GTLS - Earnings call transcript Q2 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Chart Industries, Inc. 2024 Second Quarter Results Conference Call. [Operator Instructions] The company's release and supplemental presentation were issued earlier this morning.

If you have not received the release, you may access it by visiting Chart's website at www.chartindustries.com. A telephone replay of today's broadcast will be available approximately 2 hours following the conclusion of the call until Sunday, September 1, 2024. contained company's is release. information replay in press the The

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

Jillian Evanko

XXXX Thank and CFO; results. thank you, Brinkman, morning, walk our ]. and Joe [ Good you me for quarter through Joel joining to second our

the margin, leverage target adjusted free EPS mid-XX% X.Xx. consistently our organic cash to We to flow including targets, of our of on reiterated diluted gross CAGR net financial are of mid-XX% conversion ratio to and sales range executing path X growth CAGR mid-teens, medium-term and attain

LNG. Demand right-hand in Repair region heat of XX.X% data quarter, consolidation integration primarily water XX.X%. of $X.XX far excluding items or of slides, Howden record a record take on few including million was the records through related the of million through periods adjusted we robust. the are million of metrics second had sales. This excludes all-time and a for records. profit, in sales the were an a increase Howden, margin, for orders $XX X, EBITDA of and EBITDA are treatment our resulting examples of cooled $X.XX capture, service margin. for mining, XX.X% billion, also When Middle historical associated margin and an We $XXX.X was adjusted record service. in center operations I In for of into increase sales. and reported adjusted the the of about Chart adjusted, remains quarter QX. for a continuing of sales. carbon record and to in record Record wins margin, field billion of reported second some region, We increased business our also about and you Orders These the will operating numerous margin. as income combined otherwise was exchangers for and XX%, you operating to we all quarter our second Africa Asia use backlog, all-time each key margin and Pacific air metric included restructure when segment would sales, these point our gross specific the all-time all reported win divested shorthand, XX.X% Record of the All XX.X% and of Big gross showing 'XX in a metals, metrics EBITDA XX% XXXX. Starting second leasing table column income XX% or growth from XX.X%, sales. assets reported noted, also had operating which was unless quarter referenced, 'XX. of all $XXX.X pro record also East record forma EBITDA aftermarket For record $XXX.X Slide and of million gross

periods, which dividend our outlook. in in metrics impact simplifying preferred are Therefore, adjusted prior mandatory included our the included We nor in was focused on it not was have the EPS, negative of we diluted prior

has preferred negative EPS anticipated dividend $X.XX operational and again diluted and $X.XX definitional guidance change, adjusted EPS the to outlook, the adjusted of full to that, was compared which prior from the has a business had compared year of no this underlying impact $X.XX that, that updated of foreign prior our mandatory from a negative exchange. impact So EPS $X.XX, adjusted second nor which quarter impact $X.XX the performance. Reported $X.XX includes on diluted impact negative from negative when of

of Our a We'll June more ratio XX cash leverage closing detail on declined X discuss Howden moment. X.XX net in has from in since quarters ago. X.XX

X. Slide to Turning

segments throughout XXXX. here, Our from you shown the X in Slide second of were which both quarter both key each RSL we every increases sales metric Specialty each are sequential will in takeaways in today. touch the increases deck the well record as year-over-year, year-over-year in QX metric on sales see can region and On and 'XX. and QX to X, Every there segment Products the increased the as

and you quarter expansion, 'XX can pleased as all meaningfully, page with Slide 'XX, through margin. The dropping to operational margin to are operating X, the gross and second this basis see that quarter on shown note increased were on second margin and operating margin quarter. adjusted improvements have on our points. more and important is operational point again incremental metrics improvement, XXX We Reported margin room margin margin profit points shows gross XXX Slide basis was XXX ahead. we X to adjusted EBITDA records to this It margin a basis expand do increased which grew

continue cost will to execute We further synergies.

