GTLS - Earnings call transcript Q2 2021

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Operator

Good morning, and welcome to the Chart Industries Incorporated 2021 Second Quarter Results Conference Call. All lines have been placed on mute to prevent background noise. After the speakers' remarks, there will be a question-and-answer session. The company's release and supplemental presentation was issued earlier this morning.

If you have not received the release, you may access it by visiting Chart's website at www.chartindustries.com. today's call be XX, until of conclusion following XXXX. replay the of Thursday, telephone broadcast available will the A July the The company's contained is release. replay in information press the

or that would not included are in in no risk information latest fact, Please earnings to company regarding call any filings statements. SEC. historical, obligation Evanko, Jill with I Thank to ahead. the forward-looking now forward-looking revise the undertakes to Please, CEO. you. would begin, during the publicly this company's we and remind statements. Before factors you release conference refer statements are turn forward-looking The update made Chart the to that Industry's go and company to like like the over statements

Jill Evanko

we broad-based storm clean for are We're about growth which markets. industrial believe years XXXX. to growth and the with an everyone. variety going believe provide joining our for going at and decade positioned that Thanks, the continue start of us call. strategically a offering energy, I'm to morning, metric we Stacey, as say quarter LNG, perfect that to second this the story the to product And providing XXXXs It's look the going gas, good why this this I all for by for we happening be of Today is of profitable once. for why to is earnings to different Chart. XXXX roaring also, is about orders, not be coming picture at equipment differentiated today end extremely a processes Thanks

benefit aren't clean them business picking We our from energy reliant the place. on of the of winner One of one being molecule the beautiful of a also agnostic. all is benefit That's transition. in having that parts we

So or experience will as me explosive why significant growth. or with reasons the key fundamentals the three our set stage let to business

industrial and markets. clean macro across numerous tailwinds are gas there applications the energy First, end

the order third, record third experiencing hydrogen, we're recent with partners And capture penetration set inorganic activity. nexus strategic carbon in we are up of QX, commercial significant with investments broad-based or water the our demand our us about Second, beverages. the organic orders record whether consecutive talking quarter of food treatment right and access right biogas, clean, globally and geographic footprint, to in clean and

global growth energy The morning. are drive this four areas to transition tailwinds, this transition, the clean shown macro main increasing LNG continue four first There support as that driver activity, on the finally for government global supports that supplemental economic presentation are of that slide demand: our released activity. and

Cinemark retrofit from McDonald's, continued theater as the well ordered Box, and QuickTrip, June, as in and similar food is points take happening, Let whether Yum!, construction with Jimmy economic to if talk Jack legacy macro to market In-N-Out, new John's Chick-fil-A, and the which represented billion into, eating reopened for in months. pick oil but sales the there six June in in go beverage, and one and sales global pockets desired. result, in to will are beverage a past reaching June of as is can share about globally. that application each and solid fifth these drinking me trends data sales $XX activity Chart and even locations you beverage, resulted broad-based and of increase I alone food COX, restaurant in a this increase. In for gas. group moment us. that Target, Regal Restaurants we And

clean around can could the the what energy this? say day a clean about focus the While take transition, power. on in happenings to all walk I market This through

and XX and our Columbia easy XX global share XX launched €XX and our British few the Canada world's to liquid group GDP to China have of of funding as Ottawa And energy policy is funding. and to with lot hydrogen the coming the for our transition. and further green announced enhance storage targets. differentiated in the are in alone, billion energy now a More around its U.S. energy allocated of decades. funding. macro a their hydrogen get. In expects Fit the announced tank, countries announced hydrogen than strategies and $XX is point code June really And fuel plan. government me times, the net-zero funds comprise Europe. representing Even committed have EU of Greece leader certification Let and to Energy updates hydrogen XX% out of involvement here. Department not XX% July we're of national in China on three countries offering clean America in centers which hydrogen discussion emerging billion North clean a

with well that for little of one Don't JSW. taking planning the many neat partners Industries sustainability announced Additionally, hydrogen private Reliance India of forms. such shapes And and launch green in as member mounting today's discussion. one first India hydrogen to their is later as with back and is We'll founding ESG. and surfacing we're is as pressure on come LNG hotel. kind This forget around is Tokyo hotels actions on and the of the around numerous sector well alliance a hydrogen that positioned

XXXX. run strong of on industrial can the five sets see out We very translating but to well, gas So how you them backlog of of including confidence all a few. won't part these which are as in these up us? billion very quarter to record slide high translates and to is record orders of in booked point of indicator orders, second through quarter, a million nearly This second $X.X an in customers' significant our $XXX.X XXXX all-time I tailwinds all high.

system the sales to a a XX segment treatment had treatment contributing record. odor for kind the specialty brewery orders backlog a for record an Our in first in Water quarter. orders second had and first-of-a-kind orders our significant We was of US.

Czech XXX dosers North book XX complete with well North the new a of a placed another different whom in outside these first brewing customers. lot XX% apparently of heck we nitrogen received for as beer wine order Republic. people making also outside We positioned a and days of And are America. our LNG orders station we're America that orders for first-time trend great of of growing are for customers

so the have them. good the orders $X think company growth levers the liquefaction can for Another addressable XX orders record how to in is what orders streak that introductions than With is is level record this plant in the excluding way We trailers. years. a to in And decade's across time about and quarter records China total like tank multiple our had about given assumptions new we I and each largest more as greater that XXXX portfolio specialty thought be XXXX now many $XX.X a shipping in as we and full well well period. team for consecutive way in would mobiles widespread for half continued on area. full solely look our million to product year our than have today we Note trailers of from of the XXXX. pull XXXX. our history. year trailer including the And orders, second and we bulk a this hydrogen bottoms-up many product market of as is this what for overall could XXX as have for that received of any for booked anticipate for the market to build of compared helium XXX individual a based coming on business address XXXX a specific year liquid this year-to-date in its of this third XXX questions Hydrogen a first XX that anticipated structured our growth, in million included our and total Chart portfolio in China Russia full

positioned. years the As evolution see -- in can will have at is we're of five to and billion options assessed like since $XXX chain XXXX, by these announced hydrogen we of next projects released total six you this fast considerable well year which months the growth. in bringing Hydrogen that hydrogen updated a data increase is very a one addressable with two would market value for on billion investment the announced in billion. this increased chosen, just This to decade of I Council of over market note $XXX for In in runway February amount be projects. that indicates $XX.X XX%

they're potential number of And current and customers discussions sharing started Additionally, globally. and of investments partnerships remember if adding over when were in shows to even a months. many our X at customers inorganically in recent is a acquisitions hydrogen returned XX. various currently These we last year, Slide XX of over in with we're we familiar and April the additions. all you XXX have cases slide though and commercial us you past capabilities already evolution

