NYSE$CLH

Clean Harbors Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Clean Harbors' Q3 2023 performance was affected by plant challenges but showed growth in Environmental Services.

Clean Harbors reported Q3 revenue of $1.37 billion, with net income at $91.3 million, or $1.68 per share. The results were below expectations due to plant challenges. The Environmental Services segment saw revenue growth, while the Safety-Kleen Sustainability Solutions segment faced production issues.

  • Q3 revenue reached $1.37 billion, driven by growth in Environmental Services.
  • Net income for Q3 was $91.3 million, translating to $1.68 per share.
  • Adjusted EBITDA for Q3 amounted to $255.0 million.
  • The company revised its 2023 Adjusted EBITDA and Adjusted Free Cash Flow guidance.

Headline financials

Total Revenue

$1.37B

Previous: $1.36B+0.2%
EPS (adj)

$1.68

Previous: $2.43-30.9%
Adjusted EBITDA

$255M

Previous: $309M-17.4%
Capital Expenditures

-$312M

Previous: -$245M-27.5%
Free Cash Flow

-$221M

Previous: -$109M-102.8%
Net Income

$91.3M

Previous: $136M-32.7%
Operating Income

$154M

Previous: $209M-26.2%
Gross Profit

$422M

Previous: $452M-6.8%
Cash & Equivalents

$420M

Previous: $449M-6.5%
Total Assets

$6.25B

Previous: $6.07B+2.9%
Stock-Based Comp

$4.29M

Previous: $7.83M-45.2%

Revenue & EPS history

Clean Harbors · Revenue · Quarterly

$1.37B

Q3 2023+0.2%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Clean Harbors · $1.37B total across 2 segments · Q3 2023

  • Environmental Services
    $1.15B+5.5%
  • Safety-Kleen Sustainability
    $219M-20.7%

Forward guidance

Clean Harbors anticipates that the challenges faced in Q3 are resolved, with incinerators and re-refineries expected to perform strongly through the year-end. The company foresees a substantial sequential increase in profitability within the SKSS segment in Q4 and expects to enter 2024 with positive momentum.

Tailwinds

  • Incinerators and re-refineries are expected to run strong through year end.
  • Demand across key ES businesses and underlying market conditions remain favorable.
  • Industrial Services is expected to close out a record year in the fourth quarter.
  • A healthy backlog of incineration drums and some recent retail wins will support burning higher value waste streams.
  • Re-refineries are now running at full production rates in the fourth quarter.

Headwinds

  • Third-quarter results fell short of expectations primarily due to plant challenges.
  • Incineration utilization improved sequentially to 86%, but was below Q3 expectations.
  • Average incineration price rose 3%, but was less than anticipated.
  • Revenue and profitability in SKSS segment fell short of expectations due to reduced sales volume and increased costs.
  • Company had lower-than-expected production, which led to lower sales volumes of base oil and higher costs in SKSS segment.

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 2023

Historical avgQ3 2023

-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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