cost and schedule. improvement been activities key of We the part have commercial throughput productivity ahead of margin further Six and Sigma execute established synergies operational and on and throughout have being improvements organization, Chart to expansion anticipate continuous associated and Business we a ahead. Both our Excellence continue

both you size XXXX. $XXX we of have As was million by timing which year synergy the Slide commercial our on target, exceeded see X, March goals original can X and of

in quarter $XXX anticipate million of million and are $XXX with toward tracking X on As original our achieved. synergies the of ahead to billion $XXX of already target way $X XXXX. Cost of million our well we schedule have are which year to the of yesterday, commercial achieved third hit synergies mark, we

of combined quarter our region, expect synergies. We the East to X-year our by Middle we second the region Africa achieving the Pac, further end pass target of XXXX, Asia India XXXX. with back-office In

some XX are for examples we of application. compressor direct footprint. Slide the DRI of forward, a or localization commercial reduction products, iron packages QX shows our global Going breadth utilizing accelerating of wins, including the our

seeing steel green are applications. orders second DRI, quarter including increasing those of consecutive our opportunities We in this number new an in of being

for cryogenic We storage company continue in also to States. an they manufacture received for a more as semiconductor the tanks United order

applications. solutions above book-to-bill X. have we also the markets breadth our each relatively benefit individually of have manufacturing of strong orders to reflects $X footprint and XX that million end diversity opportunity with quarter, occur. QX as over first-of-kind were of continued our nearshoring of over commercial the gives as in strength also trends and us across order consistently orders. months pipeline's a rate consistent with global our This shown products, Another the awards XX XXX those past This

totaling The strong $XX.X $XX RSL expected Africa spares, quarter started Power XXXX has from booking activity Power orders Station third to a are this for customer with million further million over and order Space the project be a half. Pac. in for Asia July, July significant million. million orders in awarded totaled we In also second $XX $XX petrochemical an in approximately received for exploration order

Additionally, fabricate a Airbus vessel into to integrate demonstrator awarded hydrogen to us has program. physical an liquid a contract Airbus subsystem inter

discussed able are our markets the operations. end We having just serve to manufacturing breadth without the and change to of applications

Because see they are of used of carbon multiple we to impact well foresee of compressors energy example, specialty result a as can examples that we hydrogen presidential at across traditional markets. our capture. applications our XX, energy and from you U.S. as For molecules locations material including serve globally, as of equipment election and to traditional Slide markets, On this, administration. not to a the do and outlook energy transition regardless specialty manufacture

pipeline our along in with Our primary an being with these synergies existing opportunities between of manufacturing next applications ability at to our capacities the over markets $XX Howden commercial X the all-time are of high for end serve billion. Chart and multiple years drivers

cooling storage environment, increase and as XX. needs given artificial the data on intelligence We to shown and intensive the from expect further Slide centers pipeline energy

Howden for cooled center year exchangers screw to that from Tuf-Lite addition and data center approximately the we a that mentioned As million air with continue an The we approximately starting part key data the center award volume We per ahead. X opportunity will for of applications. for cooling received us, expand $XXX is point based using IV data million, earlier, will of anticipate in from intelligence quarter, expand a to $XX also rejection, be artificial customer heat specifically heat for it anticipate and our a second chilling key center leading on offering gigawatts fan can industrial there heavy compressors. data provider

can middle U.S. the efforts see backward these equipment You our IVs the IV the can efficiency see their location facility LNG you multiple the we designed photo our proud both Sabine Texas. In XX, and slides few Tuf-Lite to a of in example Corpus IV Pass are we again a this orders see support action booked And right Tuf-Lite with in location. separate of on second at uniquely in which is end fans being In another quarter, you'll photo, resiliency. in this are debottlenecking Cheniere's their fans X good same customers' and to at utilize LNG. improves Christi terminals. used characteristic, suite which markets, the in very Tuf-Lite in and Slide export

XX, our as is that market end on is and that Another is traction. products market SMR, a this gaining you serve can see and Slide nuclear

SMR America. For France our been applications have and North and us, applications include today mainly and between split our fans orders

process more a conscious specifically technology. modular very globally, operators XX activity IPSMR including LNG Slide LNG As continues shows, actively our and to of solutions, benefiting move

