Clean Harbors announces Q4 and full-year earnings

Clean Harbors Inc., a Norwell, Massachusetts-based provider of environmental and industrial services throughout North America, has announced its financial results for the fourth quarter and year ending Dec. 31, 2024. 

“Our fourth-quarter results were in line with our expectations as our environmental services segment capped a record 2024 with a robust performance, including the 11th consecutive quarter of year-over-year margin growth,” says Mike Battles, co-CEO of Clean Harbors. “The segment benefited from steady demand, strong waste collection volumes, a healthy flow of project work and favorable pricing. 

“For the full year, the segment saw 11 percent top-line growth and annual adjusted EBITDA margin exceeded 25 percent. We maintained a strong focus on safety and continuous improvement in the quarter, which contributed to a total recordable incident rate that enabled us to surpass our 2024 goal.”
In Q4, Clean Harbors’ revenue grew 7 percent to $1.43 billion, compared with $1.34 billion in the same period of 2023. Income from operations was $137.0 million, compared with $147.3 million in the fourth quarter of 2023. 

Net income was $84.0 million, or $1.55 per diluted share, compared with $98.3 million, or $1.81 per diluted share, for the same period in 2023. Adjusted EBITDA was $257.2 million, compared with $254.9 million in the same period of 2023.

“Our environmental services segment achieved a 9 percent growth in revenue and 11 percent growth in adjusted EBITDA,” says Eric Gerstenberg, co-CEO. “Our adjusted EBITDA margin in the segment increased by 50 basis points. Top-line growth in the segment was again led by our field services operations. Field services revenue increased 47 percent from the prior year period, reflecting the HEPACO acquisition and healthy organic growth in our legacy business.”

Revenues for 2024 increased 9 percent to $5.89 billion, compared with $5.41 billion in 2023. Income from operations increased 9 percent to $670.2 million, compared with $612.4 million in 2023.
Net income was $402.3 million, or $7.42 per diluted share, compared with net income of $377.9 million, or $6.95 per diluted share for 2023.

Adjusted EBITDA 10 percent to $1.12 billion from $1.01 billion in 2023. The company generated an adjusted free cash flow of $357.9 million in 2024, compared with $321.9 million in 2023. The increase is attributable to greater earnings and some improvements in working capital management which offset higher net capital expenditures.

“2024 was another exceptional year for the company, particularly in our environmental services segment where we saw the continuation of a multi-year profitable growth trend and record financial performance,” Gerstenberg says. “Adjusted EBITDA margin in the environmental services segment expanded by 90 basis points to 25.3 percent on the strength of 11 percent revenue growth combined with a 15 percent increase in adjusted EBITDA.”