Q1 2025 Clean Harbors Inc Earnings Call Transcript
Key Points
- Clean Harbors Inc (CLH) reported a record low total recordable incident rate (TRIR) of 0.46, marking the best safety performance in the company's history.
- The company's Q1 financial results exceeded expectations, with a 4% increase in overall revenue and strong performance in the RES and SKSS segments.
- The acquisition of HEPACO contributed to a 32% growth in field services revenue, supported by organic growth in the legacy business.
- Incineration utilization reached an impressive 88%, up from 79% in Q1 2024, with incineration pricing rising more than 5%.
- The company successfully doubled the average price per gallon charged for used oil collection, maintaining necessary volumes for production goals.
- Industrial services revenue declined by 10% year-over-year, attributed to refinery customers delaying spending and deferring maintenance.
- Base oil pricing remained under pressure, impacting the adjusted EBITDA margin for the SKSS segment.
- The company faced challenges due to extreme weather conditions in January, resulting in an estimated $10 million to $12 million in lost EBITDA.
- Adjusted EBITDA margin decreased year-over-year to 16.4%, although it was in line with expectations.
- Net income and earnings per share were down compared to the same period a year ago, influenced by higher depreciation and amortization costs.
Greetings and welcome to the Clean Harbors first-quarter 2025 financial results conference call. (Operator instructions) As a reminder, this conference is being recorded.
It's now my pleasure to introduce your host, Jim Buckley, Senior Vice President of Investor Relations for Clean Harbors. Mr. Buckley, please go ahead.
Thank you, Melissa, and good morning everyone. With me on today's call are our Co-Chief Executive Officers, Eric Gersenberg and Mike Battles; and our EVP and Chief Financial Officer, Eric Dugas.
Slides for today's call are posted on our investor relations website and we invite you to follow along. Matters we are discussing today that are not historical facts are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act.
Participants are cautioned not to place undue reliance on these statements, which reflect management's opinions only as of today, April 30, 2025.
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