On October 27, 2023, Chart Industries Inc (GTLS, Financial) announced its Q3 2023 financial results, reporting strong performance with several record achievements. The company also completed the divestiture of its American Fan business for $111 million all-cash to Arcline Investment Management, L.P.
Financial Highlights
Chart Industries Inc (GTLS, Financial) reported a record backlog of $4.1 billion, a 4.4% increase compared to Q2 2023. The company also achieved a total of $297.9 million commercial synergies related to the Howden acquisition, exceeding its year-one commercial synergy target of $150 million. Q3 2023 sales of $897.9 million increased 9.8% when compared to the third quarter of 2022. The company reported a gross profit of $276.2 million and associated reported gross profit as a percent of sales of 30.8%.
Divestitures and Acquisitions
Chart Industries Inc (GTLS, Financial) signed a definitive agreement on July 26, 2023, to sell its Cofimco fans business to PX3 Partners for $80 million. The company also signed and closed on the divestiture of its American Fan business for $111 million all-cash to Arcline Investment Management, L.P. on October 26, 2023. The company expects to close on the sale of Cryo Diffusion for 4.25 million euros next week.
Outlook
The company updated its full year 2023 sales guidance to $3.45 billion to $3.50 billion, down from the prior outlook of $3.66 billion to $3.80 billion. This adjustment is due to the accelerated timeline of divestitures versus the original forecast as well as revenue timing between quarters. The company also increased its adjusted FCF full year 2023 outlook to $335 million to $350 million.
CEO Commentary
“We are extremely pleased with our third quarter and year-to-date 2023 performance and execution, including record operating income, adjusted operating income growth, record backlog, and exceeding our year-one commercial synergy target by 100%, all of which set us up to deliver our 2024 outlook” stated Jill Evanko, Chart’s CEO and President.
Explore the complete 8-K earnings release (here) from Chart Industries Inc for further details.
