CLH - Earnings call transcript Q4 2024

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Operator

Greetings, and welcome to the Clean Harbors Fourth Quarter and Full Year 2024 Financial Results Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Michael McDonald, General Counsel for Clean Harbors. Thank you, sir.

begin. may You

Michael McDonald

Dugas; and on call Christine, and everyone. me we today's to Officer, With Battles, Jim you Investor Thank Slides invite Investor Buckley. our good Relations Co-Chief today's for Eric Financial Chief are EVP are Gerstenberg; along. SVP Executive on of our Relations, posted you, call and morning, and our Officers, follow Mike and Eric website,

risks forward-looking results not we the of the today, could today statements affect reflect discussing of revise not filings. this that February through our as SEC considered or -- that reliance effect of period. facts filings Matters is which Securities to made statements XXXX. results company Act the in any these opinions undue on and cautioned within are undertakes of obligation Reform historical our The XX, Private take are revision are publicly the made to XXXX. potential meaning place no to only than reporting on included management's factors statements, are other today Litigation Participants concerning release Information

in of additional the Harbors news comparison these in Today's to references non-GAAP provides measures. today's release the most consistent and of to measures on presentation. website appendix measures and that discussion available such GAAP information Clean an are its performance. includes of our measurement historical believes today's Reconciliations comparable directly

Eric over Let me turn the Gerstenberg to Eric? to start. call

Eric Gerstenberg

thank for us. morning, and Good everyone, you Michael. Thanks, joining

consolidated year EBITDA Street XXXX segment The our results our as sustained Environmental concluded on strategic Services beating growth quarter execute another momentum in expectations. by priorities delivering to strong XX%. consolidated continue strong in QX, of with We was and highlighted and

our safety our to rate total in continuous XXXX into contributed outstanding we We let enabled quarter, on laser-focused us and surpass the that results, a recordable team's performance. incident improvement remain safety me spotlight which Before get the to goal.

of journey. proud safety recognize an we're achievement, this we that is ongoing While

Turning to our financial performance on X. Slide

with record fourth expectations exceeding services our XX% a flow for strong resulting in line of Our conclude a our results of as particularly with waste segment solid in volumes, to us and collection containerized capped year with ES healthy were XXXX allowed full our waste revenue margins quarter. and project Steady ES adjusted EBITDA work, demand XX%. year growth

SKSS, further challenging as lubricants commodity market environment for year-end. deteriorating a faced pricing with conditions base oil toward expected, and

offset very our in actions announced pricing in lubricant pricing our collection aggressive took deterioration. to November, As the team used oil

lowered in and of EBITDA our for delivered total growth cash initial achieved Oil, our and year Operationally, strength our events. than we response more Noble we emergency Castrol as improved and more expansion with by our also retention a solution, PFAS and commercial the Kimball, XXX the revenue, XX,XXX turnover XXXX. HEPACO and the incinerator, Baltimore basis Nebraska launch points, of workforce integration our the partnership offering of hub, of record of circular completion its of launch acquisition adjusted including overall, Reflecting free milestones, flow and number the we adjusted in

XXX our HEPACO more translating QX segment of margin XXth adjusted has revenue revenue, to to in a quarter compared EBITDA driven volume and price. consecutive year-over-year million by ES when EBITDA with basis Turning of $XXX the by combination points growth than marked X% improvement a increased with margin, Slide segment the X. in the organic QX basis a which from remainder increase ES point increased XX% of of with XXXX. segment's increase, improvement. Adjusted for with reviews, XX beginning half on accounted the

revenue our increase. volumes robust Demand utilization ran Field components, Services network X%, and and In by in in an Technical quarter. incineration incinerators pricing HEPACO primarily driven and segment organic was Average Services, growth. X% the the plants higher XX% revenue at efficiently. Looking while very XX%, pricing rose grew achieving drove

in We in network recent are improvements beginning the years. to realize the made we investments and benefits our from process have

completed We year growth containerized revenue up performed generating ago. services. segment, from of within steady particularly offerings parts branch Environmental quarter, Safety-Kleen XXX,XXX services in X% performed a the core the Other another Services well, in waste year wash QX. also

a Our price slower Industrial cost driving turnaround the managing Services job during team structure their great improvements and season. did fall

costs, inspections in final and operations new launched to X. Kimball, Slide Turning start-up-related in incinerator our incurring After commercial completing some December. Nebraska

line. project time are We ahead multiyear proud completed this our successfully of to original a have

engineering job XX Arkansas the is milestone months. in complex project. Kimball shakedown operations XX XXXX. for underway, phase to and hitting did Kimball's the Our the next every expect gradually an we initial incinerator we opened mirrors this incinerator to we up of as ramp its over optimize team outstanding design The

waste the Kimball opening comes PFAS, The solutions handle which captive by reshoring, with environment, presenting is administration's overall incineration our spending, to demand complex time efforts increases our incinerator of customers. streams to well for American regulate aligns the current XX%, agenda. opportune infrastructure by pro-growth at more North for customers. Kimball's the ability and highlighted an capacity

