Clean Harbors Tops Q3 Estimates, Raises FY21 Adjusted EBITDA Outlook

Clean Harbors Inc CLH reported third-quarter revenue growth of 22% year-over-year to $951.5 million, beating the consensus of $917.13 million.
Sales by segments: Environmental Services $745.63 million (+14.6% Y/Y), and Safety-Kleen Sustainability Solutions $205.79 million (+59.9% Y/Y).
Adjusted EPS improved to $1.14 from $0.90 in 3Q20, beating the consensus of $1.00.
The income from operations increased by 25% Y/Y to $104.83 million, and the margin expanded by 26 bps to 11%.
Adjusted EBITDA increased 10.3% Y/Y to $185.08 million, and margin contracted by 200 bps to 19.5%.
Clean Harbors held $646.66 million in cash and cash equivalents as of September 30, 2021. It generated cash from operating activities year-to-date of $368.23 million, compared to $317.43 million a year ago, and adjusted free cash flow of $237.99 million.
"Overall, we continue to maintain a favorable outlook in both of our segments for the remainder of the year and into 2022," said Alan S. McKim, Chairman, President, and CEO.
FY21 Outlook: Clean Harbors expects Adjusted EBITDA of $655 million - $675 million (prior view $620 million - $650 million) and Adjusted free cash flow of $310 million - $330 million (prior $285 million - $315 million).
Price Action: CLH shares are trading lower by 4.03% at $112.43 on the last check Wednesday.

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