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Clean Harbors
🇺🇸 NYSE:CLH
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Mar 31, 2024

Clean Harbors Q1 2024 Earnings Report

Clean Harbors announced a 5% revenue increase driven by Environmental Services, and achieved growth in adjusted EBITDA with margin improvement.

Key Takeaways

Clean Harbors reported a 5% increase in revenue to $1.38 billion, driven by a 10% growth in Environmental Services. Net income was $69.8 million, or $1.29 per diluted share. Adjusted EBITDA grew 7% to $230.1 million, with a margin of 16.7%. The company raised its full-year 2024 adjusted EBITDA guidance and maintained its adjusted free cash flow guidance.

Revenue increased by 5% to $1.38 billion, led by a 10% growth in Environmental Services.

Net income reached $69.8 million, with EPS at $1.29.

Adjusted EBITDA grew by 7% to $230.1 million, resulting in a 16.7% margin.

Full-year 2024 adjusted EBITDA guidance was raised, and adjusted free cash flow guidance was maintained.

Total Revenue
$1.38B
Previous year: $1.31B
+5.3%
EPS
$1.29
Previous year: $1.36
-5.1%
Adjusted EBITDA
$230M
Previous year: $215M
+7.0%
Gross Profit
$307M
Previous year: $376M
-18.2%
Cash and Equivalents
$338M
Previous year: $304M
+11.0%
Free Cash Flow
-$118M
Previous year: -$53.7M
+120.5%
Total Assets
$6.94B
Previous year: $6.08B
+14.1%

Clean Harbors

Clean Harbors

Clean Harbors Revenue by Segment

Forward Guidance

Clean Harbors expects Adjusted EBITDA to grow 7% to 8% in the second quarter of 2024. For full-year 2024, the company anticipates Adjusted EBITDA in the range of $1.1 billion to $1.15 billion and Adjusted free cash flow in the range of $340 million to $400 million.

Positive Outlook

  • Underlying market conditions are driving favorable demand for services.
  • Disposal and recycling network continues to see strong volumes and a healthy backlog.
  • Kimball, Nebraska incinerator is quickly approaching commercial launch.
  • Safety-Kleen Environmental Services business is expected to deliver another year of solid profitable growth in 2024.
  • HEPACO addition provides a strategic platform for growth with cross-selling and synergy savings anticipated.

Challenges Ahead

  • Second quarter of 2024, Clean Harbors expects Adjusted EBITDA to grow 7% to 8% from the second quarter of 2023.
  • Adjusted EBITDA in the range of $1.1 billion to $1.15 billion.
  • Adjusted free cash flow in the range of $340 million to $400 million.
  • The Kimball incinerator and Baltimore expansion impact the adjusted free cash flow.
  • Base oil and lubricants experiencing a challenging demand and pricing environment.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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