Loading...
Loading...
chart-industries-q3-sales-hit-1-06bn-driven-by-strong-lng-and-service-demand
© Chart Industries
chart-industries-q3-sales-hit-1-06bn-driven-by-strong-lng-and-service-demand
© Chart Industries

Chart Industries Q3 sales hit $1.06bn, driven by strong LNG and service demand

Chart Industries has reported orders of $1.17bn and sales of $1.06bn in its third quarter (Q3) 2024 financial results, with orders being driven by strong demand in heat transfer systems for liquefied natural gas (LNG), in addition to repair, service, and leasing.

The US cryogenic equipment company said sales were up 22.4% compared to the prior year, with each business segment’s sales increasing. Orders were up 5.4% compared to the prior year.

Jill Evanko, President and CEO of Chart, said, “Continued demand across the majority of our end markets, our segments’ strong operational performance, the benefits of continued double-digit growth in our aftermarket business, and earlier than anticipated cost synergy achievement resulted in a record reported gross profit margin of 34.1% and a record adjusted operating margin of 22.2%.”

Results by business segment:
Cryo tank solutions:
Q3 2024 CTS orders of $126.2m decreased 17.5% compared to Q3 2023. This was primarily driven by Q3 2023 having had one order for $19.2m for railcars.

Q3 2024 also saw slowing demand in China, which is primarily reflected. Q3 2024 sales of $162.5m increased 4.6% when compared to the third quarter 2023. Reported gross profit margin of 25.0% increased 280 bps compared to the Q3 2023.

Heat transfer systems: Q3 2024 HTS orders of $424.7m increased 151.0% when compared to Q3 2023 driven by multiple LNG and traditional energy equipment awards. Q3 2024 HTS sales of $256.2m were a record and grew 12.5% compared to the prior year and had an associated reported gross profit margin of 29.8%, driven by project mix.

Specialty products: Q3 2024 specialty products orders of $237.8m decreased 48.9% when compared to Q3 2023. This is primarily due to large hydrogen liquefaction orders in Q3 2023.

Q3 2024 specialty products sales of $283.3m were record for the segment and increased 25.9% compared to Q3 2023, primarily driven by increasing throughput and hydrogen projects progressing. Reported gross profit margin of 26.3% increased 60 basis points.

The sequential decrease was due to Q3 2024 specific expenses incurred at Chart’s newly opened Theodore facility related to a supplier’s machinery startup challenges and associated inefficiencies on specific space-related projects.

Repair, service, and leasing: Q3 2024 RSL orders of $377.9m increased 16.5% when compared to Q3 2023. Q3 2024 sales of $360.5m increased 36.1%.

RSL orders and sales growth were driven by service, repair, and spares in addition to a large aftermarket sale of equipment. Reported RSL gross profit margin of 47.4% was driven by the execution of continued synergies as well as a positive mix.

 Outlook

Chart’s current full-year 2024 sales outlook is approximately $4.20bn to $4.30bn, an increase of 18.0% to 20.5% when compared with full-year 2023, proforma.

Chart anticipates full year 2024 adjusted EBITDA of around $1.015bn to $1.045bn, approximately 24.2% to 24

European CO2 Summit 2025: Rotterdam

The conversation around carbon dioxide (CO2) is changing, with a focus on its value as part of a circular economy. Join The European CO2 Summit in Rotterdam this March to explore the future of the CO2 business in Europe and its alignment with decarbonisation efforts. Expect market insights, emerging technologies, panel discussions, and networking opportunities.

Learn more: https://bit.ly/Europeanco2summit2025-F


About the author
Related Posts
No comments yet
Get involved
You are posting as , please view our terms and conditions before submitting your comment.
Loading...
Loading feed...
Please wait...