Total Revenue

+7% (from $1,338.17M in Q4 2023 to $1,431.12M in Q4 2024)

Revenue increased driven by continued organic growth and acquisitions, replicating earlier period trends where improved environmental and technical service performance contributed to higher top-line numbers compared to the prior periods. " "

Service Revenues

+9% YoY

Service revenues grew largely due to strong field and emergency response performance, akin to earlier periods where acquisitive growth (e.g. HEPACO) and better network volumes boosted core service outcomes, pushing revenues from $1,073.81M (or similar Q3 trends) to $1,208.84M. " "

Operating Income

-7% (from $147.29M in Q4 2023 to $136.97M in Q4 2024)

Despite higher revenues, operating income decreased due to margin compression—possibly reflecting increased input costs, lower operating efficiencies, or non-recurring expenses. This contrasts with earlier improvements seen in Q3 2024, suggesting that the benefit of acquisitions and organic growth was offset by heightened operational challenges. " "

Net Income

-14% (from $98.35M in Q4 2023 to $83.97M in Q4 2024)

Net income declined significantly even though top-line figures were higher; factors include the narrowing of operating margins and possibly higher non-operating expenses, echoing previous periods where operational headwinds impacted bottom-line profitability despite revenue gains. " "

Geographic Revenue Breakdown

Negative revenues in Q4 2024 (US: -$1,519.32M; Canada: -$172.24M; Total: -$1,691.56M)

A dramatic reversal to negative geographic figures suggests a reclassification or an accounting adjustment, such as intercompany eliminations or currency translation factors, contrasting with the previously stable positive figures. " " " "

Operating Cash Flow

+9% (from $278.86M in Q4 2023 to $303.94M in Q4 2024)

Operating cash flow improved due to higher net income adjustments, increased depreciation and amortization, and better working capital management, even as certain revenue and expense pressures continued; similar cash flow strength was noted in prior quarters when operational shifts provided momentum. "

Adjusted EBITDA

FY 2025

Midpoint $1.11B "

Midpoint $1.18B "

raised

Adjusted Free Cash Flow

FY 2025

Midpoint $300M "

Midpoint $460M "

raised

Capital Expenditures (CapEx)

FY 2025

$400M–$430M " "

$345M–$375M "

lowered

Depreciation and Amortization

FY 2025

$395M–$405M "

$440M–$450M "

raised

SG&A Expense

FY 2025

mid‑12% of revenue "

mid‑12% of revenue "

no change

Kimball Incinerator Contribution (annual)

FY 2025

$8M–$12M "

$8M–$12M "

no change

Environmental Services Growth & Margin Expansion

Q1, Q2, and Q3 earnings calls consistently highlighted strong organic revenue and EBITDA growth driven by volume, pricing, and operational efficiencies (e.g., 10–16% revenue and margin expansions, record EBITDA margins, 10+ consecutive quarters of improvement). " " "

Q4 2024 continued to emphasize consistent growth with field services (e.g., HEPACO’s contribution), 11th consecutive quarter of margin improvement, and robust pricing initiatives leading to further margin gains. " "

Consistently positive performance with a steady track record of growth and margin expansion.

Evolving Incinerator Performance & Capacity Expansion & Pricing Uncertainty

Q1 noted stable incineration utilization (79%) and 6% pricing increases; Q2 discussed capacity expansion (Kimball planned for Q4, Deer Park disruption, PFAS testing) and incineration pricing modest increases; Q3 focused on initiating Kimball operations, robust incineration utilization (89%), and advanced PFAS testing. " " "

Q4 2024 detailed the commercial launch of the Kimball incinerator, resolution of initial start‐up disruptions, continued capacity growth (12% increase), and incremental pricing improvements amid ongoing PFAS testing. " " "

Steady progress with improved operational execution and capacity expansion, while managing pricing uncertainties.

