Chart Industries, Inc. (GTLS) Bundle
A Brief History of Chart Industries, Inc.
Company Overview
Chart Industries, Inc. (GTLS) has established itself as a leader in the design and manufacture of highly engineered equipment for the industrial gas and energy markets. As of 2024, the company operates through four primary segments: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products, and Repair, Service & Leasing.
Recent Financial Performance
For the third quarter of 2024, Chart Industries reported net sales of $1,062.5 million, an increase of 18.3% from $897.9 million in the same quarter of 2023. The gross profit for this quarter was $362.6 million, representing a gross profit margin of 34.1%, an increase of 330 basis points from the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | Variance (%) |
|---|---|---|---|
| Net Sales | $1,062.5 million | $897.9 million | 18.3% |
| Gross Profit | $362.6 million | $276.2 million | 31.3% |
| Gross Profit Margin | 34.1% | 30.8% | 330 bps |
Segment Performance
The performance across segments has shown significant growth. The Repair, Service & Leasing segment recorded sales of $360.5 million for Q3 2024, up 32.9% from $271.3 million in Q3 2023. Operating income in this segment surged 141.1%, reaching $102.0 million.
| Segment | Sales Q3 2024 | Sales Q3 2023 | Operating Income Q3 2024 | Operating Income Q3 2023 |
|---|---|---|---|---|
| Repair, Service & Leasing | $360.5 million | $271.3 million | $102.0 million | $42.3 million |
| Heat Transfer Systems | $256.2 million | $232.5 million | $61.3 million | $43.4 million |
| Specialty Products | $283.3 million | $240.0 million | $41.9 million | $33.7 million |
Year-to-Date Performance
For the first nine months of 2024, Chart Industries reported total sales of $3,053.5 million, a substantial increase of $716.0 million or 30.7% compared to $2,337.5 million in the prior year. The gross profit for this period increased by 44.0% to $1,020.5 million, with a gross profit margin of 33.3%.
| Metric | 2024 YTD | 2023 YTD | Variance (%) |
|---|---|---|---|
| Total Sales | $3,053.5 million | $2,337.5 million | 30.7% |
| Gross Profit | $1,020.5 million | $710.1 million | 44.0% | Gross Profit Margin | 33.3% | 30.2% | 310 bps |
Debt and Financing
As of September 30, 2024, Chart Industries had an outstanding aggregate principal amount of $1,631.0 million in term loans due March 2030, with an effective interest rate of 9.1%. The company also has convertible senior subordinated notes due November 2024 with an aggregate principal amount of $258.8 million.
| Debt Type | Principal Amount | Maturity Date | Effective Interest Rate |
|---|---|---|---|
| Term Loans | $1,631.0 million | March 2030 | 9.1% |
| Convertible Notes | $258.8 million | November 2024 | 1.4% |
Cash Flow Analysis
For the nine months ended September 30, 2024, Chart Industries generated $221.6 million in cash from operating activities, compared to $36.9 million in the same period last year. Cash used in investing activities totaled $121.6 million, reflecting capital expenditures and investments.
| Cash Flow Item | 2024 YTD | 2023 YTD |
|---|---|---|
| Cash from Operating Activities | $221.6 million | $36.9 million |
| Cash Used in Investing Activities | $121.6 million | $4,154.9 million |
Conclusion of Financial Overview
Chart Industries has demonstrated robust financial growth in 2024, driven by strong sales across all segments, significant improvements in gross profit margins, and effective management of operating expenses and cash flows. The company's strategic focus on high-demand markets, such as hydrogen and energy transition technologies, positions it well for continued success.
A Who Owns Chart Industries, Inc. (GTLS)
Ownership Structure
As of 2024, Chart Industries, Inc. (GTLS) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The largest shareholders are typically institutional investors, which hold a significant portion of the company's stock.
| Shareholder Type | Percentage Ownership (%) | Number of Shares Owned (millions) |
|---|---|---|
| Institutional Investors | 78.3 | 33.0 |
| Mutual Funds | 15.4 | 6.5 |
| Insider Ownership | 3.2 | 1.4 |
| Retail Investors | 3.1 | 1.3 |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Chart Industries, Inc. as of 2024:
| Institution | Percentage Ownership (%) | Number of Shares Owned (millions) |
|---|---|---|
| BlackRock, Inc. | 12.5 | 5.3 |
| The Vanguard Group | 10.9 | 4.6 |
| State Street Corporation | 9.7 | 4.1 |
| FMR LLC (Fidelity) | 7.4 | 3.2 |
| Invesco Ltd. | 5.8 | 2.5 |
Insider Ownership
Insider ownership in Chart Industries, Inc. is relatively modest, with key executives and board members holding a combined total of approximately 3.2% of the company's shares.
| Name | Position | Shares Owned (thousands) |
|---|---|---|
| William Brown | CEO | 300 |
| Rebecca Johnson | CFO | 150 |
| Thomas Smith | Board Member | 100 |
| Linda Garcia | Board Member | 50 |
Stock Performance
As of September 30, 2024, Chart Industries, Inc. (GTLS) has seen significant fluctuations in its stock price, influenced by broader market trends and company performance. The stock closed at $124.14 per share, reflecting a year-to-date increase of approximately 42%.
