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Mar 31, 2023
Chart Q1 2023 Earnings Report
Reported record sales, record backlog, broad-based demand, and year-over-year improvement in margins.
Key Takeaways
Chart Industries reported strong first quarter 2023 results, including record sales of $537.9 million and record backlog of $3.9 billion. The company's adjusted EBITDA margin reached 19.0%, driven by price/cost improvements, Howden's contribution, full solution project offerings, and record RSL gross profit and operating profit. Increased sales outlook to $3.66B - $3.80B and associated adjusted EBITDA of $780M - $810M.
Record backlog for Chart of $3.9 billion.
Orders of $747.7 million, driven by broad-based demand.
Sales of $537.9 million, including record sales in Heat Transfer Systems and Repair, Service and Leasing.
Adjusted diluted EPS was $1.41.
Forward Guidance
Increasing our 2023 sales outlook to $3.66 billion to $3.80 billion and associated adjusted EBITDA of $780 million to $810 million. Reiterating our 2024 adjusted EBITDA outlook of approximately $1.3 billion.
Positive Outlook
- Strong start to our synergy achievement
- Continued demand in our commercial pipeline of the combined business
- First quarter 2023 record backlog
- Expect to book two to three additional Big LNG orders in 2023
- Expect to see the normal second quarter sequential increase in both Chart legacy and Howden’s business
Challenges Ahead
- Slower than anticipated growth and market acceptance of new clean energy product offerings
- Inability to achieve expected pricing increases or continued supply chain challenges including volatility in raw materials and supply
- Risks relating to the outbreak and continued uncertainty associated with the coronavirus (COVID-19)
Historical Earnings Impact
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Avg. Return Before/After Earnings
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