Chart Industries (GTLS) 28 Feb 242023 Q4 Earnings call transcript

Good morning, and welcome to the Chart Industries, Inc. 2023 Fourth Quarter and Full Year Results Conference Call. [Operator Instructions] The company's release and supplemental presentation were issued earlier this morning.

If you have not received the release, you may access it by visiting Chart's website at www.chartindustries.com. A telephone replay for today's broadcast will be available approximately 2 hours following the conclusion of the call until Friday, March 29, 2024.

contained company's is release. information replay in press the The

fact, forward-looking to company that The or obligation that any Before and Please risk in company's forward-looking the SEC. in release information like to are forward-looking remind update the to revise refer historical, factors call we begin, the statements this no and would publicly latest you company regarding statements. with statements. undertakes during statements not the included are earnings made filings

would CEO. conference Chart I to to over the now turn Please like Jill Evanko, Industries' ahead. go

And morning, quarter walk Julie. through you, full you Thank to our fourth record results. good and for Brinkman, joining Joe our me, year Thank and CFO; XXXX everyone.

refer reported release you to shown results Our our results. I for are from operations. earnings continuing

discussion fourth forma and For any or metrics combined of operations of referring morning, this full business XXXX purposes year are when of continuing all quarter period XXXX to our the pro XXXX comparative quarter of for Howden. the Chart

This and X. excludes divested COFCO found XXXX Slide XXXX be [ of Slide American on Information fan, November of ] excludes includes can and roots diffusion divestitures completed the businesses. on on in Howden, X. Starting Cryo December and

we on reminder, acquisition on of Howden XX, a As closed XXXX. the March

We synergy ahead approximately have $XXX commercial also and of exceeded million synergy X commercial both to targets our target. of date original our the synergy Commercial cost year X awards X-year mark. exceeded year

repair including XX and a XX% our less comprised and XXXX, broader has projects, customer sales, basis. reliance million concentration. LNG whereas $XXX on top less contributed customers up on over made achieved about XXXX synergies and and of benefits, date. stand-alone XX% aftermarket Howden have geographic cost less they XX% service cyclicality, more also We to The in many other charge of In acquisition big XXXX, diversity our

adjusted record operating XXXX, and EPS In margin, EBITDA, we the gross cash margin, income, flow. operating had EBITDA income gross adjusted profit free orders, margin, sales quarter and backlog fourth profit, reported

XX.X% related for quarter highest and primarily our record billion reported margin adjusting well, quarter costs, Our QX reported gross $X EBITDA we of margin XX% XX.X%. as ever associated the operating margin have When margin of holding the of fourth a to was deal contributed integration billion. to quarter in was adjusted $X.XX quarter date Sales only XX.X%. and that EBITDA of exceeded

And XXXX. sequentially were drive will a further sales talk activities other we QX this XX.X% Joe few minutes, about XX% throughput up that underway have ahead. QX to and in compared to

and as revenue surpassed $X in we set mark records, timing the While revenues described, numerous I higher we profitability billion to the just anticipated quarter. had recognition related

ratio by and leverage hand X.XX an million debt and in in cash $XXX QX. net of year-end paydown increase on was approximately totaling Our supported

a management anticipated entity we positive sets our impact rate. our and flexible future Howden and back-office As align with cash efficient up resulted for tax integrated operations. This our structure executed on us sustainable integration, future effective rate synergies, legal and part of our to plan steadier in an a tax

be forma 'XX, metric each changes Slide pro to and to QX of quarter the year-over-year. compared fourth Our 'XX, third the in seen far results The quarter can shows column 'XX sequentially right-hand X. on

quarter the Cryo per points. to that XXX details October cash [ quarter bps. up Diffusion margin by ] XXXX. Adjusted a one third Reported quarter Fourth as XXXX $X.XX. fans free the speak fourth share are to quarter XXX XX% middle $XXX on increased American The margin QX was month Even of adjusted the only week and $XXX million divested fourth million. EBITDA X Cofinco in shows gross that last increased considering diluted of XXXX. when the entire included of of they Joe and every included the metric Orders third and XX%. Slide in compared basis moment. sequentially the an flow results, these earnings increased over column adjusted were quarter whereas will were EBITDA was quarter by adjusted

contributed gross year of Including XX%. as stub Slide were reported to year you gross full full to pro X. above year also ownership the record can QX contributed on Howden quarters throughout year, 'XX a margin operational XX% Strong period, Howden margin including see at sales billion. full $X.XX being 'XX forma the all margins our

each XXXX. which Africa, each APAC, to in grow sales we'll look have up Europe, to a China, India we here, our compared our anticipate on XXXX, but coming of Americas, and regions, and will are this we section that As of segments summary, East, in Middle each

