Clean Harbors Inc (CLH) 2025 Q1 法說會逐字稿

Greetings and welcome to the Clean Harbors first-quarter 2025 financial results conference call. (Operator instructions) As a reminder, this conference is being recorded.

大家好，歡迎參加 Clean Harbors 2025 年第一季財務業績電話會議。（操作員指示）提醒一下，本次會議正在錄音。

It's now my pleasure to introduce your host, Jim Buckley, Senior Vice President of Investor Relations for Clean Harbors. Mr. Buckley, please go ahead.

現在我很高興介紹您的主持人，清潔港口投資者關係高級副總裁吉姆·巴克利 (Jim Buckley)。巴克利先生，請繼續。

Thank you, Melissa, and good morning everyone. With me on today's call are our Co-Chief Executive Officers, Eric Gersenberg and Mike Battles; and our EVP and Chief Financial Officer, Eric Dugas.

謝謝你，梅麗莎，大家早安。與我一起參加今天電話會議的還有我們的聯合執行長 Eric Gersenberg 和 Mike Battles；以及我們的執行副總裁兼財務長 Eric Dugas。

Slides for today's call are posted on our investor relations website and we invite you to follow along. Matters we are discussing today that are not historical facts are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act.

今天電話會議的幻燈片已發佈在我們的投資者關係網站上，我們邀請您關注。我們今天討論的非歷史事實事項被視為《私人證券訴訟改革法案》所定義的前瞻性陳述。

Participants are cautioned not to place undue reliance on these statements, which reflect management's opinions only as of today, April 30, 2025.

提醒參與者不要過度依賴這些聲明，這些聲明僅反映管理階層截至 2025 年 4 月 30 日的意見。

Information on potential factors and risks that could affect our results is included in our SEC filings. The company undertakes no obligation to revise or publicly release the results of any revision to the statements made today other than to filings made concerning this reporting period.

有關可能影響我們業績的潛在因素和風險的資訊包含在我們向美國證券交易委員會提交的文件中。除涉及本報告期間的文件外，本公司不承擔修改或公開發布今天所作聲明的任何修改結果的義務。

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

今天的討論包括對非公認會計準則衡量標準的引用，Lean Harpers 認為此類資訊為其績效提供了額外的衡量標準和一致的歷史比較。這些指標與最直接可比較的 GAAP 指標的對帳可以在我們 IR 網站上今天的新聞稿和今天簡報的附錄中找到。

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

讓我把電話轉給 Eric Gerstenberg。艾瑞克？

Thanks, Jim. Good morning, everyone, and thank you for joining us. To start, I want to highlight our safety results for Q1. They are not a financial metric, but as we often say, they are our most important metric. Our total recordable incident rate, or TRIR was an outstanding 0.46 in the quarter. That represents not just our best Q1, but the best quarter in the company's history. Hats off to our entire team for the energy and effort they put into having our safety programs for fostering a strong safety culture and for protecting themselves and each other.

謝謝，吉姆。大家早安，感謝大家的收看。首先，我想強調我們第一季的安全結果。它們不是財務指標，但正如我們常說的，它們是我們最重要的指標。本季度，我們的總可記錄事故發生率（TRIR）達到了出色的 0.46。這不僅代表著我們最好的第一季度，也是公司歷史上最好的季度。我們向整個團隊致敬，感謝他們為我們的安全計劃投入的精力和努力，以培養強大的安全文化並保護自己和彼此。

Turning to our financial performance on slide 3. Our overall Q1 results finished ahead of expectations. RES segment began the year with an encouraging first quarter that included a strong contribution in March after a period of unfavorable weather in January.

前往投影片 3 上的財務表現。我們第一季的整體業績超出了預期。再生能源部門今年第一季表現令人鼓舞，在經歷了 1 月的惡劣天氣後，3 月做出了強勁貢獻。

Our SKSS segment outperformed our guidance due to better pricing of our used oil collection services that Mike will discuss. Overall, company revenue was up 4% Q1. Demand trends for our disposal, and recycling assets were positive. We exited the quarter with momentum in most of our ES segment businesses and are optimistic about SKSS's ability to achieve its annual target.

我們的 SKSS 部門表現超出預期，因為我們的廢油收集服務定價更優惠，Mike 將對此進行討論。總體而言，公司第一季營收成長了 4%。我們處置和回收資產的需求趨勢是正面的。本季結束時，我們的大多數 ES 部門業務都保持了良好的發展勢頭，我們對 SKSS 實現年度目標的能力持樂觀態度。

Our adjusted free cash flow and corporate segment results were also in line with expectations we provided in February. All in all, a solid start to 2025 for the company.

