Chart Industries (NYSE: GTLS) saw its stock price jump over 5% in pre-market trading on Thursday after the company reported better-than-expected first quarter earnings and highlighted strong order momentum, despite a slight revenue miss and uncertain global environment.
The gas handling equipment manufacturer posted adjusted earnings of $1.86 per share for Q1 2025, surpassing analyst estimates of $1.84 and marking a 24.8% increase from $1.49 per share in the same quarter last year. Revenue came in at $1.00 billion, up 5.4% year-over-year but narrowly missing the consensus forecast of $1.01 billion.
Chart Industries demonstrated robust demand for its products and services, with Q1 orders surging 17.3% compared to the prior year to reach $1.32 billion. This strong order intake contributed to a record backlog of $5.14 billion, exceeding $5 billion for the first time in the company's history and providing enhanced visibility into future revenue growth.
"We delivered strong order and organic sales growth of 17.3% and 6.6% in the first quarter of 2025. This marks our fourth consecutive quarter of reported gross profit margin above 33%, which contributed to a 190 basis points expansion in adjusted operating income margin," stated Jill Evanko, Chart Industries' CEO and President.
The company's profitability showed improvement, with gross profit margin expanding 210 basis points year-over-year to 33.9%. Adjusted operating income margin increased 190 basis points to 19.9%, reflecting operational efficiencies and improved pricing.
Despite facing what management described as "an uncertain global environment for the remainder of 2025," Chart Industries reaffirmed its full-year 2025 guidance. The company continues to project sales between $4.65 billion and $4.85 billion, with associated adjusted EBITDA of $1.175 billion to $1.225 billion and adjusted earnings per share of $12.00 to $13.00.
Investors appeared to focus on the positive aspects of the report, as evidenced by the stock's pre-market surge. The strong order book and record backlog suggest continued momentum for Chart Industries, even as it navigates potential headwinds in the global economy.
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