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Clean Harbors
🇺🇸 NYSE:CLH
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Dec 31, 2023

Clean Harbors Q4 2023 Earnings Report

Clean Harbors reported a revenue increase of 5% to $1.34 billion and net income of $98.3 million for Q4 2023.

Key Takeaways

Clean Harbors announced its Q4 and full-year 2023 financial results, with Q4 revenue reaching $1.34 billion, a 5% increase year-over-year. The company's net income for Q4 was $98.3 million, or $1.81 per diluted share, and adjusted EBITDA grew by 14% to $254.9 million. The Environmental Services segment showed strong growth, while the Safety-Kleen Sustainability Solutions segment faced challenges due to market conditions.

Q4 revenue increased by 5% to $1.34 billion.

Net income for Q4 was $98.3 million, or $1.81 per diluted share.

Adjusted EBITDA for Q4 grew by 14% to $254.9 million.

The Environmental Services segment experienced significant growth, while the Safety-Kleen Sustainability Solutions segment was impacted by unfavorable market conditions.

Total Revenue
$1.34B
Previous year: $1.28B
+4.7%
EPS
$1.82
Previous year: $1.44
+26.4%
Adjusted EBITDA
$255M
Previous year: $224M
+13.7%
Gross Profit
$415M
Previous year: $387M
+7.3%
Cash and Equivalents
$551M
Previous year: $493M
+11.8%
Free Cash Flow
$166M
Previous year: $168M
-1.4%
Total Assets
$6.38B
Previous year: $6.13B
+4.1%

Clean Harbors

Clean Harbors

Clean Harbors Revenue by Segment

Forward Guidance

Clean Harbors expects Adjusted EBITDA to grow 2-3% in the first quarter of 2024, with full-year Adjusted EBITDA projected to be in the range of $1.05 billion to $1.11 billion, and adjusted free cash flow in the range of $340 million to $400 million.

Positive Outlook

  • Considerable momentum in the ES segment with high demand for facilities network and service lines.
  • Favorable market conditions, including U.S. manufacturing and regulatory trends, expected to support profitable growth in 2024.
  • The Kimball, Nebraska incinerator will be coming online later this year, adding much-needed capacity.
  • Healthy backlog of waste streams in disposal facilities and at customer sites.
  • Strong pipeline of remediation and waste projects expected to grow based on infrastructure spending and ongoing reshoring.

Challenges Ahead

  • SKSS segment faces challenges, strategy centers on areas the company can control like waste oil collection costs.
  • Market conditions in SKSS are currently impacting growth.
  • Slightly higher corporate costs are expected.
  • Guidance assumes no contribution from the previously announced acquisition of HEPACO.
  • Kimball incinerator spending of approximately $65 million and $20 million for strategic expansion of a mid-Atlantic location.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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