shows not over segment for order Czech synergy work. XX% or is of our typical. as is profitable facility was full which LNG 'XX second consistently pipeline shows record liquefaction 'XX a we to Republic to field ever trailer representing on outlook. The was XX of growth HTS air not in sold and LNG LNG to coolers American turn aftermarket orders XX grew MTPA We this China were booked margin quarter, project. non-big Note technology expanded and table, in commercial driven about Scale series international equipment increased strong year-to-date couple. not infrastructure, and anticipated being Argent's our Slide projects largest IPSMR. and a the for significant, and level RSL announced project on this which XX XX potential by pro of included including to a is Decin XXX a big Our week, using sales effectively year executing into regas our larger a left-hand of segment, past which for and orders that forma for XX for with projects, how a considering XX backlog for upper In And potential our in and company XX LNG 'XX. Slide the have margin to orders attainment, left-hand orders 'XX QX QX upper XX%, our LNG project, medium-term quarter sales. name box booked our total the LNG yet In for plus an HTS Small shows chosen second RSL South and XX we the strategy our comparing in record XX% RSL for growth

reference, margin, synergies. and As has basis of we than a acquired driven Howden, margins all higher average, been, in to been gross RSL point by points on cost date, XXX ours XX% pre-acquisition, pro have quarters commercial above forma since RSL and

our high to their in of fast and there margin value upside add result operations, a As be to to benefits does and customers ahead opportunities continue response RSL.

quarter $XXX.X million increased RSL to compared X.X% the 'XX quarter second orders of when Second 'XX.

'XX second X include orders. of less frequent The larger spares quarter did

had Item key right-hand as power a shown I where and customer, Turkey, plant beginning synergy to Mexico, are compressor example. traction second in On Slide is X-year win. award a few CNG for and a RSL. E a great heater of an We see the for station penetration. in to Both are would and added geographies business critical to Turkey point we with XX, side great the quarter a stronger parts $X in Mexico million another B wins like LTSA Item we out LTSA

exist to of have synergistic combined seen great we in are beginning business. opportunities these wins We the that yet we that date, the aftermarket at do believe

in now have for legacy cooling key power air refining, and local and it facilities services medium-term to coolers. I'll gas example, outlook. XXXX fans the for customers Howden For detail with Joe over parts and aftermarket the engaged and teams now for hand financial in our chart production

Joseph Brinkman

to Moving Slide XX.

see first can and free quarter second flow results. our You cash

balances category those, period calculation beginning you cash compared second comparable difference provided QX occurred are flow quarter $XXX combined CapEx on of or are timing prior with are -- flow to expected a spend, in with previously of includes we flow quarter our that activity The of to beyond specific showing changes that our million our decisions our ending operating prior million. considered long-term as that provide that $XXX we second we million original quarterly million make of stronger was to items free of operating not Net table, $XXX and X balance each nor from operational are of can is is balance in is how that cash cash customer cash due approximately outlook the X-year quarter the timing QX. in our to directly were flow cash annual outlook. Removing where second activities half operating These sheet. chose reflective XXXX cash drive $XX so customers, key cash tie the that long-term the the related and relationships XXXX. to intra-quarter business On

field team within service We associated in of timing the other the situation XXXX. cash from dedicated payment the large service second of and respond a field emergency will First, an half be quarter. to work arose

also We purchase In requests the milestone whose taken specific has a earlier the achieved than course a previously cash project positive project to occurred had the position. second neutral key in our steps business, or they we normal we and that had customer needed cash related of hold materials larger cash planned. a schedule half,

We continue expected Slide be declining our is significant working complete as continues expansion and margins. on cash Capital a as spending to strong of is shown to XX. source capacity see capital as

XXXX of for expected first payments X second As earnings all projects, the that. of our collected previously of XXXX $XXX top in had quarter million we call, we our shared in quarter we and milestone

on $X.X be approximately quarter XX% XXXX. We inclusive to working approximate full of of of AP XX% and and $X.XX net ago anticipate billion, the range sales the can unbilled when a Slide you net year to the X% to of foreign in advances, capital of we sales sales see XXXX AR, our XX, As second headwind. reduced considering an in inventory, billion exchange of year customer our from have

Forecasted full of $X.XX year billion adjusted range EBITDA billion. $X.XX the is in to

and EPS XX%, approximately $XX.XX flow exchange, our timing our of million. Compared approximately prior impacts diluted and rate XX late of the adjusted projects, EPS received year approximately count an year $XXX the is the of a tax purely mandatory timing full XX% XXXX, on larger having EPS negative to longer million change drivers excluding based main of to full quarter range outlook, and XXXX to range cash range preferred million. change are dividend is $X.XX in awards in foreign anticipated guidance This larger a second calculation of XXXX to of Our by is sales on share impact. range $XX.XX. longer in adjusted effective no XXXX, the the to $XXX revenue Free XXXX definitional and

