Chart Industries Inc (GLTS)- Q1’25 Earnings Quality Update

More accounting-related benefits on display in Q1

Chart Industries (GTLS) reported rare earnings beat of 3 cps in Q1’25, but this required it to add back 7 cps in unusual items to non-GAAP results. These included costs incurred before the Howden acquisition. That deal closed on March 17, 2023, so GLTS is adjusting Q1’25 for costs from more than two years ago. It also added back expenses for a South African employment plan – but GTLS still does business in South Africa and has for years. The tax rate came in a little below guidance, adding another 2 cents to adjusted EPS.

Despite the beat, GTLS did not boost guidance and still missed revenue estimates. We continue to see accounting-related benefits that are providing a boost to growth, which do not seem sustainable. Let’s take a closer look below:

(Readers can see our review of GTLS’s Q4 here)

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