Slide 1: Third Quarter 2024 Earnings Call
Third Quarter 2024 Earnings Call November 1, 2024 © 2024 Chart Industries, Inc. Confidential and Proprietary
Slide 2: Forward Looking Statements (1/2)
Forward Looking Statements (1/2) CERTAIN STATEMENTS MADE IN THIS INVESTOR PRESENTATION ARE FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING CHART’S BUSINESS PLANS, INCLUDING STATEMENTS REGA
Slide 3: Forward Looking Statements (2/2)
Forward Looking Statements (2/2) THIS PRESENTATION CONTAINS NON-GAAP FINANCIAL INFORMATION, INCLUDING ADJUSTED DILUTED EPS, “NET INCOME, ADJUSTED”, FREE CASH FLOW, EBITDA, ADJUSTED EBITDA, ADJUSTED OPERATING INCOME, AND ADJUSTED OPERATING MARGIN. FOR ADDITIONAL INFORMATION REGARDING THE COMPANY'S US
Slide 4: Third Quarter 2024 Key Takeaways
Third Quarter 2024 Key Takeaways All metrics are pro forma2 y/y versus Q3 2023 unless noted otherwise • Orders of $1.17 billion increased 5.4% • Sales of $1.06 billion increased 22.4% • Reported gross margin of 34.1% increased 350 bps • Adjusted operating income margin (1) of 22.2% increased 450 bps
Slide 5: Third Quarter 2024 Key Metrics
Third Quarter 2024 Key Metrics All metrics are pro forma2 y/y unless noted otherwise $ millions, except per share amounts Q3 2024 Q3 20232 Change Continuing Operations Total Orders $1,167.5 $1,107.3 +5.4% Book to Bill (Total) 1.10 1.28 Total Backlog 4,535.3 4,140.7 +9.5% Sales 1,062.5 867.9 +22.4% R
Slide 6: Third Quarter 2024 Commercial Wins
Third Quarter 2024 Commercial Wins Axial and jet fan awards Exhaust gas recirculation ThyssenKrupp for process Liquid hydrogen solution by Spark NEL for the North for Hyundai Heavy fans for a new cement line for a major shipbuilder East Link Tunnels Industries for marine Siemens Energy air- IGAT – p
Slide 7: Third Quarter 2024 Key Metrics
Third Quarter 2024 Key Metrics All metrics are pro forma2 y/y unless noted otherwise Sales (2) Adjusted Operating Profit(1,2) Adjusted EBITDA(1,2) +22% +53% $236 +40% $1,063 $261 $868 $154 $187 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Profit growth driven by volume Excluding the foreign exchange Three of
Slide 8: Third Quarter 2024 Key Metrics
Third Quarter 2024 Key Metrics All metrics are pro forma2 y/y unless noted otherwise Gross Profit Margin Operating Inc Margin(1) EBITDA Margin(1) 34.1% 22.2% 24.5% 23.4% 17.7% 21.6% 16.8% 18.6% 11.2% 30.6% Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 Reported Reported Adjusted Reported Adjusted All four segm
Slide 9: Pro Forma Segment Results
Pro Forma Segment Results Reported Gross Profit $ millions Orders (1) Sales (1) Margin Commentary Q3 24 Q3 23 PF Q3 24 Q3 23 PF Q3 24 Q3 23 PF Cryo Tank $126.2 $152.9 $162.5 $155.3 25.0% 22.2% • Difficult order comparison as Q2 2023 included a large railcar order Solutions • Sales driven by global m
Slide 10: Third Quarter 2024 FCF and Capital Structure
Third Quarter 2024 FCF and Capital Structure Q3 2024 Free Cash Flow(1) Q3 2024 Q3 2023(3) • 1% Convertible Notes will run to maturity in November 2024 with cash payment for principal and delivery of Operating Cash Flow $200.7 ($35.3) shares for anticipated settlement of premium (already contemplated
Slide 11: Chart Industries 2024 Outlook
Chart Industries 2024 Outlook Guidance Metrics as of November 1, 2024 Updated Full Year Guidance Comments • Backlog conversion $4.2 to $4.3 Revenue • Book & ship led by Repair, Service & Leasing Billion • High-end achieved by specific project releases in November and December 2024 $1.015 to $1.045 •
Slide 12: Chart Industries Initial 2025 Outlook
Chart Industries Initial 2025 Outlook Guidance Metrics as of November 1, 2024 Full Year Guidance Revenue $4.65 to $4.85 Billion Adjusted EBITDA(1) $1.175 to $1.225 Billion Adjusted Diluted Earnings per share(1) $12.00 to $13.00 Free Cash Flow(1) $550 to $600 Million Tax Rate Approximately 22% Detail
