Clean Harbors : First Quarter 2025 Investor Review

Published: 2025-04-30 09:12:37 ET CLH

1

Revenue of $1.43B, up 4% YoY reflecting growth in both operating segments

Net income of $58.7 million or EPS of $1.09

Adjusted EBITDA* was $234.9M; Adjusted EBITDA* margin of 16.4%

Adjusted free cash flow* was ($115.7) million; in line with our expectations due to timing of certain items, such as year-end incentives, working capital and interest payments

Environmental Services segment experienced continued demand for our disposal and recycling network

Safety-Kleen Sustainability Solutions segment profitability was slightly down due to market pricing, but exceeded Q1 expectations due to strong execution of collection strategies

Corporate segment costs up YoY as expected due to acquisitions and systems investments

Best quarterly safety result in our history with a TRIR of 0.46 - well below annual goal

* For a reconciliation of non-GAAP measures to its nearest GAAP equivalent, please refer to the appendix in this presentation.

+3%

$1,172.5 $1,209.1

(in millions)

Q1 2024 Q1 2025

22.6%

+4%

22.7%

$264.5 $274.6

(in millions)

Revenue increased YoY primarily due to addition of HEPACO. We also had growth resulting from pricing, incineration utilization and waste volumes, which offset a decline in Industrial Services

Adjusted EBITDA increased due to higher revenues; Margin is up as volume/pricing gains more than offset Kimball impact, acquisition effects and weather interruptions that hampered efficiency

Incinerator utilization was strong at 88% vs. 79% in Q1'24 given ongoing demand and favorable trends; Price, on a mix-adjusted basis, was up more than 5%

Performed 245K parts washer services vs. 247K a year ago reflecting some weather impacts; SK Environmental Services revenue up 5% due to pricing and growth in other core offerings including containerized waste and vacuum services

Q1 2024 Q1 2025

* For a reconciliation of net income to Adjusted EBITDA, please refer to the appendix in this presentation.

(in millions)

(in millions)

$222.7

$204.1

+9%

Q1 2024 Q1 2025

14.6%

-5%

12.7%

$29.7 $28.3

Q1 2024 Q1 2025

Revenue up YoY, reflecting greater volumes, including the addition of Noble Oil, as well as the shift to higher charge for oil (CFO) that more than offset lower pricing and weak demand environment for base oil and blended products

Adjusted EBITDA declined slightly due to pricing environment and market demand. Margin down YoY due to market pricing

Gathered 58 million gallons of waste oil compared with 55 million gallons in Q1'24. Due to substantial shift in our collection approach, average collection costs were a significant charge for oil (CFO), well above the CFO rates in Q4 and in Q1'24

Blended products sales volume accounted for 17% of total volumes sold vs. 21% in the year ago period

Castrol partnership and our Group III initiative continue to move

forward

Adjusted EBITDA Margin

* For a reconciliation of net income to Adjusted EBITDA, please refer to the appendix in this presentation.

Disclaimer

Clean Harbors Inc. published this content on April 30, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2025 at 12:42 UTC.