我們的調整後自由現金流和公司部門績效也符合我們二月給出的預期。總而言之，對於公司而言，2025 年開局良好。

Turning to our segment review beginning on slide 4 with ES. Adjusted EBITDA increased 4% with a 3% increase in revenue, resulting in a 10 basis point margin improvement. Our top line growth increased due to the 2024 acquisition of HEPACO, as well as growth from pricing and higher incineration utilization, which offset a year-over-year decline in industrial services driven by the refinery sector.

從投影片 4 開始，前往 ES 部分的回顧。調整後的 EBITDA 成長 4%，營收成長 3%，導致利潤率提高 10 個基點。我們的營收成長得益於 2024 年收購 HEPACO，以及定價和焚燒利用率提高帶來的成長，這抵消了煉油業推動的工業服務年減。

Looking at our revenue by segment components, field services grew 32%, driven mostly by HEPACO, supported by organic growth in our legacy business. In total, we responded to more than 5,000 emergency response events in Q1, in line with recent quarters.

從各部門收入來看，現場服務成長了 32%，主要得益於 HEPACO 的推動，以及我們傳統業務的有機成長。總體而言，我們在第一季應對了超過 5,000 起緊急應變事件，與最近幾季的情況一致。

In technical services, higher incineration volumes and pricing drove a 5% revenue increase. Incineration price rose more than 5% in Q1 on a mixed adjusted basis. Incineration utilization was an impressive 88% for 79% in Q124. For comparison purposes, this quarter's utilization number excludes the new and Kimbali as we ramp up.

在技​​術服務方面，更高的焚燒量和定價推動收入成長 5%。經混合調整後，第一季焚燒價格上漲超過5%。焚化利用率高達 88%，而 2024 年第一季為 79%。為了進行比較，本季的使用率數字不包括新增產能和我們正在增加的 Kimbali 產能。

As we have stated publicly, our goal for the (inaudible) this year is to process 28,000 more tons or more with growth in 2026 as we complete our shakedown process. In Q1, the new incinerator processed 5,000 tons, running well despite challenging weather conditions in January.

正如我們公開表示的那樣，我們今年（聽不清楚）的目標是加工量增加 28,000 噸或更多，到 2026 年，隨著我們完成安定過程，加工量還會繼續增長。第一季度，新焚化爐處理了 5,000 噸垃圾，儘管 1 月天氣條件惡劣，但運作良好。

Overall incineration demand was high all quarter long and shows no signs of slowing as reshoring and other market dynamics play out. We are continuing to realize the benefits of investments we have made in our disposal and recycling network to enable more efficient processing and movement of waste.

整個季度的整體焚燒需求都很高，隨著回流和其他市場動態的發展，沒有顯示出放緩的跡象。我們不斷認識到對處置和回收網絡進行投資的益處，從而能夠更有效率地處理和運輸廢物。

Safety Clean Environmental Services continued its consistent and steady performance, notching another quarter of profitable growth by increasing revenues by 5% from a year ago. We performed 245,000 parts wash services in the quarter, down slightly from a year ago, reflecting the service interruptions from bad weather. Our pricing initiatives, record containerized waste services, and new products, including some innovative aqueous parts washers, drove the growth in this business.

安全清潔環境服務公司持續保持穩定的表現，營收較去年同期成長 5%，再次實現季度獲利成長。本季我們進行了 245,000 次零件清洗服務，較去年同期略有下降，這反映了惡劣天氣導致的服務中斷。我們的定價舉措、記錄貨櫃廢棄物服務以及新產品（包括一些創新的水性零件清洗機）推動了該業務的成長。

We face some challenges in Q1 with our industrial services business, where revenue was down 10% from a year ago as we continue to see some refinery customers delay spending and defer maintenance in the current environment.

我們在第一季的工業服務業務面臨一些挑戰，由於我們繼續看到一些煉油廠客戶在當前環境下推遲支出並推遲維護，該業務的收入比去年同期下降了 10%。

Lastly, I'm sure someone will ask questions about tariffs. While we suspect that tariff and trade absurdity may be behind some of the industrial services weakness this quarter, refinery customers have been under pressure for some time due to local crack spreads. We haven't seen a material impact from tariff uncertainty on our waste volumes in TS or SK branch or on the number of ERs we've conducted in field services. The stated goal of the current administration is to generate more US manufacturing and industrial production, which should ultimately benefit clean harbors.