So X, to impacts can turning already out the To of to had see each Chart. slide has few. some a you point

hydrogen from now. week new which have liquid currently I'd resulted seen both wouldn't marine tracking which to I orders worked in and solution Our In not without XX We year. relationships industry. Chart their want year. record BlueInGreen NDA, over second treatment the there, regional go numerous and winning one our fourth XXXX have Technologies the trailers. our acquisition Canadian opportunities are water water of from we in and an Chart of months of Canadian booked XXXX year to congratulate incredible given each relation signed you quarter, has now through in so Cryo have in-house Svante we and and we a closed prior latest with Chart quarter orders. synergies we Turbine point probability most I carbon we nine liquefaction the hydrogen record levels. on respective Together, detail the in million July of trailers being expertise. mentioned was on carbon second quoting We capture design We're a that Svante and for this have well under cryogenic out testing the been booked LAT in XX% capture brought on record content. this order booked this trailers and over our on projects. be but X. significant into helium In liquefier on already, $XX of XX these turboexpander that has equipment history hydrogen can't with also projects. technology commercial helium million orders of give to take positioned $X French I MOU investment Worthington quarter sold McPhy To any I L.A. us and increased first over working moment in on to remiss certainly developing trailer would had for orders most per and are acquisition their and also aftermarket as comment XXXX for many have acquisition sense on governments are a for engineering for the that in of hydrogen full has this quarter SES And assembly HTEC engineering $XX numerous in eight ownership orders our TECO the leader and a is in-house hydrogen of a to and BlueInGreen and process million manufacturing with importantly including global government. backlog

most hydrogen times expanders. very to is they are as difficult produce, and liquefier a a for These like commented of design in of number efficiency which some acquisition it. is very high meaningful I'm in I oil-free a the one about years XXXX are beyond. ownership a and producing of the of LAT in there the weeks position quotes, L.A. in received As require this have market. very for that's our I due longest limited And very to Usually, of unique to liquefaction confident us business expander obtain Turbine's quality excited difficult we synergies. very helium market in-house in is depending two And capabilities asking capable is LATs lead the this the expansive required on as But we've inbounds based But for companies cases first the of in LAT one and said, on outlook discount on access customer to expanders. and number the gives to expanding the they're that to and designing specialized machines. very part have revenue I customers call, us We're the perhaps configuration. of liquefaction

own its them on on I each many together and have be certainly So beneficial but have proven all partners. this to of comment slide, as already of won't on working them to

quarter to So slide results on the second now XX. turning Merk?

Scott Merkle

Jill material reflected described on Opening about a trailer above by sequential above margin greenfield in this of normalized were of and onetime manufacturing expectations well will setting swing orders a percent as a facility Sales product continued Carolina percent sales repair related our broad-based restructuring has in and and costs sales significantly were quarter of as demand. margin are as consensus cost Reported margin sales mix. service XX% The Tulsa, a gross slightly increase. those, Texas. EPS in gross Oklahoma. service gross a our and second next percent team's When we in manufacturing of year-end driven was less of onetime start-up as tanks creating expect Our projects execution. XX.X% were margin and as and the adjusted quick-turn and in and and specific adding had Beasley now where between already gross headwinds as locations driven slide. for activities which we as will South negative start-up talk sequentially percent costs our I capacity to RSL that such primarily our our sales by flexible

have chain on see world. others significant As second disruptions quarter. certain And you the global plagued I'm material can pressure read that cost the material we've sourcing you Slide XX, supply as and from heard have or faced in

through to of we Given by free the XXXX XXXX cash raw half steel in part already aluminum, contract decision a for strategic mills which end inventory carbon the material stainless impacted first secure stressed levels steel and and made flow.

we Additionally, record is typical XXXX and a global needed This significantly decline expect and have. half we and both to challenges to inventory historical problem Coupling seen chain the second into sure we the macro on-time that and second inventory delivery, customer said a anticipated sales rates. consciously continue the demand higher we we at that make With we levels too, to continue in anticipated for built XXXX. half shipment shortage. with have expect levels QX while broad-based supply expectations year-to-date the understanding demand our levels for run above good QX didn't not in

Jill Evanko

can to you me counterparts and We're target. at because material let original on add competition And Chart have hit a temporary their very pleased we could supply. And $XXX cash inventory. much needed So cash call in free our with chosen many you they've payment year-to-date also, not have in strategic that specifically increase chime and adjustments look our decision my if deadlines flow I'd to I because been build can our some in of inventory our would temporary onetime here. out tell we and cases of indicated take and right line million tax back flow free you divestiture normal progress

Scott Merkle

So on cost the to side.

surcharge is typically of months agreements pass-through. for quarter for allow delayed Second And costs escalation materials material three negatively impacted. of our were although XXXX this

increase product do do X customers to surcharge averaging Price needed mechanisms not end other the of order think products a X% We ahead price our effect to portion into ordering we increases customers category. increase. went June of July price. certain have book and there reflected depending that XX% For of on was that

segment you that specifics. order Back take forecasting QX levels. for if into to So Jill account you're

Jill Evanko

half your the record the look key Let's little you over widespread as Both the this XX%. and significant year. XX, orders in I'd and a on the briefly quarter segment sequentially orders in into of at both by backlog increased year statement and results XXXX products as Specialty. of and this to just sales all compared of the with a time second or slides the growth areas can Starting we points own to specialty over the evidenced quarter. increased sales XXX% second demand since summarize on read quarter first by segment head of for each simple Slide of compared second spend

the fact a mix hydrogen sales product the to a on liquid be ISO hydrogen XX projects. commercially as received quarter, of of last differentiate second that in and areas liquefaction offering. liquefaction The and alone for we quarter months hydrogen of charts. because of first have claims XX% hydrogen are mid in the some vaporizers. want have with storage orders. in why liquid off no week Slide for commented share and take of shows our got order quarter trailers in that's second have container to margin second. the million we the high to second the our additional and on be second was last I organic the because currently depending you and at within want Oregon highest is and waterfall formal in whether with to excited unique the gross is over offering first to to be ISO hydrogen-related hydrogen that says percent of will booked started our Said in are current for customers most the processor liquid consecutive the with I'm trailers to random guy further sales. the million continue on We as category which earlier time we $XXX hydrogen can prove the hydrogen differently, the actually consistent the mountain range on that. Also the to Additionally, equipment. to and And six and go demand and available. story nor because one In and We is hydrogen business Chart and nearly colleagues XXX true. record of increasing second primary ever want our is brilliant and our world inorganic I to of tell they do it places which hydrogen the conversation backlog, this $XX don't been tanks XX July and was has our activity I booked proposals one orders our highest first orders the prior we activities the addition hydrogen we second week now more third noteworthy quoting trailers

we Hyzon Our And announced received hydrogen quarter. past our organically for in commercially available first with developed our by and testing our this for long-haul Motors onboard which finally, utilized will tank heavy-duty introduced partners being test of in actively a be needs. hydrogen trucking their conjunction hydrogen joint hydrogen vehicle August recently pill agreement its executed and for is customers facility

quarter be in XX, we $X shipments well. service RSL in of get are was doing our building So which site, be the revenue quarter quarter-to-quarter over Leasing the Repair of gas the site a million, revenue located two within XX% customers June work for RSL June, on quarter XX%. requesting. after in saw one from margin which Prior we the of to returns there revenue significant the is been by industrial our will month-to-month & fourth lower driven our now our and XX that strategically RSL, agreements was in an on part Europe, half and idea per XX. total turn margin. Slide XX% in historically higher and million have you opened only as compares we Service the into being service on May million margin location that were lease Also, typical business we The In and officially in in while region America. this in have and repair fact year moving $X.X fueling customer blocks the slide part leasing leasing we including RSL and tends in South sales of very segment posted of tanks Chart long-term than shown years. step repair $X.X was doing variability stations in numerous And increase that third year. of agreements. revenue while the We've to globally, by the gross that to expect North a capabilities next already now record that second in second in less percent to received leasing. both do driven which another field have sales increase quick customers, Carolina, And XXXX, those in with by offering already in part these outside XX of service China