XXXX. have EBITDA outlook a through We actuals as adjusted first financial see from XXXX our included XX reiterated XXXX Slide half half the outlook. On bridge XX, you can second Slide medium-term to

of artificial need have given gas macro the growing for we of and energy, era intelligence end our continued Given the multiple the including drivers, energy natural growth applications, increasing access, breadth energy with markets transition. trends and

by are and targets financial activities anticipated synergy expenditures. normalizing productivity medium-term additional throughput underway, and underpinned further an cost Our capital achievement continued

are on the recent goal We of results. already based midterm in gross our neighborhood margin

oil not XXXX. projects our international our big doesn't in including reflected backlog big and Additionally, IPSMR There currently project assumed backlog as billion and Chart yet metrics, that an LNG facility of total also LNG LNG XX, MTPA our guidance from companies outlook this include medium-term that known several excludes September not not are X permitted. the terminal, hydrogen were for not any medium-term in in are in U.S. benefits XX projects. projects These export future backlog of Big LNG already content. The hub awards outlook approximately Argent's Big drift the is $X.X with project, which

the XXXX, grow range. To our Just conclude, to sales to Office cash lowest a the well projects generate OneChart and X.X% Energy efforts. to X% sequentially global more will thank it take XX-month financial way of our And we second percentage this to anticipate on sales -- like so expansion are our delivering safely, of for in Q&A. members team each in reportable doing medium financial rolling our I DOE's double of continue finalized the opportunity total margin our their week, receive would in We expenditures of for capital Development XXXX targets, as digits, and X to funding. with open that and medium-term for up this incident please rate quarterly X.XX. Joelle, Clean

Operator

with [Operator from Instructions] comes question Your West James first Evercore.

James West

in to Jill, on cooling your solutions. dig wanted So I

your and as of a SMRs for So keep especially data the remarks, sorry, an as provider that, is known be in your Howden solutions starting But well solutions. liquefaction is not producer and used LNG synergy cooler, to being, obviously, we very where equipment, to like and things to a in Chart other compression now and you -- LNG alluded equipment that and a company need hotter. you know lot prepared centers things

love And that about business those so and could opportunities that kind parts you're how your hear of to thinking be? what I'd of

Jillian Evanko

and Yes. and that for we Thanks, expanded have very they're is for being James. the something intelligence produced an We're excited arenas. perfect market really it's equipment this other and addressable applications, the for that -- already solutions energy-intensive the and us, it's data because artificial center about

mission-critical So air these cooled heat to exchangers applications. are really

quarter build application. to designed Then that one horizontal, million uniquely design We referenced have the cooler $XX for get second forward a you to that actually of we the vertical, ability air fans. the is into from own our

the but centers, received also almost In of So for the these side applications. are to and not million fans your critical, markets fans for end $X work to nuclear things. we across on orders point of data cooling nuclear fans July, for only

as get you may see traction like that you gaining need said, cooler. So can to

On more larger the we goes the again side because to absolutely, daily these sized industrial excited especially really increasingly you're a so that's Howden when basis. heavy about have we the on side, screw industrial which compression projects occurs, talk on applications, energy-intensive as Howden tailing about hearing chilling that capabilities for we're perfect heavy that about

James West

All think, I $X.X me. that based maybe think just hear [ so... a I data opportunity quick or center then on, is correctly follow-up ] the Did a for X billion gigawatts right. you And

Jillian Evanko

Yes.

the $XXX -- years is addressable chilling that add our near-term Howden us, targeted on million million $XXX to anticipate of based another heavy market industrial for business. that's can So the the next as expands, that, the X to really we which side

Operator

question comes with from next Your Stifel. Nolan Ben

Benjamin Nolan

Thanks, Yes. Jill.

need maybe So I moving maybe of little -- whatever. is? guidance or sort of guidance, times a wrong talk change guidance is about the -- a Can go parts with of you're led respect the appreciating But been and through that and always can bit. to how the how handicapping slippage maybe there's revised to you into the your there's what has to things baked thinking it, couple that timing projects a now

