Chart Industries Has a Winner Thus Far With Its Howden Deal

Since 2020, Chart Industries has engaged in a successful strategic pivot toward expanding its specialty portfolio of products toward high-growth areas such as hydrogen and LNG. It made several attractive investments and joint ventures with key partners that enabled it to materially increase the amount of in-house content for larger projects, lowering costs and providing more control over delivery time frames. The greater degree of control over integrating its equipment and processes was also driving pricing power, lifting margins, and increasing customer switching costs. Three-year targets introduced at its 2022 analyst day included a 17%-plus CAGR on revenue, 25%-plus CAGR on EPS, and margin expansion of 300-600 basis points.