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Jun 30, 2024
Clean Harbors Q2 2024 Earnings Report
Clean Harbors reported an excellent Q2 2024, exceeding expectations with record revenue and Adjusted EBITDA, driven by Environmental Services and Safety-Kleen Sustainability Solutions.
Key Takeaways
Clean Harbors announced strong second-quarter results with an 11% increase in revenue to $1.55 billion and a 15% increase in net income to $133.3 million, or $2.46 per diluted share. Adjusted EBITDA grew by 14% to $327.8 million. The Environmental Services segment and Safety-Kleen Sustainability Solutions contributed significantly to the company's performance.
Revenue increased by 11% to $1.55 billion, driven by Environmental Services.
Net income grew by 15% to $133.3 million, with EPS of $2.46.
Adjusted EBITDA increased by 14% to $327.8 million, with a margin of 21.1%.
Full-year 2024 Adjusted EBITDA guidance was raised.
Clean Harbors
Clean Harbors
Clean Harbors Revenue by Segment
Revenue by Segment
Environmental Services Revenue
CapyFin.comSafety-Kleen Sustainability Solutions Revenue
CapyFin.comCorporate Revenue
CapyFin.com Forward Guidance
Clean Harbors anticipates continued success with healthy demand and momentum in its core businesses. They expect Adjusted EBITDA to grow 20% to 24% in Q3 2024 and have raised the full-year Adjusted EBITDA guidance to $1.125 billion to $1.165 billion.
Positive Outlook
- Record backlog and healthy project pipeline in Environmental Services.
- Upcoming incinerator opening in Kimball, Nebraska in Q4 2024.
- HEPACO acquisition expected to bolster Field Services and emergency response capabilities.
- Expect stable performance in the SKSS segment.
- Capitalizing on initiatives like Group III production and the partnership with Castrol for MoreCircular.
Challenges Ahead
- Current demand environment for base oil may present challenges for SKSS.
- Industrial Services revenue declined by 10% due to reduced turnaround activity.
- Profitability in SKSS was modestly lower than a year ago.
- Kimball incinerator spending of approximately $65 million.
- Baltimore expansion spending of $20 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income