Breaking Down Chart Industries, Inc. (GTLS) Financial Health: Key Insights for Investors

You're looking at Chart Industries, Inc. (GTLS) and seeing a confusing picture: a recent earnings miss right next to a record-breaking order book. Honestly, that's the story of the infrastructure and energy transition plays right now, where demand is clear but execution is everything. The company just reported Q3 2025 adjusted earnings per share (EPS) of $2.78, which missed the consensus estimate of $3.02, and revenue of $1.10 billion also fell short, signaling a near-term conversion challenge. But here's the quick math: their total backlog surged to a massive $6.05 billion as of September 30, 2025, and management still expects full-year 2025 sales in the range of $4.65 billion to $4.85 billion. This isn't a demand problem; it's a conversion challenge, and that distinction is defintely the key to your investment decision. We need to look past the quarterly noise and map the near-term execution risks against the long-term opportunity embedded in that backlog and the expected full-year free cash flow (FCF) in excess of $550 million.

Revenue Analysis

The core takeaway for Chart Industries, Inc. (GTLS) is that its revenue engine is accelerating, driven by a massive backlog in energy transition infrastructure. Management projects full-year 2025 sales to land between $4.65 billion and $4.85 billion, a significant jump from the prior year, backed by a record backlog that exceeded $5.14 billion in the first quarter of 2025.

You're seeing a clear pivot from a cyclical equipment maker to a critical infrastructure provider, which is what gives this revenue guidance its weight. The trailing twelve months (TTM) revenue as of September 30, 2025, was already $4.29 billion, reflecting a solid 5.47% year-over-year growth, but the forward-looking guidance implies a much stronger second half of the year.

Breaking Down the Primary Revenue Streams

Chart Industries' revenue is generated across four key segments, but the real story is the high-margin, recurring revenue from aftermarket services and the conversion of massive LNG and data center orders. The Repair, Service & Leasing (RSL) segment is defintely a key stabilizer, providing a counter-cyclical, high-margin stream that represents approximately one-third of the total business. Here's the quick math on the revenue mix based on the latest quarterly sales for Q3 2025:

Shifts in Growth and Segment Contribution

The year-over-year revenue growth rate has been impressive, jumping 107.92% in 2023 following a major acquisition, and then settling to a still-strong 24.1% in 2024. What this estimate hides is the strategic shift toward high-growth, clean energy end-markets. The biggest changes in 2025 are coming from order conversion in two areas that will fuel future revenue:

• LNG and Data Centers: Heat Transfer Systems (HTS) orders surged by 79.1% in Q3 2025, driven by demand for equipment in Liquefied Natural Gas (LNG) and the rapidly expanding data center market.
• Clean Energy Technologies: Specialty Products saw an 84.4% increase in orders during Q3 2025, with major contributions from carbon capture, hydrogen, and nuclear sectors, signaling a strong pipeline for revenue conversion in 2026.

The company's focus on solutions for hydrogen, carbon capture, and LNG is clearly paying off in order flow, which will translate to sales over the next several quarters. This is a crucial detail for understanding the stock's future trajectory. For a deeper dive into the institutional money backing this shift, you should read Exploring Chart Industries, Inc. (GTLS) Investor Profile: Who's Buying and Why?

Profitability Metrics

You need to know if Chart Industries, Inc. (GTLS) is turning its strong order book into solid earnings. The direct takeaway for the 2025 fiscal year is clear: Chart Industries, Inc.'s core operational profitability is expanding significantly, with the Adjusted Operating Margin climbing sequentially throughout the year, but its reported net profit is heavily masked by one-time acquisition-related costs.

Looking at the first three quarters of 2025, the company has demonstrated remarkable consistency in its Gross Profit Margin, which is the first sign of disciplined cost management. This margin has held firmly above the 33.0% threshold for five consecutive quarters, a critical metric to watch for a manufacturing and engineering firm. In Q3 2025, the Gross Profit Margin was 34.1%, a slight increase from 33.6% in Q2 2025 and 33.9% in Q1 2025. This stability shows they are managing their cost of goods sold (COGS) well, even with a robust sales increase to $1.10 billion in Q3 2025.

