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Chart Industries (GTLS)
NYSE:GTLS
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Chart Industries
(NYSE:GTLS)
Rating:74Outperform
Price Target:
$164.00
▲(10.81%Upside)
Positive Factors
Merger Strategy
The merger leverages the complementary strengths of both companies to enhance resilience, drive profitable growth, and sustain cash flow.
Shareholder Value
The merger is expected to enhance shareholder value through increased scale, diversification, and global reach.
Negative Factors
Operational Performance
The company’s inconsistent operational performance, above-average balance sheet leverage, and lack of cash return justify a Neutral rating.
Product Mix Concerns
The deal raises concerns around diluting GTLS's product mix as LNG will comprise just ~9% of the combined entity.
Chart Industries (GTLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.62B
Dividend YieldN/A
Average Volume (3M)791.21K
Price to Earnings (P/E)29.5
Beta (1Y)2.21
Revenue Growth11.65%
EPS Growth340.94%
CountryUS
Employees11,928
SectorIndustrials
Sector Strength90
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.86
Shares Outstanding44,941,456
10 Day Avg. Volume1,270,752
30 Day Avg. Volume791,213
Financial Highlights & Ratios
PEG Ratio1.33
Price to Book (P/B)1.56
Price to Sales (P/S)0.00
P/FCF Ratio632.89
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue0.31
Enterprise Value/Gross Profit4.22
Enterprise Value/Ebitda1.67
Forecast
1Y Price Target
$206.31Price Target Upside39.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
Chart Industries Business Overview & Revenue Model
Company DescriptionChart Industries, Inc. (GTLS) is a global manufacturer of highly engineered equipment servicing multiple applications in the energy and industrial gas markets. The company's product portfolio includes cryogenic storage tanks, heat exchangers, and other components critical to the production, storage, and end-use of liquefied natural gas (LNG), industrial gases, and other specialty gases. Chart Industries serves sectors such as energy, industrial gas, and biomedical markets, providing solutions that are integral to the energy transition and environmental sustainability efforts.
How the Company Makes MoneyChart Industries generates revenue through the sale of its equipment and services, which are essential in the production, storage, and distribution of industrial and natural gases. The company's key revenue streams include the Energy & Chemicals segment, which supplies equipment for the LNG and petrochemical industries; the Distribution & Storage segment, which provides equipment for the storage and transportation of industrial gases; and the Specialty Products segment, which caters to the biomedical and food and beverage industries. Additionally, Chart Industries engages in aftermarket services, further contributing to its earnings. Strategic partnerships and acquisitions also play a significant role in expanding its market reach and enhancing its technological capabilities, thereby driving revenue growth.
Chart Industries Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 9.65%|
Next Earnings Date:Jul 25, 2025
Earnings Call Sentiment Positive
Chart Industries reported strong order and sales growth with consistent gross margins and robust demand across diverse end markets. However, challenges include negative free cash flow, tariff impacts, and declines in specific segments like Cryo Tank Solutions and Heat Transfer Systems.Q1-2025 Updates
Positive Updates
Strong Order Growth
Orders increased by 17.3% year-over-year to $1.32 billion, driven by notable projects like Woodside Louisiana LNG Phase 2.
Organic Sales Growth
Sales grew organically by 6.6% to $1 billion, with three out of four segments showing increased sales.
Gross Margin Consistency
The company achieved a gross margin of 33.9%, marking the fourth consecutive quarter above 33%.
Robust Adjusted EBITDA
Adjusted EBITDA was $231.1 million, representing 23.1% of sales and an increase of 80 basis points from the previous year.
EPS Growth
Adjusted diluted earnings per share increased by 38.8% to $1.86.
Diverse End Market Strength
Strong order activity in space exploration, HLNG vehicle tanks, nuclear, and marine sectors, exceeding full-year 2024 orders in Q1 2025.
Positive Demand Trends
Positive demand outlook across most business sectors, including data centers, AI, and LNG.
Data Center Market Expansion
Data center customer pipeline expanded to over $400 million in opportunities, showing strong growth potential.
Negative Updates
Negative Free Cash Flow
Free cash flow was negative $80.1 million, although it represented an improvement from the previous year.
Industrial Gas and Hydrogen Market Concerns
The company is watching uncertainty in the industrial gas and hydrogen markets, particularly in the Americas.
Tariff Impact
Anticipated gross impact from tariffs estimated at approximately $50 million annually, though mitigating efforts are in place.
