Clean Harbors reports strong financial performance in Q1 2024
Clean Harbors, the leading North American provider of environmental and industrial services, has announced a robust start to 2024 with notable financial achievements in the first quarter. The company recorded a 5% increase in revenue, reaching USD1.38 billion, and a net income of USD69.8 million, or USD1.29 per diluted share.
During the quarter, the Environmental Services (ES) segment saw a revenue increase of 10%, which contributed significantly to a 16% rise in adjusted EBITDA for the segment. This growth was driven by high-value waste disposal and recycling streams, alongside strong pricing execution. Despite a slow start in the Safety-Kleen Sustainability Solutions (SKSS) segment, improvements in re-refined base oil (RRBO) pricing towards the quarter’s end signal a positive trajectory moving forward.
Safety-Kleen Systems, Inc., a subsidiary of Clean Harbors, Inc., officially acquired Noble Oil Recycling, a prominent regional recycler and re-refiner of used oil, through an all-cash transaction on May 1, 2024. Financial terms were not disclosed, but the acquisition marks a significant expansion in Safety-Kleen’s environmental services and products.
Noble Oil Services, based in Sanford, North Carolina, has been a leader in the recycling and re-refining sector in the United States, serving clients across 12 states in the eastern part of the country. This acquisition will integrate Noble Oil’s extensive operations into Safety-Kleen’s already broad service portfolio, enhancing the company’s capabilities in sustainable waste management.
Eric Gerstenberg, co-chief executive officer of Clean Harbors, highlighted the expanding project pipeline and growing demand across the company’s services, particularly praising the ES segment for its continued success. “Our Environmental Services are seeing strong volumes and a healthy backlog, especially in incineration, which supports our optimistic outlook for the remainder of the year,” Gerstenberg said.
The company also emphasised its commitment to safety and operational excellence, noting a Total Recordable Incident Rate (TRIR) of 0.69 in the first quarter, underscoring its prioritisation of safe operational practices.
Looking ahead, Clean Harbors remains positive about its business prospects for 2024, driven by favorable market conditions and strategic initiatives, including the recent partnership with Castrol on the MoreCircular program and the ongoing expansion of its service offerings.
The financial outlook for the full year of 2024 is optimistic, with adjusted EBITDA expected to grow by approximately 11%, reaching between USD1.1 billion and USD1.15 billion. This growth is anticipated to be supported by a strong second quarter and sustained demand across Clean Harbors’ diverse service platforms.