最後，我相信有人會問有關關稅的問題。雖然我們懷疑關稅和貿易荒謬可能是本季工業服務疲軟的原因，但由於當地裂解價差，煉油廠客戶一段時間以來一直承受著壓力。我們尚未發現關稅不確定性對 TS 或 SK 分公司的廢棄物量或我們在現場服務中進行的 ER 數量產生重大影響。現任政府的既定目標是促進美國製造業和工業生產的發展，最終將有利於清潔港口。

We do not expect any of the core environmental regulations that have been the foundation of our business and have protected human health and the environment across the US for decades to change under the current administration.

我們預計，在現任政府的領導下，作為我們業務基礎、數十年來保護美國人類健康和環境的核心環境法規不會發生任何改變。

As it relates to tariff, tariffs in our supply chain, most of our purchasing is domestically sourced. So we don't anticipate any disruptions to our growth plans. That said, we have recently enacted a nominal price increase to offset the higher costs we expect for our vehicle fleet, the chemicals we use, and other supplies. To protect our margins, we remain committed to further adjusting our pricing and reducing our cost structure to offset any additional inflation that may come as a result of tariffs.

由於涉及關稅，我們供應鏈中的關稅，我們的大部分採購都是國內採購。因此我們預計我們的成長計劃不會受到任何干擾。儘管如此，我們最近還是實施了名義上的價格上漲，以抵消我們預期的車隊、我們使用的化學品和其他物資的成本上漲。為了保護我們的利潤率，我們將繼續致力於進一步調整定價並降低成本結構，以抵消關稅可能帶來的任何額外通膨。

With that, let me turn things over to Mike to discuss SKSS in capital allocation. Mike.

說到這裡，讓我把話題交給 Mike，讓他討論一下資本配置中的 SKSS。麥克風。

Thank you, Eric, and good morning, everyone. Turning to our SKSS segment results on slide 5. Revenue increased year-over-year, reflecting greater volumes, including the addition of Noble, as well as a shift to a sustainably higher charge for oil, or CFO. Those items more than offset the continued lower pricing we saw for base oil caused by a weak demand in brand. While our Q1 adjusted EBITDA decreased slightly from a year ago, the $28 million we achieved exceeded our guidance we provided in February.

謝謝你，艾瑞克，大家早安。前往投影片 5 上的 SKSS 部分結果。收入同比增長，反映了銷售量的增加，包括 Noble 的加入，以及石油費用（或 CFO）持續上漲。這些項目足以抵消品牌需求疲軟而導致的基礎油價格持續走低的影響。雖然我們第一季的調整後 EBITDA 與去年同期相比略有下降，但我們實現的 2800 萬美元超過了我們 2 月給出的預期。

Adjusted EBITDA margin was down year-over-year due to base oil pricing, but again, ahead of our initial expectations. This performance is a direct result of the team's hard work in responding to the ongoing challenges in the base oil and lubricants market.

由於基礎油定價，調整後的 EBITDA 利潤率同比下降，但再次超出了我們最初的預期。這一業績是團隊努力應對基礎油和潤滑油市場持續挑戰的直接結果。

We announced in mid-November that we are shifting to a charge-for-oil position for all customers. And in fact, since year-end, we have successfully doubled the average price per gallon we are charging for the collection of used oil while also maintaining the volumes needed to meet our production goals. In the quarter, we gathered 58 million gallons of waste oil to feed our plants, compared with 55 million gallons a year ago.

我們在 11 月中旬宣布，我們將對所有客戶實施按油收費政策。事實上，自年底以來，我們已成功將廢油收集的每加侖平均價格翻了一番，同時保持了實現生產目標所需的產量。本季度，我們收集了 5,800 萬加侖廢油來供應我們的工廠，去年同期為 5,500 萬加侖。

As we highlighted in our last call, we have idled our California re-refinery, not just to pause our highest cost location, but to support our CFO initiative by requiring fewer overall gallons to feed our network. We believe these actions, including executing a range of cost-cutting initiatives, enabled us to exceed our profitability expectations in Q1. We remain committed to earning a fair price on our used motor oil collection services in order to drive consistent profitability in this segment.