Cryo Tank Solutions Segment Decline
CTS orders and sales both declined by 4.2% and 4.1%, respectively, compared to the first quarter of 2024.
Heat Transfer Systems Order Decline
HTS orders declined by 7% year-over-year, although future order activity remains promising.
Company Guidance
In the first quarter of 2025, Chart Industries reported several positive financial metrics. Orders increased by 17.3% year-over-year to $1.32 billion, with significant contributions from the Woodside Louisiana LNG Phase 2 project. Sales reached $1 billion, reflecting a 6.6% organic growth, and the gross margin was 33.9%, marking the fourth consecutive quarter above 33%. The company achieved a 190-basis point expansion in adjusted operating income margin, leading to an adjusted EBITDA of $231.1 million, representing 23.1% of sales. Adjusted diluted earnings per share rose by 38.8% to $1.86. Despite a negative free cash flow of $80.1 million, there was an improvement of $55.6 million compared to the same period in 2024. The net leverage ratio stood at 2.91, with a target of 2 to 2.5 expected to be achieved within the year. Chart Industries reiterated its full-year guidance, supported by a robust backlog and strong aftermarket service repair business, which constitutes approximately a third of their operations.Chart Industries Financial Statement Overview
Summary
Chart Industries demonstrates strong revenue growth and improved profitability with a significant increase in cash flows. While the balance sheet shows moderate leverage, the company's operational execution is sound, and continued focus on debt management will be beneficial.Income Statement
Chart Industries demonstrates strong revenue growth with a significant increase from $1.61 billion in 2022 to $4.21 billion in TTM (Trailing-Twelve-Months). The gross profit margin is robust at approximately 32.8% in TTM, indicating effective cost management. Net profit margin improved to 6.2% in TTM, reflecting enhanced profitability. However, monitoring the stability of EBIT and EBITDA margins, which are at 16.4% and 21.4% respectively, is essential as they suggest room for operational efficiency improvements.85
Very Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of 1.24 in TTM, indicating a balanced leverage position. The return on equity is fairly strong at 8.7%, showcasing decent profitability relative to shareholder equity. The equity ratio stands at 32.2%, suggesting a reasonable level of financial stability. Continued focus on managing debt levels will be beneficial to maintain financial health.76
Positive
Cash Flow
Chart Industries shows a commendable free cash flow growth rate, with an increase to $443.3 million in TTM from $316 million in 2023. The operating cash flow to net income ratio is solid at 2.06, highlighting efficient cash generation from operations. The free cash flow to net income ratio also improved, indicating a strong cash position relative to profitability. Sustaining these trends will be crucial for financial flexibility.79
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.21B | 4.16B | 3.35B | 1.61B | 1.32B | 1.18B | Gross Profit |
| 1.38B | 1.39B | 1.04B | 407.40M | 324.20M | 332.10M | EBIT |
| 691.20M | 647.50M | 390.70M | 151.50M | 88.50M | 108.20M | EBITDA |
| 902.60M | 928.10M | 578.20M | 212.50M | 173.70M | 192.40M | Net Income Common Stockholders |
| 256.70M | 218.50M | 47.30M | 83.00M | 59.10M | 82.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 296.20M | 308.60M | 201.10M | 663.60M | 122.20M | 125.10M | Total Assets |
| 9.31B | 9.12B | 9.10B | 5.90B | 3.04B | 2.59B | Total Debt |
| 3.73B | 3.64B | 3.90B | 2.30B | 600.80M | 221.60M | Net Debt |
| 3.43B | 3.33B | 3.70B | 1.64B | 478.60M | 96.50M | Total Liabilities |
| 6.15B | 6.13B | 6.16B | 3.22B | 1.42B | 995.20M | Stockholders Equity |
| 3.00B | 2.83B | 2.79B | 2.68B | 1.63B | 1.59B |
| Cash Flow | Free Cash Flow | ||||
| 443.30M | 382.20M | 31.60M | 6.60M | -74.00M | 134.80M | Operating Cash Flow |
| 538.10M | 503.00M | 167.20M | 80.80M | -21.30M | 172.70M | Investing Cash Flow |
| -110.60M | -141.30M | -3.99B | -101.60M | -361.20M | 185.00M | Financing Cash Flow |
| -321.90M | -243.70M | 1.41B | 2.50B | 381.90M | -363.40M |
Chart Industries Technical Analysis
Negative
148.00
Price Trends
146.01
Positive
162.56
Negative
158.78
Negative
Market Momentum
-1.53
Positive
44.46
Neutral
14.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTLS, the sentiment is Negative. The current price of 148 is below the 20-day moving average (MA) of 157.37, above the 50-day MA of 146.01, and below the 200-day MA of 158.78, indicating a neutral trend. The MACD of -1.53 indicates Positive momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 14.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GTLS.
