Sep 30, 2020

Chart Q3 2020 Earnings Report

Reported third quarter results with increased orders and strategic investments.

Key Takeaways

Chart Industries reported a decrease in sales by 19.2% compared to Q3 2019, driven by E&C FinFans, but the rest of the business saw an 11.1% increase. The company's third-quarter orders were $262.7 million, and the adjusted earnings per diluted share was $0.63. The company is focusing on clean energy transition and hydrogen-related opportunities, with significant investments and acquisitions in these areas.

Third quarter 2020 orders increased 7.4% sequentially to $262.7 million.

Signed ten new long-term agreements with major customers.

Completed the divestiture of the cryobiological business for $320 million in cash.

Full year 2020 revenue guidance of $1.18 billion and adjusted EPS of $2.25.

Total Revenue
$273M
Previous year: $358M
-23.6%
EPS
$0.8
Previous year: $0.77
+3.9%
Gross Profit
$78.6M
Previous year: $101M
-22.3%
Cash and Equivalents
$121M
Previous year: $80.7M
+49.6%
Free Cash Flow
$26.3M
Previous year: $44.1M
-40.4%
Total Assets
$2.45B
Previous year: $2.5B
-1.8%

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Forward Guidance

Full year 2020 sales are expected to be approximately $1.18 billion, and full year 2021 sales are expected to be approximately $1.25 billion to $1.325 billion.

Positive Outlook

  • Full year 2020 sales are expected to be approximately $1.18 billion.
  • Full year 2020 diluted adjusted earnings per share to be approximately $2.25.
  • Full year 2021 sales are expected to be approximately $1.25 billion to $1.325 billion.
  • Full year 2021 diluted adjusted earnings per share to be approximately $3.00 to $3.40.
  • Assumed effective tax rate is 18% for the full year 2021.