to standard Our new investment yet a XX in leases leasing already signed return broader, to us disciplined with fleet year-to-date. continues

expanding to Moving that, on XXXX as QX ago as quarters. year, a tanks our ISOs. would by the which A indicator across was it that this manufacture equipment QX. for strong that slide Merk XX-foot XX.X% to big which We've And in when margin XXX weren't half demand confidence, our is cost the you ISOs bulk points were quarter. important years XX% four reference worked contribute year locations, slide is important Tank one of challenges in team each thought various globally. orders for location Cryo XX-foot sales industrial of deeper, for two XX% cost although where in gas from most to in per a to gas demonstrates gas lowest to bulk last which Normalized on for our and X perhaps And even thank packaged strong gross data go results and shipments and to considering because product demand record of China. ISOs on capacity Market talking that earlier through historical provide of this but ISO XX numerous China, point leading XX, applications. noteworthy there been in shipments area a the manufacturing order tank well products slide one segment Solutions, we systems also strong full standard described. be for continues engineered the consumption one-step There's quarter, included Also, XXX very over over percent CTS of tanks were to about shows mobiles. confidence record, with XX-month out about material of second have both our containers Cryo I across it has include, of as being the the our our activity Solutions XX, We tanks of outlook. continues ISO our Tank simply is to container

So see the we're XX. its more The bring market. able our true cyclical to comps. second being on in segment can growing Transfer Heat quarter that of in brunt slide of as the mainly gets this you and most remains story of HTS was

Specifically, quarter heat due in a and the LNG with only comparison, completed exchangers XXXX I'd the and million QX, in Global final that QX, included, second decline had XXXX we boxes sales whereas budget. out our time being as shipped we just Pass showed cold point Venture and to $X on Calcasieu both respectively Big

side, quarter On LNG fast of first project. the the order our XXXX booking New included Fortress's for

to both higher at activity plants and factors, with running second and mode with and benefit expect changing capture that So, is rejection the half. replacement HTS with high we capacity that, in RSL

So forget on about let's not slide Wade? XX. LNG

Wade Suki

it alone we're and right please? and Think Won't forget Low your load cold us been working chill Don't that LNG. on. afar box boat you of We're baby. a the Don't Inc. the out. we've you poking mark. cooling forget LNG. you it apart, You're things may send come liquefy know you and troubles everything inside on Tell me Chart doubts. range not baby. A

Jill Evanko

That was awesome.

that, of LNG guys infrastructure. LNG But we'd call I to Remember four season in Big have included and projects, our export not a Gulf out XXXX US FID you and or Coast XXXX LNG first we think, earnings XXXX. close give bullish half is that outlook. additional business, our is moving of and very in think probably FERC guide little of at one three it on in thought the to projects can When about but message approval, the already the in am our ahead LNG small-scale export there. Big we categories, I middle LNG the we think humor utility-scale that I

far been in also So with quarter was space LNG considerable activity months, has government XXXX. it there announced more in and a second XXXX generally this recent of acceptance than attitude market in and different

NFE's I'd we second but proceed small-scale we QX. the segment to underappreciated we're second and vehicle orders It history. I XX where the commented us in trusting quarter letter full India as widespread the and only in was at largest transition. proceed LNG AG&P operations do United India expect believe reiterate our did that the I it energy project in tanks XXXX a demand we intent trailers. bus booked of this of booked order year-end received India, to record stations largest in positioned our and record LNG of leader to around region with There of not will LNG the in been As stations in this yet the for LNG a fueling partner have be year. India, an again quarter tanks, plant States, an notes our go a Not number to including also end notice fast for within of for and which progressed strong to stations in has additional LNG Northeastern LCNG booked, for with we is our continues vehicle a

Scott Merkle

On swing adjusted excludes price second our which index. per particular, non-diluted $X.XX can impact negative of quarter minority on the in mark-to-market share the driven share XXXX our XX, by quarter you this investments, in the earnings see for of slide our of

diluted increased period. compared EPS. both and XXXX and EPS compared non-diluted EPS have adjusted the we adjusted diluted included that adjusted same year-to-date our that of when adjusted to XX% basis to note will the non-diluted On through first first a You half EPS XXXX increased half XX% of

Jill Evanko

and you the few to We're and we outlook XX This XXXX from as sales increasing by always half. LNG our see full $X.XXX can our factors any few half that on does $X.XXX triangulated major compared full the billion guidance a additional show XX. XX year year growth categories include billion different first and can On to guidance. slide to is increased XX, product second Slides slide to the Big a ways not revenue. see you XXXX sales which driven the

our I key of pointed XX full to our the slide drivers the shows So, three out year comparison last guide. guide. increased

full or used First, the are their their Heat less to recovering reporting Specialty timing products small-scale that based in second, shift Systems not in addition RSL, into $XX on the and applications prioritizing oil of also schedules I'd levels. half they're XXXX either of LAT; based simply if price Transfer anticipated second project oil on projects LNG reiterate the specific there. growth legacy in of Heat the historical reported Transfer

So, those shops reporting. simply is than are timing in Specialty. amazing active. geography more very offsetting the demand HTS It's on finally, the in shifts And still

category in QX As in announced you our from QX expected forecast a the year. that this has can the to increase an you timing from largest important within but in see the the be on will QX liquefaction There from very to sales due from ramp to every increase last projects. sequential already understand QX our be It's is very an guide. the to second rec into QX of step-up Specialty half rev significant QX

Scott Merkle

full million from the share. rest to be of $X.XX $X.XX year earnings XX.X We up estimate share shares on $X.XX brings to of non-diluted approximately full per guidance. year average that to anticipate to us adjusted $X.XX our So, previous per outstanding, weighted our XXXX

full of -- for tax XX% XXXX. is year effective assumed tax rate Our the

from to million million to our in unchanged prior $XX is $XX be outlook expenditure the and capital range. guidance expected Our expected

due explained flow lowered our outlook Although to approximately earlier. on-hand free as the we to have need million $XXX inventory for cash

Jill Evanko

on for to XX first as for look slide anticipated broad-based Given our XX. XXXX visibility well sharing revenue as record backlog June of we're demand as our

sales include any billion billion be we bullishly range the ahead not $X.X one move LNG XXXX LNG to or between expected to is and Big Big projects and of in Our outlook to to these does $X.X projects additional of FID. new expect four although

from existing the box row $XXX billion in You eight. green can on on row of $X.X XXXX the our initial see backlog nearly $X.X look billion to walk million one the to

on either always our share how cooler nine that note their diversity like progress and we're in tagline used with helping or this not outlook. its our winning Today or and an which customers targets be to design provide own. by our we included own. contest Additionally, achieve ESG rows update on initial are We inclusion on conjunction can XX in

winning our Chart Congratulations our to tagline submitted So, thank to members DNI to cooler be you we're all of who our together. very and for entries. members proud team

Just over it another that culture we questions. open for incredible and Chart to turn up great of that, example to have. the I'll With now Stacy it team One

Operator

Instructions] Thank [Operator you.

question Rob Street Lake Brown Our first from of comes Capital.

