Chart Industries, Inc. (NYSE: GTLS) witnessed a notable uptick of 6.65% in its stock value, reaching $133.74 during the extended market session. This surge facilitated the recovery of 4.74% of the losses incurred in the regular trading session, ultimately closing at $125.40. The upswing was instigated by an investor event orchestrated by Chart Industries on the day.
On Tuesday, Chart Industries (GTLS) conducted an Investor Day, delivering a comprehensive presentation outlining strategic priorities, growth strategies, and a three-year financial outlook. Positioned uniquely in the market, Chart Industries operates as an independent provider of equipment, technology, solutions, and services, boasting the capability to offer diverse solutions within its Nexus of Clean offerings.
This distinctive positioning enables Chart Industries to transcend molecular constraints and deliver value that exceeds the sum of its individual components. During the Investor Day event, the GTLS management team expounded on the company’s capacity to achieve profitable growth and generate free cash flow throughout economic cycles.
Additionally, insights were shared on the successful management of the record backlog, intricately linked to overarching trends such as sustainability and energy security, driving sustained profitability. Chart Industries unveiled its medium-term financial targets for the period through 2026, encompassing mid-teens organic revenue growth and a commitment to achieve a gross profit margin in the mid-30s by 2026.
These targets also involve a double-digit adjusted diluted EPS growth CAGR in the mid-40s and an impressive 95-100% Free Cash Flow conversion. Moreover, the company provided an update on commercial and cost synergy figures year-to-date, shedding light on anticipated incremental cost synergies for 2024 based on enhanced visibility into potential savings opportunities.
In a recent development, GTLS obtained certification from the Korean Gas Safety (KGS) and approval for its liquid hydrogen (LH2) bulk transport trailers manufactured in Theodore, Alabama, specifically for the Korean market. This achievement positions Chart Industries as the premier and exclusive supplier with an LH2 trailer design officially approved to cater to the burgeoning Korean market.
The meticulous collaboration with KGS underscores Chart Industries’ commitment to surpassing stringent safety requirements with its offerings.
