Chart Industries Inc (NYSE:GTLS) Reports Mixed Q3 2025 Results, Misses on Revenue and Earnings

Chart Industries Inc (NYSE:GTLS) reported financial results for the third quarter of 2025 that presented a complex picture for investors. While the company demonstrated significant operational strength in several key segments, its headline revenue and earnings figures fell short of Wall Street's expectations, contributing to a muted market response in pre-market trading.

Financial Performance Versus Expectations

The company's third-quarter results revealed a notable divergence between its operational achievements and analyst forecasts. Chart Industries reported revenue of $1.10 billion, representing a 3.6% year-over-year increase but falling approximately 8.8% below the consensus estimate of $1.21 billion. Similarly, the company's adjusted earnings per share of $2.78, while showing a 27.5% improvement from the prior year period, missed analyst projections of $3.07 by approximately 9.4%.

The market's initial reaction reflected this earnings miss, with the stock showing minimal movement in pre-market trading. This tepid response suggests investors are weighing the company's underlying operational strengths against the headline earnings shortfall.

Operational Highlights and Segment Performance

Despite the earnings miss, Chart Industries demonstrated robust operational performance across several business segments. The company achieved record orders of $1.68 billion, representing a substantial 43.9% increase compared to the third quarter of 2024. This strong order growth was driven by multiple segments:

• Heat Transfer Systems: Orders surged 79.1% year-over-year to $760.8 million, driven by demand from data center, LNG, and traditional energy markets
• Specialty Products: Orders grew 84.4% to $438.5 million, with significant increases in carbon capture, nuclear, and mining applications
• Repair, Service and Leasing: Service agreements increased 42% year-to-date, with the highest number of new additions in the third quarter

CEO Jill Evanko highlighted the company's "commercial momentum" and noted "continued strength in our end markets, especially in LNG and data centers as customers are increasingly utilizing our full solutions and process technologies."

Merger Impact and Adjusted Metrics

The quarterly results were significantly affected by merger-related activities. Chart Industries recorded a $266 million expense for a termination fee related to its previously proposed merger with Flowserve, with Baker Hughes covering $258 million of this amount. This transaction-related charge heavily impacted the company's GAAP results, which showed an operating loss of $88.5 million.

When adjusting for these merger-related costs and other one-time items, the company's operational performance appears stronger:

• Adjusted operating income reached $251.5 million, representing a 22.9% margin
• Adjusted EBITDA totaled $277.1 million, or 25.2% of sales
• Free cash flow generation of $94.7 million, though impacted by deal-related costs and semi-annual interest payments

Pending Acquisition and Outlook

Chart Industries shareholders recently approved the company's acquisition by Baker Hughes, with approximately 99% of voting shares supporting the transaction. The deal, valued at $210 per share in cash, is expected to close by mid-2026 pending regulatory approvals.

Notably, the company has suspended its 2025 financial guidance due to the pending acquisition, making direct comparisons to analyst estimates for future periods challenging. Wall Street currently expects fourth-quarter revenue of approximately $1.31 billion and full-year 2025 sales of around $4.66 billion.

For more detailed earnings analysis and future estimates, view Chart Industries' earnings estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author has no position in Chart Industries stock. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions.