Chart Industries, Inc. (NYSE: GTLS) reported fourth‑quarter 2025 revenue of $1.08 billion, a decline of 2.5% to 2.7% from the $1.11 billion earned in the same period a year earlier. The drop reflects weaker demand in legacy markets and a slowdown in large‑scale LNG projects, offset by modest growth in data‑center‑related sales. Adjusted earnings per share, which exclude one‑time items, fell 35% to $2.51 from $3.90 in Q4 2024, underscoring the impact of higher SG&A costs and the non‑recurrence of large lifecycle projects.
The company’s diluted GAAP EPS was $1.01, down 35.4% from $1.62 in Q4 2024, while the adjusted EPS decline of 35% is largely attributable to a 2.7% revenue drop and a 3.5% increase in operating expenses. Management cited intensified competition and a shift in customer mix toward lower‑margin contracts as key drivers of the earnings miss. The company’s margin compression—gross margin fell to 33.3% from 34.5% and operating margin slipped to 19.1% from 20.2%—illustrates the pricing pressure in its core segments.
Backlog for the quarter rose to $5.89 billion, up $1.04 billion from Q4 2024, giving the company a 44% share of the year‑end 2025 backlog that is expected to ship over the next 12 months. Segment performance varied: Cryo Tank Solutions orders grew 17% to $162.1 million and sales rose 9.1% to $163.9 million; Heat Transfer Systems sales increased 12.8% to $325.8 million despite a 61% drop in orders; Specialty Products sales fell 18.1%; and Repair, Service & Leasing sales declined 5.8%.
Chart Industries reiterated its full‑year 2025 guidance, maintaining a sales target of $4.65 billion to $4.85 billion and adjusted EBITDA of $1.175 billion to $1.225 billion. The company also confirmed its net leverage ratio target of 2.0x to 2.5x for 2025, although the Q4 net leverage ratio was 2.83, above the upper end of the target range. The guidance reflects confidence in long‑term demand for LNG, hydrogen, and data‑center markets, but the earnings miss signals short‑term headwinds.
In addition to the earnings report, Chart Industries is in the final stages of a $210‑per‑share acquisition by Baker Hughes, which closed in the second quarter of 2026 pending regulatory approval. The transaction provides shareholders with a premium exit and positions the combined entity to accelerate growth in clean‑energy infrastructure. The pending acquisition, coupled with the earnings miss, will be closely watched by investors assessing the company’s valuation and strategic trajectory.
The results highlight a challenging quarter for Chart Industries, with revenue and earnings falling short of analyst expectations—EPS of $1.01 versus a consensus of $3.48 and revenue of $1.08 billion versus a consensus of $1.27 billion. The miss underscores the company’s need to manage cost pressures while navigating a competitive landscape, even as it maintains a robust backlog and a clear long‑term growth strategy.
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