Clean Harbors Stock Price Increases 5.9% on Q1 Earnings Beat

Core Viewpoint - Clean Harbors, Inc. (CLH) reported strong first-quarter 2024 results, with earnings and revenues exceeding the Zacks Consensus Estimate, leading to a 5.9% stock price increase since the results announcement on April 30 [1][2]. Financial Performance - CLH's earnings per share (EPS) were $1.09, surpassing the Zacks Consensus Estimate by 6.9%, although this represents a 15.5% decrease from the same quarter last year [2]. - Total revenues reached $1.4 billion, slightly exceeding the consensus estimate and reflecting a 4% year-over-year increase [2]. Segment Performance - Environmental Services (ES) revenues were $1.2 billion, a 3.9% increase from the previous year, driven by the HEPACO acquisition, higher pricing, and increased incineration utilization [3]. - Safety-Kleen Sustainability Solutions (SKSS) generated revenues of $224.8 million, a 4.4% year-over-year increase, but fell short of the estimate of $230.1 million, with growth attributed to pricing initiatives and new product offerings [4]. Profitability Metrics - Adjusted EBITDA was $234.9 million, slightly above projections but marginally increased from the previous year, with an adjusted EBITDA margin of 16.4%, down 30 basis points year-over-year [5]. - Segment-wise, adjusted EBITDA for ES was $274.6 million, a 3.8% year-over-year increase, while SKSS adjusted EBITDA was $28.3 million, down 4.9% from the previous year [6]. Balance Sheet and Cash Flow - At the end of the quarter, CLH had cash and cash equivalents of $489.4 million, down from $687.2 million in the previous quarter, with inventories at $376 million [7]. - Long-term debt remained stable at $2.8 billion, and the company generated $1.6 billion in net cash from operating activities, with capital expenditures of $118.7 million [8]. Future Guidance - For Q2 2025, CLH has lowered its adjusted EBITDA growth guidance to 1-3%, down from the previous estimate of 4-6% [9]. - The guidance for adjusted EBITDA for 2025 is set at $1.15-$1.21 billion, with expected adjusted free cash flow of $430-$490 million [9].