was quarter Repair systems. fourth were and with quarter leasing having million. our our full X quarter the for the fourth orders pro of cryo $XXX over of shows marking solutions received. of million, history $XXX orders order orders service quarter our billion $X.X forma in forma highest backlog and quarters Howden tank order The ownership was year over Our awards Slide RSL heat ever X above and trends. transfer each highest both pro

our our the X% installed year-over-year. reflects aftermarket. In orders service and our original RSL Chart for year equipment were aftermarket programs and of increased growing framework full to Howden and legacy bases XX%, agreements and adoption more increasing long-term pull-through XXXX, agreements customers up the This both the of to than

the CTS XXXX RSL coolers markets Just of exchangers hydrogen approximately HTS heat exploration, backlog. these XX% backlog and of comprised our total of of a under raised is all XX% our of under as helium, just specialty X%. the comments diversity Combined, carbon exchangers. The have backlog. of and few well as aluminum heat rest end record Space total backlog approximately HTS account capture, systems, and and as remaining end just the VRV for products year-end about of year. half air the

backlog of by flare food beverage historically and methane this particular emissions The coverage compressors, year, our for We typical screw product is compression. to backlog year. contributing via reduction for year-end driven XXXX expansion have a recovery the in surge Howden higher Xx prior and demand seen refrigeration, for than gas

As we X% below have backlog. rate cancellation we have of a significantly shared,

that many we're project There's to by is pipeline we're sizes We are an and content. a what industrial size few of had seeing of January end engineering and markets, EMEA, across markets XXXX. comments increasing. orders Starting increasing our of start A seeing In theme project our gas. with strong. excellent

rest industrial inclusive For world, the of commercial the hydrogen strong, pipeline U.S. opportunities. the of in the remains gas and

a this quarters "strong" quarter of expect typically to years, our first QX compared other prior to lowest quarter market year. we and While be and is CTS for the expected for end orders still

global for we by North markets, LNG increasing energy seeing unabated. inbounds beginning the which continues market In since demand, are American moderating is of international year. The offset the

can the and LNG of rest which United floating pauses, LNG, the accelerates. and Slide States seen commercial the appendix This world for big As in XX. on small-scale is in the evident pipelines be our

As of to now, our and including of driven of commercial floating and by since in potential opportunities international the we participate, and cryogenic LNG our year Qatar, have this these process pipeline usage. with have compression, XXXX, small case Similarly, potential including for international equipment, additional X.X%, In mainly about of increased debottlenecking do opportunities. year-end XXXX. in we of big metrics projects IPSMR XX technologies. potential the Both projects pipeline, opportunities increased beginning potential XX from QX

optimization capacity consistently heat project believe and for facilities are Specialty exchangers is as seeing products prospects, near-term pretreatment on expansion potential Marine as markets Our existing and we're heat in many opportunities. we rejection air jumbo tank sizes pipeline these well. commercial also on to plans. potential as demand strong, increasing of lubrication theme has due well end a in multiple TETX at as part an our upcoming Howden increasing

is albeit certainly, over-the-road that years not at remains tank is vehicle activity. robust. SpaceX look than but prior the increasing, actual past activity market HLNG better X levels,

demand for we've HLNG other Ventsim carbon XX% hydrogen yesterday, DRI more vehicle very our of ] equate full tanks tank and a reduce last footprint vehicle Mining and to such metals QX of metals to XXXX as than [ for markets As HLNG push that quarter-to-date, year remain orders year's global sales. by driven offering. solutions and using electrification processes, and strong, booked

forma of increasing clarifications. has again, also pipeline XX% And going project this to earthly related remains mining for attention Hydrogen paying potential offering active. and labs market, specifically timing hydrogen IRA opportunities We're getting and international. is pro in activity CCUS end small-scale metals pipeline to our sizes Our identified larger. chart close hubs are year-over-year. with approximately increased content U.S.

