374Water (SCWO) Q1 2025 Earnings Call May 15, 2025 04:30 PM ET Company Participants Christopher Tyson - Executive Vice President & PartnerChris Gannon - CEO & PresidentRussell Kline - CFO Conference Call Participants Michael Mathison - Analyst Operator Greetings. Thank you for standing by, and welcome to the three seventy four Water First Quarter twenty twenty five Financial Results Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the forma ...

374Water (SCWO) Q1 2025 Earnings Call May 15, 2025 04:30 PM ET Speaker0 Greetings. Thank you for standing by, and welcome to the three seventy four Water First Quarter twenty twenty five Financial Results Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. At this time, I would like to hand the call to Chris Tyson, Executive Vice President of MZ Group. Please go ahead. ...

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $1.3, a 6% increase compared to the same quarter last year [6] - Revenues increased by 28% from $612.1 million to $783.6 million year-over-year [24] - The company reaffirmed its 2025 earnings per share guidance range of $2.07 to $2.11, compared to last year's non-GAAP earnings of $1.97 per share [7] Business Line Data and Key Metrics Changes - Both the Water and Gas businesses performed well, contributing to the overall strong results [6] - The Gas segment reported an increase in volumes due to normal weather conditions compared to significantly warmer weather in the previous year [24] Market Data and Key Metrics Changes - The company has begun to raise equity through its ATM program, issuing approximately $210 million so far this year [8] - The company is in discussions with data center developers representing up to five gigawatts of needed power generation in the Pittsburgh region [21] Company Strategy and Development Direction - The company plans to invest between $1.4 billion and $1.5 billion in infrastructure improvements in 2025, with $270.5 million already invested by March 31 [7] - The company is focusing on water and wastewater utility acquisitions, having acquired over $518 million in rate base since 2015 [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the full-year earnings per share guidance, citing strong first-quarter performance but cautioning about potential headwinds in the remaining quarters [52] - The company is committed to addressing PFAS compliance and expects to spend approximately $450 million to achieve compliance by 2028 [10][56] Other Important Information - The company has been recognized for its operational achievements, including a 99.8% water quality compliance rate [9] - New rates went into effect for Aqua Pennsylvania, expected to increase total annual revenues by $73 million [31] Q&A Session Summary Question: Regarding equity issuance and share price - Management indicated that the focus is on raising the $315 million in equity needed for 2025 rather than considering 2026 equity needs at this time [43] Question: Texas rate case expectations - Management stated that they plan to file the Texas rate case by the end of the month and will provide details on revenue requests and equity layers at that time [45] Question: EPS guidance and performance - Management acknowledged strong first-quarter performance but emphasized the need to wait for clarity as the year progresses before adjusting guidance [52] Question: Impact of EPA announcement on PFAS - Management confirmed that they are proceeding with their PFAS mitigation plans and remain on track with their budget [56] Question: Data centers and gas supply - Management discussed various approaches to support data center development, including behind-the-meter generation and increased distribution volume [65] Question: Beaver Falls settlement status - Management expressed optimism about the Beaver Falls case being on the agenda in June and highlighted the importance of resolving such cases for water supply [90]

