ATLANTA - Chart Industries , Inc. (NYSE: NYSE:GTLS), a leading diversified global manufacturer of highly engineered equipment for the industrial gas and energy industries, today announced its financial results for the fourth quarter ended December 31, 2023.
The company reported a robust quarter with adjusted earnings per share (EPS) of $2.25, surpassing the analyst consensus estimate of $2.11. However, revenue for the quarter was $1.02 billion, falling short of the consensus estimate of $1.1 billion.
Following the announcement, the stock rose nearly 18% Wednesday morning.
The company's performance in the fourth quarter was marked by record orders, backlog, sales, and gross profit margin. Chart Industries achieved record orders of $1.21 billion, a 28.3% increase from the same quarter last year, and a record backlog of $4.28 billion, up 3.3% from Q3 2023.
The reported gross margin for the quarter was a notable 32.9%, a significant increase from the previous year. The company's reported operating income of $156.0 million and adjusted EBITDA of $245.2 million represented 24.2% of sales, indicating a strong operational execution.
Chart Industries' CEO and President, Jill Evanko, expressed satisfaction with the integration of Howden, noting that the company exceeded its year-one commercial and cost synergies targets ahead of schedule. Evanko highlighted the company's focus on cash generation for debt paydown and balance sheet deleveraging, positioning the business to meet its medium-term financial targets.
Looking ahead to 2024, Chart Industries anticipates robust sales growth of 28% to 37% and adjusted EBITDA growth of 52% to 68%. The company's guidance reflects its record backlog and exposure to secular growth trends, such as energy transition, industrial decarbonization, and clean water, as well as continued automation, productivity, and capacity actions.
Investors may also take note of the company's deleveraging actions, as Chart Industries reported a net leverage ratio of 3.35X at the end of 2023, marking significant progress toward its target ranges. The company's 2024 outlook includes sales projections of $4.7 to $5.0 billion and adjusted EBITDA forecasts of $1.175 to $1.30 billion, with free cash flow guidance of $575 to $625 million.
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