正如我們在上次電話會議中所強調的那樣，我們已經停產了位於加州的再精煉廠，這不僅是為了暫停我們成本最高的地點，也是為了透過減少總加侖數來供應我們的網路來支持我們的財務長計畫。我們相信，這些行動（包括執行一系列削減成本的措施）使我們能夠在第一季超越獲利預期。我們始終致力於以公平的價格提供廢棄機油收集服務，以推動該領域的持續獲利。

We advanced two other important programs in the quarter. We are working closely with BP Castrol to support our partnership around Castrol's more circular offering, which enables corporate fleets to lower their carbon footprint without sacrificing quality in their lubricants. We believe they are generating strong interest in the marketplace and building a healthy pipeline of potential customers, with two large fleets signed up and more to come.

本季我們推進了另外兩個重要項目。我們正與 BP Castrol 密切合作，以支持我們圍繞 Castrol 更循環產品的合作夥伴關係，這使企業車隊能夠在不犧牲潤滑油品質的情況下降低碳足跡。我們相信，他們正在市場上引起濃厚的興趣，並建立了健康的潛在客戶管道，目前已簽約兩支大型車隊，未來還會簽約更多車隊。

Another initiative we should -- that should support greater stability and profitability in this segment is our Group III program, which we've outlined on prior calls. We expect to produce 2 million to 3 million additional gallons of Group III this year versus 2024.

我們應該採取的另一項舉措是我們的第三組計劃，該計劃應該能夠支持這一領域的更大穩定性和盈利能力，我們在之前的電話會議上已經概述過該計劃。與 2024 年相比，我們預計今年的 III 類石油產量將增加 200 萬至 300 萬加侖。

Turning to capital allocation on slide 6. We continue to look for internal and external opportunities to generate the best returns on our shareholders' capital. And importantly, we ended the quarter with a large cash balance and low leverage to execute both those facets of our growth strategy. On the M&A front, we have been actively reviewing multiple deals and being selective about what we move forward. We continue to look at deals of varying sizes, with an emphasis on where we can capture synergies and cost and cross-selling while capitalizing on our expansive network of assets.

轉向投影片 6 上的資本配置。我們不斷尋找內部和外部機會，為股東資本創造最佳回報。重要的是，我們在本季結束時擁有大量現金餘額和低槓桿率，以執行我們成長策略的這兩個方面。在併購方面，我們一直在積極審查多項交易，並選擇性地推動其中的一項。我們繼續關注各種規模的交易，並專注於如何利用我們廣泛的資產網絡，實現協同效應、成本和交叉銷售。

Internally, we see opportunity to invest across several areas. Kimball is now open and running well. Our Baltimore expansion continues. In April, we closed on our new site in Phoenix, where we'll replicate that hub concept again. Within ES, we opened 10 additional field service branches in Q1 while adding more processing and recycling capabilities to current locations as we capitalize on market opportunities. We're also evaluating potential methods to further process some of our byproducts we produce in our re-refining business, as we believe there is value to be harvested here.

在內部，我們看到了跨多個領域投資的機會。Kimball 現已開業並且運作良好。我們在巴爾的摩的擴張仍在繼續。今年四月，我們關閉了位於鳳凰城的新基地，在那裡我們將再次複製該中心概念。在 ES 內部，我們在第一季開設了 10 個額外的現場服務分支機構，同時利用市場機會在現有地點增加了更多的加工和回收能力。我們也正在評估進一步加工我們在再精煉業務中生產的一些副產品的潛在方法，因為我們相信這裡有可收穫的價值。

Eric Dugas will cover our buyback activity in Q1, but we intend to be opportunistic with large purchases when conditions warrant. We are optimistic about our prospects for 2025. We ended Q1 slightly ahead of plan overall, with SKSS outperforming expectations. Furthermore, we believe that there are many tailwinds supporting our business to achieve our guidance despite the potential impact of tariffs.

Eric Dugas 將在第一季報告我們的回購活動，但我們打算在條件允許的情況下抓住機會進行大規模購買。我們對2025年的前景充滿樂觀。總體而言，我們第一季的業績略微提前於計劃，SKSS 的表現超出預期。此外，我們相信，儘管關稅可能產生影響，但仍有許多有利因素支持我們的業務實現預期目標。

Demand for our services remains strong, particularly at the disposal side from PS and SKD customers. Kimball is ramping up as expected. Interest in our total PFAS solution and its offerings remain high. We expect our EPA and DoD-supported incineration study to be published in the coming months. Reshoring and expansion of customer sites is ongoing.

