NYSE$CLH

Clean Harbors Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported record quarterly financial results driven by robust demand, positive market dynamics, and the addition of HydroChemPSC.

Clean Harbors announced record second-quarter results with a 46% increase in revenue to $1.36 billion. Net income reached $148.2 million, with adjusted EBITDA growing by 65% to $309.1 million. The company also raised its 2022 adjusted EBITDA and adjusted free cash flow guidance.

  • Revenues increased 46% to $1.36 billion driven by strength across all core businesses and the addition of HydroChemPSC.
  • Net income was $148.2 million, with GAAP EPS of $2.71 and adjusted EPS of $2.44.
  • Adjusted EBITDA increased 65% to $309.1 million.
  • The company raised its 2022 adjusted EBITDA and adjusted free cash flow guidance.

Headline financials

Total Revenue

$1.36B

Previous: $926M+46.4%
EPS (adj)

$2.44

Previous: $1.19+105.0%
Adjusted EBITDA

$309M

Previous: $188M+64.6%
Capital Expenditures

-$148M

Previous: -$92M-60.9%
Free Cash Flow

$115K

Previous: -$24.9M+100.5%
Net Income

$148M

Previous: $67.1M+120.9%
Operating Income

$211M

Previous: $110M+92.0%
Gross Profit

$458M

Previous: $309M+48.4%
Cash & Equivalents

$345M

Previous: $596M-42.1%
Total Assets

$5.92B

Previous: $4.28B+38.6%
Stock-Based Comp

$6.84M

Previous: $3.31M+106.8%

Revenue & EPS history

Clean Harbors · Revenue · Quarterly

$1.36B

Q2 2022+46.4%vs Q2 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Clean Harbors · $1.36B total across 2 segments · Q2 2022

  • Environmental Services
    $1.09B+50.6%
  • Safety-Kleen Sustainability
    $265M+31.2%

Forward guidance

Clean Harbors expects strong operating results in both the ES and SKSS segments throughout the back half of 2022. For the year, the Company now expects Adjusted EBITDA in the range of $975 million to $1.005 billion, or a midpoint of $990 million and Adjusted free cash flow in the range of $310 million to $350 million, or a midpoint of $330 million.

Tailwinds

  • Benefiting from the resurgence in U.S. manufacturing.
  • Benefiting from the 3M partnership.
  • Benefiting from global reshoring to the U.S.
  • Healthy projects pipeline.
  • Benefiting from a strong pricing environment that shows no sign of slowing.

Headwinds

  • High inflation.
  • Supply chain challenges.
  • Hiring as rapidly as possible to meet customer needs.
  • Lowering third-party costs.
  • Strict enforcement of U.S. environmental regulations

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.8%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+2.6%

Avg return

30 days after

41%

28 / 68 earnings

Positive

+17.4%

Q3 2020

Best reaction

-14.3%

Q4 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-6.5%-9.9%
Q4 2025+2.7%+4.4%+2.5%
Q3 2025-11.5%-15.2%-7.6%
Q1 2025-0.1%+4.1%+5.9%
Q4 2024-3.0%-6.6%-13.4%
Q3 2024-12.2%-9.8%-1.3%
Q2 2024+8.0%+1.2%+9.6%
Q1 2024+8.5%+12.2%+14.3%
Q4 2023-2.6%-1.8%+4.0%
Q3 2023+0.9%+0.5%+8.6%
Q2 2023+0.3%+1.3%+4.0%
Q1 2023-6.5%-6.4%+3.3%
Q4 2022+3.2%+2.2%+7.9%
Q3 2022-8.0%-8.3%+2.1%
Q2 2022+8.8%+13.8%+18.9%
Q1 2022-6.7%-12.6%-6.3%
Q4 2021-2.1%+2.4%+15.3%
Q3 2021-10.0%-8.3%-16.3%
Q2 2021+3.0%+5.0%+6.8%
Q1 2021+5.7%+6.0%+6.2%
Q4 2020+0.4%+0.7%+0.3%
Q3 2020+17.4%+25.6%+36.2%
Q2 2020+5.9%+8.2%-4.9%
Q1 2020-5.1%-8.8%+5.5%
Q4 2019-10.6%-10.7%-38.2%
Q3 2019+5.1%+6.1%+5.4%
Q2 2019+4.2%+0.5%+0.9%
Q1 2019-6.1%-6.4%-15.6%
Q4 2018+13.3%+12.8%+19.2%
Q3 2018+1.0%+0.6%+1.4%
Q2 2018+9.7%+8.9%+20.5%
Q1 2018+12.7%+13.6%+18.1%
Q4 2017-4.0%+0.7%-2.5%
Q3 2017-0.2%-0.3%+0.4%
Q2 2017-6.0%-5.6%-6.5%
Q1 2017+2.0%+2.5%+1.2%
Q4 2016+0.8%+2.0%-3.8%
Q3 2016-4.1%-3.7%+16.6%
Q2 2016-1.4%-2.2%-7.0%
Q1 2016-5.2%
Q4 2015-1.1%
Q3 2015-5.4%
Q2 2015+1.2%
Q1 2015-2.2%
Q4 2014+8.7%
Q3 2014-1.1%
Q2 2014-0.5%
Q1 2014-1.3%
Q4 2013-14.3%
Q3 2013-6.8%
Q2 2013-5.4%
Q1 2013-7.5%
Q4 2012+1.5%
Q3 2012-0.1%
Q2 2012-6.6%
Q1 2012-5.6%
Q4 2011-1.4%
Q3 2011-6.0%
Q2 2011-2.5%
Q1 2010+3.3%
Q1 2011+0.2%
Q4 2008-2.4%
Q4 2010-2.4%
Q3 2009+0.5%
Q3 2010+0.5%
Q2 2010-1.9%
Q4 2009-1.9%
Q2 2009-1.9%

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