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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.
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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