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Sep 30, 2023
Clean Harbors Q3 2023 Earnings Report
Clean Harbors' Q3 2023 performance was affected by plant challenges but showed growth in Environmental Services.
Key Takeaways
Clean Harbors reported Q3 revenue of $1.37 billion, with net income at $91.3 million, or $1.68 per share. The results were below expectations due to plant challenges. The Environmental Services segment saw revenue growth, while the Safety-Kleen Sustainability Solutions segment faced production issues.
Q3 revenue reached $1.37 billion, driven by growth in Environmental Services.
Net income for Q3 was $91.3 million, translating to $1.68 per share.
Adjusted EBITDA for Q3 amounted to $255.0 million.
The company revised its 2023 Adjusted EBITDA and Adjusted Free Cash Flow guidance.
Revenue by Segment
Forward Guidance
Clean Harbors anticipates that the challenges faced in Q3 are resolved, with incinerators and re-refineries expected to perform strongly through the year-end. The company foresees a substantial sequential increase in profitability within the SKSS segment in Q4 and expects to enter 2024 with positive momentum.
Positive Outlook
- Incinerators and re-refineries are expected to run strong through year end.
- Demand across key ES businesses and underlying market conditions remain favorable.
- Industrial Services is expected to close out a record year in the fourth quarter.
- A healthy backlog of incineration drums and some recent retail wins will support burning higher value waste streams.
- Re-refineries are now running at full production rates in the fourth quarter.
Challenges Ahead
- Third-quarter results fell short of expectations primarily due to plant challenges.
- Incineration utilization improved sequentially to 86%, but was below Q3 expectations.
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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