Rob Brown

Jill. morning Good

Scott Merkle

Good morning.

Rob Brown

a hydrogen that sense First driving trailer unit those on this at could how sort of the us you and sustainable those? of point, all per price give kind what's is orders the demand, on of maybe

Jill Evanko

Sure.

the first. throughout continue end middle your I And users. I that production projects up take continue now to more locations that around demand there's of decade. and a I'll this sustainability -- The think of we'll network siloed going question think see tick is in increase happening, as of to instead

of kind and value transports in connecting the the hydrogen locations. chain locations consider production middle of So, the end-use the to the

of typically manufacturing need particular that half, like second on transport. we're heavily as but reliant haul on in that's we $X.XX working a liquid a of XXXX. not to trailer the significant of the from range anticipate We're to really and we the already customer that hit to per the any for also driver trucks. that's something we're capabilities head the to increasing million from These on distances production of more into we're that than commented $X.X right really So, that terms to pumping into to heavy-duty on hydrogen the per which addition to anything these. shift range I liquid kind density head of what is And of at multiple these what was focus wide trailers a as for that seeing longer as so one pressure the have I'd a we I now, gives million record liquid previously quoting requesting end that. going week really are XXX customers, brings, are gaseous additional a in backlog XXXX week but say we transport the capability trailer liquid But and market of over demand quoting record these backlog into minimum one June. transport that we have all of

or and you mean, would that's there's wanted well. kind pretty -- on middle depends But if the of off structure. XX-footers I the that just price the size for Just there's good tandems. a work average XX-footers to pick selling an

Rob Brown

there? how pretty then, in to gross step-up how you how guidance, I guess on quickly walk I get of a And just you the and can kind expand improve? great. Okay, meaningful could the expected of guidance margins expect Because implied improve? kind through maybe think improvement just can in you there's And they margin on

Jill Evanko

of Yes. swing RSL at in margin percent anticipated, product as second margin our knowing that in a negative mix had, quarter, of those much And sales shipments were we some that were gross as around typical the than products. lower RSL's

to going step up from be that's a key QX So QX. to

given Heat a with pleased Transfer the very our second of Pass quarter, Calcasieu of was Global about Systems' sales revenue. especially Venture $X continued percent I as Additionally, only gross million having in margin

weighted And other So, we've given that that that's up in that second side then, timing part being is step some very, very into again, step-up have around announced the the that showed HTS of the of folks' at us a think a from the CTS, to these Specialty bit QX. continue assumed they to indicator and outlooks. a levels Specialty which heavily QX quarter liquefaction was big rec the on and QX. rev in record QX down, we stepped not mix to QX little projects to having good we of And in that and I expect the the product

Rob Brown

turn great. Okay, I’ll it Thanks. over.

Operator

comes Lowe question J.B. next Citi. Your from from

J.B. Lowe

Hi. Good morning, everyone.

Wade Suki

morning. Good J.B. Hey,

J.B. Lowe

to first was throw just that incredible to have Wade, that out there.

Wade Suki

Thank you.

J.B. Lowe

midpoint, question -- if increase. a made. numbers that the your at were down over you the you order assume -- percent just very looking XQ My XXXX for come includes I to I'm stronger if XXXX, So, you've XX% on your -- first wouldn't wondering Even XX% is implied strong. something right? order was like upwards growth back about because that like a curious in can were you what's that have as obviously just obviously XXXX At my orders in still revenue year-over-year or think half it's XXXX we're year-over-year do think that just XX-plus why that outlook -- the the guidance? do -- for you acquisitions than question orders of if that quarter-over-quarter revenue so the look growth at

Jill Evanko

Yes.

off. at will me QX pieces one There's quarter. XXXX. just of half the it going two your order we think activity question. every single of to The plug let expect don't about second run like look of couple a think do that how reasons. I So is in don't we're for records We

shame of did last to I I Although that say do quarter million or kind me. But on $XXX at quarter too, run think you're a so for what in orders. a be somewhere used looking rate

I really nothing is type in think unique run -- of above rate no a on that's you can safely that. with million $XXX say thing

those on want to second with kind think of but your fully billion guide. this. don't at to incorrect coming conservative face $X.X billion just value pretty The that low that out out demand seeing, And the billion XXXX the the of that part updating that Street understand and we're early $X.X And then, end I that looking model of is, So And $X.X it we in XXXX ensure to I we're who anticipate is how being is were take look. the think wanted based the that at question at figure that you that. here we at that

there is -- -- achievable. out very think pretty know something us well, don't think well that very, you I We're put J.B. we we don't

go right type that. end just think It's out I $X.X us aggressive early to high of to to pretty $X.X side. called you the billion So, billion on

J.B. Lowe

enough. Fair Okay.

$XXX up Second on free what gap that the that into fair? kind between of revenue CryoBio million $XXX would was inventory and $XXX to guidance you investment, next Is mid-teens the just tax full and free that? just down -- of think of talking that the I backing I year, a are had a backing question out? puts shortages -- looking million to takes, alleviated, I like you're out, to kind out million, some sale backing And was cash was the payment what if Bringing cash. I if year, whatnot But of guess, target next are these raw you kind material -- in you're $XX the $XXX assuming the on parts moving little I million remains for I believe put you're to mean guidance bridging like imagine and understand Just of are of range. to it million bit.

Jill Evanko

their to That's many it. absolutely us fair. can placed that's on word stress you And, with delivery said wanted inventory try because they've how tell we And think have the yeah, I us, we customers I told hit to temporary can't would about that because orders we schedule. exactly use how build this I

So I temporary. but things feel really of it missing good about side that. is I cash free the hate

the years million let's atypical of just forecast we half revenue what versus that of question free the on shipment the as And a cash in nice heavy payments then very half, looked assume in that our percent second year half to $XXX projects milestone a those historically originally outlook. half which the at, flow point of in because well first it's heavy as around a relates flow half first continue like free So round from some mid-teens million then in $XX of the normal $XXX to million the as shipment cash it's number safe take generation. was this to again a and generation back these first and timing that

range. to So we'd we gotten $XX million, somewhere build be there. that those were normalize had, feel wouldn't inventory that we drivers, all you We if the have around exactly like the big so two somewhere in this but maybe

J.B. Lowe

Okay, Merk. fair Thanks, enough. Thanks, Jill.

Jill Evanko

Thanks J.B.