options, We closure. with have we that share continue a their proven our captive playbook to strategic customers including evaluate to

to collection meet with Mike, our involves that no PFAS took six shared concerns. we emissions up These topic were to that testing about. our facility on more Before emission destruction we I of testing which with to considerable at our during turning standards round to on the a to PFAS That Utah data next incineration. both our We touch call DoD for EPA's PFAS, in QX incinerators the stringent and occurs prove elimination in of November scientifically asked EPA testing. often call the planning get site to over is want place tests on conduct

clearly safely We our appreciate previous record government's that results of be are using support study. testing results, in demonstrating permitted data We our can in to available active and incinerators. testing we be the the confident the to continue high-temperature QX, expect the participation that latest PFAS will our eliminated

their and that carries support eliminate multibillion-dollar to a to PFAS creating potential The need these Many and ever-increasing around building the of destruction chemicals believe health. threat consensus we address is and remediation marketplace, belief. that analysts an are pipeline forever human the industry seeing to

expect the to they PFAS to finalized. remain study a We forward once We priority current of the state for regulators. on and our are you look updated administration keeping results

With that, me turn over Mike? to let Mike. things

Michael Battles

and Eric, everyone. morning, you, Thank good

our the we what the ongoing pricing took mid-November, base results market oil is we Revenue softness, in in year-over-year a EBITDA a QX, to already Slide shifted charge-for-oil demand soft to SKSS In lubricants on challenges results position. In and Turning response to lower on during several seasonally fronts. and segment These reflect X. and quarter. market. decreased action reflecting that weak

We CFO support this also our will initiative. comprehensive with QX address idled re-refinery business believe XXXX. support California our these along actions, cost-cutting inventory buildup in in to We and our initiatives

prior million oil, Oil. of the than gallons the we the waste of reflecting year, quarter, Noble addition In XX higher gathered

collection During the CFO our the to versus in November were in QX -- average due PFO average a costs QX. shift collection a at November approach,

increase motor oil to continue used our XXXX. collect to in to price expect We

best price. feedstock levels Our the to our at re-refineries collecting balance always the goal possible need oil with is

business pricing, products aggressively blended Group base volatility capitalizing low and to costs in that our addition we have producing this selling partnerships In on BP moving III gallons, minimize include with carbon CFO to reducing collection strategy oil our leverage in to footprint more oil our and light Castrol. of like

volumes sold. of total volumes came as expected in in the quarter XX% at blended Our

Our III and Group expect program Group moving this increase is to production forward, year. we III

of partnership customer more fleet offering major to fleets. circular first potential large realized towards with and its continues, marketing for the generated we're partnership excited rollout their Their Castrol get sales year-end. Our more and see this

Turning overall ended the cash We with allocation balance that to on Clean Harbors' and execute strategy. enable capital to leverage growth a Slide year the healthy will us low X.

continue opportunities, our which or the those multiple to within company. we pay capital. to whether see an detailed for on parts best external, returns of a We is opportunity Eric project look continue invest decades. success million-plus shareholders' for will with Kimball, to launching Internally, generate are $XXX return the our attractive that to internal

as smaller lucrative have We opportunities well.

Baltimore the in another the our growth we our the of that through similar presence In market to particularly replicate $XX XXXX, success XXXX, intend in growth of Southwest capital expanding to by million we in rapid allocated project approximately In location. to Phoenix expansion region, market. response in semiconductor

million. that service cost We collection are site and an of a waste estimated hazardous will purchasing have upgrading $XX capabilities a comprehensive at and

evaluating very We us network. enabling M&A our into as our the that volumes support additional and to will active capture front, The active potential acquisition synergies is drive ever. growth remain pipeline while plans in as candidates

count share buyback We plan have past intend just least with for are conditions at and purchases opportunistic we maintain flat share when large our ideal, decade. to be to as the a execute

of great in In conclusion, shape. first we quarter entered XXXX the

We of by expect profitable led year another ES our segment. growth consistent

We PFAS to captive year strong with to are demand potential bullish infrastructure multiple investments our for services our us prospects remain as tailwinds reshoring about from supporting to closures. this

Environmental services waste to XXXX waste The incinerator on for our capabilities. Services recovery a Services robust ramp-up our and waste is is continue collection Kimball to of support network. a remediation early and and continue expect underway. our We this a field achieve healthy have returns given of year record HEPACO backlog and ER need of and in outlook Industrial challenging projects. growing We anticipate skilled SK the to after a to workforce commercial pipeline positive fully the our The

XXth XXXX, its Clean Harbors In anniversary. celebrates

stronger. Our EBITDA never an growth commitment in in cash place adjusted the including to has been outstanding values ideal believe we our XXXX, core flows. that performance financial We record to strategies and have deliver

productivity In initiatives. based mitigation continued our addition, pricing, cost improvement on anticipate plans margin we and