Jillian Evanko

let and And Absolutely. me $X.X here, revised adjusted then the billion $X.XX to billion. on guide line $X.XX $X.XX the to top reiterate Sure. billion billion the EBITDA of

margins, If XX-plus of range. EBITDA year-over-year growth you that's sales and is top the in at line growth XX% look those that's percent,

performance in to the the business it, we XX, had look that So against point at particular, and associated orders those half first XX% the the the challenge that, year, is sight came an the have better trajectory in the feel second on all-time in that in to and the quarter. Clearly, this good the the quarter, of date we quarter about orders. we that timing record in that adjusted timings at really to we that that, way those line projects EBITDA of the posting margins

to in at felt our we is with very range this needed updated here. where achievable industries. But quarterly like timing I some build think is market so the reasonable, And very we to had in we that we our full that today, of look not kind sit end quarterly looked into movement was fact companies give year ours the have growth target we put anybody other therefore, said, a felt to And is our a inevitable metrics we obviously, achievable, that we of range And where shifts, challenge against that our given guide. business.

They to I here, our are U.S. hydrogen big The just is 'XX, would be include sequential those any our to for thing don't opportunities. in hub other targets $X.X point future XXXX. unchanged, medium-term sequential said is that targets sure right? that those X medium-term in sequential out we So And include projects. make anticipated don't growth going billion LNG

know that more and the on based So timing outlook. point at on year's based some the again, the quarters fact there's project in that this that into of needed becoming enough business we the between to we felt like that oriented movements orders our year is and bake of we

Benjamin Nolan

little Okay. maybe to you're I Or any you as of appreciate about doing handicap it? of a just you as forward, more? sort think going follow-up, maybe it. do expect bit a how sort about And strategically that thoughts

Jillian Evanko

I achieve Yes. the we end I on mean quarter, range we to out we we can we're delivered put these here. our the think in could well get Clearly, have the second the that of range. board, results, again, us path high think, which as factors record across listen, that with a always

to point, targets, which trajectory sit your be to is ahead So the with today. outlook, handicapped where a still on we're our more medium-term we even of

to a we we're period the still have handicap so little then in timing and And like current even into going revise feel were deliver because we we not to of that with shifts. said methodology, what

your direct So be yes, to in very answer.

Operator

Marc Your Bianchi next from TD with Cowen. question comes

Marc Bianchi

is like look pro EBITDA basis, it kind least at I looks historically of flat. If a on forma

increase fourth half through is but us unfold? you sharp So I how it to talk require maybe could a for expected for quarter, just back the back the if here that's -- case, third quarter, would guess, pretty the

Jillian Evanko

Sure.

question The first off. cut of your was part

back terms make the how the answering to of just -- So in our question, is unfold expected sure from I'm half outlook? to

Marc Bianchi

a then cash quarter. but if sharp would follow to quarter, And increase trends, imply flow not seem those it the maybe for pretty the third free fourth quarter historical EBITDA to historical the for follow they're going third in trends. Yes. and

Jillian Evanko

Thanks fourth fourth The we what Okay. to through clarification. us, we anticipate again, this similar the sequential half. quarter year, that is historically back for a very be been the Yes. yet strong quarter anticipate growth and has

addition, XX, from first kind projects to specific the that In pointing a as as well walks Big Page backlog of LNG slide the there's second half conversion in deck different cost as the on our in various our half, synergies. as to from well

not QX seen should what but hold in So sometimes true, be should a hockey the stick have as you past.

On quarter the positive. to to fourth the cash cash expect third would side, positive quarter be we be cash and

and specific We for billings roll on timing have very fourth. looks quarter of based how within quarter third at the the they the out the the in same

So going to improvement here we're back say will see yet, the continue I fourth the to stronger we go half be would third than sequential of through quarter quarter as year.

