Chart Q2 2021 Earnings Report
Key Takeaways
Chart Industries reported record orders and backlog for the second quarter of 2021, driven by broad-based demand for its products and technologies. Sales increased by 11.2% compared to the second quarter of 2020, and the company raised its full-year revenue and adjusted EPS guidance.
Record orders of $447.9 million, contributing to a record backlog of $1,083.9 million.
Sales of $322.0 million, an increase of 11.2% compared to the second quarter of 2020.
Reported diluted earnings per share (EPS) of $0.16 and adjusted non-diluted EPS of $0.80.
Increased full year 2021 revenue guidance to $1.38 billion to $1.43 billion and adjusted non-diluted EPS of $3.80 to $4.25.
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Forward Guidance
Chart Industries increased its full year 2021 sales guidance to be approximately $1.380 billion to $1.430 billion and anticipates full year non-diluted adjusted earnings per share to be approximately $3.80 to $4.25.
Positive Outlook
- Strong first half 2021 order book.
- Specific hydrogen and helium liquefaction projects.
- Each quarter in 2021 is expected to be better than the prior quarter.
- Potential for additional revenue from drop-in projects in HTS.
- Opportunity for up to four Big LNG projects to move to Final Investment Decision in the first half of 2022.
Challenges Ahead
- Material cost and supply headwinds.
- One-time restructuring and start-up costs impacted gross margin.
- Negative net cash provided by operating activities.
- Negative free cash flow due to investment in inventory.
- Conservatively built second half 2021 forecast for HTS.