Clean Harbors (CLH) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue grew 7% year-over-year to $1.43 billion; full-year revenue increased 9% to $5.89 billion, driven by strong Environmental Services (ES) segment performance and record margin expansion.

• Full-year net income reached $402.3 million (EPS $7.42), with Q4 net income at $84.0 million (EPS $1.55), both up from 2023.

• Adjusted EBITDA for 2024 rose 10% to $1.12 billion (19.0% margin), with Q4 Adjusted EBITDA at $257.2 million.

• Achieved operational milestones including the commercial launch of the Kimball, Nebraska incinerator, integration of HEPACO and Noble Oil, and expansion in Baltimore.

• Maintained a strong safety record, surpassing 2024 goals (TRIR improved to 0.65).

Financial highlights

• Q4 adjusted EBITDA was $257.2 million (18.0% margin); full-year adjusted EBITDA was $1,116.9 million (19.0% margin).

• Full-year revenue grew 9% to $5.89 billion; Q4 revenue increased by $90 million (7%).

• Adjusted free cash flow for 2024 was $357.9 million; cash and short-term securities at year-end were $789.8 million, up $240 million for the year.

• Q4 gross margin was 29.9%, down from 31.0% in Q4 2023; full-year gross margin was 31.0%.

• Share repurchases in 2024 totaled $55 million.

Outlook and guidance

• 2025 adjusted EBITDA guidance: $1.15–$1.21 billion (midpoint $1.18 billion), representing 6% growth year-over-year.

• 2025 adjusted free cash flow expected in the range of $430–$490 million, with net cash from operating activities of $775–$865 million.

• Q1 2025 ES segment Adjusted EBITDA expected to grow 4–6% year-over-year; consolidated Q1 EBITDA expected to be flat.

• Continued margin improvement anticipated, with ES segment EBITDA expected to increase 5–8% from 2024.

• SKSS 2025 adjusted EBITDA expected at $140 million amid ongoing market challenges.