Q2 2024 Chart Industries Inc Earnings Call Transcript
Key Points
- Chart Industries Inc (GTLS) achieved numerous all-time historical records in Q2 2024, including record reported sales, backlog, gross profit, gross margin, operating income, and EBITDA.
- Orders increased by 12% to $1.16 billion, with a significant 40% increase excluding big LNG projects.
- The company reported record sales of $1.04 billion, an 18.8% increase, with the aftermarket segment contributing about 35% of second-quarter sales.
- Chart Industries Inc (GTLS) achieved significant cost and commercial synergies, with $924 million of commercial synergies and $223 million of cost synergies already realized.
- The company has a strong commercial pipeline of opportunities for the next three years, valued at over $23 billion, driven by diverse end markets and applications.
- The mandatory preferred dividend had a negative impact of $0.14 on the second quarter adjusted EPS and a $0.60 impact on the full-year guidance.
- The net leverage ratio of 3.26, although improved from 4.08, still indicates a relatively high level of debt.
- The company had to adjust its full-year guidance due to timing shifts in project orders and foreign exchange headwinds.
- Free cash flow for Q2 2024 was lower than expected at $115 million, compared to the prior outlook of $175 million, due to specific inter-quarter timing issues.
- There is a risk of further timing shifts in project orders, which could impact future quarterly performance and guidance.
Good morning, and welcome to Chart Industries, Inc. 2024 second quarter results conference call.
(Operator Instructions) after the speakersâ remarks, there will be a question-and-answer session. The companyâs release and supplemental presentation were issued earlier this morning. If you have not received the release, you may access it by visiting Chartâs website at www.Chartindustries.com.
A telephone replay of todayâs broadcast will be available approximately two hours following the conclusion of the call, until Sunday, September 1, 2024. The replay information is contained in the companyâs press release.
Before we begin, the company would like to remind you that statements made during this call that are not historical, in fact, are forward-looking statements. Please refer to the information regarding forward-looking statements and risk factors included in the companyâs earnings release and latest filings with the SEC. The company undertakes no obligation to update publicly or revise any forward-looking
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