EUR aid of Internationally, traction, value chain. including in state of the for European the X.X approval recent also billion there's hydrogen Commission increasing development

Howden's XXX-year Chart announce the win compressor compression were vessel week, are It's last compression hydrogen as a technology, single also We industry. hydrogen that pressure solution within is renewable includes to dollars solution significant award legacy in in a awarded equipment. the largest excited Using reciprocating Howden's the this synergy history. we

it brings start with strong. finally, And for including particular and In a entered in off as with to multiple with installation bit and consistent the Americas, better than is Europe. service a RSL the it remains post-installation across monitoring. we like customers repair XXXX Aftermarket markets, quarter-to-date in future activity we to end normal see, opportunity backlog

operational in of side increasing XX. sequential You profit Slide reported can margin metrics, increase including the left-hand see on margin the our gross

cost XX% mix, synergies trend The repair, adjusted side, same aftermarket of right-hand EBITDA the solution reflective applies right of full up and additional business, on and volume the productivity margin our EBITDA for over actions, and into our throughput. service

sequential and Moving margins the to gross all shows 'XX. QX this XX, sales RSL segment had HTS and reported segments record QX Slide for quarter. in of for operating fourth and sales, results CTS,

sequentially the sales exploration. American QX and had from decline quarter due over the full XX% to divestiture CTS end which up not as a market, as which and well sequentially and compared and metals revenue for XX% space hydrogen by Specialty driven was were in timing RSL sands to and sales of QX. QX marine in did

the and we We strong orders these its to in XXXX of with operating in each we're record margin space. had reported on sales cost full quarter as to in contributors expect year focused metals gross year results segment all dropping strength highest margin control in XXXX. gross to fourth segment. quarter have through hydrogen And finally, did of margin the Each be the

of shows $XX Slide XX% our of XX the netted of XXXX of was fourth $XXX cash flow sales. cash with from in quarter adjusted free QX million, our million generated CapEx, operations

paydown leverage debt be to continues and and been reduction. has priority Our

Our and we reiterated our in ratio net and to went leverage X.X from as mid-XXXX meaningful step X X.XX% exited QX of to range X.X. X.X target XXXX of A the target of net to year. overall leverage anticipated towards X.XX% ratio

in B outflows with to XX. of of liquidity, million We year. addition Term million the $XXX fourth ended the the on down $XXX in did in that of year shown cash side There of right-hand over our quarter adjust Loan were we specific not Slide XXXX the paying

of the Our weighted points end rate QX. XX of from basis down average interest approximately X.X%, was

cash addition additional In organization repatriation. sale to exits, to entire our cash we minority and potential activities operational focus evaluating on generation work cash investment from cash underutilized whether estate real of continue culture, our

reiterate XX our on XX. trends. Slide stable We policy of are side paydown right-hand remain cost main as financial our debt some trending They material the down. input commitment shown cases, and to and bottom in Slide shows

up Looking been past pricing in has Mountain. many at of weeks and the through lower have leveling seen we the months, agreements freight to right-hand customer recent freight our we few yet passed chart, in trend the costs the

Red the monitoring carefully are situation. We Sea

we into the seen any major impacts on material As availability have plants. of not now,

routes. experiencing certain are approximately to X-week though We on X- delay

list categories main price of price sales for X have and pricing. agreements. mechanisms component Project pricing, long-term We and

past price to and increases we cost we adapt held have to the environment, the X increasing pricing. this Over incorporated years, have

certifications, expected XX. part we our of for Lean new members ongoing call training Business Sigma our as is site includes year to as continuous Excellence internal spend of CapEx different what customer productivity, the The of and is includes our approvals, top million no Slide well or shown million automation spend CBE. approximately Chart and in This XXXX. $XXX team on $XXX capacity The expansions Six program as business capital

and in-sourcing, and fan We our ahead cost compressor for localization year inclusive this manage further structure and synergies actively products. of see

in the we the to range $X.X through walk XXXX $X.X our Over range forecasted billion on the slides, year range. EBITDA of outlook full Slide of $X anticipate our next full in adjusted with XX, billion XXXX to XXXX billion. We year will be of $X.XXX billion sales few starting the elements to

less flow as million capital is cash $XXX of to $XXX million cash guidance flow defined Free operating expenditures.

normal commercial as XX backlog XXXX. sales and XX% coverage to the main the backlog X second higher potential awards bridge main which the XXXX year ship begin from higher our book achievement The shops. brings the the that represents of incremental us the big lower drivers Slide flowing Book backlog coverage, outlook, to typical than increase of drivers due anticipated our and of to large range, the to project of strong first shows XXXX in sales, stronger and we throughout synergies half entered LNG are backlog than half year to the revenue more our to and conversion. [indiscernible] converting through our approximately in additional end X generate ship activity

The rate bridge market our end is our perspective and diluted of activity. $XX for Systems to $XX each outlook be $XX XX. diluted on in XX of had both Slide intended Slide million. our of EPS tax order adjusted you of EBITDA strong share to We SeaTransfer of is shown Slide anticipate on elements are The million and segment's the shown give years per toward XX to approximately XXXX XXXX. XX% appendix. XXXX $XX to count a share our

