Chart Q1 2024 Earnings Report
Key Takeaways
Chart Industries reported a strong first quarter in 2024, marked by record orders of $1.12 billion and sales of $950.7 million, representing increases of 4.3% and 17.4%, respectively. The company's adjusted operating margin reached 18.0%, and adjusted EBITDA was $212.2 million, or 22.3% of sales. Despite a negative free cash flow due to specific first-quarter outflows, Chart Industries is reiterating its full-year outlook.
Orders increased by 4.3% to $1.12 billion, contributing to a record backlog of $4.33 billion.
Sales grew by 17.4% to $950.7 million, with pro forma organic growth of 18.3%.
Adjusted operating margin increased by 620 bps to 18.0%, driven by synergy program and full-solution offering benefits.
Adjusted EBITDA increased by 550 bps to $212.2 million, representing 22.3% of sales.
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Forward Guidance
Chart Industries anticipates full-year 2024 sales to be in the range of $4.7 to $5.0 billion, with adjusted EBITDA forecasted between $1.175 to $1.30 billion. The adjusted EPS range is expected to be $12.00 to $14.00.
Positive Outlook
- Reiterates full year 2024 sales to be in a range of $4.7 to $5.0 billion.
- Forecasts full year 2024 adjusted EBITDA in the range of $1.175 to $1.30 billion.
- Expects 2024 full year adjusted EPS range of $12.00 to $14.00.
- Anticipates an effective tax rate of approximately 20%.
- Estimates a diluted share count of approximately 47 to 48 million.
Challenges Ahead
- First quarter 2024 included specific cash outflows that will not repeat in the second quarter 2024.
- Additional capital expenditures related to the completion of our Theodore, Alabama (“Teddy2”) jumbo cryogenic tank facility (approximately $24 million).
- Payments to divestiture-related advisors (approximately $8.1 million).
- Bonus payments (approximately $34.3 million plus associated taxes).
- Senior notes interest payment (approximately $79 million).