Marc Bianchi

Okay.

as EBITDA cash sounds just hockey So what the and a EBITDA side, XQ And think than like it of well then heard. XQ I because stick. is to there's on XQ improvement not free be I XQ throughout it's as flow big is better than better sequential

Jillian Evanko

Yes.

like half, we're So first how thinking that's half, about second exactly that.

you EBITDA of factors into lot side. the Obviously, anticipated I go think the on So cash there's sequential a play improvement flow certainly that here. in captured

payment, third cash unsecured positive. we even -- with but quarter interest do a to So do be the -- anticipate the we

Operator

comes question Manav next UBS. Your from with Gupta

Manav Gupta

little as do hub a talk business, a before to of hydrogen more you the what side especially more The fundings December? expect the you you're coming about good. of you're center Can be November close data on this seeing hydrogen bit administration, released seem to pretty and opportunities

Jillian Evanko

Thank you for the question.

demand. we of the very set the a seen On business, of hydrogen have global side

liked quarter that's of extremely the about set in also that hydrogen And has so positive. order seeing. What for applications been second that's really breadth something the I us the we're

vehicle could compressors ranging announcement [ to saw that is progress outlook. recently would reiterate medium-term see any the of just activity for would that the built of steel X heavy-duty hubs. the to second DOE's trucks, to into hydrogen class So you'll onboard not that applications I for forward. to anticipate us I continue applications ] for cetera. We et our that a funding announced tanks future for But liquefaction from X hub like benefit

global part are value applications and definitely, traction is continuing now solution, use the are chain to a the breadth hydrogen then of the don't hit end lastly, to fact so I to of gain we hit drumbeat So the around the to and want be just side have to those starting all continue of operations. our us. And change of that to things a the tailwind manufacturing

same across the So into into goes equipment we applications board. energy hydrogen that build much goes of the traditional also that

multiple So can itself. different what we we the see ways in play energy transition

Operator

Your next question Craig with comes from Hallum. Eric Stine

Eric Stine

got So your to And a of this today guide. records, I and obviously, to QX likely a back are because just mean backseat moving quarter, to you've business. of guide. parts I the come I will lot in just I lower lot want -- mean know mean, previous I a -- about there thinking the as the but take question I stated,

that Or I chance is hit fourth a that in that you a either need mean, about So orders guide? those quarter there into just decent meet is a quarter, anticipating thinking that are contemplating to that orders orders amount to 'XX? number or projects of may revenues, of I sorry. I'm -- mean, slip sorry, -- are are are there you that there

Jillian Evanko

yes. Revenues,

we of a and in it. strong there to associated sight what's very backlog So have with and timing the good line

and/or orders in third timing. current what today our contemplating based quarter the backlog on we we're see So known

the that thank realizing not pointing impact an again answer question second latter it's -- specifically. And quarter the also medium-term to out that it to So we're for the your the on, you strong outlook. doesn't have trajectory records and

Eric Stine

our you about though, appropriately And further with capping you quarter the in that handing think slip we could half? fourth as would just because comment you confidence are you back stuff have the think agree, that

Jillian Evanko

very at in around well thoughtful came guide, we this have that around that of backlog. had late in, as visibility the QX Yes, the knowing orders timing as that in we're updated current the point and we the year

include and really that it, which worked contemplate in. moves given to felt timing that we've historically to the worked we've like, we build yes, So had, that we

Operator

next Rob Street with comes question Lake Your from Brown Capital Markets.

Robert Brown

to on bit a And getting for What just to synergy cost I the rest do want and of you the how year have visibility hit steps go? much plan the little are the there? to goals.

Jillian Evanko

to Rob, around quite definitely Yes. us, that's the side. XXXX tracking cost X number question. ahead by And side. commented the synergy there's expect a our the of I whether synergies. hit that still Thank for on bit the year plan the And you, for end on we opportunity of cost sourcing of be

different expect So global to freight have play. on kind plan see that. We're also of opportunity contract of half. second in that which or more agreement from services cut down localization and that we massive, that like the like systems we renewal land things up, we that's is the opportunities, things for still that, synergies ahead us cycles additional There's have come cost, massive whether in various in of sourcing here

to about excited for that but further our continue target we cost we're So opportunities early, ahead. so year against do we're the see X fact original that more synergies executing

Operator

next comes with Molchanov Pavel from question Your Raymond James.

