Chart Industries Earnings: The Howden Deal Is Off to a Strong Start

Chart Industries’ first-quarter results were strong, as the integration of Howden (the deal was completed mid-March) is off to a healthy start. At first glance, we maintain our $165 per share fair value estimate and narrow moat rating. We think investors have been concerned about growth prospects, achieving synergies, and the quality of Howden’s business since the stock fell 50% immediately following the deal’s announcement in November 2022. To date, results tend to support that those concerns are exaggerated. We consider the stock to be undervalued. Full-year 2024 EBITDA (reflecting the first full year of combined operations) stands at $1.3 billion, matching our expectations, including expected synergies.