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 ...

Clean Harbors, Inc. (CLH) has reported impressive fourth-quarter 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.See Zacks Earnings Calendar to stay ahead of market-making news.Better-than-expected earnings did not impress investors, as the CLH stock has declined 3.8% since the release of results on Feb. 19, 2025.CLH’s earnings of $1.55 per share outpaced the Zacks Consensus Estimate by 15.7% but decreased 14.8% from the year-ago quarter. Total revenues of $1.4 billion surpasse ...

Debt and Borrowing - As of December 31, 2024, the company held $1,464.9 million of variable rate debt under secured senior term loans due in 2028, with an effective annual interest rate of approximately 3.71% on $600.0 million due to interest rate swaps[315][316]. - The company has total borrowings of $2,809.9 million, including $1,419.6 million in secured senior term loans due in 2028 and $545.0 million in unsecured senior notes due in 2027 with a fixed interest rate of 4.875%[318][319]. - Interest payments on the $600.0 million of secured senior term loans, effectively fixed by the 2022 swaps, are approximately $1.9 million per month[320]. - The company estimates that a 100 basis point change in the average interest rate on the remaining variable portion of long-term debt could change annual interest expense by up to approximately $8.6 million[320]. - As of December 31, 2024, the company had no borrowings outstanding under its revolving credit agreement, with $470.0 million available to borrow[321]. - The company has a maximum borrowing capacity of $600.0 million under its revolving credit facility, with $130.0 million in letters of credit issued[321]. - Long-term debt increased to $2.8 billion as of December 31, 2024, compared to $2.3 billion in 2023, with secured senior term loans due in 2028 totaling $1.4 billion[489]. - The estimated fair value of the Company's long-term debt was $2.8 billion in 2024, based on market data considered Level 2 measures[489]. - The Company amended the Term Loan Agreement to incur an additional $500.0 million in term loans, resulting in total outstanding term loans of $1.48 billion as of December 31, 2024[491]. - The interest rate margin for the Term Loans is set at 1.75% for Term SOFR borrowings or 0.75% for base rate borrowings, with a Term SOFR floor of 0.00% and a Base Rate floor of 1.00%[492]. - The Company entered into interest rate swap agreements with a notional amount of $600.0 million to fix the interest rate on the 2028 Term Loans, resulting in an effective annual interest rate of approximately 3.71450% after recent amendments[512]. - The effective annual interest rate on the swapped portion of the 2028 Term Loans decreased to 3.82898% following the Fourth Amendment on December 27, 2023[512]. Financial Performance - Total revenues for 2024 reached $5,889,952, an increase of 8.8% from $5,409,152 in 2023[341]. - Service revenues grew to $4,928,023, up 10.8% from $4,449,542 in the previous year[341]. - Net income for 2024 was $402,299, representing a 6.4% increase compared to $377,856 in 2023[341]. - Cash and cash equivalents increased to $687,192, a significant rise of 54.5% from $444,698 at the end of 2023[347]. - Total assets grew to $7,377,278, up 15.6% from $6,382,869 in 2023[339]. - The company reported a total current liabilities of $1,102,666, an increase from $1,037,537 in 2023[339]. - Earnings per share (EPS) for 2024 was $7.46, compared to $6.99 in 2023, reflecting a 6.7% increase[341]. - Cash flows from operating activities amounted to $777,771, an increase from $734,552 in 2023[347]. - The company invested $432,241 in property, plant, and equipment, slightly up from $422,300 in 2023[347]. - Total stockholders' equity rose to $2,573,529, an increase of 14.5% from $2,247,506 in 2023[339]. - Net income for the year ended December 31, 2024, was $402.299 million, compared to $377.856 million for 2023, representing an increase of approximately 6.4%[350]. - Total stockholders' equity increased from $2.247 billion in 2023 to $2.573 billion in 2024, reflecting a growth of about 14.5%[350]. - The allowance for doubtful accounts at December 31, 2024, was $22.908 million, up from $22.568 million in 2023, indicating a slight increase of 1.5%[362]. - Total marketable securities decreased from $106.101 million in 2023 to $102.634 million in 2024, a decline of approximately 3.5%[356]. - The company repurchased 237 thousand shares of common stock in 2024, totaling $55.211 million, compared to 328 thousand shares for $51.379 million in 2023[350]. - Stock-based compensation expenses for 2024 were $27.981 million, compared to $20.703 million in 2023, marking an increase of approximately 35%[350]. - The balance of cash and cash equivalents decreased from $133.643 million in 2023 to $106.669 million in 2024, a reduction of about 20.1%[356]. - The company issued 125 thousand shares for restricted share vesting in 2024, resulting in a net decrease of $13.759 million due to employee tax withholdings[350]. - Other comprehensive loss for 2024 was $38.296 million, compared to a loss of $8.158 million in 2023, indicating a significant increase in