The real story of operational efficiency is in the Adjusted Operating Profit Margin (operating income before non-core items like amortization and deal costs). This margin has shown a strong upward trend, which is exactly what you want to see as sales volume increases and the company realizes acquisition synergies and better project mix.

• Q1 2025 Adjusted Operating Margin: 19.9%
• Q2 2025 Adjusted Operating Margin: 21.1%
• Q3 2025 Adjusted Operating Margin: 22.9%

Here's the quick math: that's a 300 basis point (3.0%) expansion in core operating margin from Q1 to Q3 2025. This is driven by sales in high-growth areas like hydrogen, LNG, and data centers, plus continuous improvement efforts across their segments. For instance, the Heat Transfer Systems (HTS) segment saw its adjusted operating income margin grow by 1,010 basis points in Q3 2025 compared to the prior year.

When you look at the bottom line, the Reported Net Profit Margin is a different picture. For the Trailing Twelve Months (TTM) ending Q3 2025, the reported Net Profit Margin was only about 1.55%, or a Net Income of $39.50 million on Revenue of $4.29 billion. To be fair, this low number is due to significant non-recurring charges, including a $266 million merger termination fee and a $258 million liability in Q3 2025 related to the pending acquisition by Baker Hughes. This is a classic example of a 'noisy' quarter. The adjusted diluted EPS of $2.78 in Q3 2025, up 27.5% year-over-year, is a much better indicator of the underlying earning power.

The company's profitability ratios compare favorably to its peers in the US Specialty Industrial Machinery industry, particularly where it counts most for operational control.

What this estimate hides is the true, clean net margin, which is much closer to the industry average once you strip out the one-time, deal-related noise. The fact that Chart Industries, Inc.'s TTM Operating Margin of 16.74% is well above the industry average of 13.47% signals superior operational efficiency and pricing power. This is defintely a key strength. If you want to dive deeper into who is investing in this growth story, you should read Exploring Chart Industries, Inc. (GTLS) Investor Profile: Who's Buying and Why?

Next Step: Finance needs to model the normalized Net Profit Margin for 2026, assuming no further large one-time charges, using the full-year 2025 Adjusted EPS guidance of $12.00-$13.00 to get a clear view of the company's long-term earning potential.

Debt vs. Equity Structure

You're looking at Chart Industries, Inc. (GTLS) and trying to figure out if their growth is financed smartly. The short answer is they rely heavily on debt, but they are actively working to pay it down, which is a good sign. Their capital structure is leveraged, a common situation after a major acquisition, but the company is focused on deleveraging (reducing debt relative to earnings).

As of the third quarter of 2025, Chart Industries, Inc.'s balance sheet shows total loan capital (debt) at approximately $3.65 billion, with total equity (shareholders' equity) sitting around $3.2 billion. This structure means the company is nearly equally financed by debt and equity, which is a significant point for investors to consider.

Here's the quick math on their debt breakdown for Q3 2025:

• Long-term debt was approximately $3,649.3 million.
• Short-term debt (current portion) is reported as essentially $0.0, which is defintely a positive for near-term liquidity.
• The nearest major debt maturity is not until 2030, besides the revolving credit facility.

This debt profile shows that the bulk of their obligations are long-term, giving them breathing room to execute their business plan and generate the cash flow needed for repayment.

The key metric here is the Debt-to-Equity (D/E) ratio, which measures the proportion of debt financing relative to equity financing. Chart Industries, Inc.'s D/E ratio is currently around 1.08. To be fair, this is elevated when you compare it to the median D/E ratio for the broader Industrial And Commercial Machinery sector, which is closer to 0.95.

A D/E ratio over 1.0 means the company has more debt than equity, which signals higher financial leverage and, consequently, higher risk. But, Chart Industries, Inc. has a clear plan to address this. They are focused on debt paydown to reach a net leverage ratio (another key debt metric) target of 2.0 to 2.5 by the end of 2025, down from 2.91 in Q1 2025. That's a clear, actionable goal.