對我們服務的需求依然強勁，尤其是來自 PS 和 SKD 客戶的處置方面。金博爾 (Kimball) 的表現如預期般不斷提升。人們對我們的整體 PFAS 解決方案及其產品的興趣仍然很高。我們預計，由美國環保署和國防部支持的焚燒研究將在未來幾個月內發布。客戶站點的回流和擴展正在進行中。

We see a robust pipeline of remediation and waste projects. The potential for captive closures in the coming year is real, as we continue to have healthy discussions with some of those operators. And our growth network -- growth outlook for Field Service is strong with the addition of HEPACO and its national call center.

我們看到了一系列強有力的修復和廢棄物處理項目。隨著我們繼續與其中一些運營商進行健康的討論，來年關閉自保公司的可能性是真實存在的。我們的成長網絡—隨著 HEPACO 及其國家呼叫中心的加入，現場服務的成長前景十分強勁。

While the recovery in Industrial Services we anticipate this year may be somewhat muted, we still like the long-term process of this business given the necessity of the services we provide. And SK is doing well, excluding within the areas it can control, especially collection costs. In short, there's a lot of positive factors to support our planned growth as we celebrate our 45th anniversary in 2025.

雖然我們預計今年工業服務的復甦可能會有些緩慢，但考慮到我們所提供服務的必要性，我們仍然看好該業務的長期發展。而SK除了在自己能夠控制的領域之外，尤其是收款成本，表現都還不錯。簡而言之，在我們慶祝 2025 年成立 45 週年之際，有許多積極因素支持我們計劃的成長。

With that, let me turn the call over to our CFO, Eric Dugas

接下來，讓我把電話轉給我們的財務長 Eric Dugas

Thank you, Mike, and good morning, everyone. Turning to the income statement on slide 8. Our Q1 results tops the guidance we provided on our Q4 earnings call. The solid results were achieved with continued year-over-year growth in profitability in our ES segment and better than expected results in SKSS.

謝謝你，麥克，大家早安。前往第 8 張投影片上的損益表。我們第一季的業績超出了我們在第四季度收益電話會議上提供的預期。我們取得了穩健的業績，ES 部門的獲利能力持續年增，SKSS 的業績優於預期。

Overall, we grew total company revenues in the quarter by $55 million, or 4%, with the ES segment accounting for two-thirds of that growth. Q1 adjusted EBITDA of $235 million was driven by higher earnings in our ES segment, which offset a slight decline in SKSS and slightly higher corporate costs as compared to Q1 of last year.

總體而言，本季公司總營收成長了 5,500 萬美元，即 4%，其中 ES 部門佔了成長的三分之二。第一季調整後的 EBITDA 為 2.35 億美元，這得益於 ES 部門的盈利增加，抵消了 SKSS 的輕微下滑和公司成本與去年第一季相比略有上升的影響。

Our adjusted EBITDA margin of 16.4% in Q1 was down year-over-year, but in line with our expectations. Even with a tough start to the quarter due to extreme weather, the team achieved expected margin performance in Q1 by delivering a good mix of high margin work and controlling spending.

我們第一季的調整後 EBITDA 利潤率為 16.4%，年減，但符合我們的預期。儘管本季因極端天氣而開局艱難，但該團隊透過提供高利潤工作和控制支出的良好組合，在第一季實現了預期的利潤表現。

SG&A expense as a percentage of revenue was 12.8% in Q1. For the full year 2025, we continue to anticipate SG&A expense as a percentage of revenue will be in the mid-12% range. Depreciation and amortization in Q1 came in as expected at $112 million, up due to acquisitions and our first full quarter of Kimball.

第一季銷售、一般及行政費用佔收入的百分比為 12.8%。對於 2025 年全年，我們繼續預期銷售、一般及行政費用佔收入的百分比將在 12% 左右。第一季的折舊和攤銷達到預期的 1.12 億美元，成長主要由於收購以及 Kimball 第一個完整季度的營運。

For 2025, we continue to expect depreciation and amortization in the range of $440 million to $450 million. Income from operations in Q1 was $111.6 million, down from the same period a year ago, when we had less depreciation and amortization. Q1 net income was also down as expected versus the same period a year ago as we delivered earnings per share of $1.09.