Biden base well Department activity. the with approvals backlog. to HTS XXXX, in big on January of moratorium in XXXX, contributing business LNG U.S. questions. numerous Energy record of Administration, has year-end We announced as as in approximately export LNG LNG-related million big And of begged awards $XXX had

Let me things. reiterate few a

are We hydrogen energy, and traditional and equipment technology serves including multiple our energies. end agnostic, new LNG, other and markets, molecule

I Global presentation, discussed the in here. macro Earlier reiterate Energy, we activity that international in so won't

not this part large yet chosen IPSMR international backlog, first This will in associated booking and later project. be is our the or remind to the and for XXXX. our about I award year a anticipate equipment Although in you LNG process being we IOCs of

the point. in order XXXX and of projects since the term. more highest were not at up only than the our ended of to also quarter year. with [indiscernible] looking some of their are service been Tank have margins standard picking CTS customers clarifying in that American its are near Cryo us international IPSMR online gas beginning industrial extremely the North forecast similar optimistically with coming margins summer. IPSMR has our main X XXXX Solutions last additional a opportunities customers and as Engineering with shared equipment have and CTS sales they year, capacity they

hydrogen recent much and have chart from years. products few seen this macro tailwinds in interest Specialty activities. as past scale the have as larger of growing markets well include we specific deploying momentum Examples at than in

East are now European and production Middle We with ever build discussed looking speaking larger companies than to Japanese facilities before for hydrogen.

multiple per tonne South received as advantages Korea. liquefaction. our hydrogen we only and cases Specific supplier approved XXX potentially of day some products Inclusive trailer to us, and liquid for with our giving mover in certifications applications, such specialty first have in certification us

Hub. small-scale geographies Additionally, just via COX executing existing new MOU we U.K.-based integration, including recently our taking Howden our products are into first Earthly for Lab capture and with carbon

compressor we onshore application about for to discussed considerations we've reduce industrial shown we aftermarket. taking today, existing associated also upstream balance recent already earlier We're our including what's new oil vapor shared our XXXX a these with and where refrigeration emissions into XX information an win a remarks products reengineered applications Slide on throughout and outlook. gas. in our to worked We've And have recovery

years for chart in that about quarter our Joe are businesses, the general prior of combined moved year's is to on of A by that given of from This expectation first both first productivity it is the anticipate activities few business. XXXX as Similar seasonality. trend timing capacity our last Slide and the we earlier. the quarter, furthered considerations talked we first quarter Howden of quarter XX, the

third the payments be million We semi-annual XXXX, quarter have interest to is this $XX and the approximately estimated quarter. first of in and debt first long-term in our for our

payments cash has XX. completion our related payments. X uses, our financial QX well other of on premium specific targets reiterating timing including Teddy tax We're Slide of CapEx to the as annual and bonus insurance medium-term as

term related that in investment in hub not does our billion projects awards XXXX outlook big $X DOE's included ahead. U.S. include reminder, to XX, lies additional the medium backlog our September were hydrogen any that As a the LNG not nor

Slide in XX booking XXX of and our orders XXXX. kinds the in customers metrics customers, and past including on the logging patents conclude time than orders first XXX of other booking in with differentiators. the Yet with less new executed over XXXX, first as strong are receiving kinds we To new XX, ever, of XX% as we that these on and new spent Chart with today partners MOUs XXXX

We MOUs to continue new facilities. ESG such their bottling to with by goals evaluating our was technology and improve via in capture one partner carbon at their QX Coca-Cola

year gas without received accomplished our certifications greenhouse positive past for We our of None team facilities. our focused chart own One MA been have reduction of emission have new this and efforts products have would numerous and members. exceeded global target and the this

to now, it you for up And Q&A. Julie, thank So each of you. please open

Instructions] comes Brown [Operator question Rob from Your Lake Street Capital first Markets. from

First question on the synergies. is commercial

you there. it of You've room commercial there continue? just can seen more on but much see that momentum how assume segments, strong How much sort -- other pretty is momentum synergies? can I some at

synergies X Thanks pleasantly would synergy is commercial question, the continued for the at than that of exceeded more has had the our been we've often across commercial year shown in originally months. momentum Certainly, and which XX very target. the last Rob. fact anticipated, earlier which of original what first say, we occurred we all, surprised I

is nice from avenues. commercial they're that multiple The part synergies of coming different the

few. customer of products described name legacy geographies that Howden existing where and new relationships pulling we're through to applications, some the Chart and things just I a from into taking versa ranges on that So equipment, vice

that runway awards synergy here $X of we're billion in of above ahead for few years. the pipeline lot seeing a commercial coming remain there's think I potential and us,

project equipment seeing and as that as engineering all really fact years in that us well think our here a the whole decades. well mission-critical our we're combined to full stands serve this And under so own coming solution of umbrella larger and having as sizes with the of coming the I

bit a detail then Okay. carbon Great. on And of just capture. little

Are expanding? of sort You -- when activity relatively see sort seeing you still it mentioned momentum do small? And is some of there. are that you you Or larger there?