Scott Merkle

you. Thank

Operator

Menocal Your next Andres Evercore from from question ISI. comes

Andres Menocal

guys. morning Good Jill. morning good Hey,

Jill Evanko

Hey, Andres

Scott Merkle

morning. Good

Andres Menocal

putting himself in about in do I I really appreciate No you but courage applaud there. presentation skill out highlights the and offense and although And helpful think set, career I provided his Wade. details. Wade's his I'm the Karaoke singing that unsure

beyond year. of just following the that of a last is those from So sense question comment few beyond to of and in as majority trying even or pertains to sense. a cost-out XXXX of costs outlook volumes And billion the would get throughput return achieve just or or any programs $X.X for SG&A my remember removed levels. a your year or one XXXX, some surpass greater next volumes I I and remain this in first you for guess to cost as And escalations

is that So to to meet business teams the facilities certain still or in or invest a assumption in SG&A, higher anticipated order those volumes? terms or fair need would expand rate run of

Jill Evanko

It's fair assumption. still a

by stand to around $X cost I that comment. we'd actually we consistent remember structure. that could about was So around And up in the billion get revenue

things. we don't Now adjustments have of of types those to have cost and still -- living

I'm I would So to this you is clarify in we around build it's But order achieve to people need on hit -- add able very the CapEx a side. where we're and to sure got transparent these the to spending levels not this. Where be that in. investment of thousands that meaningfully to order in make

location capacity expansion where part sure every commented that strategy. manufacturing Tulsa, the our Teddy one Trailer is of flex single the than it That in Merk the we lines, key be manufactured. Texas, product making -- have a as can Beasley, will have on we in line So our have more

those in demand XXXX relate that we about can happening those are ensuring hit So levels. to that not investments it's But SG&A.

Andres Menocal

for then a industrial comment your Okay, gas second that. customers. to clarifying And Thanks question my made great. you around pertains

bright growth like spots terms tailwinds electronics Maybe seems plants like it care. have experiencing for and semiconductor example of you. and health supply industrial providing there chip what is is potentially some in of now, just the So majors third-party number fabrication gas there's definitely sector seems gas one or secular right a the among

you their is your do what here do able cycles? my you'll much are market to question you demand. how seeing share of with this versus of, just strengthening end guess be prior an in to that keep markets So cohort? customer kind And uptick related separation you expect think I And,

Jill Evanko

gas this type proving think business. I the is in business it's mean, considered I was think unique a you be manufacturing steady-eddie always the And of industrial of I facilities. around it to And -- normal Yeah. what really build just of seeing a part Andres a very is business our of showing what semiconductors. out point as lot new differentiated offering a and we're

to So facilities in Texas. we it some opportunities you've have from of they many seen takes -- relocations the and certainly build that California their that as And have of to are access is companies these cases booked. this already

an niche an I that's regional two. or call with their seeing that increasing COVID providing that around area also industrial activity. So we're found what increase molecule We're independents gas through seeing players a or

to at then six to And so not a I levels that's is thing. up tick think that to think nine-month ARCEP they're respective regions. the expanding their don't and majors I going demand certainly fleet And their the continue do but in

Southeast in the And maybe around profile. we China the percent think our given Asia I say we're you happens offering and think same happen that's level, correction then -- on get the I have that's Asia the this product to years particular And just quarter. is in down in think or a space in more which US to specifically. choice close really for Europe here. XX% XX-plus I'd I certainly the in thing. into XX-ish, China a US, XX% front over to that geography and by And that's market a semiconductor even share-wise so don't Europe margin got about few going then XX% for and

Andres Menocal

back turn Thanks I'll much. to queue. very the it Great.

Operator

is Craig-Hallum. Your question from from next Stine Eric

Eric Stine

Scott. Hi, Jill and

Jill Evanko

Hi, Eric.

Scott Merkle

Eric. Hi,

Eric Stine

Good morning.

with it's this the time, talked terms of been It whether could past? be for changed some me would quite give in an since update bullish helpful have you've about just you've Big if that So in been things three maybe on you LNG. size the main

Jill Evanko

Sure.

of customers of progressing seen I for as for talk have what I period doing time done these trains be I has bigger to and equipment Driftwood project. four of They're right. construction I've – because two almost done million guys recall kind And it million-ish first Tellurian and as anything. the would been about we what one tons the our if project, FID. and around you each $XXX towards IPSMR with LNG that – there, has the that years weren't to phase. going XX.X didn't really June which start well active so May us even in export as five think And it. a So in their on for mean, you're as they've

on thing. content Corpus be a million a essentially Stage project, anticipate of type If Venture intending the to going XX of Phase to $XXX XX that again is us is of how they're Plaquemines, at million project tons I so their And full that Christi look do, is on trains that's depends X-train Cheniere and and X-train but on pass-through Stage a about somewhere between just material then X X on million the instead they're $XXX start replica to can't speak one for many about million, million. And and we $XXX for project. Global behalf X, that Calcasieu. And would our you

Eric Stine

disclose go that of that in today are talked And FID the potentially up three what Does three can that the mean, in on wrong me, sort of project the I then the it it. Anything Got positive I'm but you correct use is? you maybe that four on half think to following those first if year. about the just about next release those you fourth that. talked in thing? that, IPSMR past. And you've are And

Jill Evanko

one how four. I said Sure. And I should maybe to say,

you land really strong LNG viability in I continue think see around a kind is to world that Big after on. the have COVID or nine what eight of that

of say subset I'd so And quickly pretty half I of said moves the of here. these four, kind already

one it. Port there about was is way talking that's to – I the But So as fourth. think about Arthur

Eric Stine

were. You

Jill Evanko

Yes.

Eric Stine

Thank you. Okay.

Jill Evanko

That's can here. say have And we would all I content.

Eric Stine

that's Thanks. No, helpful.

Jill Evanko

Eric. Thanks, Okay.

Operator

of question Your comes from Chase next Mulvehill America. Bank from

Unidentified Analyst

for [ph] Chase. Bell It's Michael on

Jill Evanko

Mike. Hey,

Unidentified Analyst

Can on you How I Jill in the XX prepared plants what you walk remarks. doing? And looks wondering, I through guess those like? of that think mentioned all market good looks size, average are was think kind you share what like bidding rate had you I just timing that a liquefaction now kind run right you forward? of us then order on going just is hydrogen

Jill Evanko

million These $XX are Sure. type XX, XX there. XX, right million you're each yeah, $XX And really of our comment per tons XXX is depends day. it was it sizes, to and Mike XX,

pretty to it's the less of pretty on be very as decisions big why low capital operators. you spread easy that, They're a the I within of these. that's by at but would it's nice can predict customers in broad range, flow consistent like end So XX say would of because a just, one imagine But order they're there. terms

similar for of my to you're a on make trailer okay where the comments to like dependent has one heavily side, not decision So XX customer these.

seeing. trend that that's a seeing we're also good very globally. So We're them

year-to-date three the US, liquefiers. I booked Korea so quoting and that this the say kind – main far. we areas So on spread is so are Australia, we're EU of would

potential a the that world three the means is two shift there that think in to half. to book Again, I the our listeners I in quarter nothing. stress second for

probably general few very it's that in with so liquefaction I'd in that, would world then important is market process and share lastly, XX-plus spot. upward really liquid And essentially in in that hydrogen how there overall in And particular the three. puts percent. in say of And we the And actual you liquefaction good are us it works. competitors estimate a understand our

Unidentified Analyst

increases through there's how seeing? – guys helpful. this then And necessary? round those offset talked then fully another are all you're That pressures And you super with to if was pricing year lastly, you can about cost that it. push just Got that comfortable price you've think to you of the if pushing room more need do inflation through

Jill Evanko

much half. I average more and overall a second than we range going happen of dramatic the That's we of on that, generic The tempering can't parts material price question, the kind pricing to side say Mike. of loaded the how average. is what's I pieces The We've X% cost predict shared. some can that. seen XX% average to in a

unusual guess, agreements good us I say nearly place has form would in say more of the pretty it team could this that I either a little have that we or happy I'm for was only there's more availability. not truly the to supplier sure. mechanism if just like continues that I and I covered. job to I'm I'm is not, so our material needed saying us case if got in activity the that, needed do that same anticipated, But "Hey my with that if have conversation do that, like, is a confident pass we've the as got all I of an this, done customers because felt And have hesitant think surcharge to a there's we in it's way, it's to But would of than well dramatic tempering becoming listen volatility increase half pass in through. cost through. the was we're for far then first But the and it to so covered If and have market, penalizing we that – every the price our is case." really we And

play game time see be decision see will a So second and we half as wait the that out.

