Chart Industries 2025 Q2 Earnings Strong Performance with Net Income Up 27%

Chart Industries (GTLS) reported its fiscal 2025 Q2 earnings on Jul 29th, 2025. The company demonstrated a robust financial performance, exceeding market expectations with a significant surge in net income. Chart Industries also raised its guidance, indicating confidence in sustained growth. The company's strategic focus on high-demand markets like hydrogen and LNG, alongside strong order bookings, underscores its positive outlook.

Revenue

Chart Industries reported a 4.0% increase in total revenue, reaching $1.08 billion in 2025 Q2, compared to $1.04 billion in 2024 Q2. Within its business segments, Cryo Tank Solutions achieved $155.90 million, while Heat Transfer Systems generated $295.30 million. Specialty Products contributed $292.90 million, and the Repair, Service & Leasing segment added $338.20 million. Collectively, these figures underscore the company's diversified revenue streams and robust market presence.

Earnings/Net Income

Chart Industries' EPS increased by 25.2%, rising to $1.54 in 2025 Q2 from $1.23 in 2024 Q2. Net income also saw impressive growth, reaching $79.90 million, which represents a 27.0% increase from the previous year's $62.90 million. This performance indicates a strong earnings outlook for the company.

Price Action

The stock price of Chart Industries has remained unchanged during the latest trading day but has surged 18.20% over the most recent full trading week and 22.40% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing Chart Industries (GTLS) shares following a quarter-over-quarter revenue increase on the financial report release date and retaining them for 30 days has consistently delivered robust returns over the past three years. This approach achieved an overall return of 91.81%, outperforming the benchmark return of 87.35% by 4.46%. With a compound annual growth rate (CAGR) of 14.00% and a maximum drawdown of 0.00%, the strategy demonstrated strong risk-adjusted performance, as evidenced by a Sharpe ratio of 0.39 and a volatility of 35.45%. These metrics reflect the strategy's ability to manage risk effectively while generating substantial returns.

CEO Commentary

"We booked $1.50 billion of orders in the second quarter 2025 demonstrating continued strength in our end markets, more systems and solutions sales, and an increasing aftermarket," stated Jill Evanko, CEO and President of Chart Industries. She emphasized that the adjusted operating income margin of 21.1% and consistent gross margins above 33.0% reflect the positive impact of solutions and aftermarket sales and the team's continuous improvement efforts. The CEO highlighted broad-based order momentum across segments, particularly in hydrogen, LNG, and service orders, indicating a robust demand for their technologies and long-term agreements.

Guidance

As of July 2025, Chart Industries reports a commercial pipeline greater than $24 billion, the highest in the company's history. The company anticipates continued growth driven by strong demand in the Repair, Service and Leasing segment, alongside a positive outlook for hydrogen and LNG markets. The CEO noted significant recent orders, including a five-year framework agreement with a South African utility and ongoing momentum in space exploration and marine bookings, reinforcing confidence in future performance and market positioning.

Additional News

Chart Industries is reportedly on the verge of being acquired by Baker Hughes, a significant development in the industry. This acquisition, if finalized, would offer a substantial premium to Chart Industries' shareholders and follows earlier discussions with Flowserve. Additionally, Chart Industries has been selected by the LNG Alliance to provide its IPSMR® process technology for the Amigo LNG export facility, showcasing its leadership in LNG solutions. Furthermore, the company terminated its merger agreement with Flowserve Corporation after receiving a superior proposal from Baker Hughes, resulting in a $266 million termination payment to Flowserve. These developments position Chart Industries favorably for future growth and strategic expansion.