Core Insights - Clean Harbors reported revenue of $1.43 billion for the quarter ended March 2025, a year-over-year increase of 4% [1] - The company's EPS for the same period was $1.09, down from $1.29 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.42 billion, resulting in a surprise of +0.89% [1] - Clean Harbors delivered an EPS surprise of +6.86%, with the consensus EPS estimate being $1.02 [1] Revenue Breakdown - Environmental Services revenue was $1.21 billion, matching the average estimate from three analysts, representing a year-over-year increase of +3.1% [4] - Safety-Kleen Sustainability Solutions revenue was $222.74 million, exceeding the average estimate of $194.66 million, with a year-over-year change of +9.1% [4] - Corporate Items revenue was $0.10 million, consistent with the average estimate from two analysts, but down -4.9% compared to the year-ago quarter [4] Adjusted EBITDA Performance - Adjusted EBITDA for Environmental Services was $274.59 million, slightly above the estimate of $273.41 million from three analysts [4] - Adjusted EBITDA for Corporate Items was -$67.99 million, compared to the average estimate of -$66.52 million from three analysts [4] - Adjusted EBITDA for Safety-Kleen Sustainability Solutions was $28.25 million, surpassing the estimate of $22.88 million from three analysts [4] Stock Performance - Clean Harbors shares returned +6.6% over the past month, while the Zacks S&P 500 composite experienced a -0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Clean Harbors reported quarterly earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $1.02 per share, but down from $1.29 per share a year ago, indicating a 15.5% year-over-year decline in earnings [1][2] Financial Performance - The company achieved revenues of $1.43 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.89% and showing a year-over-year increase from $1.38 billion [2] - Over the last four quarters, Clean Harbors has surpassed consensus EPS estimates three times and topped revenue estimates four times [2] Stock Performance - Clean Harbors shares have declined approximately 7% since the beginning of the year, compared to a 5.5% decline in the S&P 500 [3] - The current Zacks Rank for Clean Harbors is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $2.31 on revenues of $1.58 billion, and for the current fiscal year, it is $7.50 on revenues of $6.12 billion [7] - The trend of estimate revisions for Clean Harbors is currently mixed, which may change following the recent earnings report [6] Industry Context - The Waste Removal Services industry, to which Clean Harbors belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Q1 2025 Financial Performance - Revenue reached $1.43 billion, a 4% year-over-year increase, driven by growth in both operating segments[8] - Net income was $58.7 million, resulting in earnings per share (EPS) of $1.09[8] - Adjusted EBITDA was $234.9 million, with an Adjusted EBITDA margin of 16.4%[8] - Adjusted free cash flow was ($115.7) million, aligning with expectations due to the timing of certain items[8] Segment Performance - Environmental Services revenue increased to $1.21 billion, a 3% increase year-over-year, with Adjusted EBITDA of $274.6 million and a margin of 22.7%[10] - Safety-Kleen Sustainability Solutions revenue increased to $222.7 million, a 9% increase year-over-year, but Adjusted EBITDA decreased to $28.3 million with a margin of 12.7%[14] - Safety-Kleen Sustainability Solutions gathered 58 million gallons of waste oil, compared to 55 million gallons in Q1 2024[17] Financial Position - Cash and short-term marketable securities totaled $595.3 million as of March 31, 2025[25] - Current and long-term debt stood at $2.78 billion as of March 31, 2025[25] - Share repurchases amounted to $55.0 million in Q1 2025[26] Full-Year 2025 Guidance - The company projects net income between $377 million and $428 million[27] - The company anticipates Adjusted EBITDA between $1.15 billion and $1.21 billion[27] - The company expects Adjusted Free Cash Flow between $430 million and $490 million[27]