losses[350]. - The company maintained a zero balance in U.S. bank disbursement accounts, utilizing its cash management program effectively[357]. Environmental and Remedial Liabilities - Total remedial liabilities recorded as of December 31, 2024, were $111.7 million, reflecting the costs associated with environmental remediation efforts[335]. - The Company’s remedial liabilities increased slightly from $111.2 million in 2023 to $111.7 million in 2024[392]. - The Company anticipates total remedial liabilities of $129.3 million over the next five years, with $10.3 million expected in 2025[482]. - Closure and post-closure liabilities totaled $129.8 million as of December 31, 2024, reflecting a balance increase from $118.6 million in 2023[478]. - Remedial liabilities amounted to $111.7 million as of December 31, 2024, with a notable increase in liabilities for an existing Superfund site by $2.9 million[481]. - The Company has 25 inactive facilities with remedial liabilities of $57.0 million, representing 51.0% of total liabilities[484]. - The Company executed planned closure activities at its non-commercial landfill in Deer Park, Texas, with no changes to estimated closure costs[478]. - Accretion for closure and post-closure liabilities was $9.5 million in 2024, reflecting ongoing obligations[479]. Acquisitions and Growth - The acquisition of HEPACO on March 22, 2024, was completed for $392.2 million, enhancing the Environmental Services segment's field services[439]. - The acquisition of Noble Oil Services, Inc. on March 1, 2024, was finalized for $68.7 million, expanding oil collection operations in the southeastern U.S.[442]. - The company reported a goodwill of $186,911 thousand from the HEPACO acquisition, reflecting expected operating synergies and growth potential[440]. - The company completed three additional acquisitions in 2024 for a total cash consideration of $17.1 million, consolidating into Environmental Services and SKSS segments[447]. - The total purchase price for the recent acquisition was $110.855 million, with identifiable net assets valued at $71.291 million and goodwill recognized at $39.564 million[451]. - The company acquired a privately-owned business for $78.9 million on June 17, 2022, enhancing waste oil collection capabilities in the southeastern United States[453]. - The final allocation of the purchase price for the June 2022 acquisition included $22.231 million in property, plant, and equipment and $23.5 million in permits and other intangibles[456]. Revenue Sources and Segments - The Company generates revenues from Environmental Services and SKSS segments, with significant sources including Technical Services, Industrial Services, and Safety-Kleen Environmental Services[420]. - Revenues from Technical Services are primarily generated from waste material management and disposal services, recognized over time as services are performed[420]. - Field and Emergency Response Services revenues include contributions from the acquisition of HEPACO Blocker, Inc., recognized over time based on customer consumption of services[424]. - Safety-Kleen Oil revenues are generated from bulk sales of lubricating oils and recycled fuel oil, recognized at a point in time upon transfer of control[429]. - The company’s technical services revenue for 2024 was $1,733,550 thousand, representing a 10.9% increase from $1,563,847 thousand in 2023[430]. - Safety-Kleen Environmental Services generated $1,183,883 thousand in revenue for 2024, compared to $1,102,041 thousand in 2023, marking a 7.4% increase[430]. - Total third-party revenues for the year ended December 31, 2024, reached $5,889,952 thousand, a 8.8% increase from $5,409,152 thousand in 2023[430]. - The United States generated $5,352,423 thousand in total revenues for 2024, accounting for approximately 90.8% of total revenues[430]. Assets and Liabilities - The company reported a total current liabilities of $1,102,666, an increase from $1,037,537 in 2023[339]. - The company's property, plant, and equipment net value increased to $2.447941 billion as of December 31, 2024, compared to $2.193318 billion in 2023, reflecting a growth of 11.6%[462]. - Goodwill increased from $1.287736 billion in 2023 to $1.477199 billion in 2024, primarily due to current period acquisitions totaling $193.368 million[467]. - The company recorded depreciation expense of $346.5 million for the year ended December 31, 2024, up from $315.5 million in 2023[464]. - The total amortizable intangible assets increased to $701.987 million as of December 31, 2024, from $602.797 million in 2023[471]. - Accrued expenses and other current liabilities rose to $419.4 million in 2024, up from $397.2 million in 2023, primarily due to increased accrued compensation and benefits[475]. - The balance of landfill final closure and post-closure liabilities was $59.4 million at both December 31, 2024 and 2023[385]. - Non-landfill closure and post-closure liabilities increased from $59.2 million in 2023 to $70.4 million in 2024[388]. - Amortization expense for intangible assets increased to $54.4 million in 2024 from $50.3 million in 2023, with expected amortization totaling $582.5 million over the next several years[474].