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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.
Clean Harbors
Clean Harbors
Clean Harbors Revenue by Segment
Revenue by Segment
Environmental Services Revenue
CapyFin.comSafety-Kleen Sustainability Solutions Revenue
CapyFin.com 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