Financial Data and Key Metrics Changes - Company revenue increased by 4% in Q1, totaling $55 million growth, with the Environmental Services (ES) segment contributing two-thirds of that growth [27][8] - Adjusted EBITDA for Q1 was $235 million, with a margin of 16.4%, slightly down year-over-year but in line with expectations [28][27] - Net income for Q1 was down compared to the same period last year, with earnings per share reported at $1.09 [29] Business Line Data and Key Metrics Changes - The ES segment saw a 3% increase in revenue and a 4% increase in adjusted EBITDA, driven by the acquisition of Hefeco and higher incineration utilization [9][8] - Safety Kleen Environmental Services (SKSS) revenue increased year-over-year, reflecting greater volumes and a shift to a higher Charge for Oil (CFO), although adjusted EBITDA decreased slightly [15][16] - Industrial Services revenue declined by 10% year-over-year due to refinery customers delaying spending and maintenance [12][13] Market Data and Key Metrics Changes - The total recordable incident rate (TRIR) for safety was reported at 0.46, marking the best quarter in the company's history [5][6] - Incineration utilization improved to 88% from 79% in Q1 2024, with incineration pricing rising more than 5% on a mix-adjusted basis [10][11] - The company processed 5,000 tons in its new kiln during Q1, with a goal to process over 28,000 tons for the year [11][19] Company Strategy and Development Direction - The company is focusing on internal and external growth opportunities, with a strong cash balance and low leverage to support its growth strategy [20][22] - There is an emphasis on capitalizing on synergies through M&A while also investing in expanding processing and recycling capabilities [20][21] - The company aims to stabilize the SKSS segment while maximizing the value of its assets and minimizing downside potential [24][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for services, particularly in disposal and recycling, despite potential impacts from tariffs [22][70] - The company anticipates a strong second half of the year, with a robust pipeline of remediation and waste projects [24][22] - Management remains cautious about the industrial services segment but believes in the long-term prospects due to the necessity of the services provided [24][70] Other Important Information - The company ended Q1 with a cash balance approaching $600 million and a net debt to EBITDA ratio of approximately 2.1 times [29][30] - A credit rating upgrade by Moody's was received during the quarter, reflecting strong financial performance and capital policies [30][29] - Adjusted free cash flow for Q1 was negative $116 million, consistent with the previous year, primarily due to timing of incentive comp payments and seasonal working capital increases [31][30] Q&A Session Summary Question: Impact of weather on ES segment performance - Management indicated that weather negatively impacted Q1 performance, estimating a loss of $10 million to $12 million in EBITDA due to difficult conditions in January [41][42] Question: Guidance for Q2 and refinery turnarounds - Management confirmed that Q2 guidance does not include large-scale emergency response events and expects a better second half with over 150 planned refinery turnarounds [44][45] Question: Cyclicality of the ES segment - Management described the ES segment as recession-resistant, with continued strong growth expected in the second and third quarters [49][50] Question: Update on PFAS revenue growth - Management confirmed a strong pipeline for PFAS solutions, expecting revenue growth in the range of 15% to 20% for the year [59][60] Question: Base oil pricing and inventory status - Management acknowledged pressure on base oil pricing but highlighted successful pricing initiatives that doubled the average price charged for used oil collection [100][101] Question: M&A pipeline and current environment - Management noted that valuations remain high for assets, but the company is actively reviewing multiple deals while being selective [91][92]