到 2025 年，我們預計折舊和攤提仍將在 4.4 億至 4.5 億美元之間。第一季的營業收入為 1.116 億美元，與去年同期相比有所下降，因為當時我們的折舊和攤提較少。第一季淨收入與去年同期相比也如預期下降，每股收益為 1.09 美元。

Turning to slide 9 and the balance sheet. Cash and short-term marketable securities at quarter end approached $600 million. Given that high cash balance, we continue to view our balance sheet as a competitive advantage, particularly given the uncertainty in the credit markets. Our net debt-to-EBITDA ratio at quarter end remained at approximately 2.1 times, with no material debt amounts due until 2027.

翻到投影片 9 和資產負債表。季度末現金和短期有價證券接近 6 億美元。鑑於高額現金餘額，我們繼續將資產負債表視為一種競爭優勢，尤其是在信貸市場存在不確定性的情況下。我們季度末的淨負債與 EBITDA 比率仍維持在約 2.1 倍，且 2027 年之前沒有重大債務到期。

Our overall interest rate at quarter end was 5.3%. During the quarter, we received a credit rating upgrade by Moody's based upon our recent financial performance, overall growth and our strong capital policies. This upgrade puts our overall debt rating just one notch below investment-grade and our secured debt at an investment-grade rating.

我們季末的整體利率為 5.3%。本季度，穆迪根據我們最近的財務業績、整體成長和強勁的資本政策，提升了我們的信用評級。此次升級使我們的整體債務評級僅比投資等級低一級，而我們的有擔保債務評級則達到投資等級。

Turning to our cash flows on slide 10. Net cash from operating activities in Q1 was $1.6 million, which was as expected. CapEx, net of disposals was just over $117 million, down from the prior year as we have completed our Kimball CapEx spend. We expect the majority of the $15 million associated with our Phoenix project that we called out on our Q4 call to occur here in Q2, as the site was purchased in early April. For the quarter, adjusted free cash flow was a negative $116 million and consistent with Q1 a year ago.

轉到幻燈片 10 上的現金流。第一季經營活動產生的淨現金為 160 萬美元，符合預期。扣除處分後的資本支出略高於 1.17 億美元，低於上年，因為我們已經完成了 Kimball 資本支出。我們預計，我們在第四季度電話會議上提出的與鳳凰城計畫相關的 1500 萬美元的大部分資金將在第二季度到位，因為該地塊是在 4 月初購買的。本季度，調整後的自由現金流為負 1.16 億美元，與去年同期第一季持平。

In addition to CapEx spend, the negative free cash flow in both periods reflects the timing of incentive comp payments, interest payments and seasonal working capital increases. For 2025, we continue to expect our net CapEx, excluding the Phoenix growth project to be in the range of $345 million to $375 million.

除了資本支出外，兩個時期的負自由現金流也反映了激勵補償支付、利息支付和季節性營運資本增加的時間。到 2025 年，我們仍然預計我們的淨資本支出（不包括鳳凰城成長項目）將在 3.45 億美元至 3.75 億美元之間。

During Q1, we bought back nearly 260,000 shares of stock at a total spend of $55 million. We currently have more than $430 million remaining under our repurchase program authorization, and we continue to view our shares, particularly in light of the recent pullback, as undervalued.

第一季度，我們回購了近 26 萬股股票，總支出為 5,500 萬美元。目前，我們的回購計畫授權餘額超過 4.3 億美元，我們仍然認為我們的股票被低估，特別是考慮到最近的回調。

Moving to guidance on slide 11. Based on our Q1 results, along with current market conditions for both of our operating segments, we are reiterating our 2025 adjusted EBITDA guidance range of $1.15 billion to $1.21 billion, or a midpoint of $1.18 billion, which represents 6% annual growth.

轉到第 11 張投影片上的指示。根據我們的第一季業績以及我們兩個營運部門的當前市場狀況，我們重申 2025 年調整後的 EBITDA 指引範圍為 11.5 億美元至 12.1 億美元，中位數為 11.8 億美元，代表 6% 的年增長率。

Looking at our annual guidance from a quarterly perspective, we currently expect adjusted EBITDA for Q2 to grow 1% to 3% compared with the prior year, with 3% to 5% growth in the ES segment and lower expense in the Corporate segment, which will more than offset an expected year-over-year decline in SKSS. As a reminder, we also had a number of good size (inaudible) in Q2 a year ago in the ES segment.

從季度角度來看我們的年度指導，我們目前預計第二季度調整後的 EBITDA 將比上年增長 1% 至 3%，其中 ES 部門增長 3% 至 5%，企業部門的支出將降低，這將足以抵消 SKSS 預期的同比下降。提醒一下，去年第二季我們在 ES 領域也有很多規模不錯的（聽不清楚）。

For full year 2025, adjusted EBITDA guidance will translate to our reporting segments as follows. In Environmental Services, we continue to expect adjusted EBITDA in 2025 at the midpoint of our guidance to increase 5% to 8% from 2024.

