CHART INDUSTRIES INC

What they do

Chart sells engineered equipment and services used across every phase of the liquid gas supply chain, from engineering and installation to repair, preventive maintenance, and digital monitoring. Its primary customers are large multinational producers and distributors of hydrocarbon, hydrogen, and industrial gases, with sales to more than 10,000 customers worldwide. The company operates 62 global manufacturing locations and over 50 service centers, and its Howden acquisition in March 2023 added mission-critical air and gas handling products in diversified end markets.

Revenue drivers

• Repair, Service & Leasing — Largest segment by sales at $1,303.7 million in 2025 (30.6% of consolidated sales), with gross margin of 44.3%, serving installed-base spares, retrofits, service agreements, and leased assets.
• Heat Transfer Systems — Second-largest segment at $1,237.7 million in 2025, up from $1,035.3 million in 2024, with gross margin improving to 35.1% and the highest segment operating margin at 29.4%.
• Specialty Products — Sales of $1,098.4 million in 2025 with gross margin of 25.7%; orders grew $518.9 million to $2,080.9 million on carbon capture, nuclear, HLNG, marine, space, mining, water treatment, and chemicals demand.
• Cryo Tank Solutions — Smallest segment at $624.2 million in 2025, with 23.0% gross margin, providing cryogenic tanks and related products.

Recent performance

Full-year 2025 sales were $4,264.0 million, up 2.5% from $4,160.3 million in 2024, with gross margin of 33.7% and reported operating income of $358.4 million (8.4% of sales). Reported operating margin fell from 15.6% in 2024 to 8.4% in 2025, driven largely by a $266 million Flowserve termination fee; adjusted operating income was $884.4 million at a 20.7% adjusted margin. Full-year 2025 net income was $40.7 million and operating cash flow was $292.7 million, with FCF of $204.8 million. Fourth-quarter 2025 sales were $1.08 billion with reported diluted EPS of $1.01, and backlog ended 2025 at $5,886.2 million, up from $4,845.1 million. First-quarter 2026 sales fell to $884.8 million from $1,001.5 million in first-quarter 2025, producing a net loss attributable to Chart of $17.1 million, or $0.36 per share.

Strategy

Chart's stated direction centers on its Nexus of Clean positioning across clean power, water, food, and industrials, supported by the Howden acquisition and cross-selling of stationary and rotating equipment. Management highlights order strength in carbon capture, nuclear, marine, data centers, and industrial gases, and noted demand for a small-scale LNG solution for data center behind-the-meter power. On July 28, 2025, Chart terminated its merger agreement with Flowserve and paid $266 million to Flowserve in termination fees and expenses, then entered a merger agreement with Baker Hughes the same day. Chart stockholders approved the Baker Hughes merger agreement on October 6, 2025. As of March 31, 2026, the balance sheet showed a $258.0 million termination fee paid by Baker Hughes Company.

Risks

• Cyclical end-market demand — Demand depends on capital and maintenance spending by customers in global hydrocarbon and industrial gas markets, which are historically cyclical and vulnerable to economic downturns.
• Customer concentration — Sales to the top ten customers accounted for 27%, 26%, and 25% of consolidated sales in 2025, 2024, and 2023, so loss or delay from a major customer could materially reduce sales and profitability.
• Merger and deal execution risk — The pending Baker Hughes merger follows a terminated Flowserve agreement that cost Chart a $266 million termination payment, highlighting transaction-related costs and execution uncertainty.
• Leverage and interest expense — Long-term debt was $3,786.7 million at March 31, 2026 supporting total assets of $9,691.6 million, and first-quarter 2026 interest expense, net was $73.0 million against a $26.7 million pre-tax loss.

Outlook

Management reported 2025-ending backlog of $5,886.2 million and stated it anticipates 44% of that backlog will ship over the next 12 months. Full-year 2025 orders were $5,677.8 million with a 1.33 book-to-bill, and fourth-quarter 2025 book-to-bill was 1.10 excluding any Big LNG orders, which did occur in the year-ago period. The company pointed to carbon capture, data center, nuclear, marine, and industrial gas markets as drivers of recent order activity. The status of the previously approved Baker Hughes merger is not restated in the excerpts provided.