Financial Data and Key Metrics Changes - Company revenue increased by 4% in Q1, totaling $55 million, with the Environmental Services (ES) segment accounting for two-thirds of that growth [23][6] - Adjusted EBITDA for Q1 was $235 million, with a margin of 16.4%, down year over year but in line with expectations [24][29] - Net income for Q1 was down compared to the same period last year, with earnings per share of $1.09 [25][29] - Cash and short-term marketable securities approached $600 million at quarter-end, with a net debt to EBITDA ratio of approximately 2.1 times [26][27] Segment Performance Changes - In the ES segment, adjusted EBITDA increased by 4% with a 3% revenue increase, resulting in a 10 basis point margin improvement [7][24] - The Safety Kleen Environmental Services (SKSS) segment saw revenue growth year over year, driven by higher volumes and a shift to a higher charge for oil, despite lower base oil pricing [13][14] - Industrial Services revenue decreased by 10% year over year due to refinery customers delaying spending and maintenance [10][11] Market Data and Key Metrics Changes - The total recordable incident rate (TRIR) was 0.46 in Q1, marking the best quarter in the company's history [5] - Incineration utilization was 88% in Q1, up from 79% in Q1 2024, with incineration pricing rising more than 5% on a mix-adjusted basis [8][9] - The company gathered 58 million gallons of waste oil in Q1, compared to 55 million gallons a year ago [14] Company Strategy and Industry Competition - The company is focused on internal and external growth opportunities, with a strong cash balance and low leverage to support its growth strategy [18][20] - The company is optimistic about its prospects for 2025, citing strong demand for disposal services and a robust pipeline of remediation and waste projects [20][22] - The company is committed to further adjusting pricing and reducing costs to offset inflation and tariff impacts [12][20] Management's Comments on Operating Environment and Future Outlook - Management noted that weather negatively impacted Q1 performance, estimating a loss of $10 million to $12 million in EBITDA due to weather conditions [36][37] - The company remains optimistic about the demand environment, particularly in the ES segment, and expects continued strong growth despite potential economic slowdowns [20][66] - Management emphasized the resilience of the ES segment, stating it is recession-resistant and has a strong backlog of waste and project opportunities [45][66] Other Important Information - The company plans to continue its buyback program, having repurchased nearly 260,000 shares for a total of $55 million in Q1 [28][29] - The company expects adjusted free cash flow for 2025 to be in the range of $430 million to $490 million, representing a nearly 30% increase from 2024 [32] Q&A Session Summary Question: Impact of weather on ES segment performance - Management acknowledged that weather had a significant impact in January, estimating a loss of $10 million to $12 million in EBITDA due to adverse conditions, but noted strong recovery in March [36][37] Question: Expectations for refinery turnarounds in Industrial Services - Management indicated that over 150 turnarounds are planned for the second half of the year, expecting a better performance in that segment [40][41] Question: Cyclicality of the ES segment - Management stated that the ES segment is recession-resistant, with continued strong growth expected in the second and third quarters [44][66] Question: Update on PFAS revenue growth - Management expressed confidence in achieving 15% to 20% revenue growth for PFAS-related services this year, supported by a strong regulatory framework [54][55] Question: Base oil pricing and inventory status - Management noted that base oil pricing has been under pressure but highlighted successful pricing initiatives that have offset some of the challenges [94][96]

Financial Performance - Revenues grew 4% to $1.43 billion in Q1 2025, compared to $1.38 billion in Q1 2024[4] - Net income for Q1 2025 was $58.7 million, or $1.09 per diluted share, down from $69.8 million, or $1.29 per diluted share in Q1 2024[4] - Adjusted EBITDA for Q1 2025 was $234.9 million, slightly up from $230.1 million in the same period of 2024[5] - Revenues for the three months ended March 31, 2025, increased to $1,431,950, compared to $1,376,695 for the same period in 2024, representing a growth of approximately 4%[23] - Net income decreased to $58,680 for Q1 2025, down from $69,832 in Q1 2024, reflecting a decline of about 16%[23] - Basic and diluted earnings per share for Q1 2025 were both $1.09, compared to $1.29 in Q1 2024, indicating a decrease of approximately 15.5%[23] Segment Performance - The Environmental Services segment achieved 4% growth in Adjusted EBITDA and 3% growth in revenue, driven by a 32% increase in Field Services operations[6] - Safety-Kleen Sustainability Solutions segment revenues increased 9% due to higher volumes sold and cost-cutting efforts[8] - Adjusted EBITDA for the Environmental Services segment increased to $274,591 in Q1 2025, compared to $264,475 in Q1 2024, showing an increase of about 3%[29] - The Environmental Services segment generated revenues of $1,209,113 in Q1 2025, up from $1,172,510 in Q1 2024, reflecting an increase of about 3%[29] Cash Flow and Assets - Adjusted free cash flow is projected to be between $430 million and $490 million, indicating a nearly 30% increase from the prior year[9] - The company reported cash flows from operating activities of $1,605 for Q1 2025, down from $18,549 in Q1 2024, a decline of approximately 91%[27] - Total current assets decreased to $2,310,682 as of March 31, 2025, from $2,433,796 at the end of 2024, a decline of about 5%[25] - Cash and cash equivalents decreased significantly to $489,417 from $687,192, representing a drop of approximately 29%[27] - Total liabilities decreased slightly to $4,675,163 as of March 31, 2025, from $4,674,612 at the end of 2024, indicating a marginal reduction[25] Future Guidance - For full-year 2025, Clean Harbors expects Adjusted EBITDA in the range of $1.15 billion to $1.21 billion, representing 6% growth year over year[9] - Clean Harbors is maintaining its Adjusted EBITDA and adjusted free cash flow guidance despite uncertainties in U.S. trade policies[9] - The company plans to focus on managing collection costs and advancing initiatives like the Castrol partnership and Group III production in the SKSS segment[9] Other Financial Metrics - The company incurred interest expense of $36,077 in Q1 2025, compared to $28,539 in Q1 2024, representing an increase of approximately 26%[23] - The company reported an impressive incineration utilization rate of 88% in Q1 2025, up from 79% in the prior year[8]

