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Clean Harbors Stock Price Decreases 4% Despite Q4 Earnings Beat

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Clean Harbors, Inc. (CLH - Free Report) has reported impressive fourth-quarter 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

See Zacks Earnings Calendar to stay ahead of market-making news.

Better-than-expected earnings did not impress investors, as the CLH stock has declined 3.8% since the release of results on Feb. 19, 2025.

CLH’s earnings of $1.55 per share outpaced the Zacks Consensus Estimate by 15.7% but decreased 14.8% from the year-ago quarter. Total revenues of $1.4 billion surpassed the consensus estimate by a slight margin and increased 7% on a year-over-year basis.

The stock has gained 18.5% in a year compared with the 29.7% rise of the industry it belongs to and 9.8% growth of the Zacks S&P 500 composite.

Clean Harbors, Inc. Price, Consensus and EPS Surprise

 

CLH’s Segmental Revenues

Environmental Services (ES) revenues of $1.2 billion grew 9.1% from the year-ago quarter, meeting our projection. Healthy demand for ES services was a cornerstone in generating strong waste collection volumes, mainly containerized waste, and a healthy flow of project work, leading to a surge in this segment’s revenues.

Revenues from Safety-Kleen Sustainability Solutions (SKSS) amounted to $216.9 million, decreasing 4% on a year-over-year basis and missing our estimate of $230.1 million. A challenging commodity pricing environment with market conditions resulting in a detriment of base oil and lubricants hurt this segment’s revenues.

Clean Harbors’ Profitability Performance

Adjusted EBITDA of $257.2 million grew marginally from the year-ago quarter and beat our projection of $253.2 million. The adjusted EBITDA margin was 18%, down 100 basis points from the year-ago quarter.

Segment-wise, adjusted EBITDA for ES amounted to $310.6 million, increasing 11.5% year over year. The figure outpaced our estimate of $281.2 million. Adjusted EBITDA for SKSS was $24.6 million, down 47.4% from the year-ago quarter and missing our projection of $38.4 million.

Balance Sheet & Cash Flow of CLH

Clean Harbors exited the quarter with cash and cash equivalents of $687.2 million compared with $513.4 million at the end of the preceding quarter. Inventories and supplies were $384.7 million compared with $376.6 million in the third quarter of 2024.

Long-term debt (less current portion) was $2.8 billion, flat with the previous quarter. CLH generated $303.9 million in net cash from operating activities. The capital expenditure amounted to $62.4 million. The adjusted free cash flow utilized was $247.5 million.

CLH’s Q1 & 2025 Guidance

For the first quarter of 2025, Clean Harbor expects adjusted EBITDA growth of 4-6%.

For 2025, CLH’s guidance for adjusted EBITDA is $1.15-$1.21 billion. The adjusted free cash flow is expected to be $430-$490 million.

Clean Harbors currently carries a Zacks Rank #5 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Waste Connections, Inc. (WCN - Free Report) reported mixed fourth-quarter 2024 results.

WCN’s adjusted earnings of $1.16 per share (excluding $1.92 from non-recurring items) missed the Zacks Consensus Estimate by 3.3% but increased 4.5% on a year-over-year basis. Revenues of $2.3 billion beat the consensus estimate marginally and grew 11% from the year-ago quarter.

Republic Services, Inc. (RSG - Free Report) posted mixed fourth-quarter 2024 results.

RSG’s earnings per share of $1.58 (excluding 5 cents from non-recurring items) outpaced the Zacks Consensus Estimate by 15.3% and grew 12.1% from the year-ago quarter. Revenues of $4 billion missed the consensus mark by a slight margin but increased 5.6% year over year.


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