With Dugas. turn let CFO, our me that, over Eric to it

Eric Dugas

Mike, you, and morning, good everyone. Thank

statement Turning X. to income on the Slide

segment. the led remained across results more by million the segment way expansion year our margin with with X% led adjusted or X% grew the in growth growth QX in by with the $XXX year. continued revenues the quarter total The XX%. we EBITDA for associated on than ES company Our provided core margin lines $XX call, over XX% robust business the in or million the that as Overall, and of profitable earnings by exceeded our Demand exceeding last for concluded ES year. we guidance

the in in in of adjustment to were start-up decline launch commercial results Kimball by costs. ES a December. at of $X to EBITDA million up and incinerator leading segment, driven adjusted quarter that our operations Fourth great higher SKSS a incurred its reflects costs This related total by corporate offset was million $XXX the

Our XX a strength the to the of was down up to margin of EBITDA adjusted year ES basis improvement in our from waste where margins points but growth points level year full speaks by the annual for XX%. basis the year-over-year, of XX% services. QX and for This our part drum overall XX field business, significant facilities of in record leveraging improved network, collected

QX, as to as revenue labor XX.X% periods expense activity, were with of was were full SG&A increase our of and factors primary related percentage behind dollar percentage benefit-related in costs prior similar year the in the to XX.X% expectations and line These a from levels increased the M&A insurance.

full year XXXX range. we up mid-XX% the due amortization million expense anticipate percentage acquisitions. came from revenue as QX SG&A For of year, our $XXX a as the $XXX million in in Depreciation expected XXXX, and at and in to remain for to

XXXX. the million and delivered we representing ago, $XXX from for operations in For year. million the was amortization while income fiscal period from XXXX. million the expect increasing of year range QX X% year net was of full same $XXX a year for we depreciation million. versus EPS to Income a $XXX down $X.XX full the in as in increase $XXX and full QX the of XXXX,

free securities million the $XXX million, and XXXX. Turning XX $XXX balance over course a QX from to marketable $XXX cash these system that slowed earnings million were our of had $XXX short-term challenges. in million end collections the we in changeover. receivables were by Cash Slide QX a of the related the our up to flow billings previous recognition at in lowered estimate We HEPACO we and year for QX saw of of year-end and call, On as focused our balance sheet. decrease on meaningful approximately

exceeded for the to our the great stretch, strong. area year collections a in cash team finishing want QX this in free cash I the resulting strong down their effort thank flow. expectations in However,

continues Our sheet strength source for of be us. to balance a

Xx under until ratio coming debt-to-EBITDA debt was net material XXXX. Our at just amounts year-end with no due

in in generate annual We continue savings. we interest our we in million be interest addressing rates to opportunistic our as term October did $X when approximately loan repriced to

X.XX%. was interest Our at rate overall year-end

on prior are flows and disposals $XX considerably from spend. CapEx, cash Slide our net activities down to QX in was $XX prior in our $XXX was XX. up year. Net from Turning wrapping with up million, of cash expectations operating we from million line million, Kimball as year

As the Eric mentioned, XXXX. the in $XX million launched project December with $XXX was approximately incinerator total of Kimball spend that commercially the was in spent including million, on

the quarter, ago. I expectations free $XXX based For capital the finishing spoke flow $XXX to results was at a working million. exceeded These improvements adjusted cash million, moment on the year

XXXX, For excluding our of to range project, be we growth expect million CapEx, to the Phoenix net the $XXX $XXX million. in

million. bought than for to total our year-to-date stock of of a more back $XX shares During million, XXX,XXX QX, we $XX total bringing

in our EBITDA operating QX the along and of guidance midpoint we XXXX current billion, Moving $X.XX with conditions results, XXXX to of for billion range expect market $X.XX to a on on adjusted of billion. both segments, $X.XX XX. with Based Slide our

annual QX in guidance quarterly ES and we perspective, for to X% flat basis. to from EBITDA our be a segment expect at consolidated our X% grow a adjusted Looking year-over-year on

For we to adjusted expect drive increase full reporting the demand EBITDA EBITDA X% strong at in remain translate segment will ES our midpoint XXXX. and continued core to adjusted our will from growth year Environmental to of as in Overall, X% guidance in our guidance for follows: XXXX. Services, XXXX services XXXX,

SK expect return macro network, ramping and and in into With a growth in Industrial offering Kimball volumes to businesses capacity, and introduce tailwinds, up services with field facilities along more continued additional expansion with the we along our Services. to branch

For remain of our environment oil SKSS, adjusted we million. corporate, midpoint our midpoint guidance The XXXX assumptions. to full we the at be cautious our as of pricing expect relates year at X% and begin growth the rising The we we challenging $XXX the year, EBITDA to Within in remains XXXX. negative in in expenses year-over-year adjusted the and to such partly insurance business, and compared to be initiatives. by now primarily as to wages up areas expect our savings cost guide, EBITDA offset X% increase new benefits,

cash million. free for flow, range million adjusted of for of to expectation million midpoint For $XXX $XXX or a current a XXXX is $XXX