Core Viewpoint - Clean Harbors (CLH) is anticipated to report a year-over-year decline in earnings despite an increase in revenues, which could significantly influence its stock price depending on the actual results compared to estimates [1][2]. Financial Expectations - The upcoming earnings report is scheduled for April 30, 2025, with expectations of quarterly earnings at $1.02 per share, reflecting a year-over-year decrease of 20.9%. Revenues are projected to be $1.42 billion, representing a 3.1% increase from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.11% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a negative Earnings ESP of -4.43% for Clean Harbors, suggesting that the Most Accurate Estimate is lower than the Zacks Consensus Estimate, which complicates the prediction of an earnings beat [11][10]. Historical Performance - In the last reported quarter, Clean Harbors exceeded the expected earnings of $1.34 per share by delivering $1.55, resulting in a positive surprise of 15.67%. Over the past four quarters, the company has beaten consensus EPS estimates three times [12][13]. Industry Comparison - In contrast, Xylem (XYL), another player in the waste removal services industry, is expected to report earnings of $0.95 per share for the same quarter, indicating a year-over-year increase of 5.6%, with revenues projected at $2.04 billion, up 0.5% from the previous year [17][18].

Core Insights - Miller Environmental Group, Inc. has appointed Robb Schreck as the new CEO, succeeding Rudy Streng, who will become a Senior Advisor to the CEO [1][2] - Schreck has over 30 years of experience in leading growth strategies and operational excellence in business services, including his recent role as CEO of HEPACO [2] - The company aims to expand its branch and facility network while maintaining its commitment to safety and quality standards [3] Company Overview - Miller Environmental Group, founded in 1971, is a leading provider of waste, industrial, and environmental services across various sectors, including power & utility, transportation, retail, and manufacturing [4] - The company operates a vertically-integrated network of waste treatment facilities and has a national network of branches and subcontractors, serving several Fortune 500 companies [4]

I'm issuing a Buy rating with a price target range of $220–230 for Clean Harbors (NYSE: CLH ), which is a 12–17% upside from its current price. Why? Well, the company is a market leader in hazardous and non-hazardous waste management, industrialI am a financial analyst and writer with a strong foundation in financial modeling, valuation, and data analysis. I hold FMVA (Financial Modeling & Valuation Analyst) and BIDA (Business Intelligence & Data Analyst) certifications from the Corporate Finance Institute ...

Clean Harbors Inc. (NYSE: CLH ) is well-positioned for revenue growth driven by favorable pricing and strong demand for its disposal and recycling services in the Environmental Services ( ES ) segment. Further, the ramp-up ofI have over 15 years of experience investing and have provided research services to mid-sized hedge funds with assets under management between $100 and $500 million. I also have had a brief stint as a sell-side analyst. I am now focusing primarily on managing my own money and my purpose ...