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Dec 31, 2024
Chart Q4 2024 Earnings Report
Chart Industries posted strong revenue growth and record backlog, supported by LNG and clean energy demand.
Key Takeaways
Chart Industries reported Q4 2024 revenue of $1.11 billion, up 10.1% from Q4 2023. Adjusted EPS was $2.66, driven by strong performance in Heat Transfer Systems and Specialty Products. Net income rose to $79.6 million, while free cash flow improved to $261 million. The company ended the year with a robust backlog of $4.85 billion and anticipates continued margin expansion in 2025.
Revenue increased 10.1% year-over-year, reaching $1.11 billion.
Net income attributable to Chart Industries was $79.6 million, up from $49.8 million in Q4 2023.
Adjusted operating income margin improved to 22.0%, up 90 basis points year-over-year.
Backlog reached a record $4.85 billion, positioning the company for continued growth in 2025.
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Forward Guidance
Chart Industries expects strong demand in 2025, supported by a record backlog and growth in LNG, hydrogen, and carbon capture technologies.
Positive Outlook
- Projected 2025 revenue between $4.65 billion and $4.85 billion.
- Expected adjusted EBITDA between $1.175 billion and $1.225 billion.
- Backlog of $4.85 billion provides strong revenue visibility for 2025.
- Expanding LNG and clean energy opportunities, including carbon capture and hydrogen.
- Targeting net leverage ratio of below 2.5x in 2025.
Challenges Ahead
- Foreign exchange headwinds could impact 2025 revenue growth by approximately 2%.
- Interest expenses remain elevated, affecting net income.
- Potential supply chain disruptions could impact project execution.
- Increased competition in the LNG and hydrogen sectors.
- Ongoing restructuring costs could weigh on short-term profitability.