As we growth are planning year. million project Phoenix to a in $XX mentioned, invest in Mike this

more free company. exclude to as free this picture accurate We going flow create of from long-term generation adjusted are project We spend believe forward. flow growth our cash going from this cash will a a

exciting performance quarter. U.S. ES particularly for PFAS incinerator The growing years. increased potential our summary, In exceptional as we dynamics a propelling remaining capped market in are XXXX, horizon by The segment as high this fourth related move our at to XXXX, ramp-up high-growth a a delivered position our strong of network operating with favorable the Moreover, an for we capacity. Kimball the coming destruction in business into opportunities. volumes on the it presenting growth is economy potential, greater anticipate earnings underway

The Field Services. has integration solid another confident we're nicely, for of year and HEPACO in progressed

operational XXXX. quarter growth we and profitable market and deliver to this that potentially of Overall, continue optimistic that in after the excellence, profitable growth encouraged operations will year. quarter, Industrial we're trajectory Services company by the to our branch conditions grow support SK and accelerate Our remain showcasing our

that, the call questions. please Christine, With up open for

Operator

We be will Instructions]. a now session. conducting question-and-answer [Operator

of first question the James. line Tyler Our from Raymond Brown comes with

Patrick Brown

California wildfires, just a guidance seeing weather there guys here. maybe Is the of about kind baked haz effort. articles waste I'm under curious the sizable any a But of the been you there I'm number Sorry, anything incremental cleanup have little there? into opportunities? are a if

Eric Gerstenberg

typical collections. while disruption Eric is though, operating in have pleased, the branch thankfully, of We to I'd with large. this however, remediation. branches by that they any helping and none We're have were that people our had did did our participating wildfires not the and And actively homes our their some any underway, effect. of were say, Tyler, answering. cleanup Yes, the effect

point, job done support go environmental How in And teams progresses to to getting of that's an so really fire but have today. on there. the we going hazardous the is awesome that at waste long unknown of efforts after that fire the continue our under this control, cleanup helping with conclusion

Unknown Executive

of guess QX, for because event, but just of neutral in to the your of as guidance, work about, address from question, modest fires well. the a slowdown largely kind in I guidance benefits I to terms the some that Eric Tyler, maybe net think, that due region talked the

the that's work. So of see scope kind as how of we will tell said, in time But that QX. Eric

Patrick Brown

bird December in January. back flu, culling I've I really if asked come then particularly into high, about know And numbers on and this I but before, are Okay. the

mustering XXXX, but be any as back effort that opportunity help? resources to you could I are an in Or that at participated guys least think well? you in

Eric Gerstenberg

point, in It at anything would assistance. could be, we've of. been helping actively speak this Tyler. to At sizable hasn't this There that's that point we participated provide

Michael Battles

Tyler. material, Nothing

Patrick Brown

Okay. And added solution more XX% then, Eric, to fleet. capacity now G, captive the you mentioned this that you've

just curious about Is with those are that talk So material online, there filling burn possibly inbounds there? now Kimball about closures? getting anything any you captive slots is I'm to

Eric Gerstenberg

Yes. Certainly, times of past. Tyler, a we've number in talked the about

some and their continue all air online, they progress a things next types evaluate in of also things those As have to steps All be on challenging with really evaluate cost work change customers. relationships know, as their of those but outstanding controls. you regulations things Kimball what to with have are in coming environment. we to emissions in the structure there. as as incinerators play could to their actively helping our And And those continue captive evolved, captives some we affect

yes, -- and so that closer few a they get work opportunity continue with And them to them there. with we exists of

Patrick Brown

M&A. on helpful That's quick. real just one, last My Okay.

multiples let's specialty and have space, buyers. So waste both -- strategic that it, think, I maybe by moved deals financial the been It of up. seems there have a in, call number

just will color the more you year? things like helpful. Are would that you guys be sounds is little think rich? the a curious on some Just M&A get but line if pipeline It across good, this any

Michael Battles

that gone Yes, in active noted, very the Tyler, active the there, remarks, my a prepared remain sense active And we busy deals strategically, we're is, and to going active. this looking I we've The in is deals. Mike. those said an active and think in to ever. as been there's Prices out deal very value lot of as remain marketplace. in And you have there's and market. be We We -- pipeline participation there, we'll at as financially makes real continue in find that we trying and we're participant as to right up, but be XXXX... in

Operator

Our next question Kaye Noah comes the from Oppenheimer. with of line

Noah Kaye

by would a I moving to some getting sense XQ the for of the just start of like guide. parts

Specifically, ES moving of of get segment rollover pieces too was average. some drives think year I couple strong tech high. think mean what price contribution. think too year, don't I months I full bit a would utilization would softer HEPACO the versus be wasn't the about I you of in a growth last

anything a maybe that of we call onetime should or thinking there headwind throughout about is ES be kind net improved kind to of to that out year? So the