that Yes. is seeing that What carbon our small-scale awards of capture. we're on the I would size increasing we're getting for say

the a content more offering was we're size, So scale, say that bit into paradoxical the [indiscernible] in we more larger bit small little that, have little or going sounds our of original you which and facilities when a scale getting some and is but Oak, the Elm. was smaller now a CCUS very

So and trying small somewhere technology up small, [indiscernible] we're scale. CCC the in kind of between scale meet the middle large to the moving our and

an larger of I larger scale, MOU level I really the applications. of a the is what the opportunities commercialization in conversations of happening that's pipeline On increasing lot around yet and or Middle and which number a in bit pipe for areas say technology scale on and East an realm, with industrial we quite yet haven't Saudi. I of activity in a of the the from larger of just Coca-Cola would we're in question that increasing described think your kind seeing whether industrial seen studies FEED ranging commercial that pre-FEED consistent that to through larger end is full

the flowing large the order definitely on into consistently yet. seeing So scale that opportunities, but book not

question Bianchi Cowen. comes from Your from next Marc CD

of on X% of more get look the that could first about first the pro cash any range? be wanted cash free was are see couple decline, back you that with the If And forma the first down 'XX. if expectation the first to expect quarter. similarly, flow positive unique you quarter. then Is the I free Would still quarter in to in for precision a EBITDA quarter? we to out incremental at flow, headwinds right I called

to question we was at in, time the of those of So specifically like of I kind outflows. interest surprised of feedback let that going and it called year last particular me got were rates, because timings was things summer timing the take your that people think the the back out certainly end first. cash through these notes first year we of interest it one were related semiannual where We

wanted your as service to in the of there. aftermarket specific would first the but kind and think, called point QX your XX% we won't in seasonality we being part well I what of on our given say a part of are normal number, normal specificity of is that not bit going out to going business. a the say question, seasonality of give plenty is We're give now items that forward QX there's repair repeat So we as, I moderated over that

of hasn't So kind it it. eliminated Howden but has it, mitigated

Got it.

comes question Roger Fargo. from next Read Wells from Your

to outlook details I went on through of of a revenue. I'd dig bit, it the of think like what little in just the into the terms some you 'XX

So at of billion expectation a little if of look at the for revenue, covering $X backlog on the $X.X kind million looking we'd $X of to we sort be depending XX%, range over million.

curious book half mentioned I'm backlog orders just You conversion. and could well. as help ship 'XX and greater X

orders the out But of is to on those And right what X you to potentially have out? likely bids X, the help there that higher at that good like most on 'XX about you do you now helping are point visibility half enough which out of side? feel think you X

one Rob, tough a you there. me gave

it little. So going I'm a take apart to

question a Going to because ask lot of in it. that pieces there's

it So I'll afterwards. leave there

right. All Okay.

I let of the as And what answer higher toward likely of part the which I'd do of help end X the -- of to around X say So in it's easy see answer our backlog our of to me those the -- question what's is in kind today. most always kind the range.

shops. the through converting backlog existing So

so My see half, content answer part would that. answer. we projects larger we the that my be as in the especially engineering would that be more #X other book on first around #X -- The could

more my comes book have it would be And and in would then it's the visibility harder that actually door. to X ship because so two. be until number And number just my

range, and than there was built that we've much it we've our but high-growth typical, why shops. so specifically because book the going we lower positive the certainly the walk, built in and out through really got walk called we've ship with backlog but So that's

there's question could the to trade balance And in those second convert there. the there kind on X half. a So half that answer and first of then category visibility a questions to

given increasing the $XX commercial say a larger team pipeline next in hard and this million, bogey. to opportunities, have although the get size going weeks, commercial a project So our identified and order the of they in to million within X definitely we're it's $XX should be listening target

With those it visibility I have kind we end pretty so that there the our types to we're in think of time of that seeing what projects, quarter said, report by will April. first good of earnings,

think going on one we've book-to-bill. I coverage have worth more noting bookings of needed to your of we it's one forward before, on average be Roger, again but expect you above that of across piece question, and think year, I the kind shared on

commercial there. putting helpful. Yes, target to my And guys of apologies the that's on Okay. a back the

