Chart Industries, Inc. (GTLS): history, ownership, mission, how it works & makes money

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Chart Industries, Inc. (GTLS) Information


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.