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Sep 30, 2024

Clean Harbors Q3 2024 Earnings Report

Clean Harbors' Q3 2024 performance was marked by revenue growth and increased profitability.

Key Takeaways

Clean Harbors reported a 12% increase in revenue to $1.53 billion for Q3 2024, driven by strength in Field Services. Net income grew by 26% to $115.2 million, with EPS reaching $2.12. Adjusted EBITDA increased by 18% to $301.8 million, reflecting improved margins in the Environmental Services segment.

Revenue increased by 12% to $1.53 billion, driven by strong performance in Field Services.

Net income grew by 26% to $115.2 million, with EPS at $2.12.

Adjusted EBITDA increased by 18% to $301.8 million, with a margin of 19.7%.

Full-year 2024 Adjusted EBITDA guidance was revised to $1.10 billion to $1.12 billion.

Total Revenue
$1.53B
Previous year: $1.37B
+12.0%
EPS
$2.12
Previous year: $1.68
+26.2%
Adjusted EBITDA
$302M
Previous year: $255M
+18.3%
Gross Profit
$474M
Previous year: $422M
+12.3%
Cash and Equivalents
$512M
Previous year: $420M
+22.0%
Free Cash Flow
$144M
Previous year: $113M
+28.4%
Total Assets
$7.31B
Previous year: $6.25B
+16.9%

Clean Harbors

Clean Harbors

Clean Harbors Revenue by Segment

Forward Guidance

Clean Harbors revised its full-year 2024 guidance and now expects Adjusted EBITDA in the range of $1.10 billion to $1.12 billion and Adjusted free cash flow in the range of $280 million to $320 million.

Positive Outlook

  • Overall demand environment in North America is healthy.
  • Outlook for the ES segment is positive.
  • Favorable market dynamics should continue to fuel growth opportunities.
  • Commercial launch of new incinerator in Kimball, Nebraska is scheduled for November.
  • Addition of HEPACO’s emergency response capabilities creates a foundation for continued growth in Field Services.

Challenges Ahead

  • Market obstacles related to base oil and refining customers.
  • Pricing challenges and weak demand for base oil.
  • Actions to counter the weakness in fall turnarounds.
  • Taking decisive actions to reduce production and collection costs.
  • Committing to stabilizing SKSS business amidst current pricing challenges.

Revenue & Expenses

Visualization of income flow from segment revenue to net income