Clean Harbors 2024 Earnings: Environmental Services Surge- Intellectia AI™

# Clean Harbors Rides Environmental Services Surge in 2024 - Clean Harbors Inc Earnings Report

## Clean Harbors Inc Earnings Summary

In 2024, Clean Harbors, Inc., a hallmark in North America for environmental and industrial services, delivered financial results that epitomized its adept ability to capitalize on robust sector dynamics and strategic initiatives. The company reported a comprehensive growth trajectory punctuated with a 9% increase in annual revenue, reaching $5.89 billion, and a 7% rise in fourth-quarter revenue, totaling $1.43 billion. The firm's net income grew to $402.3 million, resulting in an Earnings Per Share (EPS) of $7.42 for the year, which marked a substantive rise from the previous year.

## Clean Harbors Inc Financial Results

The table below encapsulates key financial performance metrics, illustrating the year-over-year and quarter-over-quarter comparisons.

| **Metric**             | **Q4 2024** | **Q4 2023** | **2024** | **2023** | **YoY Change** |
|------------------------|-------------|-------------|----------|----------|----------------|
| Revenue ($B)           | 1.43        | 1.34        | 5.89     | 5.41     | +9%            |
| Operating Income ($M)  | 137.0       | 147.3       | 670.2    | 612.4    | +9%            |
| Net Income ($M)        | 84.0        | 98.3        | 402.3    | 377.9    | +6%            |
| EPS ($)                | 1.55        | 1.81        | 7.42     | 6.95     | +7%            |
| Adjusted EBITDA ($M)   | 257.2       | 254.9       | 1.12     | 1.01     | +10%           |
| Adjusted Free Cash Flow ($M) | N/A   | N/A         | 357.9    | 321.9    | +11%           |

## Revenue Breakdown

The revenue performance across Clean Harbors’ business segments delineates an intriguing picture of growth and challenges. Below is a detailed breakdown:

| **Segment**                          | **Q4 2024 Revenue Growth** | **Performance Highlights**                                      |
|--------------------------------------|----------------------------|----------------------------------------------------------------|
| **Environmental Services (ES)**      | +9%                        | 47% growth in Field Services due to acquisitions and organic growth. Technical Services rose 8%, and Safety-Kleen Environmental Services by 6%. |
| **Safety-Kleen Sustainability Solutions (SKSS)** | -5%           | Challenges due to a weakening market for U.S. base oil and lubricants. Shift to a charge-for-oil model to mitigate pricing pressures. |

### Segment Performance Analysis

The Environmental Services segment continued to command significant growth with a 9% quarterly revenue increase, driven partly by the acquisition of HEPACO and organic advancements in Field Services. Notably, the incineration section witnessed a 94% utilization rate, a notable improvement from 85% the previous year. Contrastingly, the Safety-Kleen division encountered market adversity, prominently in base oil and lubricant pricing, prompting strategic pricing adjustments.

## Key Developments

Clean Harbors realized substantial strategic developments in 2024. The company celebrated the commercial launch of a state-of-the-art incinerator facility in Kimball, Nebraska, which is poised to augment their waste treatment capabilities. Additionally, key acquisitions, notably HEPACO and Noble Oil, have bolstered Clean Harbors’ market position and operational breadth. The company also made considerable progress in safety metrics, achieving a commendable Total Recordable Incident Rate (TRIR) of 0.65.

## Comments from Company Officers

Co-CEO Mike Battles highlighted the robust end-year performance, attributing it to consistent demand and exceptional segmental achievements, particularly within Environmental Services. Additionally, Eric Gerstenberg, Co-CEO, underscored the strategic sophistication observed in acquisitions and partnerships, along with a strong focus on safety and operational efficiency as pivotal components of their growth framework in 2024.

## Dividends and Share Repurchases

The report did not specify any alterations to the company’s dividend policy or details regarding a share repurchase program, suggesting a continued focus on investment-led growth.

## Clean Harbors Inc Stock Forecast

Drawing on Clean Harbors’ enduring stronghold in environmental services and anticipated growth factors, the stock price outlook for the company appears promising. The high projection for the stock price aligns with continued success in segmental expansion, market uptakes in environmental regulations, and operational advancements like those seen with the Nebraska incinerator. A high stock target could be posited at $160, while a conservative, low estimation could net a price of $130, accounting for potential variability in the SKSS segment and overall market conditions. 

The strategic positioning, data-driven decision-making, and ability to mitigate or capitalize on market fluctuations forecast a stable to bullish trend for Clean Harbors in 2025.



Overall, Clean Harbors has effectively parlayed its strategic acquisitions and operational improvements into notable fiscal results for 2024, setting a robust platform for 2025 underpinned by continuous innovation and sectoral leadership within environmental services.