Business Description
Chart Industries, Inc. manufactures and sells engineered equipment for the energy and industrial gas industries worldwide. The company operates through four segments: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products, and Repair, Service & Leasing. It provides bulk and packaged gas cryogenic solutions for the storage, distribution, vaporization, and application of industrial gases; cryogenic trailers, ISO containers, bulk storage tanks, loading facilities, and regasification equipment for delivering liquefied natural gas (LNG) into virtual pipeline applications; and large vacuum insulated storage tanks as equipment for purchasers of standard liquefaction plants. The company also offers process technology, liquefaction train, and critical equipment for the LNG, including small to mid-scale facilities, floating LNG applications, and large base-load export facilities; brazed aluminum, Core-in-Kettle, heat exchangers, cold boxes, air cooled heat exchangers, pressure vessels, and pipe works; and air cooled heat exchangers and axial cooling fans for the power, heating, ventilation, air conditioning, and refining applications. In addition, it provides highly engineered equipment that is used in specialty end-market applications for hydrogen, LNG, biogas, CO2 Capture, food and beverage, aerospace, lasers, cannabis, and water treatment; and cryogenic components, including vacuum insulated pipes, specialty liquid nitrogen, end-use equipment, and cryogenic flow meters. Additionally, it provides extended warranties, plant start-up, parts, 24/7 support, monitoring and process optimization, repairing, maintenance, and upgrading services; plant services on equipment, including brazed aluminum heat exchangers, cold boxes, etc.; and service locations that undertake installation, service, repair, maintenance, and refurbishment of cryogenic products, as well as equipment leasing solutions. The company was founded in 1859 and is based in Ball Ground, Georgia.
Business History
Generated: Jun 7, 2026 4:24pmPrice Overview
Last updated: Jun 7, 2026 4:21pm (5d ago)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 0.33
Total Equity: $3.23B
Shares: 45,370,000
Total Debt: $3.66B
Cash: $366.00M
EBITDA: $625.10M
Total Debt: $3.66B
Cash: $366.00M
Revenue: $4.26B
Revenue: $4.26B
Revenue: $4.26B
Total Equity: $3.23B
Tax Rate: -36.6%
Equity: $3.23B
Total Debt: $3.66B
Cash: $366.00M
Current Liabilities: $2.13B
Long-Term Debt: $3.63B
Total Debt: $3.66B
Total Equity: $3.23B
Shares: 45,370,000
Shares: 45,370,000
CapEx: -$89.90M
Shares: 45,370,000
Stock Price: $207.31
Net Income: $42.30M
Industry Benchmarks
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 7, 2026 4:27pm (5d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.3B | $1.6B | $3.4B | $4.2B | $4.3B |
| Cost of Revenue | $993.5M | $1.2B | $2.3B | $2.8B | $3.0B |
| Gross Profit | $324.2M | $407.4M | $1.0B | $1.4B | $1.2B |
| Operating Expenses | $235.7M | $255.9M | $649.7M | $741.3M | $596.3M |
| Operating Income | $88.5M | $151.5M | $390.7M | $647.5M | $647.2M |
| Net Income | $59.1M | $24.0M | $47.3M | $218.5M | $42.3M |
| EBITDA | $165.4M | $212.5M | $578.2M | $916.9M | $625.1M |
| EPS | $1.66 | $0.62 | $0.48 | $4.54 | $0.33 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 7, 2026 4:24pm (5d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $122.2M | $663.6M | $188.3M | $308.6M | $366.0M |
| Total Current Assets | $853.5M | $3.7B | $2.2B | $2.5B | $2.9B |
| Total Assets | $3.0B | $5.9B | $9.1B | $9.1B | $9.8B |
| Current Liabilities | $693.9M | $1.1B | $1.9B | $1.8B | $2.1B |
| Long-Term Debt | $600.8M | $2.0B | $3.6B | $3.6B | $3.6B |
