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Sep 30, 2022
Chart Q3 2022 Earnings Report
Chart Industries reported record third quarter results driven by strong demand for LNG and clean energy solutions.
Key Takeaways
Chart Industries reported record third quarter results with record backlog, sales, gross margin, operating income, and EPS. The company's performance was driven by strong demand for LNG and clean energy solutions, as well as the Inflation Reduction Act of 2022. The company's outlook for 2022 and 2023 is positive, with increased confidence driven by record backlog, multiple global tailwinds, and customers' forecasts.
Record backlog of $2,254.1 million, surpassing $2 billion for the first time.
Record sales of $412.1 million, an increase of 25.5% versus prior year.
Record reported operating income of $41.7 million, contributing to record EPS of $1.15 and adjusted EPS of $1.49.
Third quarter orders of $729.4 million, a 108% increase compared to the third quarter 2021.
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Forward Guidance
Chart Industries provided its outlook for 2022 and 2023. The company expects 2022 sales to be in the range of $1.65 billion to $1.70 billion, with associated adjusted non-diluted EPS in the range of $5.00 to $5.25. The company expects 2023 sales to be in the range of $2.10 billion to $2.20 billion, with associated adjusted non-diluted EPS in the range of $7.50 to $8.50.
Positive Outlook
- Record backlog provides increased confidence in future sales.
- Multiple global tailwinds are expected to drive demand.
- Customers' forecasts are positive.
- The Inflation Reduction Act is expected to accelerate commercial activity.
- Energy security and access are creating new LNG opportunities.
Challenges Ahead
- Currency headwinds are expected to negatively impact sales.
- Timing of specific project revenue recognition can be variable.
- Ongoing macroeconomic inflationary and supply chain challenges.
- Gas and energy prices are a key driver in component availability and costs.
- Shortage of supply and rising energy prices could impact raw material producers.