies is reflected in these scores.
However, the scores of 3 for Value, 1 for Dividend, and 2 for Resilience suggest some areas of concern for investors. Chart Industries may need to address issues related to the value of its stocks, dividend payouts, and overall resilience to market fluctuations. Investors should carefully consider these factors before making long-term investment decisions regarding Chart Industries.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
