Guidance Update
Q: Does guidance update reflect underlying EBITDA?
A: Management confirmed that while Q1 benefited from acquisitions and outperformance, the underlying EBITDA expectations remain unchanged, showing confidence in the forecast. "

Free Cash Flow Bridge
Q: How does incremental debt affect free cash flow?
A: They explained that increased debt adds about $25 million in interest and incremental $10 million in CapEx, which together offset EBITDA gains to keep free cash flow flat. "

M&A Pipeline
Q: What is the outlook for additional deals?
A: Management described a highly active pipeline, reviewing two to three deals weekly, with many rigorous discussions to ensure only financially sound acquisitions proceed. "

Acquisition Synergies
Q: What revenue synergies are expected from HEPACO?
A: They expect a $20 million run rate in synergies within 12 months, plus enhanced revenue through cross-sharing networks, indicating strong integration benefits. " "

Capital Allocation & Buybacks
Q: How are capital and buyback priorities balanced?
A: The team remains opportunistic with share repurchases—about $50 million annually—while prioritizing acquisitions and internal growth projects, ensuring disciplined capital allocation. "

Kimball Ramping Capacity
Q: What is the outlook for Kimball’s ramp?
A: Capacity is scheduled to come online in Q3–Q4, with expectations of reaching between 20,000 to 30,000 tons in throughput by 2025, reflecting a significant ramp-up. "

Incinerator and Turnarounds
Q: How do turnarounds affect incinerator utilization?
A: Planned maintenance, including a turnaround at Deer Park, caused some downtime, yet the incinerators are expected to achieve mid- to high 80s percent utilization over the full year. "

Base Oil Outlook
Q: What is the base oil pricing trend?
A: Despite a modest uptick in guidance, recent price increases—especially noted in April—signal a positive trend as the market moves into a typical seasonal recovery. " "

PFAS Regulatory Impact
Q: How are PFAS regulations influencing the pipeline?
A: The team is actively involved in $50–70 million of PFAS-related work, with the project pipeline growing by roughly 15–20% each quarter, driven by evolving regulations. " "

Industrial Services Utilization
Q: How is industrial billable labor performing?
A: Improved cross-sharing and higher on-site billable rates have driven enhanced utilization of industrial teams, contributing positively to margins. "

Interest Expense Assumptions
Q: What are the updates on incremental interest expense?
A: Incremental debt is added at around 7%, with the current portfolio at 5.7%, helping to manage the overall cost impact on earnings. "

Safety-Kleen Partnership
Q: What are the details of the marketing arrangement?
A: While financial details were not disclosed, the partnership with Safety-Kleen positions contracted oil to trade at a premium compared to the spot market, reinforcing sustainable pricing. "

Billable Hour Utilization
Q: Are billable hour utilization numbers robust?
A: Utilization rates are strong, with mid- to upper 80s percent achieved through lower turnover and effective sharing of resources across divisions. " "

Environmental Services Growth
Q: What drove Environmental Services performance?
A: Record volumes were driven by organic growth and disciplined pricing, enhancing margins and overall performance in the segment. " "

PFAS Remediation Testing
Q: How is PFAS remediation testing progressing?
A: Ongoing collaboration with EPA and updated testing methodologies provide confidence in their PFAS remediation approach, setting the stage for regulatory approval. "