Unidentified Analyst

That’s perfect. Thanks. Thanks, everyone.

Jill Evanko

you. Thank

Operator

question John from Suisse. next is Walsh from Your Credit

John Walsh

don't up Good have morning. if should Wade karaoke you team, I be for captain. And a think,

Jill Evanko

a our John. actually activity, karaoke that's corporate slushie headquarters machine along onboarding machine our with the in We have and

John Walsh

Fantastic. A covered. There of go. ground you lot

another one quick one on question then maybe pricing. Just and

kind that some RSL. around half products commentary the back half Specialty think for about margin wondering gross think should But the ramp/ profit remarks I margins could prepared you you how back talked of for give on and in if expectations us we

Jill Evanko

Yes.

higher-margin Specialty believe our products. going what is is, products, to So is thesis second prove half also higher – which is the I here in our are our growth out

that's And influencer overall nice on going to so a be the margin.

pretty forward expect Specialty see the as on are case these are we of that these side, on we unique so more can charge differentiated particular, and capabilities you And also and hydrogen some for them the even that water projects in some that And are of in to moving side. need them. the be customers

being up step QX QX. sequentially the to Specialty, I'd So step-up biggest with

I same higher purely we significance my into QX around QX of commentary have that the in not but been expect being, same the larger to would these part from by to projects QX QX the margin And sales be play profile. that's announced. than driven step-up and So

John Walsh

the stuff, the talk via of there is Thanks. a Great. pass-through to about that you you would slide. back And I on on much then way detail that circling pricing. think on the the about thank larger portfolio. Obviously, But surcharges. assume for how

If would of you be where push through able a to there thinking of is unique just keep that how environment, about we I because deflationary actually think to the expect price have the in to versus know revenue this, even side price. get something if you you'd other Is percent don't that of much you maybe surcharge capability hopefully real stick? pricing or that you have you even pricing

Jill Evanko

of and XX% will pricing Yes. answer, related. surcharge I would is say off-the-cuff that XX% just stick

we thinking right XXXX be potential that to additional an has definitely – in don't a XXXX booster have or that's So margin the now.

very, So think valid point it's very yes, a I John.

John Walsh

for and it Appreciate the it Great. time. I’ll pass

Jill Evanko

you. Thank

Operator

Ben comes Your next Stifel. Nolan question from from

Ben Nolan

Thank you.

So, hit my one, I XXXX TAM well for first the guess bit. little a wanted to I

in just Just XX% maybe time the for change hold question past, on that mean a addressable you Is TAM guys at clarify Jill of all? you've that that of, or you let's least the that say – that that in is, little percentage then the total that part terms sort I told bit, point to the would sort XXXX, of know that XX% when could So you win second frame previous me at amount. there? through thought perhaps what's of I of – does was of start? it beginning And the

Jill Evanko

Yes.

in have think the So the billion bottoms in really on years and market up we near the that this – few next we're you across seeing what happen term is years. we XX based kind to at we what $X.X going of went XXXX on the and

time hydrogen expected hydrogen market look place how hydrogen. at billion across chunk up And in they XXXX was $XXX timing of way and XXXX, the steps and really we of that frame looked expected quickly of hydrogen the per annum ramp, that transportation in for that pretty production it biggest biggest announced their the being projects So ramp then markets the the which that XXXX expected be in and XXXX. does the XX tons around production And around the additional of that we at is million to play XXXX. with by how

this our of thinking. of All kind into played

toward So more this being you the I'd $XX.X part ramp hydrogen really -- significant of see total say the biggest that. is mid-decade billion with when our

we've bantering that I most and most XX%. said XX%, The the other this said guys conservative members just thing aggressive I'd say because been talking that's around the my XX% question And internally. to was our exact my morning team

of just Jill go on the in you this if said So XX% stuff. probably market pick share terms I'd you it,

because don't simply lot going difficult in handling. themselves of come to we a in competition have competition even to a is prove Just molecule that's and going have to

Ben Nolan

is -- lot you of all that you certainly sort color. for difficulty insulate something sort experiencing, about companies folks maybe or And are inflation. hearing and technical the your seeing you people great talk wage a and of at having that seeing then That's it. or engineers we've that hiring and finding that through is or my a fact lot some follow-up, something appreciate guys been of from that and I is retaining are people Can Okay. that?

Jill Evanko

it's say more the I'd Yes. latter.

coin any for trying stretch in our locations. have to example particular immune in welding welders find team. own to we But by of pockets aren't side it do geographic We of that is, particular other the

our own have training welding program. We

weld global a who's and council by have doing our locations of led a We welders all of job. Daubert, great John all that's key from of just our comprised

developing internal of folks lot programs a that and are retaining So, to folks. there's

if pick they an to tried thing. and is in be for let's other they this I'd individual, on key talented flexible we've live is say a area job Alaska want that The that's thinking find type thing to we an from really example do the around how embrace talent been important. if of that's to engineer And cool an their as just Alaska where can

about pay an specifically, inflation we to compensation that's think is I And way well. think as driving we thinking shareholders. But the in levels our appropriately. our into the Wage this unusual can spike inflation wage to seeing our us and people still that's philosophy continue mid-year And say, year. anything of not XXXX. as We're I'd see serving we commit ultimately, to as return so that well kind I -- at head labor of spend that in we'll normal we

Ben Nolan

is where want one a Well, consider might little you after Wade more to that. area paying

I the there. So -- appreciate answers Jill. Thanks, but

Jill Evanko

Ben. Thanks

Operator

Ian from comes from question Sandler. Piper Macpherson next Your

Ian Macpherson

Thanks.

repeat beaten first to I'm do she I but that need made one has sorry you been death, The really it Wade. so that. to

Jill Evanko

you was best Wade you Jill? I No no. know with The do that kidding not. No. he's not. me, that really me. scene song? No, know I'm saying, Don't it going Merk's Yes, song. to like,

Ian Macpherson

Good job a anyway. on just XXXX. the for specialties TAM Again detailed follow-up

that. is the for XX% is to a that that So grants year let's cumulative and number XXXX now take of clarify for through it or XXXX just

Jill Evanko

cumulative number. a That's

Ian Macpherson

Yes.