Nice appreciate yes. it, work. I

next Your question comes from JPMorgan. Arun Jayaram from

I want of delta X trends grew which help Slide to think Help trends, down on the X.X%, speak. gives to orders lot. orders between you your and pro the different XXXX. what X a focus visibility forma more between the but those dynamics backlog so about on XX% pro us think were and forma about us backlog

Thanks, Yes. question. Arun, your for

the single ex of forma row orders So grew you slide the in that digits. LNG I'd pro big point year-over-year low on to also

of in the $XXX XXXX, I 'XX think where we one dynamics that and $XXX was of LNG-related there orders million-ish in range. had big that's So million about

one dynamic that's contributing So there.

engineering has kind the if us of timing the visibility, is other of larger the when really The get timing of engineering that things as kind these go changes and the yet phase, releases project more occur, gives it dynamic engineering but also that to of flow-through. into around more shops with sizes in contributes content, after the of through design there's backlog that

to you in really, And the range. balance, considerations as we've here have I the we included of frameworks and to bridges also particular, years. worked And are the deck high and the to revenue the in as the in incorporate later XXXX that quarters low give the had of we we've in and tempted elements shown the end walk in that between on those move said, deck, today have

working So to give model we're visibility really this. decisions kind to how make so that educated of they want on can really everybody

I'm a My the follow-up you think revenue about just about trying [indiscernible] if potential trajectory think [indiscernible] XQ. mistaken. revenue expect I you in the operational revenue because us big on X think LNG to those about million -- XQ, be until uplift you $XXX from don't the Can from help I bridge, facility -- us in as is the think online, not of think, comes will growth can help [indiscernible]

Yes, online Joe, [indiscernible] coming early QX.

very Yes, imminently. early QX early -- certificate early of occupancy But operating yes, be QX. we'll

backlog good have coverage there XXXX for we already. And

are that do certified -- as customers think we that ball points around figure major but Teddy [indiscernible] incorporated of our called one it couple other are by the tanks. of I think in to out got I don't X

Yes, and [indiscernible] railcars as well.

questions the backlog, -- of do I portion expect lastly, just to in flow backlog QX. colleagues from the our the think to unfolding to backlog that can certainly your that benefit about And earlier XXXX. do then the availability big year-end XXXX how think is we an shops throughput XXXX. specific year of a that And through big this the more backlog. if of area one LNG a this QX get didn't heart in year-end we question that's give that we LNG. but is of that has is through And to We your your maybe

we little of a the out in QX end goes year, TED big until and sequentially on will year be guidance, the expect brunt we rec certainly the rolling balanced give more that I of of don't now revenue year. second the lowest half is the And of this the while quarterly year quarter LNG as whereas the

Your from Craig next comes [ Tui. question Shere from ]

free So cash margin or first, the flow Can strength? cash stronger margin this guided, this side. softer on color around are the unchanged. while fourth revenues and than into and very strong And percent the originally provide margin margin flow effectively you quarter year is more was much

Thanks pleased higher forma over Yes. XX% QX forma it's business would definitely we We're What Actually, that. first being $X yet. questions, the time with that I $XX like pro think, expected the business for million pretty something the first sequential over, revenue Craig. or rec to say the the being billion. pro QX QX, time I in is growth

projects larger. in larger and timing we've XXXX, that in have fact the all shifts So to the for all, range do for we get as between especially these attempted account quarters,

terms a was of pleased originally leasing order the that business, XX% of but And of service skepticism whether the that's our that margin, no In reflective plus. the grower profile and the the very particular the also order, could XX%. pro being That not the growth it forma only there with year-over-year gross business performance margin consistency repair strength, really of given around were of grow business. something in in RSL in

visibility We continuing good have XXXX. profile of to that in kind margin

the the your to in and that and that walk date elements of larger and project flowing question CapEx. our the pieces contributions really The cost of of point we've, point more that for a see and inclusive mix that million the have been I'd free of you the free annualized flow, walks starting framework appendix that million continuing then achieved about other flow, then to $XXX $XXX the provided. around the to cash to slide more we of down the outlook consistent profile actuals synergies through parts anticipated and the margin to we reported. the you elements And EBITDA other cash are through of have And be the the

LNG. On Slide bit the question is filling a there basically XX, falloff pause in but domestic my international long opportunities that. are saying this that Great. second around is of than for you a is And is as sustained in more as

kind in of on in you're kind finally, the like stronger before. as anticipate you're big of pulling a order export order you U.S. one-off LNG can than exposed or if in what as strong -- So cancellation certification, anything in that, regulatory globally, But have any still And any your you opportunities you is you protection maybe order book, have? a authorization straggler final do describe that, to and

