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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.
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 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