Clean Harbors Q2 2024 Financial Results Exceeds Company’s Expectations

Clean Harbors, Inc. (Clean Harbors) released its second quarter 2024 financial results, reporting excellent performance that exceeded the company’s expectations. This success positions Clear Harbors to see moderate growth for the rest of the year over its reported financial results from 2023.

As the second quarter comes to a close, Clean Harbors reports its revenue increased 11% compared to 2023’s second quarter, finishing at $1.55 billion compared to $1.40 billion this time last year. Operating income also increased from last year, coming in at $215.5 million, a 14% increase over 2023’s Q2 $189.9 million figure.

Clean Harbors reports its net income this past quarter was $133.3 million, or $2.46 per diluted share, an increase over 2023’s Q2 net income of $115.8 million ($2.13 per diluted share). Compared to the second quarter of last year, Adjusted EBITDA grew 14% to $327.8 million, a moderate increase from 2023’s $287.5 million.

“The positive trends that have contributed to the growth of our business in recent years continued in the second quarter, fueling an excellent performance that exceeded our expectations,” said Mike Battles, Co-Chief Executive Officer.

“We delivered record Q2 revenue and Adjusted EBITDA while improving our margin 50 basis points from the same period a year ago. Our Environmental Services (ES) segment benefited from strong organic growth and the late March acquisition of HEPACO. Safety-Kleen Sustainability Solutions (SKSS) rebounded sequentially from the first quarter on improved base oil and lubricant pricing momentum. Our safety results for the quarter were consistent with the prior year as we achieved a YTD Total Recordable Incident Rate (TRIR) of 0.70.”

The Clean Harbors acquisition of HEPACO was completed in March of this year to the tune of $400 million in cash as part of an agreement with Gryphon Investors, HEPACO’s owners. Eric Gerstenberg, Co-Chief Executive Officer, called HEPACO an “ideal” piece to the Clean Harbors Field Services Portfolio that will provide strong margin improvement.

Looking ahead to the rest of the year, Clean Harbors is preparing for continued growth. The company expects Adjusted EBITDA to grow between 20% and 24% over last year’s Q3 results and for the full year 2024 Adjusted EBITDA to between $1.125 billion to $1.165 billion.

“We enter the second half of 2024 with healthy demand and momentum in our core disposal, recycling, and service businesses,” said Gerstenberg.

“Within Environmental Services, we believe that our record backlog, healthy project pipeline, upcoming incinerator opening, and steady demand for our broad suite of services positions us well for continued success. Our new Kimball, Nebraska incinerator is on track to begin processing hazardous waste in the fourth quarter of 2024. We also expect the HEPACO acquisition, which is off to a terrific start, to further bolster our Field Services business and emergency response capabilities, while providing numerous synergy opportunities. Within our SKSS segment, we expect to see stable performance in the coming quarters, despite the current demand environment for base oil. We plan to capitalize on initiatives like Group III production, higher blended sales, and our new partnership with Castrol for its MoreCircular offering, which has the potential to lower the carbon footprints of fleets in the years ahead. Overall, we continue to maintain a favorable outlook for the Company for the remainder of the year. We expect to deliver an outstanding financial performance to shareholders in 2024 and are on track to achieve our Vision 2027 goals.”

Q2 2024

Net Income: $133.3 million

Adjusted EBITDA: $327.8 million

Revenue: $1.55 billion

Adjusted Free Cash Flow: $84.222 million