對於 2025 年全年，調整後的 EBITDA 指引將轉化為我們的報告分部，如下所示。在環境服務方面，我們繼續預期 2025 年調整後的 EBITDA 將比 2024 年成長 5% 至 8%。

Demand for disposal, recycling, remediation work and SK branch offerings have all continued year-to-date. The only exception, as previously noted is Industrial Services, where customers can defer maintenance or slow spending during times of economic uncertainty.

今年迄今為止，對處置、回收、修復工作和 SK 分公司產品的需求一直持續。如前所述，唯一的例外是工業服務，在經濟不確定時期，客戶可以推遲維護或減緩支出。

Our Kimball facility will continue its ramp towards full production as planned. Given the momentum from reshoring projects and PFAS, as well as support from our sales team, we expect our facilities network to process record volumes this year. We also expect to see continued expansion in the SK branch and Field Services business.

我們的金博爾工廠將按照計畫繼續全面投產。鑑於回流項目和 PFAS 的勢頭，以及我們銷售團隊的支持，我們預計我們的設施網路今年的處理量將創下紀錄。我們也預計 SK 分公司和現場服務業務將繼續擴張。

For SKSS, we continue to expect full year 2025 adjusted EBITDA at the midpoint of our guidance to be $140 million. While we exceeded our expectations for Q1, given the outstanding work by the team in improving our collection rates, we remain cautious in our assumptions for this segment given its commodity exposure.

對於 SKSS，我們繼續預計 2025 年全年調整後 EBITDA 將達到指引中位數的 1.4 億美元。雖然我們超出了對第一季的預期，但考慮到團隊在提高收款率方面的出色工作，我們對這一部門的假設仍然保持謹慎，因為該部門的商品風險敞口。

Within Corporate, at the midpoint of our guide, we continue to expect negative adjusted EBITDA to be up 3% to 7% compared to 2024. The year-over-year increase primarily relates to the company's expected revenue growth, wages and benefits and insurance, partly offset by our cost savings initiatives. For adjusted free cash flow, our 2025 guidance remains in the range of $430 million to $490 million, or a midpoint of $460 million, which represents a nearly 30% increase from 2024.

在企業內部，按照我們指引的中點來看，我們繼續預期負調整後 EBITDA 將比 2024 年成長 3% 至 7%。年比成長主要與公司預期的收入成長、薪資和福利以及保險有關，但部分被我們的成本節約措施所抵銷。對於調整後的自由現金流，我們對 2025 年的預期仍在 4.3 億美元至 4.9 億美元之間，中位數為 4.6 億美元，比 2024 年增長近 30%。

As we highlighted last quarter, this range excludes our $15 million growth investment to create a new hub location in Phoenix. We believe the exclusion of long-term growth projects creates a more accurate picture of our free cash flow generation as a company.

正如我們上個季度所強調的那樣，這個範圍不包括我們為在鳳凰城創建新樞紐位置而進行的 1500 萬美元成長投資。我們相信，排除長期成長項目可以更準確地反映我們作為一家公司的自由現金流產生。

In summary, Q1 was a good start to 2025. We continue to expect the demand environment and our pricing initiatives to support our anticipated profitable growth this year. The ES segment has a strong backlog of waste, a robust pipeline of project opportunities, including PFAS, and most of our services businesses have good momentum. Within SKSS, we believe we should stabilize this business this year as we focus our energy and strategies to maximize the value of these assets while minimizing any downside potential.

總而言之，第一季是 2025 年的一個好開始。我們繼續預期需求環境和定價措施將支持我們今年預期的獲利成長。ES 部門擁有大量廢棄物積壓，包括 PFAS 在內的大量專案機會，我們的大多數服務業務都發展勢頭良好。在 SKSS 內部，我們相信今年我們應該能夠穩定這項業務，因為我們將集中精力和策略來最大化這些資產的價值，同時最大限度地減少任何下行潛力。

Overall, we are encouraged by the trajectory of the company and look forward to the remainder of this year as we continue to execute against our longer-term goals.

總體而言，我們對公司的發展軌跡感到鼓舞，並期待今年剩餘時間我們將繼續實現我們的長期目標。

With that, Melissa, please open the call for questions.

