I I F ■ F Matteo Colombo Investment update Following my last publication on Clean Harbors, Inc. (NYSE:CLH) the stock is +36% to the upside and there's been several notable developments to the investment debate. Winding back to the original thesis, I was attracted to CLH for several reasons, namely: Top-down strategic allocation indicative of allocation to industrials given the attractive risk/reward fundamentals of the sector (it was poised to deliver ~16% of the coming 12 months' S&P 500 earnings growth, b ...

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It has been about a month since the last earnings report for Clean Harbors (CLH) . Shares have lost about 0.1% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Clean Harbors due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Clean Harbors' Q2 Earnings Beat Estimates ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? Developed alongs ...

Clean Harbors, Inc. (CLH) reported impressive second-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. The stock has lost 3.7% since the earnings release on Jul 31 despite better-than-expected earnings. CLH's earnings of $2.5 per share beat the Zacks Consensus Estimate by 11.3% and increased 15.5% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus estimate by 1% and increased 11.1% on a year-over-year basis. The stock has gained 34.7% ...

Financial Data and Key Metrics Changes - The company achieved record revenue and adjusted EBITDA, with adjusted EBITDA of $328 million, up over $40 million year-over-year, and an adjusted EBITDA margin of 21.1%, an increase of 50 basis points year-on-year [15][19]. - Total revenues grew by more than $150 million year-over-year, with gross margin at 33.3%, a 110 basis point increase from the previous year [15][17]. - Net income was $133.3 million, resulting in earnings per share of $2.46, both up 15% from the prior year [16]. Business Line Data and Key Metrics Changes - Environmental Services (ES) segment revenue increased by 12%, with adjusted EBITDA up 18%, marking 11 consecutive quarters of year-over-year growth [6][20]. - Field Services saw a significant increase of 64%, primarily driven by the acquisition of HEPACO, contributing approximately $24 million in revenue from emergency response events [8][9]. - Safety-Kleen Environmental Services reported an 11% revenue growth, while Industrial Services revenue declined by 10% due to reduced turnaround activity [9]. Market Data and Key Metrics Changes - The company noted strong demand for its services across various markets, with record volumes of containerized waste and improved pricing in the lubricant market [5][10]. - The incineration pricing rose by 3% in the quarter, with expectations to continue outpacing inflation [37]. - Deferred revenue increased to $108 million, indicating strong future demand [38]. Company Strategy and Development Direction - The company is focused on capital allocation strategies to grow its core business, including investments in new facilities and smart acquisitions [12]. - The integration of HEPACO is progressing ahead of schedule, enhancing emergency response capabilities and driving additional EBITDA [47]. - The company aims to achieve a 30% margin in the Environmental Services segment by 2027, supported by operational efficiencies and increased capacity [27][28]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2024, citing a strong backlog and project pipeline in Environmental Services [13][23]. - The company anticipates stable performance in the SKSS segment despite current market conditions, with ongoing initiatives to enhance product offerings [13][21]. - Management believes that regulatory changes will not significantly impact the PFAS opportunity, maintaining a steady demand for hazardous waste management services [54]. Other Important Information - The company raised its 2024 adjusted EBITDA guidance to a range of $1.125 billion to $1.165 billion, reflecting a 13% increase from 2023 [19][20]. - Cash provided from operations in Q2 was $216 million, with net CapEx expected to be in the range of $400 million to $430 million for the year [18][22]. Q&A Session Summary Question: What is driving the solid momentum in the hazardous waste market? - Management indicated that tightness in the hazardous waste industry and effective execution of growth strategies have contributed to the momentum [25][26]. Question: How aspirational is the 30% margin goal in Environmental Services? - Management believes the 30% margin goal is achievable, citing record margins and operational efficiencies [27][28]. Question: Can you provide details on the $24 million in emergency response revenue? - Management explained that this revenue came from several large-scale emergency response events, with some revenue expected to carry over into Q3 [29][30]. Question: What is the outlook for M&A opportunities? - Management noted a strong pipeline for both small and larger acquisitions, emphasizing a disciplined approach to ensure strategic and financial fit [33][34]. Question: How is the incineration pricing expected to trend? - Management expects continued price improvement despite the addition of new capacity, supported by strong demand and backlog [57].