Eric Dugas

Noah, it's Eric. I'll this one. take

at ES in still growth a said kind here to in X.X% remarks, QX. in of kind as segment the Just of kind QX, looking I rate guiding for guide our of my about

big some quarter synergies. just right, with there, You're of HEPACO in pieces another some

in job branch in pricing a business. as calendar again, the are will turns, SK the So great done -- team But getting has we here be nice. some seeing particularly that the

strong. volumes Our remain

that those weather California alluded but So a seeing obviously, core Eric way lines a ago, from bit that of to the still moment in of slowdown, core was those There into growth we're things fires little seeing and QX. still and business. guiding

project of from the maybe bit large in on we ] IS things, -- side of [ QX. [ QX in headwind a here some little IS I'd year ] in that say had a last

a driving guide obviously, kind to the, ES. like offsetting flat X.X% that's I at QX. that SKSS, said, are for rate So arrive headwinds of growth in pricing

introduction leading rest up Kimball. of item at out is the there That I begin ES of the through the XXXX, kind project to for of X% our As midpoint year. the ramp I will think to of the biggest guide

full little million-ish the maybe a being modest that year, $XX probably are We the one. big for range there in but growth, year that's

ERs, the ERs can an in see great ER say the we in year item And be the be upside there, that upside. would and then see responses. the we guide particularly to could I'd if of a XXXX terms just FS, high-level that other continue level would was to of

Noah Kaye

Very helpful detail.

of elements subject Just on unique introduces of price facility the ramp-up some, mix. Kimball, a utilization the I guess to some and new

So mix. typical report or of sort how not maybe whether help and fleet the price metrics around out understand you're of of you're from about break and thinking kind us Kimball you utilization going separately average kind to

Eric Gerstenberg

incinerate year. of throughput done we tonnage we're awesome having with helping first XX,XXX to start-up Yes, goal some Kimball, over through and issues, we're January. that in and get job burning quarter. On meet which gates the Kimball, over to Eric get the the we of performing we throughput our this great an a stretch of course here some and throughout of in ability tons G. here, of being out expect began really some expected expect how just in currently started tonnage to team as said, wrapping the That has the And weather, January, our here incremental that. we rough impeded to really

So that's great.

as that course to million Overall, in the of mentioned contribution year, XX,XXX $X of for tons. the incinerator expect $XX incremental we at the million an through past, we've EBITDA

we're over million and with the continue to $XX through how right of million contributing excited progressing so now years. to over $XX EBITDA up the $XX X years, the to few quarter. to And next X we'll next ramp million

Michael Battles

it's in on of as it we in from a number, midpoint breakout you a QX, in we the let's production, a $XX standpoint QX perfect, as million then of directionally there's the not much but say obviously, -- in Kimball, depending it and is and as for it's as look million, $X million $X And year quarterly -- guide say that goes if and QX, Noah, but just weather kind this up variables thought you of Kimball. the point, not ramp the lot a is the in quarter on at for about million $X contribution as that's plant year depending QX by in

is want just of And to there's said and many right also, a reiterate, part Kimball incinerator on another it that network, I've I times site.

it's guidance it's kind to profitability very specifically So done -- how sometimes standpoint. hard out a the each of plant, to that's as it break individual but from of that we've

Noah Kaye

one one, to all Very and bit guess regulations go? what And to think MACT good. Maybe you and just opportunity? last what us I'll a the this you a stick on extent are the Maybe where tailwind could an incineration. for potential on standards? update frame the little might I be hearing timing,

Eric Gerstenberg

we particularly of long administration Eric change while. know the that it there's evolve. actively that, a area the -- some of will of an that Noah, current on of that's that have continue that, for to evaluating review in know G. affects overdue. incinerators, And doing that of captive those We some incineration expect our is and here But review units. of impact continues maybe will Obviously, on Yes. of captive the again. performance EPA on and some timing that. do engaged we Certainly, commercial. And both

come to new are investment. units exceptionally with -- know going And we standards perform well. confidently our that We capital

will tired upgrade. and and We the also units some some old need of know are sort that of captive

us for opportunity So future that pertains to for years. we in think that,

be years, play will going really years. itself or it X the X out think to captives that there'll to commercials over over whatever the next upgrades next an implementation, do, is implementation need to I schedule X will to take X

Michael Battles

these air thing clean I'd many MACT standards. And is water. the Noah, has And add quality to current clean repeated are only that times, the standards that administration air,

is the And changes, here because think so I slows clearly, we're here, nothing administration this with nothing air quality. think, what change talking in is -- I about

Operator

Our next question of with from line Solow CJS Larry comes the Securities.

Lawrence Solow

Environmental guide the on I don't to you margin. Services, First know

XXXX, XXX bit benefit. HEPACO, negative bit little then still averaging for a tailwind of ramp X a expansion of parts sounds pricing margin I And maybe a bunch bit last guess, about bps of, spoke a a the like It the little Kimball of over from maybe a in like You moving impact. little years. a obviously there's little of looks a

So how should are You Is incorporating? a in that margin we expansion. a mention of year? what this overall you think did slowdown margin bit sort of little expansion

trying to segment. by just dissect So

Eric Dugas

Sure. here. points And certainly, Sure, been a one. in Larry. has XXXX, take XXXX. basis in margin Dugas just last mean, our than basis Services that more points mean, I segment years. Eric XX think XXX I'll I in the delivered Environmental I few expansion highlight in

So it's been a great story.

our implicit of expansion, Kind margin of the but in do given have guide. continue slightly for level to our midpoint we XXXX, a guide at lower

headwinds built the to I the have we a really Larry, a forecast of think margin able mentioned into growing this takes and perhaps being field and I do puts the guide relative large ER and same you that little a some in the responses not right perhaps services year business we that of things. of saw to degradation couple level our moment ago, there. you're just on think to

plant margins to it And just very up, But of about we're because as contributory ramps that Kimball. obviously, be excited then as also, the won't ramp-up.

couple a are of those So headwinds.