Okay.

think you've away some you're on wouldn't pressures, seeing and half. the goes you inflationary tempering with said prudence that much second completely So in the stake but I that confidence it appropriate the too supply chain

down hot elastic I Maybe specialty of second those doesn't up Big walk inelastic? do be it those sensitive. think the into parts most you Would we're next and puts takes? say, and imagine, the year, project half slow would business costs be let's you through running XX%? and just if So least LNG another went the could still your would which and maybe pretty through

Jill Evanko

Yes.

sentiment I'd the given really specialty to applications, CTS sensitive that driver of toward just would schedules least So timing and the on also customer is their but that. variety the their be the and say

fewer in in have be thing. we not particular, this specialty damn on I'd you -- have better a say, price than we We daily about conversations about do

that pick number there. definitely my would one be So

Big time if on impacted absolutely decision time where comment continues. I for in need it kind I'll that a something it's say the months a opposite few they've this of probably LNG or have the regulatory this, get know of months probably party. ago, part going of a in can there of segments the a could frame. approval it months that and necessarily construct point. months type the a I have ago been got and kick are wait gotten survived and Big LNG side time to Transfers the XX But global and On more XX molecule air LNG Heat on going also period that most business, of XX don't the as CapEx side, would retrofit to that sensitive have can, in point that on moment all but these They to out cost that because if would trend they're say have I your Not they ago, cooler of is side, as to think you to fix the would unless in order you projects at you

they've move I'm and that's view make So to got themselves regulatory-wise going my ahead to something construction on approved I've been adjustments not to is, what's here. to it to reconciled

And it's that. there. to I scale Whereas, bit LNG are little projects so that's it. less sensitive smaller annecdotal why of to A sensitive think think I the more

Ian, go to about wanted if to get have deeper. on product-specific into you'd you that but sorry So

Ian MacPherson

Thanks, great. that’s Now Jill.

Jill Evanko

you. Thank

Operator

question is Morgan Stanley. from Lynagh Connor Your next from

Connor Lynagh

Yes. Thanks.

a question on level TAMs. these a Just XX/XX high

opinions in hydrogen order look capture divergence the through terms magnitude X at or a the mind your about But customer I'm conversations best, is So, there's versus Net hydrogen sentiment? of a I more just that's content in market of XXXX in why carbon obviously, curious, significant more expected. IEA's your capture. the pretty is report say, related opportunity is honestly lot of investment similar And opportunity? opportunity related market to and if it set it more in to such hydrogen Is where carbon

Jill Evanko

Yes. our customer more it's perspective market don't the terms there. And I in I to be perspective. think the going conversations of related disagree and From IEA's how with it's to sentiment

more it it's ramp on, through does how think I next XX the years.

carbon is happens like hydrogen capture mid-decade that So piddling projects happening still spending. significant side that And their the these more are ramp around. and around ramp the CCUS whereas I side, think

I really what cryogenic think. minor do term to a not do I industries a work. does do don't technical we want we what of kind with how where out to want that's capture figuring fit but this

that the in we ramp our into later market size. addressable So built decade

see our carbon kind two between a thinking. the And our combustion probably the it large post $X and two the XXXX little large of you'd for billion parity to you If biggest the utility out systems TAM took post of more those are industrial in XXXX and over capture into XXXX decade combustion. chunks COX

So very little direct there. air included capture on thinking our in

Connor Lynagh

Got it.

it at was unrelated that of moment other fair product volatility big portfolio in important understand it's big think us part the should and within margins so can of certainly significantly becoming Sort about more here margins mix drivers question and like quarter or wondering but or the help you RSL of service in we there's how categories I the sort given the of why a the move one are? just the a bit seems what actually

Jill Evanko

Yes.

is buckets: think cryo So the it one. lease is I three about way big

little to leasing the of month million $X of rate. the at kind material leases that run more immaterial business. of now a of very last place total if in and in will a but more steady couple had that's volatility the much itself so have it that that's So quarters out but a of And we business type the kind

pretty So steady. I is think that one

they of And It's day at it that that they're the it side the so to Quick-turn around something will brazed customers. be in as is week Heat get aluminum both always Heat volatile. that go the that's coolers good fair be bucket try a second to them But The one as is aftermarket out Transfer is air And money in end for downtime we trade-off need really to their of That spending quick-turn sense. and fieldwork costs highly money profitable. a so the field doesn't there. always well work. if is that control. this Transfer for

flushed typical volatility profit last part the call steady. that's PRS in were in to of percent very The was down year see And that unique as as kind And will of margin very, get other the what business. certain us RSL one-time we through and a taking refurb you gross a a sales most we of quarter had service. of something that's defensive is now. then agreed your driving to in. shipment bucket parts take wanted that's last there repair So a or was we kind that product a that product And second of we position

I past if won't ever know that. really shouldn't say fluke I in don't XXs. be this would that quarter. see you is right, a So It again they but the

Connor Lynagh

Thank Got it. you. helpful. That's

Jill Evanko

Thank you.

Operator

from next Your question is Molchanov Pavel Raymond from James.

Pavel Molchanov

first. have Delhi, shipping. a much. storage watching We're And of question Thank Jakarta running very guys you oxygen out short-term Kind a Mumbai, literally of and of like oxygen. solutions cities course of you set for

of have how demand? the in burst dealing So of COVID you this context been with

Jill Evanko

Yes. particular described. in is, news you sending unfortunately or just kind we've of height demand of build as We XXXX December go-around that to – we in was applications of had that question. anticipation, What inventory way. too in love of those your done of November, helpful oxygen-related we tracker medical the that as peak for additional keep we see And our the locations have COVID. another that continued in Pavel, so out think about It's point good you

have access our ISO And or us containers to having in that has of processes in beneficial locations to particular also have India, the capability in with has to our having we or change not super lines for been manufacturing worked shifts. So global the on government inventory our oxygen. where hand

continued it's – it. And news accommodate since to the So as similar manufacturing capacity it continued COVID. has has haven't to the beginning good the of we to is had demand shift

Pavel Molchanov

picture Appreciate on that. bigger opportunity. large question asking kind And I'll of the a LNG follow-up by

forever big build Let's suppose projects of new or globally one right that, and get you're we construction the forward LNG next round will sometime essentially? moving be two year. you Do that think final

Jill Evanko

us hit the always question, You with hard Pavel.

a I would much probably think think that, those round more one two-off starting think But and FIDs. I say it's a it's be very – or projects. kind XXXX question. there's I on smaller of scale would I larger this it's one-off I after probably a valid

the I the think this small-scale move the toward you and see mid-scale modularity.

a seeing toward this multi-molecule hybrid concept. so You're concept movement

speculation. my or So, would two one cycles be

Pavel Molchanov

very Understood. you much. Thank

Jill Evanko

you. Thank

Operator

Your from Liptak next Walter Seaport. is question from

Walter Liptak

All right. Thanks, guys.

Jill Evanko

Hi, Walt.

Walter Liptak

questions asked, or want Most of have that was call? taped on the was karaoke. ask Wade, for to the but that I clarifier live been previously, the that a I do

Wade Suki

Walt. live, was That

Walter Liptak

right. okay. All

Wade Suki

That's for you.

Jill Evanko

here laughter. right room while of to rest the conference it, in at over us do And doubled he managed table. in the were sat the He

Walter Liptak

hope right go just I you wanted again a what if Teddy could are you to a get you now. you clarify And to if your level production on ask rates clarifier could in the future, trailers. the numbers those sometime And that. said, on over just to production

Jill Evanko

Yes.

