Chart Industries' Q4 2024: Unpacking Contradictions in Revenue Projections, LNG Growth, and Margin Expectations

These are the key contradictions discussed in Chart Industries' latest 2024Q4 earnings call, specifically including: Revenue and Backlog Conversion Projections, Specialty Segment Performance, LNG Project Revenue Timing, LNG's Impact on 2025 Growth, Aftermarket Growth Outlook, and Gross Margin Expectations:



Strong Financial Performance:
- Chart Industries, Inc. generated $281.5 million of net cash from operating activities in Q4 2024, with a free cash flow of $261 million contributing to a year-end 2024 free cash flow of $388 million.
- The growth was driven by increased sales and operational efficiencies that reduced costs.

Record Orders and Backlog:
- The company received $1.55 billion in orders for Q4 2024, representing a 29.4% increase year-over-year, contributing to full-year 2024 orders of $5 billion, a 13% increase.
- Growth was fueled by significant orders like Woodside Louisiana LNG and strong demand across various segments, including hydrogen and carbon capture.

Sales Growth and Segment Performance:
- Q4 2024 sales were $1.11 billion, increasing 10.8% excluding FX, with a full-year organic sales growth of 16.9%.
- The growth was driven by strong performance in Heat Transfer Systems (14.2% sales increase) and Specialty Products (47.7% sales increase), partially offset by a decline in Cryo King Solutions (26.4% sales decrease).

Margin Expansion and Cost Management:
- Q4 2024 reported operating income was $188.3 million, with an adjusted margin of 22%, reflecting a full-year adjusted operating margin increase of 400 basis points to 21.1%.
- Margin expansion was attributed to leveraging SG&A, operational efficiencies, and synergies from integration, despite headwinds from foreign exchange and interest expenses.