If you of improvement business. high basis those, kind in kind of adjust XX the to for you're of XX the rest of in that points

ES. continue again, We're great cost in to things all margins to drive things network, going around a cutting, from continue the story. all So those the pricing, leverage getting to do to

Lawrence Solow

El were costs. back I it There but was XXXX. in it on mentioned Got bit Dorado, feels guess you. slower I you little bit start-up you expected, if a I Kimball, we taking And learned. lessons little than hiccups just go Are more this think like it remember time around? a

a be blueprint, there think color great. any I is this but similar would

Eric Gerstenberg

Yes. Sure, Larry.

the that in up is Kimball in script, mentioned what just of a really I we unit with starting replica design are and in built As my Dorado completed improvements. we El

really doing online. is we in that than unit I El a of start-up of unit Dorado And is solid here through go here. the what earlier, we as getting contributing February to smoother performing well, the job unit. mentioned So as It's team a experienced this the

So laid our we've really for that excited goals about hitting unit. out that

Lawrence Solow

just And question up just last on if Noah's follow one, Great. I the just PFAS. on

significant obviously, pattern somewhat know Are of So the significant bookings you've growth growing digit, I guidance years. about you build and opportunity, from sounds EPA think, spoken and it Do in we quarter-over-quarter several this and more kind a double holding like year? in of a whatnot? growing multiyear sequentially for revenue in the a still we last get I actual until

Eric Gerstenberg

that I Yes, PFAS an year-over-year. -- see associated revenue did growing pipeline. would significant a continue to with in say a we We pipeline, do growth Larry, out build this active build not

about Our pipeline has XX% been increasing quarter-over-quarter.

-- and have there. market an active really we So

In just had first a the the securing collection. fact, of country in opportunity we really AFFF state nice

we're and solid, prospects not very but we really include activity did guide. our So the board seeing we material anything the across in that have are

Michael Battles

the some Eric business solution vary in as few that And with sales from rates total Normal PFAS in made the growth model investments, we've investment. seen well in as years. what as we've the said, past

Operator

Baird. question Manthey David comes next Our of from with the line

David Manthey

question SKSS. is First on

input current mothballing re-refining the your capacity Newark, is what With system nameplate the of of Noble oil and and the output California of XXXX, today? in addition base

Michael Battles

about is the I last year. think number XXX, was it what

So you kind that one. subtracting of

David Manthey

the in comparable the be there? of would And fourth number what 'XX, quarter

Eric Gerstenberg

offset Dave. very about Noble been and the it's Newark, of There's of the between comparable, acquisition

David Manthey

first the corporate segment, million, seem quarter? does that for ballpark items off, guidance you that the on $XX first right. Okay. is here And the in provided All based by in

Michael Battles

Yes, that, lower probably than Dave.

David Manthey

Yes.

to significant the in right. All segments through And rate that from of talk of better EBITDA full that XQ gets could I'm XQ quarter at pretty to you away when first can you the rate, first if we some either sort get impacting look here, run million that are sort the quarter there's to guidance get run you jump the SKSS that gets to EBITDA But that that the $XXX some specifically. you to hit to Okay. regardless, get the or so factors for go year. way in year a up in from wondering

Eric Dugas

the how look in is thing, you When year. answer the I'll Eric. certainly guidance at But we here. Pricing from last in QX see QX, It's other That's down. Dave. our implied obviously, the QX. Sure, question it down has of great job too, some here in comments the is higher that oil here. for to his done through numbers Mike inventory changing a have cost that rolling in we charge QX. team emphasized the higher still

and begin than then certainly, because lot on run and in QX to a of -- But pricing better benefits still little in improves bit, seeing costs. quarter SKSS late improved We'll and kind Qs when hopefully inventory the of QX those X last lower X the that the in rate a year. of

Michael Battles

price to through going said, higher we kind driving better see the pricing as of roll out and we're CFO of Yes, -- some QX. of some kind gallons Eric as of summer network season of kind the out

David Manthey

XXXX, softness why HEPACO, the Okay. at you saw And then expect then growth Industrial ex if And round in it XXXX? out, was what Services there? other field finally, organic in just response, we're in is the and in growth growth than looking you emergency that to

