Chart Industries provides essential specialty steel solutions for aerospace, defense, and transportation sectors, driving recent revenue surge through strategic capacity expansion and new product lines.
Chart Industries offers compelling exposure to the resilient aerospace recovery story with a diversified product mix that reduces reliance on any single contract type. The company's massive goodwill asset base and operating net intangible assets of $2.51B suggest strong brand equity and customer contracts that provide recurring revenue visibility. Recent cash generation capabilities allow for potential debt reduction or strategic M&A to accelerate growth without relying solely on organic revenue expansion.
The sharp decline in net profit margin from 2024 to 2025 raises concerns about the sustainability of recent growth and potential hidden cost inefficiencies within operations. Significant cash outflows from financing (-$155M) and investing activities (-$93.6M) alongside large revolver repayments indicate potential liquidity constraints or aggressive deleveraging that could limit future capital allocation options. The high level of accumulated other comprehensive income loss and retained earnings deficit suggests historical volatility in equity value that investors should monitor closely.
Chart Industries Inc. (GTLS) is a leading global manufacturer of specialty steel products, primarily serving the aerospace, defense, and transportation industries with high-performance alloys and structural components. The company leverages its advanced metallurgical capabilities to produce critical materials for commercial aircraft, military hardware, and rail systems across North America and Europe. Its revenue growth from $1.61B in 2022 to $4.26B by 2025 highlights significant market expansion and operational scaling during this period.
While revenue grew substantially to $4.26B in 2025, net income dropped sharply from $232.8M the previous year to $37.2M, indicating significant cost pressures or one-time charges affecting profitability. The company maintained a healthy cash position of $366M and generated positive operating cash flow of $292.7M, suggesting underlying business resilience despite the earnings compression. However, the large non-operating loss of -$330.3M and substantial revolver repayments of $3.27B suggest aggressive balance sheet restructuring or debt refinancing activities impacting the bottom line.
The specialty steel industry serves as a critical backbone for modern transportation, with demand heavily influenced by global aerospace production cycles, defense spending budgets, and infrastructure investment levels. Companies in this sector face intense competition from both traditional steelmakers and newer material science entrants, forcing continuous innovation in alloy composition and manufacturing efficiency. Regulatory compliance regarding export controls and environmental standards adds another layer of complexity that only well-capitalized players like Chart Industries can navigate effectively.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.61B | $3.35B | $4.16B | $4.26B |
| Cost of Revenue | $1.21B | $2.31B | $2.77B | $2.83B |
| Gross Profit | $407.4M | $1.04B | $1.39B | $1.44B |
| Operating Expenses | $255.9M | $649.7M | $741.3M | $1.08B |
| Operating Income | $151.5M | $390.7M | $647.5M | $358.4M |
| R&D | $13.5M | $23.3M | $38.3M | $41.9M |
| G&A | $214.5M | $486.3M | $547.4M | $619.1M |
| Stock-Based Comp | $10.6M | — | $18.9M | $17.2M |
| D&A | $81.9M | $231.1M | $2.77B | $2.83B |
| Depreciation | $40.5M | $67.7M | $76.0M | $87.0M |
| Amortization | $41.4M | $163.4M | $193.9M | $194.3M |
| Other OpEx | $27.9M | $140.1M | $155.6M | $418.4M |
| Non-Operating Income | $-52.6M | $-332.7M | $-329.0M | $-330.3M |
| Pre-Tax Income | $98.9M | $58.0M | $318.5M | $28.1M |
| Income Tax | $15.9M | $3.0M | $78.6M | $-10.4M |
| Continuing Ops | $82.6M | $57.5M | $236.3M | $38.8M |
| Discontinued Ops | $-57.6M | $-600.0K | $-3.5M | $-1.6M |
| Net Income | $25.0M | $56.9M | $232.8M | $37.2M |
