Report on Segment Performance for Chart Industries - Q1 2024 Financial Results

Segment Overview:

1. Cryo Tank Solutions (CTS)

• Orders: Q1 2024 orders amounted to $159.3 million, marking a decrease of 4.5% year-over-year, primarily due to a significant rail car order in Q1 2023.
• Sales: Sales increased by 13.2% to $159.7 million, driven by rising demand in the EMEA industrial gas market.
• Book-to-Bill Ratio: Maintained at 1.0X, reflecting steady demand.
• Gross Profit Margin: Slightly decreased by 10 basis points to 20.5%.
  
  

2. Heat Transfer Systems (HTS)

• Orders: Experienced a significant decrease of 29.8% to $237.3 million, compared to the prior year, influenced by high project bookings in earlier periods.
• Sales: Increased by 33.9% to $253.6 million.
• Backlog: Stood at $1.69 billion as of March 31, 2024, excluding expected bookings from the IPSMR® BigLNG award.
• Gross Profit Margin: Improved by 160 basis points to 27.6%.
  
  

3. Specialty Products

• Orders: Saw a robust increase of 39.2% to $391.3 million.
• Sales: Increased by 5.5% to $236.5 million, influenced by project timing and pre-production activities for Teddy2.
• Sequential Growth: Sales grew by 10.2% from Q4 2023.
• Gross Profit Margin: Decreased to 24.9%, impacted by project mix and a first-of-a-kind project.
  
  

4. Repair, Service and Leasing (RSL)

• Orders: Reached a record $333.9 million, up 10.5% year-over-year.
• Sales: Increased by 13.9% to $301.0 million.
• Gross Profit Margin: Significantly increased by 1,450 basis points to a record 46.7%, reflecting high profitability in this segment.