Clean Harbors Inc (CLH) Q2 2024 Earnings: EPS of $2.46 Beats Estimates, Revenue Hits $1.55 Billion

Revenue and Net Income Growth Outpace Expectations

Summary
  • Revenue: $1.55 billion, up by 11% year-over-year, surpassing estimates of $1.53 billion.
  • Net Income: $133.3 million, a 15% increase from the same period last year.
  • GAAP EPS: $2.46 per diluted share, compared to $2.13 per diluted share in Q2 2022.
  • Adjusted EBITDA: $327.8 million, a 14% growth with a margin of 21.1%.
  • Free Cash Flow: $84.2 million, compared to $86.0 million in Q2 2022.
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On July 31, 2024, Clean Harbors Inc (CLH, Financial) released its 8-K filing for the second quarter of 2024, showcasing impressive financial results that surpassed analyst estimates. Clean Harbors Inc is a leading provider of environmental and industrial services, offering parts cleaning and related environmental services to commercial, industrial, and automotive customers. The company operates through two main segments: Environmental Services and Safety-Kleen Sustainability Solutions, with the majority of its revenue generated from the Environmental Services segment.

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Q2 2024 Financial Highlights

Clean Harbors Inc reported a robust 11% increase in revenue, reaching $1.55 billion compared to $1.40 billion in the same period of 2023. This figure exceeded the analyst estimate of $1.529 billion. Net income for the quarter grew by 15% to $133.3 million, or $2.46 per diluted share, surpassing the estimated earnings per share of $2.22. Adjusted EBITDA also saw a significant rise of 14%, amounting to $327.8 million with a margin of 21.1%.

Segment Performance and Key Metrics

The Environmental Services (ES) segment experienced a 12% increase in revenue and an 18% growth in Adjusted EBITDA, driven by strong organic growth and the acquisition of HEPACO. The Safety-Kleen Sustainability Solutions (SKSS) segment rebounded from a challenging first quarter, achieving an 8% revenue growth compared to Q2 2023.

“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 Battles, Co-Chief Executive Officer.

Income Statement Overview

Metric Q2 2024 Q2 2023
Revenue $1.55 billion $1.40 billion
Net Income $133.3 million $115.8 million
Adjusted EBITDA $327.8 million $287.5 million

Balance Sheet and Cash Flow

Clean Harbors Inc reported net cash from operating activities of $216.0 million for Q2 2024, compared to $207.6 million in Q2 2023. Adjusted free cash flow was $84.2 million, slightly down from $86.0 million in the previous year. The company continues to invest in property, plant, and equipment, with additions totaling $135.1 million for the quarter.

Future Outlook

Looking ahead, Clean Harbors Inc has raised its full-year 2024 Adjusted EBITDA guidance to a range of $1.125 billion to $1.165 billion, reflecting a 13% year-over-year growth. The company also anticipates adjusted free cash flow in the range of $350 million to $390 million.

“We enter the second half of 2024 with healthy demand and momentum in our core disposal, recycling, and service businesses,” said Eric Gerstenberg, Co-Chief Executive Officer.

For more detailed financial information and insights, visit the full 8-K filing.

Explore the complete 8-K earnings release (here) from Clean Harbors Inc for further details.