Chart Industries Risk Analysis
Chart Industries disclosed 31 risk factors in its most recent earnings report. Chart Industries reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Chart Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $8.19B | 28.08 | 17.61% | 0.85% | 3.89% | 8.17% | |
78 Outperform | $7.62B | 37.13 | 15.24% | ― | 10.78% | 30.05% | |
74 Outperform | $6.62B | 29.54 | 9.07% | ― | 11.65% | 340.94% | |
72 Outperform | $6.21B | 22.25 | 14.00% | 1.77% | 4.23% | 20.40% | |
72 Outperform | $9.55B | 41.01 | 3.69% | 0.97% | -10.19% | ― | |
67 Neutral | $7.67B | 22.36 | 14.29% | ― | 8.07% | 58.67% | |
66 Neutral | $4.52B | 12.34 | 5.41% | 3.62% | 4.15% | -12.18% |
* Industrials Sector Average
Performance Comparison
GTLS
Chart Industries
148.00
4.03
2.80%
FLS
Flowserve
47.74
1.07
2.29%
GNRC
Generac Holdings
128.39
-7.77
-5.71%
RRX
Regal Rexnord
141.67
0.34
0.24%
SPXC
SPX
158.76
21.01
15.25%
WTS
Watts Water Technologies
241.85
51.37
26.97%
Chart Industries Corporate Events
M&A Transactions
Chart Industries and Flowserve Announce Merger Agreement
Positive
Jun 4, 2025
On June 3, 2025, Chart Industries and Flowserve Corporation announced a merger agreement to combine in an all-stock merger of equals, creating a leader in industrial process technologies. The merger, unanimously approved by both companies’ boards, will establish a company with an enterprise value of approximately $19 billion, headquartered in Dallas, Texas. The combined company aims to generate $300 million in annual cost synergies within three years and expects to be accretive to adjusted EPS in the first year. The merger will enhance the companies’ capabilities across various industrial sectors and expand their aftermarket services, with the transaction expected to close in the fourth quarter of 2025, subject to shareholder and regulatory approvals.
The most recent analyst rating on (GTLS) stock is a Buy with a $199.00 price target. To see the full list of analyst forecasts on Chart Industries stock, see the GTLS Stock Forecast page.
Executive/Board ChangesShareholder Meetings
Chart Industries Holds Annual Stockholders Meeting
Positive
May 20, 2025
On May 20, 2025, Chart Industries, Inc. held its annual meeting of stockholders where several key decisions were made. The stockholders elected eight directors for a one-year term, ratified Deloitte & Touche LLP as the independent registered public accounting firm for 2025, and approved the executive compensation on an advisory basis. These approvals reflect the stockholders’ support for the company’s leadership and financial oversight, potentially strengthening its governance and operational strategies.
The most recent analyst rating on (GTLS) stock is a Buy with a $199.00 price target. To see the full list of analyst forecasts on Chart Industries stock, see the GTLS Stock Forecast page.
Private Placements and FinancingBusiness Operations and Strategy
Chart Industries Forms Co-Investment Agreement with MSD Partners
Neutral
May 5, 2025
Chart Industries, Inc. announced a Co-Investment Agreement with MSD Partners, L.P. regarding the sale of HTEC shares previously owned by ISQ HTEC HoldCo Limited. The agreement includes a Put Option for MSD to sell shares back to Chart Industries under specific conditions, and a Call Option for Chart to repurchase shares from MSD, impacting the company’s strategic positioning in the hydrogen technology sector.
Executive/Board Changes
Chart Industries Announces Retirement of Chief Accounting Officer
Neutral
May 5, 2025
On May 2, 2025, Chart Industries announced that its Chief Accounting Officer, Ms. Stephanie W. Everett, will retire on May 31, 2025. She will be succeeded by Mr. Mark Durham, the current Senior Vice President of Finance, who has been with the company since May 2023. Mr. Durham’s promotion includes an increase in his base salary and adjustments to his incentive targets for 2025, reflecting his expanded role and responsibilities.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.