All right.

me one. that Let unpack

in say analysis. So didn't that a LNG that, I mitigate domestic inbound. timing export saying have side, because of the the would the moderating we uncertainty in anything announcement is actually the on since the although the what demand we're pause the I that increase of would seen of that meaningful international around say moratorium

-- when piece. -- me let the addressed So I've international

-- Let about piece. there. the me the talk pipeline of domestic

X Trian's the [indiscernible] by all, discussed the of last moratorium. the LNG week that that go to where international with a you X anticipate and heard Woodside impacted of side Train they then just you've XXXXs specificity First the didn't out extension in And their Shell decade. just into being LNG recently demand the permit APAC. with in next put was the said they outlook expected increase global growth LNG XX% expect XXXX. in continuing into

the in international pause. So medium the is the way on timing confidence it the given continue prior U.S. term, balance, outlook to late but that, have change seen January had our I we for going inbound the us to pipeline since think necessarily pause, that doesn't domestic uncertainty

of the terms big In backlog. LNG

was were on QX of of those announce to had wing So XXXX. Craig a of to let hosting XXXX $X.XX to itself. me January from reiterate pause QX after thanks it memory my to this able on backlog LNG-related but really composition in one -- XX terms with We to going for and the allowed of us it on big discuss the to our XX privileged in or orders and project billion us announced be my because announced all call I'm we

specific XX, I And charges, projects question. permitting, the second because of commented customers that, all again, the as them of we there to we as haven't projects, of we specifically, answer and all in customer. and total don't those hadn't but And including then and are on it's the from received our was get final to big of the specific the are a into quarter our which there backlog was want think so September to one, backlog of I that given -- cancellation in particular, its we all only LNG you FTPs LNG notes project the and but have specific our have to full one contracts lastly, to like proceed with got big that

James. from from comes Graham question Raymond next Price Your

end and Just my question. from follow-up a then one

just then those think are around chain of we project you in were supply number Just XXXX delays, about the quote air Of XXXX. you thinking about and kind in that? foresee, that the the $XXX should that encompassed in that timing how visible paying bridge? into bands they all and And million customer

Yes.

at being considerations again, and the we $X.X the weighted. it range that the low reasons and project order, history no put timing timing taking which back we of So a are shifts all is particular components of we is go felt they're -- but different looking end the should the for specific -- equally in balance, into these where on billion, first like those few fairly at there's the

so first shop it orders comes actually It's orders change change change. customer in timing it. with you a The associated incorporate because rev design timing just to then to and got release those of Typically, change us. for in you or being where rep the floor result the the design can't

is which that into model. second are has this more say, around would we've I full The business incorporate shifted business to the learning quarter-end category, to have we progress and, solution outlook as vendor -- experienced

well. with in, around associated rec, So coming third we we how And that. new is have then vendor orders more about progress completion, percent on engineering-related the of the which of timing think relies as work revenue

revenue hard the It's say there's range. mean what million timing around oh, $XXX X or we've of band attempted of adjust the to kind we So plus projects risk is would that incorporate do a that as that's to we this when encompass more okay, get with put what bar. minus that and say that And to attempted what like, in it, we've recognition. larger, that's I to engineering. say And

think more that be year quarter would Okay. particular during the is range, delays? Understood. there And a that if about we susceptible to those see

than the customers' behaviors. this this consideration and I Not normal the just less reiterate our first to specific model to from business of would this but it quarter quarter, our the to topic. seasonality item, is fourth the attributed that's normal just

it the Got That's I'll queue. for jump it. in me. back

from comes question from next Your Eric Stine Craig-Hallum.

here. a that's late stands for ask just mean, one specialty Jill, obviously, so but I'm orders. another question out. already of number, in on I'm been going just advance, sure asked, Apologies jumping great I kind to curious the on

Just the that a number Is is some a a has uncertainty is maybe potential mean, was as you that that see around sustainable? number IRA. that number something by drove that -- is there that conversely, curious, would year-end that And that actually I limited mean, a I that? been

Thanks for the And repeat. a question, it's not Eric. Yes.

at look XXXX, with this order the point -- release December on very you we pleased awards. quarter you and I fourth out part didn't when our will a So ask activity out of XXth LNG-related put question, the of we about were but

quarter. nice we that and And so a did contributor have QX it to QX, of you in helium nice in from specialty itself, kind aspects one a project in And of international if that the markets steadiness the -- saw and then at was larger particular, in one fourth the hydrogen those. end in look

that pipeline timing these So that is projects the something a see that you in larger happen, could that thing but size set of quarters there's in don't geographies. diverse between and be more a more of

and start we in more play to that to So more ability like countries.

