Clean Harbors Stock Drops 3.3%

Clean Harbors, Inc. is a leading provider of environmental and industrial services in North America, operating through two segments: Environmental Services and Safety-Kleen Sustainability Solutions. The company's Environmental Services segment offers a wide variety of services, including waste collection, transportation, treatment, and disposal, industrial maintenance, and specialty industrial services. On the other hand, the Safety-Kleen Sustainability Solutions segment provides pickup and transportation services for hazardous and non-hazardous waste, machine cleaning and maintenance, and manufacturing and distribution of lubricants and automotive products.

In 2023, Clean Harbors reported total direct revenues of $5,409.2 million, marking a 4.7% increase from the previous year. The Environmental Services segment's direct revenues increased by 8.1% to $4,511.4 million, driven by growth in core environmental services offerings and industrial service offerings, including incremental revenues from an acquisition. However, the Safety-Kleen Sustainability Solutions segment experienced a decrease of $97.1 million in direct revenues, primarily due to lower market-based pricing on base oil product sales despite higher volumes sold.

The company's income from operations in 2023 was $612.4 million, down from $634.7 million in 2022, with reported net income of $377.9 million in 2023 compared to $411.7 million in 2022. Adjusted EBITDA, the primary financial measure used to evaluate segments, decreased to $1,012.6 million in 2023 from $1,022.1 million in 2022. However, net cash from operating activities increased to $734.6 million in 2023, representing a $108.3 million increase from 2022, and adjusted free cash flow was $321.9 million in 2023, a $32.0 million increase over 2022.

The company's performance is evaluated based on various factors, including demand for services, waste volumes managed, pricing, and efficiency of operations. Clean Harbors' revenues can be impacted by industrial activity, economic conditions, regulatory changes, and market pricing. Despite challenges in the Safety-Kleen Sustainability Solutions segment, Clean Harbors remains a key player in providing environmentally responsible solutions for waste management and sustainability goals in North America. Following these announcements, the company's shares moved -3.3%, and are now trading at a price of $181.13. For more information, read the company's full 10-K submission here.

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