Robust PFAS Pipeline Expansion & Market Opportunity

Q1 reported 15–20% pipeline growth generating $50–70M annually; Q2 emphasized broad PFAS solutions with stable regulatory expectations; Q3 noted strong pipeline growth (15–25% QoQ) with a run rate approaching $80–$100M. " " "

Q4 2024 highlighted roughly 20% quarter-on-quarter pipeline growth, underscoring the multibillion-dollar market opportunity underpinned by rigorous PFAS incineration testing and regulatory focus. " "

Consistent and bullish expansion with an increasingly attractive long‑term market opportunity.

Recurring M&A Strategy and Acquisition Integration

Q1 featured an active M&A pipeline and successful integrations (HEPACO, Noble Oil) with positive synergy prospects; Q2 emphasized disciplined transformational deals and integration ahead of schedule; Q3 reiterated the “5 star” integration performance despite some billing challenges. " " "

Q4 2024 reaffirmed an aggressive M&A strategy with continued integration of key acquisitions contributing significantly to segment revenue and demonstrating effective deal execution despite some short-term cost impacts. " " "

Persistently positive, with smooth integrations and strategic growth through acquisitions sustained over time.

Persistent Base Oil Pricing Volatility & SKSS Segment Challenges

Q1 flagged challenging base oil pricing impacting non-contracted volumes, though end‐quarter recovery signs emerged; Q2 experienced modest year‑over‑year profitability declines and strategic shifts amid pricing uncertainty; Q3 detailed softening demand, inventory buildup, and significant margin pressure leading to production adjustments. " " "

Q4 2024 reiterated ongoing pricing volatility with continued aggressive pricing adjustments (e.g., charge-for-oil model), reduced SKSS revenue/EBITDA, and a cautious outlook as volatile commodity pricing persists. " " "

Ongoing and persistent challenges that require defensive pricing strategies and continued adjustments.

Shifting Regulatory Environment Impacts

Q1 had no specific discussion; Q2 stressed regulatory stability around PFAS and hazardous waste (e.g., Chevron ruling, unchanged framework); Q3 alluded to PFAS-related testing and a favorable regulatory backdrop. " " "

Q4 2024 introduced a more nuanced discussion by emphasizing favorable regulatory tailwinds (no material rollbacks) coupled with potential capital expenditure risks for older captive incinerators due to upcoming MACT standard updates. " "

An emerging focus in Q4, balancing positive regulatory support with new capex risk considerations.

Emerging Dependence on Sporadic Emergency Response Events

Q1 did not address emergency response separately; Q2 explicitly highlighted significant contributions from large ER events (e.g., $24M revenue impact, 64% growth in Field Services driven by ER events); Q3 made only minimal mentions. " "

Q4 2024 did not explicitly focus on ER events as a dependency but noted high total event counts (>20,000), implying that while ER remains important, it is now integrated into broader operational achievements rather than a concentrated revenue driver. " "

Reduced explicit emphasis in Q4 compared to Q2, suggesting ER events are now part of regular operations rather than a focused dependency.

Topics No Longer Emphasized: Increased Debt and CapEx Pressures

Q1 and Q2 detailed increased debt from recent acquisitions and rising CapEx associated with projects like Kimball and Baltimore, with significant focus on debt levels, rates, and CapEx guidance; Q3 provided extensive commentary on debt levels, interest rate management, and detailed CapEx spend. " " " "

Q4 2024 de-emphasized these aspects; while debt and CapEx details are mentioned (e.g., refinancing and CapEx outlook), the focus shifted away from pressures toward operational performance and growth investments. " "

A notable de‑emphasis in Q4, indicating a shift in focus from financial pressures to operational achievements and growth.

Topics No Longer Emphasized: Underperforming Industrial Services

Q1 was optimistic with 7% revenue growth and strategic improvements; Q2 and Q3 discussed challenges, particularly in the refinery vertical, citing reduced turnaround activity and scope, alongside diversification efforts and pricing adjustments. " " "

Q4 2024 acknowledged underperformance in Industrial Services due to reduced refinery spending but focused on a recovery outlook for 2025 with increased turnaround bookings and cost management measures. " "

A shift from earlier challenges to a future recovery focus, explicitly de-emphasizing past underperformance with an optimistic 2025 outlook.