| Total Liabilities | $1.4B | $3.2B | $6.2B | $6.1B | $6.4B |
| Total Equity | $1.6B | $2.7B | $2.8B | $2.8B | $3.2B |
| Retained Earnings | $878.2M | $902.2M | $922.1M | $1.1B | $1.1B |
Cash Flow (Annual)
Last updated: Jun 7, 2026 4:27pm (5d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | -$21.3M | $80.8M | $167.2M | $503.0M | $292.7M |
| Capital Expenditure | -$52.7M | -$74.2M | -$135.6M | -$120.8M | -$89.9M |
| Free Cash Flow | -$74.0M | $6.6M | $31.6M | $382.2M | $202.8M |
| Acquisitions (net) | -$205.1M | -$25.8M | -$3.8B | $0 | $0 |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | $0 | $0 | $0 | $0 | $0 |
| Net Change in Cash | -$3.7M | $2.5B | -$2.4B | $109.4M | $59.3M |
Analyst Estimates (Annual)
Last updated: Jun 7, 2026 4:21pm (5d ago)| Metric | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|
| Revenue |
$4.4B $4.2B – $4.5B
|
$4.6B $4.6B – $4.6B
|
$5.2B $4.9B – $5.5B
|
$5.4B $5.1B – $5.8B
|
| EBITDA |
$696.5M $669.3M – $723.8M
|
$726.2M $726.2M – $726.2M
|
$825.6M $776.8M – $876.6M
|
$866.9M $815.6M – $920.4M
|
| Net Income |
$434.0M $344.7M – $454.4M
|
$489.1M $450.7M – $527.5M
|
$0 | $0 |
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 7, 2026 4:27pm (5d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +22.4% | +107.9% | +24.1% | +2.5% |
| Gross Profit Growth | +25.7% | +155.4% | +33.5% | -10.5% |
| Operating Income Growth | +71.2% | +157.9% | +65.7% | 0.0% |
| Net Income Growth | -59.4% | +97.1% | +361.9% | -80.6% |
| EBITDA Growth | +28.5% | +172.1% | +58.6% | -31.8% |
Insider Trading (Recent)
Last updated: Jun 7, 2026 4:25pm (5d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-05-21 | Vinci Gerald F | F-InKind | 143.00 | $208.29 | $29,785 |
| 2026-05-21 | Hotchkiss Herbert | F-InKind | 143.00 | $208.29 | $29,785 |
| 2026-05-21 | Belling Joseph A | F-InKind | 102.00 | $208.29 | $21,246 |
| 2026-05-21 | Brinkman Joseph Robert | F-InKind | 77.00 | $208.29 | $16,038 |
| 2026-04-01 | Harty Linda S | A-Award | 193.00 | $0.00 | $0 |
| 2026-04-02 | Belling Joseph A | F-InKind | 34.00 | $207.09 | $7,041 |
| 2026-04-01 | Durham Mark | A-Award | 689.00 | $0.00 | $0 |
| 2026-04-01 | Durham Mark | F-InKind | 345.00 | $206.94 | $71,394 |
| 2026-04-01 | Mahoney Paul E | A-Award | 193.00 | $0.00 | $0 |
| 2026-04-01 | CICHOCKI ANDREW R | A-Award | 193.00 | $0.00 | $0 |
| 2026-04-01 | Stiles Spencer S | A-Award | 193.00 | $0.00 | $0 |
| 2026-04-01 | Harris Paula | A-Award | 193.00 | $0.00 | $0 |
| 2026-04-01 | STRAUCH ROGER A | A-Award | 193.00 | $0.00 | $0 |
| 2026-04-01 | Sagehorn David M. | A-Award | 193.00 | $0.00 | $0 |
| 2026-02-24 | Hotchkiss Herbert | A-Award | 1,242.00 | $0.00 | $0 |
| 2026-02-24 | Hotchkiss Herbert | F-InKind | 374.00 | $207.58 | $77,635 |
| 2026-02-24 | Vinci Gerald F | A-Award | 1,242.00 | $0.00 | $0 |
| 2026-02-24 | Vinci Gerald F | F-InKind | 374.00 | $207.58 | $77,635 |
| 2026-02-24 | Belling Joseph A | A-Award | 1,034.00 | $0.00 | $0 |
| 2026-02-24 | Belling Joseph A | F-InKind | 331.00 | $207.58 | $68,709 |
Narrative Economics
Advanced Analysis Forensic deep-dive · two lenses
Quality came in at -24 (Mixed) and value at -86 (Rich), and the two lenses line up cleanly: this is a genuinely scaled industrial with clean accruals and real FCF, but the $3.3B net debt, 2.5%/yr dilution, 420bps GM reversal, and 80% NI collapse in 2025 mean it is NOT a fortress compounder — and the market is pricing it like one. At $207 I'm being asked to underwrite flawless LNG execution and debt paydown with zero cushion. That's not a setup I pay up for on a levered cyclical that just had a visible earnings wobble.
