Clean Harbors looks to spend record cash on M&A and internal growth

Core Insights - Clean Harbors reported Q4 revenue of $1.50 billion, a 4.8% increase year over year, and full-year 2024 revenue of $6.03 billion, up 2.4% year over year [1] - Q4 net income was $86.6 million, up 3.1% year over year, while full-year net income decreased by 2.8% to $391 million [1] - The company achieved record adjusted free cash flow of $509.3 million for the year [1] Financial Performance - Environmental services segment revenue increased by 6% quarter over quarter, with field services revenue up 13% due to $30 million in emergency response activities [1] - The company handled 22,000 emergency response events in 2025, a 5% increase year over year [1] - Safety-Kleen's oil re-refining business showed improvement, with adjusted earnings before income, taxes, depreciation, and amortization increasing in Q4 year over year [1] Operational Highlights - Incinerator utilization rate for the year was 87%, excluding the Kimball incinerator, which is expected to handle higher volumes and complex waste streams [1] - Clean Harbors is investing $50 million into its vacuum truck fleet to capitalize on growth opportunities in the Safety-Kleen branch [1] M&A Activity - The company acquired a portion of Depot Connect International for $130 million, which includes five locations providing various waste handling and treatment services [1] - Clean Harbors plans to continue pursuing acquisition opportunities despite challenges in 2025 [1] Strategic Initiatives - A three-year, $110 million contract with Joint Base Pearl-Harbor Hickam is expected to add $15 to $30 million in additional earnings annually [1] - The company anticipates a 20% increase in PFAS work this year due to new federal regulations [1] Future Guidance - For 2026, Clean Harbors expects growth driven by reshoring, PFAS opportunities, and a growing pipeline of remediation work [2] - Projected adjusted EBITDA for 2026 is between $1.20 billion and $1.26 billion, with adjusted net income expected between $410 million and $461 million [2] - The company forecasts a decline in base oil prices in 2026, which may pose challenges [2]