Chart Q2 2024 Earnings Report
Key Takeaways
Chart Industries reported record sales of $1.04 billion, an 18.8% increase year-over-year, and record adjusted operating income of $225.7 million. The company's performance was driven by strong demand across all segments and regions, as well as successful integration of the Howden acquisition.
Record sales of $1.04 billion, up 18.8% year-over-year.
Orders increased by 12.1% to $1.16 billion.
Record reported gross margin of 33.8%, an increase of 310 bps.
Adjusted diluted EPS of $2.18, which includes negative impacts from preferred dividend and FX.
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Forward Guidance
Chart Industries anticipates full year 2024 sales to be in the range of approximately $4.45 billion to $4.60 billion with forecasted full year 2024 adjusted EBITDA in the range of $1.08 billion to $1.15 billion. Our anticipated 2024 full year adjusted EPS range is $10.75 to $11.75. FCF guidance is in the range of approximately $400 million to $475 million.
Positive Outlook
- Sales are expected to be between $4.45 billion and $4.60 billion.
- Adjusted EBITDA is projected to be between $1.08 billion and $1.15 billion.
- Adjusted EPS is anticipated to be between $10.75 and $11.75.
- Free cash flow is guided to be between $400 million and $475 million.
- Medium-term outlook is reiterated with double-digit sales growth in 2025 and 2026.
Challenges Ahead
- Sales recognition for backlog conversion is delayed on larger projects.
- Negative foreign exchange impacts are expected.
- Timing of larger awards will have revenue impacts in 2025 and 2026.
- Change to adjusted EPS calculation by including the negative impact of the preferred dividend.
- Previous sales outlook was expected to be in a range of $4.7 to $5.0 billion.