Q2 2024 Financial Performance - Revenue reached $1.55 billion, an 11% year-over-year increase driven by organic growth and acquisitions[3] - Net income increased by 15% to $133.3 million, resulting in earnings per share (EPS) of $2.46[3] - Adjusted EBITDA increased by 14% to $327.8 million, with an Adjusted EBITDA margin of 21.1%[3] - Adjusted free cash flow was $84.2 million[3] Segment Performance - Environmental Services experienced strong demand across its disposal/recycling network and service businesses, particularly SK Environmental and Field Services, including contributions from HEPACO, with significant margin expansion due to volume growth, pricing, asset utilization, and productivity gains[3] - Safety-Kleen Sustainability Solutions saw considerable improvement in base oil and lubricant market pricing from Q1, although demand remained muted[3] - SK Environmental Services revenue was up 11%[6] - Safety-Kleen Sustainability Solutions revenue increased by 8% year-over-year to $243.2 million, while Adjusted EBITDA decreased by 4% to $51.5 million[8] Key Metrics and Capital Allocation - Incinerator utilization was 88% compared to 84% in Q2 2023, with an average price increase of 3%[6] - Landfill tonnage increased by 4% from the prior year, and the average price per ton increased by 5%[6] - The company is focused on disciplined capital allocation, including organic growth investments, acquisitions & divestitures, share repurchases, and debt repayment[9] Balance Sheet and Cash Flow - Cash and short-term marketable securities totaled $493.3 million as of June 30, 2024[10] - Current and long-term debt amounted to $2.79 billion as of June 30, 2024[10] Full-Year 2024 Guidance - The company projects net income between $391 million and $426 million[11] - Adjusted EBITDA is projected to be between $1.125 billion and $1.165 billion[11] - Adjusted free cash flow is projected to be between $350 million and $390 million[11]