Eric Gerstenberg

Dave, far our that, already for and what quantify number seeing we of year refinery have us. year up Eric Industrial the constrained still turnarounds that total but that that refinery XXXX -- answering. spend. last think booked of their count in really of particular, the was extent is What but When substantially. affected world, to is QX we place, about is about talked change. a turnarounds Services, we're in held so hard their spend this on significant that in The number and size ratcheted the here you turnaround down

So of were in that most the XXXX pushed done to what XXXX. get seeing likely things have that from that we're is some

what a to in that have team will on business far so well. go is that outlook we that bullish specialty happen as book turnarounds and how be has -- There we So perform have some those the is pretty with certainly things and along the better expect well.

in at So XXXX. is a Industrial Services position a good look better XXXX and early help how to for going enhance

Michael Battles

asked service ex And field HEPACO. about Dave, you

Environmental I for Services high a up basis, digits, think organically, organically X%, X%. consolidated to year, is X%. closer the single it's On

definitely of lot So in into work, continuing the that year XXXX. amount work a had forecasting X% we're it of year fair project that talked X%, about. And a was we was larger we projects great of that that or from and driver a

Operator

Our next Butler from line Stifel. the comes question with of Brian

Brian Butler

on the mean, collecting, to SKSS, put is like are are now? just the that -- you're oil what's where collect, way? capacity much think much the what overcollecting margin let's But think about overcollecting? And Just I you'd you how us when that you the on it what versus you how I told just you that you safety is.

Michael Battles

overcollecting. losing went I'm to led chime is the re-refinery. want. on And California we're start of Eric, this that. I'll and can closure of if in and we do call, talked that in to went we gallons some they not We're the CFO Brian, as the We the aggressively, Mike. one about aggressively pricing, sure

about And kind pricing. some I some been We've press drawn that's think very So a of what's we've issued driving happening. that's lost line. to We've We really CFO And a adamant gallons. release. extent, okay.

undercollecting, to certainly have around And little We're the area world. be overcollecting so and aggressive we continue are to beyond we that plans. in a

Eric Gerstenberg

that, passed those raise used not Yes. the when first partners, the refineries the oil that things in from it, were Brian, gallons from the as are to the gallons of in to that as of hard, in build extent those call we out we are some motor the I'll on past, or -- taking we Those ones that key to market. as taking into go. well. our collectors there, collectors market prices we we're competitors so our nearly were just our one push we also some

that the CFO collectively a customers that team managing we're right drive So as the direct are really rate. to ones

Michael Battles

prices. on we're And the those line holding

intent not have we to -- change have We that. no

Brian Butler

size try your captive working Vision into then maybe of built because refresh And the reality your any of big everybody that's of all the and years? market? not on that of opportunity, 'XX, of in can as well? your them. part built on it's it with is of Great. but understand Okay. not XXXX converting you But let's how those couple size to again, next just Obviously, -- just the incinerator the is that in -- you're what's of some And potential that

Eric Gerstenberg

active streams in, or be their evaluating utilization our a in affect have cost products are waste customers. Brian, those regulations of those to there We of handle and their things X incinerators clear opportunity. that the that them play. opportunities of all above waste thought streams that I'll really It's or you be and them, it's is all And may and changes support of out part of occur. that them those something is few air XX opportunity might probability a there. with to XX their years. give change an built shutdowns it's of XXXX. with structure over in the that incinerators of today, when -- due captive into not types in seems X whether recap. the our the they process. It's is About all captive that -- there go they a it, the just Vision continue None it our with change next To active to making All It's size

the we partners -- them what that and that light to and to that to we our XM, opportunities be like them anything able anticipate we a have incineration to as help such help units evaluate be with handle them see best they with to especially did our We in we went continuing trend, in through structure, us in strategic path footprint. do of need is we lower cost -- just redundancy their to but with reviews handle

good, think. opportunities there, So strong we

Operator

Our with next question Revich the Sachs. Jerry line of comes from Goldman

Adam Bubes

Jerry for This is Adam on today.

had update years, in in how appropriate customer those on strong metrics Over retention you months? tracking seen businesses? and Services. X on you Have any pricing Field just focus Industrial last over us a last have really the the XX for folks are returns change Can you

Eric Gerstenberg

strong, the commensurate inflation returns as well. Adam, here getting my to the as sure hazards begin. implementing that. results with we've those in. the yes, market businesses field solid I'm and to And partners to seen industrial mentioned, that will Eric continued associated is services our that We -- sure add of we've obviously with with make the those we're in services. with price ahead you We've in stayed teams aggressively

willing look doing one proactively market we customers help When basket that away that that those to I the could and to we've were with of at work with hand weren't of name accept overall what walk on decided us. customers, we

overall. attrition small so And of customers

Michael Battles

price No on change. punchline. increases. real the No change That's in churn real customer based

Adam Bubes

caught time Are fully CFO at be some in your that up pricing? Or Understood. can the market are any take And will there through base then this to taken? flow front-end But the are SKSS, other up financials. fully caught on you that understand I point? we oil actions

Michael Battles

is us early taker And has Yes, Mike. year-end through base base happen the to the down to of I'll Adam, pricing predict really in a this question. what's here answer It's to marketplace. hard for going -- pricing. price kind we're and come in oil January, that oil it's even

pricing in the at the today that do. can think season, of the we our kind where summer But as a of of little flat, little are don't in we We downtick half a stays assuming we comes guidance, really, Now uptick year. assume kind driving relatively about back. we it back assume best we're

Unknown Executive

if And just oil and to. to you're pricing our if that motor used be that on dynamic based and we're something of base to kind relative flexible the Mike referring up upon pricing we'll caught there, oil collection is alluded that

So deterioration counteract oil, used if through we'll to see in collection we continue pricing. that motor base our oil

point. good So

Michael Battles

point. Good

Unknown Executive

That's in there. the variable

Operator

next Tobey [Operator Instructions] question Our with Sommer Truist.