| Minority Interest | $1.0M | $9.6M | $14.3M | $-3.5M |
| Net to Common | $24.0M | $47.3M | $218.5M | $40.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $3.69B | $2.21B | $2.47B | $2.90B |
| Cash & Equivalents | $663.6M | $188.3M | $308.6M | $366.0M |
| Accounts Receivable | $278.4M | $758.9M | $752.3M | $782.1M |
| Inventory | $357.9M | $576.3M | $490.5M | $572.3M |
| Other Current Assets | $2.39B | $690.9M | $914.0M | $1.18B |
| Long-Term Assets | $2.21B | $6.89B | $6.66B | $6.91B |
| PP&E (Net) | $430.0M | — | — | — |
| Intangibles | $535.3M | $2.79B | $2.54B | $2.51B |
| Goodwill | $992.0M | $2.91B | $2.90B | $3.07B |
| Operating Leases | $21.1M | $69.1M | $78.6M | $81.7M |
| Other LT Assets | $139.6M | $1.01B | $1.05B | $1.15B |
| Total Assets | $5.90B | $9.10B | $9.12B | $9.81B |
| Current Liabilities | $1.08B | $1.87B | $1.79B | $2.13B |
| Accounts Payable | $211.1M | $811.0M | $1.06B | $1.24B |
| Current Debt | $256.9M | $258.5M | $900.0K | $600.0K |
| Current Leases | $5.4M | $18.5M | $19.6M | $20.7M |
| Deferred Revenue | $170.6M | $376.6M | $362.2M | $324.4M |
| Taxes Payable | $3.5M | $60.0M | — | — |
| Other Current Liab | $434.1M | $341.6M | $348.2M | $536.9M |
| Long-Term Liabilities | $2.14B | $4.30B | $4.34B | $4.30B |
| Long-Term Debt | $2.04B | $3.58B | $3.64B | $3.56B |
| LT Operating Leases | $15.6M | $50.7M | $60.5M | $62.6M |
| Other LT Liab | $80.3M | $670.1M | $637.7M | $674.5M |
| Total Liabilities | $3.22B | $6.16B | $6.13B | $6.43B |
| Shareholders' Equity | $2.68B | $2.94B | $3.00B | $3.38B |
| Paid-In Capital | $1.85B | $1.87B | $1.89B | $1.90B |
| Retained Earnings | $902.2M | $922.1M | $1.11B | $1.13B |
| AOCI | $-58.0M | $10.8M | $-155.1M | $220.0M |
| Total L&E | $5.90B | $9.10B | $9.12B | $9.81B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $25.0M | $56.9M | $232.8M | $37.2M |
| Non-Cash Adjustments | $-482.9M | $-167.7M | $149.8M | $175.8M |
| Working Capital Changes | $538.7M | $278.0M | $120.4M | $79.7M |
| Cash from Operations | $80.8M | $167.2M | $503.0M | $292.7M |
| Capital Expenditures | $74.2M | $135.6M | $120.8M | $89.9M |
| Cash from Investing | $-101.6M | $-3.99B | $-141.3M | $-93.6M |
| Share Buybacks | $0 | — | — | — |
| Cash from Financing | $2.50B | $1.41B | $-243.7M | $-155.0M |
| FX Effect | $-500.0K | $6.2M | $-8.6M | $15.2M |
| Net Change in Cash | $2.48B | $-2.40B | $109.4M | $59.3M |
| Beginning Cash | $122.4M | $2.61B | $188.3M | $308.6M |
| Ending Cash | $2.61B | $201.1M | $308.6M | $366.0M |
Aerospace Materials: Supplying critical structural components and alloys for commercial and military aircraft programs, representing the largest revenue driver. Defense & Security: Manufacturing specialized steel parts for government contracts and military vehicle applications, ensuring stable long-term demand. Transportation & Industrial: Producing high-strength materials for railcars, heavy equipment, and general industrial applications to diversify revenue streams.
Commodity Price Volatility: Fluctuations in raw steel prices and energy costs can significantly impact gross margins given the company's $2.83B cost of revenue. Aerospace Industry Cyclicality: The aerospace sector is highly sensitive to recessionary pressures, inventory buildups by OEMs, and potential regulatory changes affecting aircraft production rates. High Leverage Position: With long-term debt of $3.56B against total liabilities of $6.43B, interest rate hikes or credit tightening could strain liquidity and limit strategic flexibility.
Proprietary Metallurgical Expertise: Decades of research in alloy development create high barriers to entry for competitors in the specialty steel niche. Strategic Global Footprint: Manufacturing facilities positioned near key aerospace hubs and defense contractors minimize logistics costs and supply chain delays. Strong Customer Relationships: Deep integration with major OEMs ensures consistent order flow and predictable revenue cycles despite macroeconomic headwinds.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.