Pavel Molchanov

election the November. U.S. You called out in

hydrogen the labor charge the If the a elections of labor given zoom we had particularly other the in that, lot kind is -- on in presence new we green government U.K. talking sustainability what's course, summer. U.K? this Howden about pushing the Of where with already of initiatives, opportunity among

Jillian Evanko

their the a we opportunities, compression the in companies met good and of in geography. CCUS opportunities treatment is U.K. both only Howden with at with we Recently point. U.K., There hydrogen And not locally strong the project see types on water some planning are multiple in around Great but Yes. side, particular parts. opportunities. that green for presence also looking public industrial folks also private do the and have

positioned as we U.K. So in are very thanks get see previously. the there, presence And to connections early upside well the as Howden's have what been to projects additional the to from as potential in had seeing we possible we that

Operator

Sachs. next question from comes Your Goldman with Ati Modak

Ati Modak

are there You similar could attractive? LNG transaction the Can of had that? the for with compare market. the process components acquire that of contrast your in in sort a opportunities And to equipment LNG you be offerings you and various business and recent

Jillian Evanko

the FERC or Venture market, which IPSMR of for getting that's Driftwood, NFE's project Woodside's in agreement there's Driftwood gas, their approval. first the purchase definitive to a Ati, [indiscernible] lot whether question. LNG [indiscernible] activity And that's Global and the whether Thanks, been uses

of So move contrasting think APCI. And IPSMR I you're to Honeywell's generally modular, is is seen I the of activity, we've what purchase other to technologies comparing more what lots referring but many would say what Air is cases to cleaner partner is, really and up spot efficiencies and with to with make the and to being plot space have IPSMR what greener. needs modular ways also and in limited other Products LNG that's e-drives sweet ability higher

is about process that's which our So is whether IPSMR, -- would helium, that really hydrocarbon organically great for technologies heavy say portfolio, are well what that feel we we up our in have renewal I technologies currently on hydrogen or or developed the which cryo NRU. links

others. the our how technologies, in great up against we stacks terms So feel of about

out an here fact this technology, kind -- look team to have add wouldn't is there the we see item things into any portfolio. And does engineering organic I that we the that that need So particular other the we ad there to hoc liquefaction we just product of things exceptional the are in-house if development. that with to respect want don't

so And too. here, of behind-the-scene a happening lot there's R&D

Operator

with comes Research. question Walt Liptak from next Seaport Your

Walter Liptak

around? it's quarter wonder seamless. some of clarify get could think timing And you saw about pretty timing of to your in when the been changing business detail guys, and if in during the schedule, where the ask experience in it's you of timing segment a they HTS a like came and came and from -- customer Better try was Or time times, with following projects, your issue the the to? that been get in lead more that more sort a in issue. or Was something past which orders was was wanted was matter late? the bit it my the get the I this issue you and you segment about -- the schedules think little it I I that

Jillian Evanko

you X would would primarily we I HTS. which X than across larger been have or what business years what So more say the is ago, have projects heading have had

happening the projects across larger spares, repair. have we segments. Obviously, service aftermarket RSL So is

because We're HTS XX not the few say of the changes. I or a across couple this really days a in business it visibility, this. were in looking period by fact of XX more brunt that great ago impacted a that really there's ago gives really you -- good of the looking of medium but yet years the or would really because is type so not specialty many that that's is they're thing business. So at at us if compare can't a you to years

there's to factors quarter within on of around, June. of inputs difficult that move orders supply had the the in on But to schedules it's the chain said, based around would that a quarters needs. We within it, is work activity of order priority quarter. it pinpoint you you to -- of have exactly drive things heavy changes from timing engineers that down. What shifts part is like that that other that I say So customer a and within of higher something go move customer it around, a couple month being into priority some is move a move other where

quarters. together timing So of things those drive between all

Walter Liptak

issues I if it. And But wonder looked Got the issues, -- may I that's just region, trailers, impact. those this at regionally kind you. for the it of timing showing on could well with Okay. geographic China are maybe where about you not the to then talk timing But like when wondered you up? going sounds

Jillian Evanko

Well, our X Americas Europe. biggest are and regions

Asia as And Middle China are book-and-ship the would so project well. larger we're now the that's oriented AIMEA focused. be we [ more regions where those happens. businesses ], and between a India, activity those Africa, Pac, East, little So X of call what brunt

Operator

Your next question comes Rice. from with Martin Malloy Johnson

Martin Malloy

I you speak the some that now drive the out growth? RSL for update I'm trying doing it terms to you've maybe maybe maybe that since could continue there the there growth thoughts your thinking maybe in a that about extremely a acquisition, you're to you and had That the sense on of to pursuing to segment and there see has the the ask some well. get about sustainability of to been results initiatives wanted of just if better morning. this while for or there

