GTLSHIGH SIGNALRISK10-K

Net income collapsed 81.4% to $40.7M despite 15.1% revenue growth, indicating severe margin compression and operational inefficiency.

The dramatic disconnect between strong revenue growth and collapsing profitability suggests significant structural cost issues or one-time charges that management may struggle to control. The terminated Flowserve merger in July 2025 likely created substantial deal-related expenses and strategic uncertainty about the company's future direction.

Comparing 2026-02-27 vs 2025-02-28View on EDGAR →
FINANCIAL ANALYSIS

While GTLS showed healthy top-line growth with revenue increasing 15.1% and balance sheet expansion across current assets (17.6%) and stockholders equity (14.2%), the bottom line deteriorated catastrophically with net income falling 81.4% and operating income down 44.6%. Operating cash flow declined 41.8% despite revenue growth, and the 16.7% inventory build suggests potential demand softening or supply chain inefficiencies, creating a concerning picture of a company struggling with profitability despite growth.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-81.4%
$218.5M→$40.7M

Net income declined 81.4% — review whether driven by operations, interest costs, or non-recurring items.

Operating Income
P&L
-44.6%
$647.5M→$358.4M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Operating Cash Flow
Cash Flow
-41.8%
$503.0M→$292.7M

Operating cash flow fell 41.8% — earnings quality concerns; investigate working capital changes and non-cash items.

Capital Expenditure
Cash Flow
-25.6%
$120.8M→$89.9M

Capex reduced 25.6% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Current Liabilities
Balance Sheet
+18.9%
$1.8B→$2.1B

Current liabilities rose 18.9% — increased short-term obligations, watch current ratio.

Cash & Equivalents
Balance Sheet
+18.6%
$308.6M→$366.0M

Cash grew 18.6% — improving liquidity position supports investment and shareholder returns.

Current Assets
Balance Sheet
+17.6%
$2.5B→$2.9B

Current assets grew 17.6% — improving short-term liquidity or inventory/receivables build.

Inventory
Balance Sheet
+16.7%
$490.5M→$572.3M

Inventory built 16.7% — monitor whether demand supports this build or if write-downs may follow.

Revenue
P&L
+15.1%
$859.2M→$988.8M

Revenue growing 15.1% — solid top-line momentum, watch margins for quality of growth.

Stockholders Equity
Balance Sheet
+14.2%
$2.8B→$3.2B

Equity base grew 14.2% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-02-28
ADDED
As of February 24, 2026, there were 47,865,593 outstanding shares of the Company s common stock, par value $0.01 per share.
Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 7A.
Form 10 K Summary 97 SIGNATURES 98 INDEX TO FINANCIAL STATEMENTS 99 REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM F- 1 SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS F- 55 INDEX TO EXHIBITS E- 1 PART I Item 1.
For the years ended December 31, 2025, 2024 and 2023, we generated sales of $4.3 billion, $4.2 billion, and $3.4 billion, respectively.
Terminated Merger Agreement On June 3, 2025, Chart entered into an Agreement and Plan of Merger (the Flowserve Merger Agreement ) with Flowserve Corporation, a New York corporation ( Flowserve ), Big Sur Merger Sub, Inc., a Delaware corporation and a direct wholly owned subsidiary of Flowserve ( First Merger Sub ), and Napa Merger Sub LLC, a Delaware limited liability company and a direct wholly owned subsidiary of Flowserve ( Second Merger Sub ).
On July 28, 2025, Chart, Flowserve, First Merger Sub and Second Merger Sub, entered into a Termination Agreement pursuant to Section 9.01(a) of the Flowserve Merger Agreement, providing for the mutual termination of the Flowserve Merger Agreement and the abandonment of the transactions contemplated thereby, effective immediately upon execution of the Termination Agreement.
In connection with the termination, Chart agreed to pay Flowserve a termination payment of $266 million, consisting of the $250 million termination fee provided for under the Flowserve Merger Agreement and an additional $16 million in expense reimbursement, as set forth in the Termination Agreement.
Upon receipt of the termination payment, each party, on behalf of itself and its affiliates, released the other party and its affiliates from any and all claims relating to or arising out of the Flowserve Merger Agreement or the transactions contemplated thereby, subject to certain customary exceptions.
Baker Hughes Merger Agreement On July 28, 2025, Chart entered into the Agreement and Plan of Merger, dated as of July 28, 2025 (as it may be amended from time to time, the Merger Agreement ), by and among Baker Hughes Company ( Baker Hughes ), Tango Merger Sub, Inc.
( Merger Sub ), and Chart, providing for, among other things, the merger of Merger Sub with and into Chart (the Merger ), with Chart surviving the Merger as a wholly owned subsidiary of Baker Hughes.
REMOVED
As of February 24, 2025, there were 45,688,580 outstanding shares of the Company s common stock, par value $0.01 per share.
Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 7A.
Form 10 K Summary 42 SIGNATURES 43 INDEX TO FINANCIAL STATEMENTS 44 REPORTS OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM F- 1 SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS F- 57 INDEX TO EXHIBITS E- 1 PART I Item 1.
For the years ended December 31, 2024, 2023 and 2022, we generated sales of $4.2 billion, $3.4 billion, and $1.6 billion, respectively.
Sales to our top ten customers accounted for 26% , 25%, and 38% of consolidated sales in 2024, 2023 and 2022, respectively.
Human Capital Resources As of January 31, 2025, we had 11,928 employees, including 3,938 domestic employees and 7,990 international employees.
Effective February 7, 2021, we entered into a five-year agreement with the IAM which expires on February 6, 2026.
While we sell to mor e than 10,000 customers, sales to our top ten customers accounted for 26% , 25%, and 38% of consolidated sales in 2024, 2023 and 2022, respectively.
The new administration has implemented substantial tariffs on China and has threatened tariffs on certain products and other countries.
To the extent enacted, the implementation of new tariffs and other changes in U.S.
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