Clean Harbors (CLH) Reports 12% Revenue Increase

By Tamara Parker • Wednesday, October 30 10:32 • Permanent Link

Clean Harbors, Inc. ("Clean Harbors") has announced its financial results for the third quarter ending September 30, 2024. The company reported a 12% increase in revenue to $1.53 billion compared to $1.37 billion in the same period of 2023. Income from operations also saw a substantial rise of 25% to $192.3 million. Net income for the third quarter of 2024 was up 26% to $115.2 million, or $2.12 per diluted share, compared with $91.3 million, or $1.68 per diluted share, for the same period in 2023. Adjusted EBITDA grew 18% to $301.8 million, compared with $255.0 million in the same period of 2023.

The Environmental Services (ES) segment experienced a 13% increase in revenue and 15% growth in adjusted EBITDA, leading to a 40-basis point improvement in segment margin. The Technical Services revenue grew 8%, while Safety-Kleen Environmental Services posted consistent performance with 8% revenue growth in the ES segment. The Industrial Services business, however, faced challenges in the U.S. refinery space due to deferred work and scaled-back turnarounds.

The Safety-Kleen Sustainability Solutions (SKSS) segment saw a 6% increase in revenue and a significant 32% growth in adjusted EBITDA, driven by the noble oil acquisition in March. However, pricing pressure and lower demand in the base oil market impacted the segment's performance.

Clean Harbors has revised its full-year 2024 guidance and now expects adjusted EBITDA in the range of $1.10 billion to $1.12 billion, representing a 10% growth year-over-year.

The company's commercial launch of the new incinerator in Kimball, Nebraska, is scheduled for November, which is expected to provide additional hazardous waste disposal capacity over the next 12-18 months. The company also aims to stabilize its SKSS business amidst the current pricing challenges and weak demand for base oil, while pursuing growth initiatives in group III, blended sales, and partnership with Castrol to reduce carbon footprints.

Clean Harbors' outlook for the ES segment remains positive, supported by favorable market dynamics, infrastructure spending, and regulatory changes. The company aims to capitalize on growth opportunities by expanding capacity and capabilities.

As a result of these announcements, the company's shares have moved -8.6% on the market, and are now trading at a price of $240.69. Check out the company's full 8-K submission here.

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