Chart Industries sets $250M stock buyback plan

ATLANTA - Chart Industries , Inc. (NYSE:GTLS), a company specializing in clean energy and industrial gas solutions, announced today that its Board of Directors has approved a share repurchase program. The scheme authorizes the repurchase of up to $250 million worth of its common stock. The announcement comes as the company, currently valued at $6.9 billion, demonstrates strong market performance with a 51.69% return over the past year. According to InvestingPro analysis, Chart Industries maintains a perfect Piotroski Score of 9, indicating exceptional financial strength.

The buyback program allows for the repurchase of shares through open market transactions, block purchases, and privately negotiated transactions, in compliance with federal securities laws. However, the company clarified that the program's terms, including its continuation or suspension, could change without notice.

The announcement comes with a financial policy caveat: Chart Industries stated that it would not engage in share repurchases or significant cash acquisitions unless its net leverage ratio falls below 2.5, or a significant market event occurs. As of September 30, 2024, the company's net leverage ratio stood at 3.04.

CEO Jill Evanko expressed optimism about the company's future, stating that the stock buyback authorization reflects their confidence in the business's trajectory. Evanko also projected that the company's debt would be reduced to $3 billion by the end of 2025, and she highlighted plans for shareholder value enhancement, debt reduction, and capital deployment for growth and productivity.

This strategic move is in line with Chart Industries' broader business plans, which include managing liquidity and cash flow, and adjusting debt levels. While the press release contains forward-looking statements, these reflect the company's expectations and are subject to various uncertainties.

Chart Industries is recognized for its design, engineering, and manufacturing of technologies for gas and liquid molecule handling. The company operates across a global network with 64 manufacturing locations and over 50 service centers, emphasizing its commitment to environmental, social, and governance (ESG) excellence. With impressive revenue growth of 46.41% in the last twelve months and strong market momentum, Chart Industries continues to demonstrate solid operational execution. For deeper insights into Chart Industries' financial health and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive access to over 30 additional key metrics and expert insights.

This news is based on a press release statement from Chart Industries.

In other recent news, Chart Industries has finalized agreements to unwind warrant transactions linked to its convertible notes, concluding its obligations with Morgan Stanley (NYSE:MS) & Co. International plc, Bank of America, N.A., and JPMorgan Chase (NYSE:JPM) Bank. In the company's recent financial performance, Chart Industries reported a 22.4% increase in sales, reaching $1.06 billion, and a significant $200.7 million in net cash from operating activities. Orders also saw a substantial increase, totaling $1.17 billion, a 5.4% rise from the previous year, primarily driven by the energy and hydrogen sectors.

Chart Industries' financial performance prompted Stifel to raise its price target to $200, while Citi and CL King maintained their Buy ratings with price targets of $190 and $168 respectively. The company's full-year 2024 sales are projected between $4.2 billion and $4.3 billion, with an adjusted EBITDA expected to be approximately $1.015 billion to $1.045 billion. Looking ahead to 2025, Chart Industries expects sales to be between $4.65 billion and $4.85 billion, with adjusted EBITDA between $1.175 billion and $1.225 billion. These recent developments reflect the company's strong financial outlook and its commitment to growth in diverse sectors.

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