Chart Q4 Sales Miss by 8.9% as Operating Margin Halves to 9.9%
Chart’s Q4 CY2025 revenue fell 2.5% y/y to $1.08B, missing estimates by 8.9%, while adjusted EPS of $2.51 trailed forecasts by 16.7%. EBITDA dropped to $238.8M for a 9.9% operating margin, down from 17% year earlier, though backlog rose 21.5% to $5.89B.
1. Q4 Sales and Earnings Miss
Chart’s Q4 CY2025 revenue declined to $1.08 billion, a 2.5% year-on-year drop and an 8.9% shortfall versus estimates. Adjusted EPS fell to $2.51, missing consensus by 16.7% and reversing recent earnings growth momentum.
2. Margin and Cash Flow Contraction
Adjusted EBITDA came in at $238.8 million, 21.7% below forecasts, driving operating margin down to 9.9% from 17% a year ago. Free cash flow margin shrank to 6.1%, compared with 23.6% in Q4 CY2024, reflecting higher costs and lower leverage.
3. Backlog Growth and Demand Signals
The company’s backlog expanded 21.5% year-on-year to $5.89 billion, marking continued order intake strength despite soft quarterly sales. Elevated backlog suggests robust future revenue but underscores potential capacity constraints.
4. Analyst Expectations and Market Capitalization
Sell-side projections call for 10.7% revenue growth over the next 12 months and full-year EPS of $9.74, a 33.3% increase. The company’s market capitalization stands near $9.91 billion, reflecting investor valuation of its pipeline and growth prospects.