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CLH NYSE· Clean Harbors, Inc
Earnings report Q4 2023

Clean Harbors Reports 4.7% Increase in Total Direct Revenues for 2023

Segments of revenue

Clean Harbors reported total direct revenues of $5.41 billion for 2023, representing a 4.7% increase compared to $5.17 billion in 2022. The company's Environmental Services segment experienced a significant growth of $339.7 million or 8.1% in 2023, driven by continued expansion across all service offerings. This growth was particularly prominent in the core environmental services provided by Safety-Kleen branches and industrial service offerings. Additionally, the acquisition of Thompson Industrial in March 2023 contributed to the increase in direct revenues. However, the SKSS Segment recorded a decrease of $97.1 million in direct revenues for 2023 compared to 2022. This decline was primarily attributed to lower market-based pricing on base oil product sales, despite higher volumes sold. The SKSS Segment partially offset this impact by increasing the pricing on their collection of used oil services.

Strengths

Clean Harbors demonstrated strength in their financial performance, with a 4.7% increase in total direct revenues for 2023. The company's Environmental Services segment experienced significant growth across all service offerings, driven by the expansion of Safety-Kleen branches' core environmental services and industrial service offerings. The acquisition of Thompson Industrial also contributed to the increase in direct revenues. Clean Harbors' management highlighted the successful execution of their growth strategy and the positive impact of their workforce investments in supporting segment growth.

Challenges

Despite the overall increase in total direct revenues, Clean Harbors faced challenges in their SKSS Segment. Lower market-based pricing on base oil product sales resulted in a decrease of $97.1 million in direct revenues for 2023 compared to the previous year. Although the SKSS Segment partially offset this impact by increasing the pricing on their collection of used oil services, the decline in base oil pricing posed a challenge to the segment's revenue performance.

Noteworthy

Clean Harbors reported a total revenue of $5.41 billion for 2023, representing a 4.7% increase compared to the previous year. The company's Environmental Services segment experienced significant growth, while the SKSS Segment faced challenges due to lower market-based pricing on base oil product sales. The successful execution of Clean Harbors' growth strategy and the acquisition of Thompson Industrial contributed to their overall revenue performance.

Summary

Clean Harbors demonstrated a strong financial performance in the latest quarter, with a 4.7% increase in total direct revenues for 2023. The company's Environmental Services segment experienced significant growth across all service offerings, driven by the expansion of core environmental services and industrial service offerings. However, the SKSS Segment faced challenges due to lower market-based pricing on base oil product sales. Overall, Clean Harbors' revenue performance reflects successful execution of their growth strategy and the positive impact of their workforce investments.

Source documents

Form 10-K  filed on Feb 21, 2024
134 pages scanned

Reference data

Company financials Q4 revenue 1.34B
Analyst estimates Q4 EPS beat by 7.19%
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