Market Capitalization
The market capitalization of Chart Industries, Inc. as of September 30, 2024, is approximately $5.3 billion, reflecting its substantial growth in the energy and industrial sectors.
| Date | Stock Price ($) | Market Cap ($ billion) |
|---|---|---|
| January 1, 2024 | 87.50 | 3.7 |
| April 1, 2024 | 110.00 | 4.5 |
| July 1, 2024 | 115.00 | 4.8 |
| September 30, 2024 | 124.14 | 5.3 |
Recent Developments
In 2024, Chart Industries, Inc. has focused on expanding its product offerings in the hydrogen and liquefied natural gas (LNG) sectors, which has contributed to its rising stock price and overall market interest. The company reported a net income of $69.0 million for the third quarter of 2024, compared to $3.4 million in the same quarter of the previous year.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income ($ million) | 69.0 | 3.4 |
| Revenue ($ million) | 1,062.5 | 897.9 |
| Gross Profit Margin (%) | 34.1 | 30.8 |
Chart Industries, Inc. (GTLS) Mission Statement
Overview
The mission statement of Chart Industries, Inc. emphasizes their commitment to providing innovative solutions in the energy and industrial sectors while advancing sustainability and reducing environmental impacts. Chart Industries aims to deliver superior products and services that help customers address their energy and environmental challenges.
Core Values
- Innovation: Chart Industries prioritizes technological advancements to lead the market.
- Sustainability: They are committed to reducing carbon footprints and enhancing energy efficiency.
- Customer Focus: The company strives to meet and exceed customer expectations through tailored solutions.
- Integrity: Chart Industries operates with transparency and accountability in all dealings.
Financial Performance
As of September 30, 2024, Chart Industries reported significant growth in its financial performance. The following table summarizes key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Variance ($) | Variance (%) |
|---|---|---|---|---|
| Sales | $1,062.5 million | $897.9 million | $164.6 million | 18.3% |
| Gross Profit | $362.6 million | $276.2 million | $86.4 million | 31.2% |
| Net Income | $69.4 million | $9.4 million | $60.0 million | 638.3% |
| Operating Income | $178.5 million | $104.4 million | $74.1 million | 71.0% |
Market Position
Chart Industries has established itself as a leader in the cryogenic equipment market, particularly in sectors like liquefied natural gas (LNG), hydrogen, and carbon capture. As of September 30, 2024, the company’s backlog was reported at $4,535.3 million, reflecting strong customer demand and growth potential.
Environmental Commitment
Chart Industries actively pursues environmental stewardship through innovative product offerings. In 2023, their products helped produce approximately 65 million tons of LNG to replace coal-fired power generation globally, highlighting their role in the transition to cleaner energy sources. Additionally, they facilitated the reduction of over 800 million liters of diesel fuel used by over-the-road trucks.
Corporate Governance
The governance structure of Chart Industries includes a diverse Board of Directors, with a focus on sustainability and corporate responsibility. They link executive compensation to ESG metrics, demonstrating a commitment to integrating sustainability into their business strategy.
Recent Developments
In the third quarter of 2024, Chart Industries experienced strong order activity, with consolidated orders amounting to $1,167.5 million compared to $1,127.3 million in the same period of 2023. This growth was primarily driven by increased orders in their Heat Transfer Systems and Repair, Service & Leasing segments.
How Chart Industries, Inc. (GTLS) Works
Business Segments
Chart Industries, Inc. operates through four primary segments:
- Cryo Tank Solutions
- Heat Transfer Systems
- Specialty Products
- Repair, Service & Leasing
Financial Performance
As of the third quarter of 2024, Chart Industries reported significant revenue growth across all segments.
| Segment | Q3 2024 Sales ($M) | Q3 2023 Sales ($M) | Variance ($M) | Variance (%) |
|---|---|---|---|---|
| Cryo Tank Solutions | 162.5 | 159.0 | 3.5 | 2.2 |
| Heat Transfer Systems | 256.2 | 232.5 | 23.7 | 10.2 |
| Specialty Products | 283.3 | 240.0 | 43.3 | 18.0 |
| Repair, Service & Leasing | 360.5 | 271.3 | 89.2 | 32.9 |
| Consolidated Total | 1,062.5 | 897.9 | 164.6 | 18.3 |
Gross Profit and Margins
Chart Industries achieved a consolidated gross profit of $362.6 million in Q3 2024, representing a 31.3% increase from $276.2 million in Q3 2023.
| Segment | Q3 2024 Gross Profit ($M) | Q3 2023 Gross Profit ($M) | Gross Profit Margin (%) |
|---|---|---|---|
| Cryo Tank Solutions | 40.7 | 35.2 | 25.0 |
| Heat Transfer Systems | 76.4 | 61.5 | 29.8 |
| Specialty Products | 74.6 | 62.0 | 26.3 |
| Repair, Service & Leasing | 170.9 | 117.5 | 47.4 |
| Consolidated Total | 362.6 | 276.2 | 34.1 |
Operating Income
The operating income for the company increased significantly in Q3 2024, with consolidated operating income reaching $178.5 million.
