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Sep 30, 2023
Chart Q3 2023 Earnings Report
Chart Industries reported record third quarter financial results, completed the divestiture of American Fan, and exceeded year-one commercial synergy targets.
Key Takeaways
Chart Industries reported a strong third quarter with record backlog, orders, operating income, and EBITDA margin. The company exceeded its year-one commercial synergy target related to the Howden acquisition and is on track to meet or exceed its cost synergy target. Sales increased by 9.8% compared to the third quarter of 2022.
Record backlog of $4.1 billion, up 4.4% compared to the second quarter of 2023.
Record orders of $1.13 billion, growing 6.0% compared to the second quarter of 2023.
Achieved $297.9 million in commercial synergies related to the Howden acquisition, exceeding the year-one target.
Sales of $897.9 million, an increase of 9.8% compared to the third quarter of 2022.
Forward Guidance
Chart Industries updated its full year 2023 sales guidance to $3.45 billion to $3.50 billion and adjusted EBITDA 2023 range of $745 million to $760 million. Increased adjusted FCF full year 2023 outlook to $335 million to $350 million. Our full year 2023 adjusted EPS range is $6.05 to $6.25
Positive Outlook
- Updating full year 2023 sales forecast to approximately $3.45 billion to $3.50 billion.
- Full year adjusted EBITDA is anticipated to be in the range of $745 million to $760 million
- Expect to see a sequential step up in adjusted free cash flow in the fourth quarter 2023, resulting in a full year 2023 outlook for adjusted free cash flow of $335 million to $350 million
- Expected full year 2023 adjusted EPS is in the range of $6.05 to $6.25.
- 2024 adjusted EBITDA forecast of approximately $1.3 billion remains unchanged.
Challenges Ahead
- Removal of sales associated with American Fan, Cryo Diffusion, and Cofimco due to the accelerated closing.
- Expectation of the timing of the delayed revenue recognition moving into 2024 primarily from supply chain delivery timing.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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