Slide 13: Upcoming Event: Capital Markets Day
Upcoming Event Capital Markets Day November 12, 2024 NYSE, Siebert Hall, New York 9am to 11am eastern time For in-person registration, visit: https://capitalmarketsday.chartindustries.com © 2024 Chart Industries, Inc. Confidential and Proprietary 13
Slide 14: Appendix
Appendix © 2024 Chart Industries, Inc. Confidential and Proprietary 14
Slide 15: Third Quarter Sequential Metrics
Third Quarter Sequential Metrics All metrics are pro forma2 q/q unless noted otherwise $ millions, except per share amounts Q3 2024 Q2 2024 Change Continuing Operations Total Orders $1,167.5 $1,164.7 +0.2% Book to Bill (Total) 1.10 1.12 Total Backlog 4,535.3 4,426.0 +2.5% Sales 1,062.5 1,040.3 +2.1%
Slide 16: Chart Industries Prior 2024 Outlook
Chart Industries Prior 2024 Outlook From August 2, 2024 Prior Full Year Guidance $4.45 to $4.60 Revenue Billion $1.08 to $1.15 Adjusted EBITDA(1) Billion Free Cash Flow(1) $400 to $475 Million Adjusted Diluted Earnings per Share(2) $10.75 to $11.75 Tax Rate 20% to 21% 1. Adjusted EBITDA and Free Cas
Slide 17: Adjusted Diluted Earnings Reconciliation
Adjusted Diluted Earnings Reconciliation YTD Q3 2023 Q1 2024 Q2 2024 Q3 2024 September 2024 Amounts attributable to Chart common stockholders Net income attributable to Chart Industries, Inc. $3.4 $11.3 $58.6 $69.0 $138.9 Less: (Loss) income from discontinued operations, net of tax (6.0) (2.2) (0.2)
Slide 18: Adjusted Diluted EPS Reconciliation Table
Adjusted Diluted EPS Reconciliation Table YTD September Q3 2023 Diluted EPS Q1 2024 Diluted EPS Q2 2024 Diluted EPS Q3 2024 Diluted EPS 2024 Diluted EPS Reported income (loss) from continuing operations attributable to Chart (U.S. GAAP) $0.05 $0.14 $1.10 $1.34 $2.59 Unrealized loss (gain) on investm
Slide 19: Pro Forma Adjusted Diluted EPS Reconciliation Table
Pro Forma Adjusted Dilute EPS Reconciliation Table $ millions, except per share Q3 2024 Q3 2023 Net income (loss) attributable to Chart Industries, Inc. $69.0 $3.4 Less: (Loss) income from discontinued operations, net of tax (0.4) 6.0 Income from continuing operations 69.4 9.4 Less: Mandatory conver
Slide 20: Third Quarter 2024 Adjusted EBITDA
Third Quarter 2024 Adjusted EBITDA Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2024 2023 2024 2023 Net income (loss) from continuing operations $73.1 $11.7 $153.0 $6.1 Income tax expense (benefit) 26.6 0.1 50.9 (4.2) Interest expense, net 80.6 90.5 24
Slide 21: Free Cash Flow and Pro Forma Free Cash Flow Reconciliation Table
Free Cash Flow and Pro Forma1 Free Cash Flow Reconciliation Table $ millions Q3 2024 Q3 2023 Net cash provided by (used in) operating activities from continuing operations $200.7 $(29.3) Operating cash from American Fan, Cofimco and Cryo Diffusion (divested in fourth quarter 2023) - 6.0 Pro-forma op
Slide 22: Segment Pro Forma Reconciliation
Segment Pro Forma1 Reconciliation Three Months Ended September 30, 2023 Cryo Tank Heat Transfer Specialty Repair, Service Intersegment Corporate Consolidated Solutions Systems Products & Leasing Eliminations Orders $155.6 $176.1 $469.1 $331.2 $(4.7) — $ 1,127.3 Less: Orders from businesses divested
Slide 23: Operating Income to Adjusted Operating Income
Operating Income to Adjusted Operating Income Three Months Ended September 30, 2024 Repair, Cryo Tank Heat Transfer Specialty Intersegment Service & Corporate Consolidated Solutions Systems Products Eliminations Leasing Sales $162.5 $256.2 $283.3 $360.5 — — $1,062.5 Operating income (loss) as report
Slide 24: Q3 2023 Pro Forma Adjusted EBITDA & Adjusted Operating Income
Q3 2023 Pro Forma Adjusted EBITDA & Adjusted Operating Income EBITDA (non-GAAP) $169.3 Less: Adjusted EBITDA from businesses divested in the fourth quarter 2023 7.9 Pro forma EBITDA (non-GAAP) 161.4 Non-Recurring costs: Deal related & Integration Costs 5.9 Restructuring & related Costs 4.2 Amortizat