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $1.3, a 6% increase compared to the same quarter last year [5] - Revenues increased by 28% from $612.1 million to $783.6 million year-over-year [22][23] - The company reaffirmed its 2025 earnings per share guidance range of $2.07 to $2.11, compared to last year's $1.97 on a non-GAAP basis [6][12] Business Line Data and Key Metrics Changes - Both the Water and Gas businesses performed well, contributing to the overall strong results [5] - The Gas segment reported an increase in volumes due to normal weather conditions compared to significantly warmer weather in the previous year [23] Market Data and Key Metrics Changes - The company has begun to raise equity through its ATM program, issuing approximately $210 million so far this year [6] - The company expects to receive approximately $100 million in proceeds from settlements with polluters [8] Company Strategy and Development Direction - The company is focused on infrastructure investments, planning to invest between $1.4 billion and $1.5 billion in 2025 [6] - The company is actively pursuing water and wastewater utility acquisitions, having acquired over $518 million in rate base since 2015 [30][31] - The company aims for a compounded annual growth rate of 8% in its combined utility rate base, with specific growth rates of 6% for regulated water and 11% for regulated natural gas segments [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the full-year earnings per share guidance, despite potential headwinds in the remaining quarters [50] - The company is committed to addressing PFAS compliance and expects to meet its $450 million capital spend target by 2028 [8][54] Other Important Information - The company has been recognized for its operational achievements, including a 99.8% water quality compliance rate [7] - Legislative developments in Texas and Ohio are seen as positive for the company's regulatory environment [10][29] Q&A Session Summary Question: Equity issuance and share price - Management indicated that the focus is on raising the $315 million in equity needed for 2025 rather than considering 2026 equity needs at this time [40] Question: Texas rate case expectations - The company plans to file for the Texas rate case by the end of the month, with expectations for revenue increase and ROE consistent with other states [42][44] Question: EPS guidance and performance - Management noted that while the first quarter started strong, it is premature to adjust guidance due to uncertainties in the remaining quarters [50] Question: PFAS operational strategy - The company is proceeding with its PFAS mitigation plans and remains on track with its budget [54] Question: Data centers and gas supply - Discussions with data center developers are ongoing, with various approaches being considered, including behind-the-meter generation [62] Question: Beaver Falls settlement - Management expressed optimism about the Beaver Falls case, expecting it to be on the agenda in June [86]

Perma-Fix Environmental Services (PESI) Q1 2025 Earnings Call May 08, 2025 10:00 AM ET Speaker0 Good morning, everyone, and welcome to the Perma Fix Fiscal First Quarter twenty twenty five Earnings Please note this conference is being recorded. I will now turn the conference over to your host David Waldman of Crescendo Communications. David, the floor is yours. Speaker1 Thank you, Jenny, and good morning, everyone. Welcome to Permafix Environmental Services First Quarter twenty twenty five Conference Call. ...

Disclaimer Nasdaq: ARQ Q1 2025 Earnings Call May 7, 2025 This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. When used in this presentation, the words "can," "will," "may," "intends," "expects," "anticipates." "continuing," "believes," similar expressions and any other statements that are not historical facts are intended to identify those assertions as for ...

Clean Harbors (CLH) Conference Summary Industry Overview - Clean Harbors is the largest hazardous industrial waste service company in North America, focusing primarily on hazardous waste with some medical waste services due to incineration capabilities [4][10] - The waste industry is becoming more integrated, covering solid, industrial, and medical waste [4] Macroeconomic Outlook - The macroeconomic outlook has improved since the beginning of the year, with a strong pipeline and growth observed in April [7][8] - Despite concerns about cyclicality, Clean Harbors has shown resilience, with no signs of customers reducing demand [8][20] Business Segments Environmental Services - The Environmental Services segment has improved margins by 500 basis points over the last six to eight years, attributed to new incinerator capacity, better pricing strategies, and operational efficiencies [10][11] - The company has experienced 12 consecutive quarters of year-over-year EBITDA margin growth in this segment [17] Used Oil and Safety Clean Solutions - The used oil segment has faced profitability challenges post-pandemic, but a shift in strategy to prioritize pricing over volume has led to improved stability [81][86] - The company processes approximately 250 million gallons of used motor oil annually, converting it into base oil [82] Capacity and Market Dynamics - There is ample landfill capacity, but incineration capacity is constrained due to the complex nature of waste streams [28][30] - Clean Harbors has added new incineration capacity and expects this to be absorbed by the market due to ongoing demand [30][34] Regulatory Environment and PFAS - Clean Harbors has introduced a total PFAS solution, which includes testing, remediation, and disposal services, with projected revenue growth of 10% to 20% in this area [64][70] - The company is actively involved in addressing PFAS issues, with a long-term view on regulatory developments and market needs [68][69] Mergers and Acquisitions - The company has expanded its market share through acquisitions, allowing for better pricing discipline and stability in the Environmental Services segment [50][52] - Future M&A strategies will focus on geographic expansion and enhancing capabilities in waste management [53] Conclusion - Clean Harbors is positioned well within the hazardous waste industry, demonstrating resilience against macroeconomic challenges and adapting its business strategies to maintain profitability and growth [17][19][88]

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]