Tyler Barishaw

refining for services potential risk impact Trump policy or margins tariff Barishaw those environmental Tobey. you on the of the just incremental Tyler demand? is administration's Could business? to on your explain This Do

Eric Gerstenberg

go one. we that foundation affect would there even Tyler, the long that rollbacks business. are of regulations Eric on anticipation really that The or isn't and think going and regulations business. on -- back any do that see a Gerstenberg effect responding such They would is think material we any our time, that the be about not to there

and really In help manufacturing issues changed, of helping and their how fact, as Trump around supporting in leader, been care taking onshoring the solve on with new business permits about the talking he's more wants and and EPA place by grow hopefully has administration getting to regulations PFAS. he

step any affect business. see on regulatory don't we backward parameters environment of -- that the the So any our

Tyler Barishaw

trends customer about demand it's chemical refineries just little Got a vertical, global it. broadly, more And maybe by can just you whether talk or company?

Eric Gerstenberg

The demand We there, what's in past, of Tyler. has the turnarounds. the XXXX half going we've very as board. business, still across with refinery see strong mentioned the latter Sure, on affected

stronger particularly but seeing a earlier we rest the growth. strong flux that As manufacturing, here, are refinery turnarounds continues little. we markets see still expect count we that business, The of servicing, retail, call of chemical, that we're around we to mentioned of that in with in number the be a

-- we Our XXXX single of high ahead digits last as begin year. waste containerized single digit of are collection volumes ahead

staying So staying here, that's that positive. stages contact we're with a see our making making that solid there Team some affect is that normal overall, tight areas. early QX job some And well, and a Eric sure servicing effects seeing broad the our to collections. sure are and we're trends still. we in doing of we're with them, earlier obviously that we're great weather verticals customers, But them as in verticals, drum that of range alluded it's in certain servicing, the

Operator

Our comes of Jim the from line with Needham. next Ricchiuti question

Chris Grenga

This on is Grenga for Jim. Chris

the could you year. You year? collection end funnel the Is of the had with similar about little for that in mentioned opportunities that? as first fleet signed oil for enter And arrangement you types there talk conjunction a the the of the fleet bit new customer you at a

Michael Battles

this I'll answer what so -- yes, exactly happened. is Yes, Chris, The Mike. that. that's

used low oil base a market motor versus sites So of circular offering, rate premium because it's carbon little part as of Castrol a -- a the the collect them offering. customer sell and bit at we we have oil footprint at more

they've a lot more in progress and And strong the plenty a and is the sell pipeline lines is to water. of different that to effort very circular that. The has put offering. investing how so sales circular try and team offering that of behind think the that amount in they're there's to do the it, the been works. opportunity Castle of grow more And making lot we avenues to a fair see marketing

one up As they I my said customer. large in did remarks, very prepared sign

to and have in they close pipeline. one the more think another being I very there's complete,

We and sell them base services well. actively far our and sell tuned. we our market go great together with stay as as work very So to

so I chains they've far. know, you And that fleet as And a been partnership lead is so think long. Chris, the time good on large

challenge the of here. But progress I has part that's the so think And been terrific.

Chris Grenga

are And Got you related to are there the fabs it. evaluating the curious, semiconductor nodes expansion vertical. in underway? you had potential I'm mentioned just Phoenix other where semiconductor geographic

Eric Gerstenberg

fully our customers relationships well, couple are, of out been then with And Chris. We customer certainly base with opportunities as expansion The other strong really continue. in anticipate strong growing far. so Phoenix going we Yes, that's the area there. in select we a to has geographies, have

an been see growth. area it's that we So

Operator

floor over no have we I'd this Gerstenberg, at turn back questions you the to for like to closing Mr. time. comments. further

Eric Gerstenberg

Harbors Thank Have coming exceeding great work for in led At weeks. sustainability the of and a Strong, expectations you, all, year focus of team We customer investor at positions and great well safety, your for their you stay us XX,XXX continued rest of all the hope to to XXXX. to good and see results on Clean please most our I Christine. their want thank conferences in growth. safe. another week,

Operator

Ladies teleconference. and today's gentlemen, conclude this does

and have wonderful you Thank for disconnect your day. a this You time. may lines at your participation,

Clean Harbors (CLH) 19 Feb 252024 Q4 Earnings call transcript