XX in now in plus I think hydrogen. we're

to We orders specifically. in uptick an marine also QX, saw in from QX

saw while whether we in do marine to and -- there's in around we uptick think we're going end So that in sales, see discussions. marine order sequential continue opportunities decline activity it's a I market, to an saw

Carnival got LNG doing Cruise You Line cruise ships.

hydrogen operators cruise other got You've doing vessels. first

a the years that tank large enough opportunities this the -- like I X jumbo of really cryogenic end lot about over last having missed what without But market capacity. is we've

So maybe little jumbos? for bit in a Marine you Joe, end about that market, talk

Yes. some seeing Jill of ships a LNG and and ferry the We're with noted, as side. lot lines interest, both hydrogen the cruise on

have building traditionally you really space want the size ships. large II, would They length Jill noted, just tanks to that they the in these really the than for diameter Teddy and that the tend have As but shorter on guys gas have storage. of with allocated be we capability

business Teddy we of in capability us haven't that really achieving So X the past. really capture the helps that had of

or comments potential pipeline and comment specialty. that order would Eric, I say not every to you what going XXXX. customers have I it's to quarter-to-date QX be hard of think might QX But in in was about I number -- is again, increasing It's it on a average because customers specialty. was the is quarter And my for did for I heard time, level. over QX say, at early sustainable consistently at what look

going quarter-to-date but that indicators And on this number, get one of strong. me those it's over have And to HLNG is been a pretty in vehicle skis I'm my just small tank little to orders not your that.

other of a about like I the 'XX. happen So composition end one given the X-month diversity backlog really we've both growth period, a potential what 'XX the But in pipe. think there's to I compared of commercial if or couple low there's that is fairly built the that quarter for doesn't in markets a and that and

Alexa Your Patrick next from from question comes Goldman Sachs.

there's at XXXX delta. look is you the that do guide consensus can then around color any Street you think a Street and where would we miscalibrating? look give is And When at be What helpful.

we an clearly Well, inputs laid given in we feel that believe achievable our in all range we've think to the the we walks deck. what be out provided I like

I think on So models. other can don't people's speculate I

[Operator Instructions] from comes Your question Asset from next Sage Haimes Barry Management.

compared Was but before moratorium not have to plus, you all Jill, there Or think, on any if And of changes proceed a in had to got the XX guide? the the that had pulled between one the notice great or is the XX% with about you Day. the today, Analyst you've were not, maybe could on you you this to the referenced, out permitting guide? change hit. where XX% talk final still I the I question year's just which that LNG was

the in is that So shift? being or something led Or to changes there more the conservative? else fine-tuning in it or just [indiscernible] and that -- some were moratorium either

Barry. question, the for Thanks

Okay.

we announced we've of part on we in but can that first big was parts based end on I what also then LNG. kind awards million-ish. the previously. project approximately size, the you didn't them the at December up to Recall $XXX of QX talk me at said multiple that pieces let And add So referencing sized that LNG-related the we and

we entering compared we're big on a backlog. place good were to we year very LNG in So the before feel like the where

us, go FTPs to I from like they also would themselves. come an the again, through They'll with they projects, that EPC sometimes don't add operator those something don't -- or that.

have not does anything and relationship usually in None mind. particular also where say, my So different. the I that it's But particular, would they pretty a are the in that view associated operators our U.S. for this that But see permitting. of They in about said cancellations is have with certain XXXX. project even favorable. our really as that nuisance

So lot a I you even that particular think one. of got positive momentum on

Then kind since with the last the not sure a lots say whether that's what can we of if different. Red we chain or announced around wanted macro detail around not, thing. the you And any if account these that's fee from situations, to reported -- of on months X I the frameworks in out deck. in and have again, last the fourth I'm lot different going of laid around quarter. But it, for supply then -- whether what's what's happen in handicap everybody or in such it handicap all the hour would there's the an We, now, to

forma kind But what composition really again, we what how is want pro good We've have transparent outlook. we we I got shifts. we've the see also the come self-help give lot we've integration. a of productivity very on But do backlog, think throughout lot from of is to got are convey see we timing getting 'XX the experience activities, diverse to got we've where of our from the year. online these And clarity tried you benefits of throughput to and a Howden

elements. end And this low to trying those give based really so high to we're on

to no time. for will back turn questions remarks. over further I the closing There call are Jill this at Evanko

Chart Global our to again you thank quick Thank One your a efforts. you. of team Just members all for

Thanks, everybody.

lines. joining, for concludes now this gentlemen, disconnect call for and may your you We thank Ladies Thank you. and today. your conference you