Jillian Evanko

with very business, commercial would attribute on to Yes. Thanks, Howden's side pointing the across very, Chart of in to bringing Marty. installed far. to proximity that seen customers' particular strong have with And we've just the as to which our is. field RSL pleased base the practices really we're aftermarket the so the business where Those service well been as performance, legacy having this best we margin area synergies wins

depend to the we the spares in going be opportunity because the segment see the grow gross that more that innings, at see to ] quarter XX.X%, growth, pleased from margin to lot as And field high But our that a driving expand kind meaningful there. I'm early you ago mix and on that offering with the margin. where expansion to quarter LTSAs say relative every and further base Obviously, ranges this initially X [ were and Howden opportunity to closed segment customer of our across between the RSL to a as we well going we're do XX% to in continue digital on we when in anywhere service we, margin fluctuates that's does about its opportunity between had RSL. is rationalization grow this in revenue on of the But not yet to quarters really quarters. to continue models. pricing drive we XX% it the

Operator

with comes question next Tuohy from Craig Shere Brothers. Your

Craig Shere

headwind if OCF the balance on And a the to. little On change not the elaborate Slide free XX. is quarterly you sheet could refers about bridge what I'm cash confused flow exactly long-term reflective of kind square tailwinds into of guidance the should sound of but second full the they're reduced X quarter, lines that and like trying with the like year. next the for half, second to kind

Jillian Evanko

Sure.

had timing these outlook they full based our at guide. as half the long cash in looked on outlook we our combined through. referred to they're the and Joe EBITDA And about the the we year. when the certainly customers the then a primarily to about build things or also primarily projects conversion there quarter we we cash flows are that with we of talk And be for half. But tax. opportunities then in second then when talked our for X-year a are about that And lines look. and or those to on here, X second so tailwinds achievable -- that had to a moves the cash we in on have the full again year, and will some when we in continue related once next that did these build term, we the we these call The changes felt outside talk X particular we specific customers. And to it the is so we change fact for X well So in at looked to was that balances that of specific responded have activities deferred relationship year need, cash, that the X guide, the in

Operator

Sherif comes Your with Elmaghrabi from BTIG. next question

Sherif Elmaghrabi

bit you've if been orders believe being little late IPSMR apologize asked, the talked but past, in here, about a it's large-scale $XX on MTPA. per I million Hopping I roughly so

comes LNG What when because So LNG. that's, deal opportunity said the to there? it is think revenue the I origin we mid-scale

Jillian Evanko

Yes. question. Thanks for the

to So an international content approximately project. think Chart in currently that's look if about you will Driftwood X don't that is it. $X.X companies, of X at LNG projects have Argent we project our that LNG the projects the the Those oil that's technology that billion they is international use Big X we combined and the but know and that way backlog, Big have equipment

Sherif Elmaghrabi

then drivers. of And helpful. at a level, in Specialty, higher That's was the it record one drove CCS ordering

to could thinking orders plant. scale industrial you if localized stuff? wondering or from order a you flow just is I'm see starting Or coming So an to that, about from power I'm speak individual here, projects? So refinery are this

Jillian Evanko

end market know -- DRI prepared the to Sure. Yes. had applications, larger. a during the remarks, green Specialty are pleased supporting specific were markets had et you and different In that getting with don't records that the I cetera. few But very but kind end if scales heard CCUS, we of

we're projects end as getting the in So the a breadth of doing of larger sizes that are markets well.

more There's yet them project end happening it's not say per expanded more happening there's little X but and of kind in. a activity, applications. I they're more still style that integrated. and there's So applications of would markets that customer

to that, record CCUS So second that a us, in terms sequential been quarter is has orders. of a

steam these very, practical I gaining and say, looking are in So the applications using is pragmatic that are our traction that would -- there, projects technology.

Operator

There now over management turn call questions are for will the no at closing to further remarks. time. I this

Jillian Evanko

safely prepared joining thank for concluded do TRIR you Global all and Joe for team for to our remarks, of as with the of us executing everybody, OneChart today. end our June. And XX-months as you Thanks, X.XX of the rolling

and thanks, So time. your appreciate everybody,

Operator

for and Ladies your for today. participating this please you concludes gentlemen, and call your you disconnect that thank We ask lines. conference

Chart Industries (GTLS) 2 Aug 242024 Q2 Earnings call transcript