[PART I: FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%3A%20FINANCIAL%20INFORMATION) This part presents the company's unaudited financial statements, management's discussion, and market risk disclosures [ITEM 1: Unaudited Financial Statements](index=3&type=section&id=ITEM%201%3A%20Unaudited%20Financial%20Statements) This section presents the company's unaudited consolidated financial statements and detailed notes for Q2 2024 and FY2023 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section details the company's financial position, presenting assets, liabilities, and equity for June 30, 2024, and December 31, 2023 | ASSETS (in thousands) | June 30, 2024 (unaudited) | December 31, 2023 (in thousands) | |:---|:---|:---|\n| **Current assets:** |||\n| Cash and cash equivalents | $401,992 | $444,698 |\n| Short-term marketable securities | 91,294 | 106,101 |\n| Accounts receivable, net | 1,089,832 | 983,111 |\n| Unbilled accounts receivable | 187,148 | 107,859 |\n| Inventories and supplies | 365,356 | 327,511 |\n| Prepaid expenses and other current assets | 93,440 | 82,939 |\n| **Total current assets** | **2,229,062** | **2,052,219** |\n| Property, plant and equipment, net | 2,408,647 | 2,193,318 |\n| **Other assets:** |||\n| Operating lease right-of-use assets | 214,858 | 187,060 |\n| Goodwill | 1,482,085 | 1,287,736 |\n| Permits and other intangibles, net | 727,463 | 602,797 |\n| Other long-term assets | 74,833 | 59,739 |\n| **Total other assets** | **2,499,239** | **2,137,332** |\n| **Total assets** | **$7,136,948** | **$6,382,869** |\n| **LIABILITIES AND STOCKHOLDERS' EQUITY** |||\n| **Current liabilities:** |||\n| Current portion of long-term debt | $15,102 | $10,000 |\n| Accounts payable | 447,940 | 451,806 |\n| Deferred revenue | 108,035 | 95,230 |\n| Accrued expenses and other current liabilities | 392,708 | 397,157 |\n| Current portion of closure, post-closure and remedial liabilities | 31,954 | 26,914 |\n| Current portion of operating lease liabilities | 65,901 | 56,430 |\n| **Total current liabilities** | **1,061,640** | **1,037,537** |\n| **Other liabilities:** |||\n| Closure and post-closure liabilities, less current portion | 103,299 | 105,044 |\n| Remedial liabilities, less current portion | 95,458 | 97,885 |\n| Long-term debt, less current portion | 2,775,837 | 2,291,717 |\n| Operating lease liabilities, less current portion | 152,328 | 131,743 |\n| Deferred tax liabilities | 360,861 | 353,107 |\n| Other long-term liabilities | 145,804 | 118,330 |\n| **Total other liabilities** | **3,633,587** | **3,097,826** |\n| **Stockholders' equity:** |||\n| Common stock, $0.01 par value | 539 | 539 |\n| Additional paid-in capital | 459,982 | 459,728 |\n| Accumulated other comprehensive loss | (184,490) | (175,339) |\n| Retained earnings | 2,165,690 | 1,962,578 |\n| **Total stockholders' equity** | **2,441,721** | **2,247,506** |\n| **Total liabilities and stockholders' equity** | **$7,136,948** | **$6,382,869** | [Unaudited Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) This section presents the company's revenues, costs, and net income for the three and six months ended June 30, 2024 and 2023 | (in thousands, except per share amounts) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---|:---|:---|\n| **Revenues:** |||||\n| Service revenues | $1,288,370 | $1,159,090 | $2,440,228 | $2,212,323 |\n| Product revenues | 264,349 | 238,810 | 489,186 | 492,964 |\n| **Total revenues** | **1,552,719** | **1,397,900** | **2,929,414** | **2,705,287** |\n| **Cost of revenues:** |||||\n| Service revenues | 850,391 | 771,600 | 1,666,740 | 1,523,195 |\n| Product revenues | 185,151 | 175,912 | 339,872 | 355,831 |\n| **Total cost of revenues** | **1,035,542** | **947,512** | **2,006,612** | **1,879,026** |\n| Selling, general and administrative expenses | 197,876 | 167,382 | 379,744 | 334,135 |\n| Accretion of environmental liabilities | 3,304 | 3,486 | 6,521 | 6,893 |\n| Depreciation and amortization | 100,504 | 89,697 | 195,569 | 174,455 |\n| **Income from operations** | **215,493** | **189,823** | **340,968** | **310,778** |\n| Other expense, net | (167) | (1,283) | (1,308) | (1,167) |\n| Loss on early extinguishment of debt | — | — | — | (2,362) |\n| Interest expense, net of interest income | (36,449) | (30,072) | (64,988) | (50,704) |\n| **Income before provision for income taxes** | **178,877** | **158,468** | **274,672** | **256,545** |\n| Provision for income taxes | 45,597 | 42,702 | 71,560 | 68,378 |\n| **Net income** | **$133,280** | **$115,766** | **$203,112** | **$188,167** |\n| **Earnings per share:** |||||\n| Basic | $2.47 | $2.14 | $3.77 | $3.48 |\n| Diluted | $2.46 | $2.13 | $3.75 | $3.46 |\n| Shares used to compute earnings per share - Basic | 53,932 | 54,092 | 53,931 | 54,084 |\n| Shares used to compute earnings per share - Diluted | 54,248 | 54,448 | 54,231 | 54,422 | [Unaudited Consolidated Statements of Comprehensive Income](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section details net income and other comprehensive income/loss components for the three and six months ended June 30, 2024 and 2023 | (in thousands) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---|:---|:---|\n| Net income | $133,280 | $115,766 | $203,112 | $188,167 |\n| **Other comprehensive (loss) income, net of tax:** |||||\n| Unrealized (loss) gain on available-for-sale securities | (8) | 44 | (92) | 218 |\n| Unrealized gain on fair value of interest rate hedges | 3,106 | 12,556 | 11,767 | 7,727 |\n| Reclassification adjustment for interest rate hedge amounts realized in net income | (3,721) | (4,9

Clean Harbors (CLH) came out with quarterly earnings of $2.46 per share, beating the Zacks Consensus Estimate of $2.21 per share. This compares to earnings of $2.13 per share a year ago. These figures are adjusted for non-recurring items. Over the last four quarters, the company has surpassed consensus EPS estimates three times. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on t ...

EXHIBIT 99.1 Press Release • Posts 11% Q2 Revenue Increase to $1.55 Billion, Led by Environmental Services • Generates 15% Q2 Net Income Growth to $133.3 Million, or EPS of $2.46 • Achieves 14% Growth in Q2 Adjusted EBITDA to $327.8 Million with Margin of 21.1% • Raises Full-Year 2024 Adjusted EBITDA Guidance "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 Bat ...