The credit rating agencies acknowledge this deleveraging effort. In March 2025, Moody's upgraded Chart Industries, Inc.'s Corporate Family Rating (CFR) to Ba3 from B1, and maintained a Positive Outlook. S&P Global Ratings also has the issuer credit rating at 'BB-'. Both ratings are still considered speculative grade (non-investment grade), but the upgrades and positive outlook show confidence in the company's ability to improve its capital structure. For a deeper dive into the company's long-term vision, you can review their Mission Statement, Vision, & Core Values of Chart Industries, Inc. (GTLS).

The company is not currently issuing new long-term debt, but is instead focused on paying down existing obligations, which is the right move for a company with a D/E ratio above the industry median. The proposed acquisition by Baker Hughes, announced in Q2 2025, also significantly impacts the financial outlook, as the deal structure and its eventual closing will determine the ultimate capital structure moving forward.

Liquidity and Solvency

You want to know if Chart Industries, Inc. (GTLS) has enough cash on hand to cover its near-term bills, and the answer is a clear yes, but the picture is more complex than a simple balance sheet check. The company's liquidity position is defintely adequate, showing a healthy ability to meet short-term obligations while generating significant cash flow, even amidst major corporate transactions.

Assessing Chart Industries, Inc. (GTLS)'s Liquidity Ratios

The core measures of a company's ability to pay its bills are the Current Ratio and the Quick Ratio (also known as the Acid-Test Ratio). For Chart Industries, Inc., the third quarter of 2025 (Q3 2025) figures are reassuring.

The Current Ratio sits at 1.40. Here's the quick math: this means for every dollar of current liabilities (bills due in the next year), Chart Industries, Inc. has $1.40 in current assets (cash, receivables, inventory). Anything over 1.0 is generally good, so 1.40 is solid.

Even more telling is the Quick Ratio, which excludes inventory-a less liquid asset-and stood at 1.27 in Q3 2025. This is a strong indicator that the company can cover its immediate obligations using only its most liquid assets. A quick ratio above 1.0 suggests a comfortable liquidity buffer.

• Current Ratio (Q3 2025): 1.40-Healthy short-term coverage.
• Quick Ratio (Q3 2025): 1.27-Strong ability to pay without selling inventory.

Working Capital and Cash Flow Statements Overview

Analyzing working capital (Current Assets minus Current Liabilities) gives us a deeper look at operational efficiency. In the first quarter of 2025 (Q1 2025), Chart Industries, Inc.'s working capital, defined slightly differently to include net accounts receivable, net inventory, and unbilled contract revenue as a percentage of last twelve months sales, was 16.3%. Management is focused on improving this figure, which is a good sign of attention to capital efficiency.

The cash flow statement is where the rubber meets the road. In Q3 2025, the company reported net cash from operating activities of $118.0 million. Subtracting capital expenditures, the Free Cash Flow (FCF) for the quarter was a robust $94.7 million. This is critical because it's the cash left over after funding operations and capital investments, which can then be used for debt paydown or acquisitions.

To be fair, Q1 2025 saw a negative FCF of $80.1 million, but the subsequent quarters reversed this trend sharply, and the full-year 2025 FCF guidance remains strong, anticipated to be between $550 million and $600 million.

Liquidity Strengths and Near-Term Risks

The biggest liquidity strength is the consistent positive cash generation in the latter half of 2025, plus the significant backlog of over $5.14 billion as of Q1 2025, which provides revenue visibility. The pending acquisition by Baker Hughes for $210 per share in cash, approved by shareholders in October 2025, is a major solvency event that will fundamentally change the company's financial structure, providing a clear exit and cash for shareholders.

The main liquidity risk is the one-time, non-operational expense related to the terminated Flowserve merger, which resulted in a $266 million expense in Q3 2025, though $258 million was paid by Baker Hughes. This is a non-cash flow item for the most part, but it highlights the financial complexity of M&A activity. The company's focus on reducing its net leverage ratio to its target of sub-2.5 by the end of 2025, supported by the strong FCF, is the clear action for investors to track. You can read more about the company's long-term direction here: Mission Statement, Vision, & Core Values of Chart Industries, Inc. (GTLS).

Valuation Analysis

You want to know if Chart Industries, Inc. (GTLS) is a buy, a hold, or a sell right now. Based on a blend of current valuation multiples and analyst sentiment in late 2025, the market consensus leans toward a Hold, suggesting the stock is trading near its fair value after a strong run.

