Release Date: February 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide an overview of the 2025 revenue guidance for the four segments? A: Jill Evanko, CEO, explained that the RSL segment is expected to grow high-single digits to 10%. The HTS segment is anticipated to grow due to LNG sales, which are expected to be higher in 2025 compared to 2024. CTS is projected to grow mid-single digits, and Specialty Products will see growth driven by backlog conversion, particularly in carbon capture projects.
Q: How does the LNG backlog convert to revenue in 2025, and what impact does it have on HTS margins? A: Jill Evanko noted that revenue from large LNG projects typically starts six to eight months after order placement. The timing of the Woodside order, received in Q4 2024, suggests revenue will flow through 2025, with a step-up in the second half. LNG projects contribute positively to HTS margins, especially when using IPSMR technology.
Q: What is the outlook for the CTS segment, particularly regarding China? A: Jill Evanko mentioned that CTS had a strong start to 2025, despite a slowdown in industrial gas demand in China and Europe in 2024. The company is optimistic about order and sales growth in CTS for 2025, supported by a recently executed LTA with an industrial gas major.
Q: Can you elaborate on the NRU market opportunity and its potential size for Chart Industries? A: Jill Evanko explained that NRUs can range from $20 million to $75 million in Chart content, depending on the scope. While currently a small part of the business, there is significant customer interest, and the company expects this market to grow meaningfully.
Q: What is the expected conversion rate of the 2024 year-end backlog into 2025 revenue? A: Joe Brinkman, CFO, stated that approximately 60% of the year-end 2024 backlog is expected to convert into 2025 revenue. This is supported by throughput initiatives and the nature of projects in the backlog, such as large LNG projects like Woodside.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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