Chart Q1 2025 Earnings Report
Key Takeaways
Chart Industries reported strong first quarter 2025 results with significant increases in orders, backlog, and improved profitability margins. The company achieved a record backlog exceeding $5 billion and saw organic sales growth.
Orders increased by 17.3% to $1.32 billion, including record Repair, Service & Leasing orders.
Backlog reached a record $5.14 billion, exceeding $5 billion for the first time.
Sales were $1.00 billion, representing an organic increase of 6.6%.
Reported gross profit margin improved by 210 basis points to 33.9%.
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Chart Revenue by Segment
Forward Guidance
Chart Industries reiterated its full year 2025 guidance based on current backlog, expected second quarter book-to-bill ratio, and customer feedback.
Positive Outlook
- Full year 2025 anticipated sales expected between $4.65 billion and $4.85 billion.
- Associated adjusted EBITDA expected between $1.175 billion and $1.225 billion.
- Associated adjusted diluted EPS expected between $12.00 and $13.00.
- Target net leverage ratio of 2.0 to 2.5 expected by the end of 2025.
- Full year 2025 free cash flow generation between $550 million and $600 million.
Challenges Ahead
- Recognition of an uncertain global environment for the remainder of 2025.
- Potential gross tariff impact of ~$50 million before mitigations.
- Uncertainty driven by tariffs in the industrial gas and hydrogen in Americas.
- No specific negative guidance points beyond the general uncertain environment and potential tariff impact.
Revenue & Expenses
Visualization of income flow from segment revenue to net income