The core of the matter is that the market is pricing in significant future growth, which is why the valuation metrics are a mixed bag. The trailing twelve-month (TTM) Price-to-Earnings (P/E) ratio is extremely high, sitting around 245.7, reflecting a period of low or uneven past earnings. But looking ahead to the 2025 fiscal year, the forecasted P/E ratio drops dramatically to a much more reasonable 18.8, which is what analysts are defintely focused on. That's a massive gap, and it shows the market's belief in the company's earnings recovery and growth.

Here's the quick math on other key valuation metrics as of November 2025:

• Price-to-Book (P/B): 2.84
• Enterprise Value-to-EBITDA (EV/EBITDA): 12.51

The EV/EBITDA of 12.51 is a good measure of operational value, and it's generally in line with a healthy industrial growth company. The P/B of 2.84 isn't a screaming bargain, but it's not wildly overstretched either, especially considering the strategic transition and growth in the LNG and hydrogen markets Chart Industries, Inc. is pursuing.

The stock has had a great year. Over the last 12 months leading up to November 2025, Chart Industries, Inc. delivered a total shareholder return of approximately 22%. The stock price has traded in a wide range, from a 52-week low of $104.60 to a high of $220.03. With the stock currently trading around $203.54, it is near the top of that range, which is why caution is warranted.

The dividend story is simple for common stock investors: Chart Industries, Inc. (GTLS) does not pay a regular dividend, so the dividend yield is 0.00%. What this estimate hides is that the company is prioritizing capital expenditure and debt reduction following its acquisition activity, which is a common strategic choice for growth-focused industrials. If you hold the preferred stock (GTLS-PB), you are getting a forward dividend yield around 4.66%, but that's a different security entirely.

Wall Street analysts are largely in agreement that the stock is fairly valued right now. The consensus rating from 18 analysts is a Hold, with 14 analysts recommending a hold, 3 a buy, and 1 a sell. The average 12-month price target is approximately $205.08, which offers minimal upside from the current price. This suggests the recent 22% gain has already captured a lot of the good news. To learn more, check out the full analysis at Breaking Down Chart Industries, Inc. (GTLS) Financial Health: Key Insights for Investors.

Finance: Monitor any shifts in the 2026 P/E forecast (currently 15.17) as a concrete next step, as that will be the next major driver of a valuation change.

Risk Factors

You're looking for the clear-eyed view on Chart Industries, Inc. (GTLS), and the truth is, the near-term risk profile is dominated by financial cleanup and a pending acquisition. The company is navigating a significant swing to a net loss in Q3 2025, even with record commercial momentum. Your focus needs to be on balance sheet discipline and external market volatility.

The most immediate financial risk is the Q3 2025 net loss of $138.5 million, a sharp reversal from the net income of $69 million in the same period last year. Here's the quick math: this was largely driven by a one-time, non-recurring expense of $266 million, which was the termination fee for the now-canceled Flowserve merger. That's a huge, albeit one-off, hit to profitability that temporarily obscures strong underlying order growth.

Still, the balance sheet remains a key area of concern for investors. Chart Industries, Inc. is working hard to reduce its net leverage ratio (total debt relative to earnings before interest, taxes, depreciation, and amortization, or EBITDA). As of Q3 2025, the ratio stood at 2.78, which is an improvement, but it's still above the company's target range of 2.0 to 2.5. Management has committed to ending 2025 with approximately $3 billion of net debt and is prioritizing liquidity, which means no material cash acquisitions or share repurchases until the target is met.

• Near-Term Financial Risks:
• Q3 2025 net loss of $138.5 million due to merger termination fee.
• Net leverage ratio of 2.78 remains above the target of 2.5.
• Segment margin pressure in Cryo Tank Solutions (CTS) and Repair, Service & Leasing (RSL).

On the external front, market and geopolitical risks are defintely a factor. The company's products are tied to global energy infrastructure, so project delays in major LNG and hydrogen developments remain a constant operational risk. Also, the industrial gas and hydrogen markets in the Americas show some uncertainty, which the company is closely monitoring. Plus, the stock is volatile, with a high Beta of 2.88, meaning it tends to move more dramatically than the broader market.

