Clean Harbors cites record growth in 2023, finalizes acquisition

Clean Harbors Inc. reports 2023 revenue of $5.41 billion, representing 5 percent growth compared with $5.17 billion garnered in 2022. The Norwell, Massachusetts-based specialty and hazardous waste company's net income of $377.9 million in 2023, however, dropped by 8.2 percent compared with the $411.7 million earned the prior year.

“[Last year] was an outstanding year for the company, highlighted by a record financial performance in our Environmental Services [ES] segment, notable operational accomplishments and extraordinary safety results," Clean Harbors co-CEO Eric Gerstenberg says.

“Beyond our financial strength, 2023 was a year of substantial achievement. We accelerated the construction of our Nebraska incinerator, acquired Thompson Industrial, expanded our billable headcount, significantly improved our ESG [environmental, social and governance] ratings and lowered voluntary turnover to below prepandemic levels.”

“Our ES segment capped a year of record growth with an outstanding fourth quarter,” co-CEO Mike Battles adds. “Demand for our ES services remained robust, as steady volumes, healthy project flow and continued customer interest in our service offerings drove favorable pricing. Our Safety-Kleen Sustainability Solutions (SKSS) segment fell short of our expectations in Q4, as market conditions for base oil deteriorated late in the year.”

Regarding the year now in progress, Gerstenberg says, “We begin 2024 with considerable momentum in our ES segment as our facilities network and service lines remain in high demand. We expect the favorable market conditions that drove our 2023 success, including United States manufacturing and regulatory trends, to continue to support our profitable growth plans in 2024.

“Our Field Services business will greatly benefit from the expected addition of HEPACO, which we recently announced and expect to close in the first half of this year. Its experienced team, extensive capabilities and geographic footprint align well with our existing business.”

Shortly after that comment was issued accompanying the Clean Harbors financial results, the company announced the completion of the HEPACO acquisition.

Charlotte, North Carolina-based HEPACO provides environmental field and emergency response services in the Eastern U.S. Clean Harbors purchased HEPACO from San Francisco-based Gryphon Investors for $400 million.

“HEPACO is an ideal cultural fit with our existing Field Services business, and we are confident that this will be a highly synergistic deal with strong margin improvement potential,” Gerstenberg says.

“As an established leader in Field Services, HEPACO will support the growth of our Environmental Services segment and our Vision 2027 long-term strategic plan,” Battles adds. “HEPACO also provides the opportunity for us to drive additional volumes of waste to our network of disposal and recycling facilities.”