Chart Q2 2020 Earnings Report
Key Takeaways
Chart Industries reported Q2 2020 results with orders of $267.6 million, including a strong June with $125.1 million. Reported EPS was $0.57, with adjusted EPS at $0.63. The company generated $44.1 million in operational free cash flow and reduced its net leverage ratio to 2.97. Full year 2020 revenue is guided at $1.3 billion to $1.4 billion, with adjusted EPS of $3.00 to $3.50.
Second quarter orders reached $267.6 million, with June being the highest order month of 2020.
Gross margin improved to 29.8% (30.3% normalized), driven by $61.2 million in annualized cost savings.
The company booked a small-scale LNG terminal order for a U.S. utility customer ($13.3 million).
Aftermarket, repair, and service revenue increased to over 13.5% of total revenue.
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Forward Guidance
Full year 2020 sales are expected to be $1.3 billion to $1.4 billion and includes $46 million of Venture Global’s Calcasieu Pass revenue in the second half of the year. We anticipate full year diluted adjusted earnings per share to be in the range of $3.00 to $3.50 on 35.3 million weighted average shares outstanding.
Positive Outlook
- Revenue of $1.3 billion to $1.4 billion
- Includes $46 million of Venture Global’s Calcasieu Pass revenue in the second half of the year.
- Diluted adjusted earnings per share to be in the range of $3.00 to $3.50
- Weighted average shares outstanding of 35.3 million
- Effective tax rate is 19% for the full year 2020.