The play: no position today. I set a starter buy at $170 (roughly fair), scale in meaningfully at $165 and below where Lens 2's margin of safety opens up, and go to full weight only into the $145-150 zone if the LNG narrative wobbles but the cash conversion stays intact — that's where a -24 quality business becomes a real risk/reward. Full position cap is modest, ~2-3% of book, because the leverage and share creep prevent me from ever calling this core. I flip aggressive if they announce a real buyback or visible deleveraging milestone; I walk away entirely if FCF rolls over or net debt/EBITDA trends the wrong way. Today, the only correct action is patience — let the price come to the thesis.
Chart Industries has transformed from a $1.32B revenue business in 2021 to $4.26B in 2025 — a ~34% revenue CAGR — with operating margin expanding from 6.7% to 15.2% and gross margin moving from 24.6% to a peak of 33.4% in 2024 before slipping to 29.2% in 2025. That margin reversal (-420bps GM, flat revenue YoY) is the first thing that doesn't fit the 'mature compounder' narrative and warrants scrutiny — likely mix/integration-related from the Howden deal but unconfirmed here. FCF turned genuinely positive ($382M in 2024, $203M in 2025) and OCF/NI of 3.15x with -1.1% accruals says reported earnings are not being manufactured.
The quality concern is structural, not accounting: net debt of ~$3.29B against only $366M cash and $203M FCF implies a leverage profile (~roughly 4-5x trailing FCF or ~2.5-3x EBITDA inferred) that makes this a balance-sheet-constrained operator. Altman Z of 1.83 sits in the grey zone — not distressed, not safe. On top of that, diluted shares went from 41.1M to 46.7M (+13.6% over four years, 2.5% CAGR), so per-share value creation is being quietly taxed even as the business scales. Net income collapsed from $218.5M in 2024 to $42.3M in 2025 despite flat revenue, which is a significant earnings-quality watch item — interest expense and one-time items are the likely culprits but need confirmation.
Insider tape is uninformative — all F-InKind tax withholdings and A-Award grants, zero open-market P or S transactions in the window. No signal either way from management's wallet.
Verify before trusting this (6)
- Source of 2025 net income drop ($218M → $42M) — interest expense schedule, one-time charges, acquisition-related items in the 10-K
- Howden acquisition integration status and debt amortization schedule — when does net debt decline meaningfully?
- Cause of 420bps gross margin reversal in 2025 (mix, pricing, input costs, or integration)
- Backlog composition and customer concentration in hydrogen/LNG/carbon-capture end markets — durability of the growth runway
- Covenant headroom on the debt stack given Altman Z in grey zone
- Convertible/preferred securities in the cap structure that could explain dilution trajectory
The e2e synthesis flags 'Priced for Perfection' and that matches what I see. Market cap is $9.9B; layer on $3.3B net debt and EV is roughly $13.2B. Against a business whose 2025 net income collapsed ~80% on a 420bps gross margin reversal, the trailing earnings multiple is not meaningful and the forward case requires LNG capex tailwinds to keep compounding without a hiccup. That's a narrow runway given regulatory/trade overhang on US LNG exports.
Deserved value here should reflect (a) genuine industrial scale and clean accruals — a positive, and (b) a leverage discount and share-count creep — a negative. Net, I'd peg deserved fair value in the $160-180 range on normalized mid-cycle earnings, which puts $207 roughly 15-25% above deserved. Not egregious, but no margin of safety, and the bull case essentially requires zero execution slippage while debt is worked down. The earnings-quality signal is clean (good), but that just prevents a further haircut; it does not create cheapness.
Verify before trusting this (5)
- 2026 guidance — does management bridge the 2025 GM reversal back toward prior levels, or is 420bps the new base?
- Net debt trajectory and any deleveraging milestones / refinancing terms
- Backlog composition and LNG project timing — how much of the bull case is locked in vs forecast
- Share count outlook and any equity issuance plans tied to M&A or debt paydown
- Segment-level margin disclosure to isolate whether the 2025 hit was mix, one-offs, or structural