Clean Harbors(US:CLH)2025-10-29 14:58Financial Performance - Total revenues for the three months ended September 30, 2025, were $1,549,337,000, a slight increase from $1,529,422,000 in the same period of 2024, representing a growth of 1.8%[12] - Net income for the nine months ended September 30, 2025, was $304,384,000, compared to $318,325,000 for the same period in 2024, reflecting a decrease of 4.4%[14] - The company reported a net income of $118,799,000 for the three months ended September 30, 2025, compared to $115,213,000 in 2024, reflecting a growth of 2.2%[14] - Earnings per share (diluted) for the nine months ended September 30, 2025, were $5.65, down from $5.87 in the same period of 2024, a decline of 3.8%[12] - Basic earnings per share for the three months ended September 30, 2025, was $2.22, an increase from $2.14 in the same period of 2024[78] - Comprehensive income for the three months ended September 30, 2025, was $106,228, compared to $107,667 in 2024, a decrease of 1.3%[14] Revenue Breakdown - The company reported service revenues of $1,321,865,000 for the three months ended September 30, 2025, compared to $1,278,955,000 in the same period of 2024, indicating an increase of 3.4%[12] - Total third-party revenues for the three months ended September 30, 2025, reached $1,549.3 million, a 1.3% increase from $1,529.4 million in the same period of 2024[36][37] - Environmental Services segment generated $1,318.6 million in revenues, with significant contributions from Technical Services ($490.8 million) and Industrial Services ($332.1 million)[36] - Safety-Kleen Environmental Services contributed $340.0 million in revenues, with $263.4 million from waste handling and disposal services[36] - Safety-Kleen Oil segment generated $154.2 million in revenues from bulk sales of lubricating oils and recycled fuel oil[36] Assets and Liabilities - Cash and cash equivalents increased to $759,197,000 as of September 30, 2025, up from $687,192,000 at the end of 2024, marking a growth of 10.5%[10] - Total current assets rose to $2,608,261,000 as of September 30, 2025, compared to $2,433,796,000 at the end of 2024, an increase of 7.2%[10] - The company’s total liabilities decreased slightly to $4,764,459,000 as of September 30, 2025, from $4,774,749,000 at the end of 2024, a reduction of 0.2%[10] - The total stockholders' equity increased to $2,775,840,000 as of September 30, 2025, from $2,573,529,000 at the end of 2024, reflecting a growth of 7.8%[10] - The company’s receivables increased to $1,104.8 million as of September 30, 2025, compared to $1,015.4 million at the end of 2024[38] Cash Flow and Expenses - Cash flows from operating activities for the nine months ended September 30, 2025, were $511,632,000, compared to $473,833,000 for the same period in 2024, an increase of 8.0%[16] - The company incurred total costs of revenues of $1,048,490,000 for the three months ended September 30, 2025, compared to $1,055,599,000 in the same period of 2024, a decrease of 0.7%[12] - Selling, General and Administrative Expenses for the three months ended September 30, 2025, amounted to $121,139, up from $110,064 in the same quarter of 2024, reflecting increased administrative costs[104] - The cost of revenues for the nine months ended September 30, 2025, was $3,068,850, which is an increase from $3,037,458 in the prior year, highlighting rising operational costs[106] Acquisitions and Investments - The acquisition of HEPACO on March 22, 2024, was completed for $392.2 million, enhancing the Environmental Services segment's Field Services business[39] - The Company acquired Noble Oil Services, Inc. for an all-cash purchase price of $68.7 million, enhancing its oil collection operations in the southeastern U.S.[42] - The company completed the acquisition of three additional privately-owned businesses for a total cash consideration of $17.1 million, consolidating their operations into existing segments[45] Stock and Compensation - The company repurchased 208 shares of common stock for a total of $50,000,000 during the quarter ending September 30, 2025[18] - Stock-based compensation for the quarter ending June 30, 2025, amounted to $8,922,000[18] - Total stock-based compensation cost for Q3 2025 was $8.9 million, up from $5.8 million in Q3 2024, representing a 53.4% increase[14][81] Legal and Regulatory Matters - The company recorded reserves of $19.4 million for legal and administrative proceedings as of September 30, 2025, down from $29.8 million at the end of 2024[89] - The Company is involved in approximately 85 product liability cases related to Safety-Kleen, with claims alleging personal injury from the use of its cleaning products[92] - The Company has been identified as a potentially responsible party for cleanup at 132 Superfund sites, with potential liabilities exceeding $1.0 million at three of these sites[96][97] Debt and Financing - The company maintains a $600.0 million revolving credit facility with no outstanding loan balance as of September 30, 2025, and $473.3 million available to borrow[62] - On October 9, 2025, the company issued $745.0 million in unsecured senior notes due 2033, with an interest rate of 5.750% per annum[63] - The company utilized $1,260.0 million in borrowings under the Amended Credit Agreement to refinance approximately $1,457.3 million of secured senior term loans[67]