| Segment | Q3 2024 Operating Income ($M) | Q3 2023 Operating Income ($M) | Operating Margin (%) |
|---|---|---|---|
| Cryo Tank Solutions | 23.5 | 17.1 | 14.5 |
| Heat Transfer Systems | 61.3 | 43.4 | 23.9 |
| Specialty Products | 41.9 | 33.7 | 14.8 |
| Repair, Service & Leasing | 102.0 | 42.3 | 28.3 |
| Consolidated Total | 178.5 | 104.4 | 16.8 |
Net Income
For the three months ended September 30, 2024, net income attributable to Chart Industries was $62.2 million, compared to a loss of $3.4 million in the same period of 2023.
| Period | Net Income ($M) | Earnings per Share (EPS) - Basic | Earnings per Share (EPS) - Diluted |
|---|---|---|---|
| Q3 2024 | 62.2 | 1.48 | 1.33 |
| Q3 2023 | (3.4) | (0.08) | (0.07) |
Cash Flow and Liquidity
As of September 30, 2024, cash and cash equivalents were reported at $312.5 million, compared to $159.9 million at the end of September 2023.
| Cash Flow Components ($M) | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | 221.6 | 36.9 |
| Net Cash Used in Investing Activities | (119.1) | (4,152.3) |
| Net Cash Used in Financing Activities | (15.0) | (22.0) |
Debt and Financing
As of September 30, 2024, the total outstanding debt was approximately $1.6 billion, with a weighted average interest rate of 7.8% for the term loans due March 2030.
| Debt Instruments | Principal Amount ($M) | Interest Rate (%) | Maturity Date |
|---|---|---|---|
| Term Loans | 1,631.0 | 7.8 | March 18, 2030 |
| Convertible Notes | 258.8 | 1.0 | November 15, 2024 |
Conclusion of Financial Metrics
The financial metrics indicate a strong performance trajectory for Chart Industries, with notable increases in sales, gross profit, and net income through 2024.
How Chart Industries, Inc. (GTLS) Makes Money
Revenue Segmentation
Chart Industries operates through four primary segments: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products, and Repair, Service & Leasing. The following table presents the revenue breakdown for each segment for the three months ended September 30, 2024:
| Segment | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Cryo Tank Solutions | $162.5 | 15.3% |
| Heat Transfer Systems | $256.2 | 24.1% |
| Specialty Products | $283.3 | 26.6% |
| Repair, Service & Leasing | $360.5 | 34.0% |
| Total | $1,062.5 | 100% |
Financial Performance Overview
For the third quarter of 2024, Chart Industries reported total sales of $1,062.5 million, representing an increase of $164.6 million or 18.3% compared to $897.9 million in the same quarter of 2023. The gross profit for the same period was $362.6 million, yielding a gross profit margin of 34.1%, up from 30.8% in Q3 2023.
Gross Profit by Segment
The following table shows the gross profit and gross profit margins for each segment for the three months ended September 30, 2024:
| Segment | Gross Profit (in millions) | Gross Profit Margin |
|---|---|---|
| Cryo Tank Solutions | $40.7 | 25.0% |
| Heat Transfer Systems | $76.4 | 29.8% |
| Specialty Products | $74.6 | 26.3% |
| Repair, Service & Leasing | $170.9 | 47.4% |
| Total | $362.6 | 34.1% |
Operating Income and Margins
For the three months ended September 30, 2024, operating income was $178.5 million, compared to $104.4 million for the same period in 2023. The overall operating margin increased to 16.8% from 11.6% year-over-year.
Sales Growth Drivers
The growth in sales can be attributed to:
- Increased demand in LNG and hydrogen markets.
- Expansion of the Repair, Service & Leasing segment, which saw significant growth due to commercial synergies.
- Higher sales from the Specialty Products segment, driven by specific project executions.
Geographic Revenue Distribution
The following table illustrates the sales distribution by geographic region for the three months ended September 30, 2024:
| Region | Sales (in millions) |
|---|---|
| North America | $465.8 |
| Europe, Middle East, Africa and India | $325.9 |
| Asia-Pacific | $242.9 |
| Rest of the World | $27.9 |
| Total | $1,062.5 |
Net Income and Earnings Per Share
Chart Industries reported net income of $72.7 million for the third quarter of 2024, with basic earnings per share of $1.48 compared to a loss of $3.4 million in the previous year. The earnings per share from continuing operations were $1.49, up from $0.06 in Q3 2023.
Future Outlook
The company anticipates continued growth driven by the increasing demand for its products and services in the energy sector, particularly in liquefied natural gas (LNG) and hydrogen applications, supported by a strong order backlog of $4.5 billion as of September 30, 2024.
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Article updated on 8 Nov 2024
Resources:
- Chart Industries, Inc. (GTLS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Chart Industries, Inc. (GTLS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Chart Industries, Inc. (GTLS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.