You got it.

trailers, run of I'll the In quarter, through stats – XX will away which we in Teddy. So second booked throw stats. hydrogen just the be produced on a you can few liquid the be

We are one week. second trailer half tracking making to in on of the run per a be rate

half out and So, XXXX. XX would XXXX, week booking be year of exit that coming slots of we're toward in for our already for those multiple is And of a kind deliveries. customers in same seeing the what demand second we're looking because working rate doubling XXXX

up, have ramp space. significant we is So good news the the

We have talent. the

We machinery. have the

ensuring just again hit is that schedules. this we so know the we And can

have the We material.

We have the right suppliers.

now facility facility have our that out confident process he promoted. Shane driven. really feeling is and I'm just got So very we an that And of ops running guy and Georgia

in amazing couple the So of under months just his ramp-up last the has watch. been

Walter Liptak

out Thanks right. All you you Okay. go the for look expectations Great. any over half, in And pipeline deals Can or the M&A a XXXX? for that. one. into last back just as then and

Jill Evanko

question. good a It's Yeah.

over the see XX constantly months. as deals, been we new active So last we've especially fairly

what's We few the of we but of evaluate those technologies. certainly a give quite in terms us inbounds. had they after on good majority a we disruptive happening them, So of sense pass potentially

in short pipeline, Cryo next absolutely you'd order forward we those. did need year about the or to this And years do isn't a anything LAT real anything in But them. got you Technologies. We needed you've We get in no. we decade. there is next answer achieve out there needed that this of and to take So the Jill in at talked going these terms or say look active that's

good so feeling And we're pretty it. about

would owners trying out kind we've of at that do sheet even that of opportunistic philosophy and And you valuations minority get that we don't to area. commented that look of to there have in of some would we see one the most when entered valued balance with but any are now sub-X investments at that certain appropriately starting So of we're might our us of we our them. stay and just the want time. jive anything kind on to previously And when we just is because this come doesn't things you up own on by and given even want are ready. of sense pursue make Things all And any full. tell league. founders theory those but to leverage Not can are levered them in we'd stretch and is that point I

Walter Liptak

you. Thank Great. Okay.

Jill Evanko

you. Thank

Operator

Coker from is Vaishnav question Vebs next & from Your Palmer.

Vebs Vaishnav

for you questions. Thank guys. my Hey, taking

Jill Evanko

Hey, Vebs.

Vebs Vaishnav

about more interest In in half. gross think something. us could in to you margins as grow, next of Probably is few terms over end increasing And years think importantly, where gross? it if where just quick go – couldn't of about XX% be it by revenues the how the we We the go just my maybe the or second year? help maybe time of But the as ones. can can two thinking talked we

Jill Evanko

get the could Yes. on as scenario. got we high-end – we into XX%. you the think XX% over Yes your I to second that's assumption In go that but spot QX is our half scenario, high-end for our

So XX% normalized to very, items of full we on to very that margin percent in onetime XX.X% that the as year. of a somewhere year half XX.X% Kind the gross sales in at assumption. that at safe is look XX% for second full

And Specialty which ramp, gross side the the revenues margin have mix the we a So increasing up of little particular. get to total increases by to is driven into margin really you'd percent a there. bit as low on anticipate QX as step in Chart from XX%, that revenue sales

Vebs Vaishnav

if could about second said I you Got out maybe And orders maybe you like like but below talked half if you or modestly it. like Got like know XQ, it. be missed I didn't a number. threw

that's you fine. If didn't

Jill Evanko

And $XXX And per that kind of number. think million. $XXX saying regular comfortable specifically look team. our million you very we didn't $XXX of that I somewhere it now activity pre-COVID, have if quarter team The okay. I give would order expect regular That's way very, No. is quarter. am a and over my about million commercial means I quarter between million $XXX that back listening quarter been is quarter, a commercial and is a

So off to million I what quarter. say assumed that million could you XXXX think we've $XXX but the back half is of in $XXX a in

if above a that it's definitely assumption. And XXXX then step you up safe so But that's shipments.

Vebs Vaishnav

Thank helpful. taking question. That’s you my for

Jill Evanko

Thank you.

Operator

is from Tuohy Craig from Brothers. question next Your Shere

Craig Shere

morning. Good

Jill Evanko

Craig. Good morning,

Craig Shere

congratulations terms specialty of about and Jill just on wondering in quarter. another Touch market great the annual team TAM, revenue.

company mid years this you a long the to revenue. $X when segment billion order see not year XXXX, market could total you more that in And XXXXs, on to deck could that XXXX, of growing order by given If if Specialty for have stable, it mean legs, $X I XX-plus billion to of sales, very flow? that get exceeding the year's capture hitting call anticipate, do you envision you carbon XX

Jill Evanko

and with it I'd hell, words be answer two would yes. that

this the balk like out, of in of is side made at. demand the this assumption middle Specialty that underappreciated that's most we're half And And less to not a assumption looking when years But And the be at I your then your that world on I aren't an decades, it but couple could that's really phenomenal on than just know the it's in decade, thing XX% just XX – business is is think mark the broad-based. I'm skid across it's happening when people the not bite I I tend that putting stops. year, come with XX of of can't of it good seven, err play conservative, a the are – and to at we what of, $XXX and to a certainly rate is get just practicality. today. Specialty second and I suddenly you macroeconomic line your there is that you're tailwinds is everything the There's XX numbers that imagine out in the I – and seeing build five, to these areas are frequently, won't much pure I think next business magically in I I'd over listen, million the this growth it's in what think hit. on next the ticking about If built fold. that our hybrid of. question

out give at realm level how so, very of unfolds. to multiple. on would try XX,XXX-foot a It that growth be I'm a And just of bullish to my speculating

Craig Shere

than I a doesn't call we markets additional resegmentation and of it on wonder wish share. obviously Understood markets. fast-moving play, And entirely Jill. if stand-alone helpful. talked possibility, company, thoughts It's a you Specialty kind a with becomes but Specialty then to about whole to might things sense disparate it And make company very just becomes about When a to that, letting this to to is but point get also things this the any deal or then you point pure current the possibility. subsidiary splitting we have off your how division? being Any be not color before, bigger

Jill Evanko

the take and is, leader the that they in one global one own in equates and we areas market know to which we to of that and team this share want exploit Number advantage to be these the most word execution. opportunities market we there can and are the want Chart for out is

market go hung I explosive have is, big all keep we I probably is around, that hey of about on -- together, conversation can and these And already so do and but it's are you What and share exact let's this that's we so but be will word see priority explosive. we our I'm to the execute this growth. capturing told word doing us having not that areas, lumped in cryogenics, on keep a explosive start first using use how things around up Specialty being too we've and piece of to when internally foremost. that these the go be good started that doing

have a to we group so active example, to for Officer. commercial Commercial saw hydrogen the we it's was commercial Chief Officer. We team and So in reports our -- the its split off team own Commercial reports Chief that that specialty getting that that

brought a have that. so hyper-focused more on we've activities, able numerous that's because us group And to been

years that look So, own? valuable I that step on at their our things and way could on that option. conversation you're then few these think more you'll see home around a to be to a testing stair pressure We it as bring need just

Craig Shere

Thanks, Jill.

Jill Evanko

you. Thank

Operator

There are Thank a conference and time. Ladies no concludes this call. you participation at wonderful your today's questions have gentlemen, further this day. and for

all You may disconnect.

Chart Industries (GTLS) 22 Jul 212021 Q2 Earnings call transcript