NYSE$CLH

Clean Harbors Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a strong third quarter with revenue growth and increased profitability.

Clean Harbors reported a strong Q3 2022 with a 43% increase in revenue to $1.36 billion, driven by strong demand for services and the addition of HydroChemPSC. Net income was $135.8 million, with an EPS of $2.50 and an adjusted EPS of $2.43. Adjusted EBITDA grew by 67% to $308.6 million.

  • Revenue increased by 43% to $1.36 billion compared to Q3 2021.
  • Net income reached $135.8 million, or $2.50 per diluted share.
  • Adjusted EBITDA grew by 67% to $308.6 million.
  • The company revised its 2022 Adjusted EBITDA guidance to more than $1 billion.

Headline financials

Total Revenue

$1.36B

Previous: $951M+43.3%
EPS (adj)

$2.43

Previous: $1.14+113.2%
Adjusted EBITDA

$309M

Previous: $185M+66.7%
Adjusted EBITDA Margin

22.6%

No prior period
Capital Expenditures

-$245M

Previous: -$147M-66.8%
Free Cash Flow

-$109M

Previous: -$81.2M-33.9%
Net Income

$136M

Previous: $65.4M+107.5%
Operating Income

$209M

Previous: $105M+99.4%
Gross Profit

$452M

Previous: $312M+44.9%
Cash & Equivalents

$449M

Previous: $647M-30.6%
Total Assets

$6.07B

Previous: $4.35B+39.5%
Stock-Based Comp

$7.83M

Previous: $6M+30.4%

Revenue & EPS history

Clean Harbors · Revenue · Quarterly

$1.36B

Q3 2022+43.3%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Clean Harbors · $1.36B total across 2 segments · Q3 2022

  • Environmental Services
    $1.09B+45.7%
  • Safety-Kleen Sustainability
    $276M+34.3%

Forward guidance

Clean Harbors anticipates a strong finish to 2022, leveraging the strengths of both operating segments to achieve record top- and bottom-line results. The company is raising its annual Adjusted EBITDA guidance to more than $1 billion.

Tailwinds

  • Continuing to see a record backlog of waste.
  • Healthy demand for disposal and recycling assets.
  • Service businesses entering the final quarter with good momentum.
  • Growing interest in sustainable products.
  • Continuing to collect the volumes needed for plants at better rates due to the long-term market impact of IMO 2020.

Headwinds

  • Revenue is growing more rapidly than expected, driving higher than anticipated working capital needs.
  • Carrying a higher level of critical inventories to ensure staying ahead of global supply chain shortages.
  • Reducing adjusted free cash flow guidance to reflect the timing of working capital.
  • Ongoing backdrop of high inflation.
  • Interest rate hikes.

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 Q3 2022

Historical avgQ3 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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