The biggest external financial headwind is the tariff exposure, which management estimates could be around $50 million annually. To counter this, Chart Industries, Inc. is executing a clear mitigation plan:

• Shifting production to regional supply chains closer to end markets.
• Implementing pricing adjustments, like the one in April 2025.
• Leveraging its global manufacturing footprint for cost-effective sourcing.

The strategic risk has shifted dramatically with the pending $13.6 billion acquisition by Baker Hughes, which is expected to close by mid-2026. This is a massive, transformative event. While it offers a clear exit at $210 per share in cash, the risk now lies in regulatory approvals and the potential for business disruption as the transaction moves forward. For a deeper dive into the company's long-term vision, you can review its Mission Statement, Vision, & Core Values of Chart Industries, Inc. (GTLS).

Growth Opportunities for Chart Industries, Inc. (GTLS)

You are looking at Chart Industries, Inc. (GTLS) and seeing a company at the center of the global energy transition, which is defintely the right place to be. The growth story here isn't a forecast; it's already locked in with a massive order book, plus the company is aggressively moving into new, high-margin markets like carbon capture and data centers. The near-term focus must be on how they convert their record backlog into cash flow and manage the pending acquisition by Baker Hughes.

Chart Industries' management has reaffirmed its full-year 2025 revenue guidance in the range of $4.65 billion to $4.85 billion, with adjusted EBITDA expected to be between $1.175 billion and $1.225 billion. This confidence is grounded in their robust project pipeline, which stood at over $24 billion as of July 2025. That's a huge runway.

Key Growth Drivers: Hydrogen, LNG, and New Markets

The core of Chart Industries' growth is its 'molecule-agnostic' approach, meaning they build the critical infrastructure for multiple energy sources-not just one. This diversification is a major strength. The two biggest drivers are Liquefied Natural Gas (LNG) and Hydrogen, but new segments are rapidly gaining traction.

• Hydrogen/Clean Energy: Orders in the Specialty Products segment, which includes hydrogen, jumped 24.6% year-over-year in Q1 2025. This includes a landmark serial run order for HLNG vehicle tanks with Volvo-Eicher, signaling a move into the high-growth hydrogen mobility market.
• LNG Infrastructure: The company is capitalizing on large-scale projects, anchored by a $1.32 billion order for the Woodside Louisiana LNG Phase Two facility. This segment provides long-term, stable revenue visibility.
• New End Markets: Chart Industries is rapidly expanding its footprint in areas like carbon capture, nuclear, and data centers. For example, the Heat Transfer Systems (HTS) segment saw sales growth in Q2 2025 driven by converting data center backlog to sales, a new and profitable revenue stream.

Future Revenue and Earnings Estimates

The financial projections for Chart Industries are highly favorable, largely due to the sheer size of the backlog and the high-margin nature of their specialized products. Analysts expect earnings per share (EPS) to jump from $9.02 to $12.57 next year, an increase of 39.36%. Here's the quick math: a record backlog of $5.14 billion as of Q1 2025 provides multi-year sales visibility, reducing revenue uncertainty, which is exactly what you want to see.

To give you a clearer picture of the expected financial trajectory, here are the key 2025 guidance numbers:

Strategic Initiatives and Competitive Edge

The biggest strategic initiative is the definitive agreement for Baker Hughes to acquire all outstanding shares of Chart Industries' common stock for $210 per share in cash. This transaction, expected to close by mid-2026, validates the company's technology and market position, offering a significant premium to shareholders. Before that, the company had already secured key partnerships, like the LNG Alliance choosing Chart Industries' proprietary IPSMR process technology for the Amigo LNG export facility in Mexico.

The company's competitive advantage comes down to two things: proprietary technology and a global service network. They don't have many direct rivals in niche areas like hydrogen liquefiers. The Repair, Service & Leasing (RSL) segment is also a critical, high-margin growth area, providing recurring revenue that is less sensitive to commodity price swings. This is a smart way to smooth out the cyclical nature of big equipment sales.

For a detailed look at the company's full financial picture, you can review our full analysis at Breaking Down Chart Industries, Inc. (GTLS) Financial Health: Key Insights for Investors.

The immediate action is to monitor the Baker Hughes acquisition progress; the deal price of $210 per share is the new anchor for your valuation model.