梅麗莎，請開始提問。

(Operator instructions)

（操作員指示）

Tyler Brown, Raymond James.

泰勒布朗、雷蒙詹姆斯。

Hey, good morning, guys.

嘿，大家早安。

Hey.

嘿。

Hey morning. Just -- you guys mentioned, I think, that ES was up 4% in the quarter. It did sound like weather had an impact. I mean, I think it snowed in Houston, for example. But any way you could quantify what that drag was? And will those volumes effectively be made up or are they kind of lost?

嘿，早安。只是——我認為你們提到過，ES 在本季度上漲了 4%。聽起來天氣確實產生了影響。我的意思是，例如，我認為休斯頓下雪了。但是您能用什麼方法來量化這種阻力呢？這些數量會被有效彌補嗎？還是會丟失？

Hey Tyler, Eric Dugas here. I'll start off with that. Yes, you're absolutely right. Weather was very difficult in January, and we had incorporated much of that into our guidance that we gave in February. But it's difficult to perfectly quantify it, but we had talked about maybe $10 million to $12 million of lost EBITDA due to weather.

嘿，泰勒，我是艾瑞克杜加斯。我先從那裡開始。是的，你完全正確。一月份的天氣非常惡劣，我們在二月的指導中已經充分考慮了這些因素。但很難完美地量化它，但我們已經討論過由於天氣原因造成的 EBITDA 損失可能在 1000 萬到 1200 萬美元之間。

I think as we move through the quarter, what we saw is when weather improved, the strong March that Eric mentioned, we were really excited about what we saw there helped to make up for some of the drag on weather, but really gives us kind of good positive momentum as we go into Q2. And so far, what we've seen in early April is consistent with what we saw in March. So excited about ES and the continued strong demand there as we move into Q2.

我認為，隨著我們度過這個季度，我們看到的是天氣好轉，埃里克提到的強勁的三月，我們對所看到的情況感到非常興奮，這有助於彌補一些天氣方面的拖累，但確實給我們進入第二季度帶來了良好的積極勢頭。到目前為止，我們在四月初看到的情況與三月看到的情況一致。隨著我們進入第二季度，我們對 ES 及其持續強勁的需求感到非常興奮。

Okay. That sounds good. And then just to be clear on the Q2 guide. So one, last year, I think HEPACO had some large-scale ER work. I think you mentioned it. So just to be clear, the 3% to 5% incorporates lapping that work? It does not include any outsized work?

好的。聽起來很好。然後只是為了明確 Q2 指南。首先，我認為去年 HEPACO 進行了一些大規模的急診室工作。我想你有提到它。所以要先明確的是，3% 到 5% 包括研磨工作嗎？它不包括任何超大型工作？

And two, what are the expectations for refinery turnarounds in Industrial Services? Is that expected to start ramping in Q2? Or is that more of a back half thing? Or is that really just upside, the guidance altogether?

第二，工業服務領域煉油廠轉虧為盈的預期是什麼？預計這一數字會在第二季開始上升嗎？或者這更像是後半部的事情？或者這實際上只是好處，是整體指導？

Yes, Tyler, this is the other Eric answering. First, I'd say that yes, our Q2 guide does not include any expected large-scale emergency response events. So we're being a little bit conservative there. As far as the industrial network, we'd say that our turnaround strength of what we have booked at this point is still very strong. In fact, over 150 turnarounds we still have planned, which is up pretty substantial from a year ago at this time.

是的，泰勒，這是另一個艾瑞克的回答。首先，我想說，是的，我們的第二季指南不包括任何預期的大規模緊急應變事件。所以我們在這方面有點保守。就工業網絡而言，我們可以說，我們目前的周轉實力仍然非常強勁。事實上，我們仍計劃進行 150 多次週轉，與一年前相比有相當大的成長。

So we're expecting a better second half. Obviously, those refineries are continuing to try to watch their costs as they go into this year. But we all know that at some point, those refineries need to be taken down and maintenance needs to be done. Might be a little bit more conservative on some of the investment minimum capital projects and so forth.

因此我們期待下半年會有更好的表現。顯然，這些煉油廠今年將繼續努力關注其成本。但我們都知道，到了某個時候，這些煉油廠需要拆除並進行維護。對於一些投資最低資本項目等可能會更加保守一些。

But overall, we have a real solid pipeline in the US and Canada around turnarounds for the second half of this year. And not much changed over the past 90 days that we've seen since last time we talked about it.

但總體而言，我們在美國和加拿大擁有真正穩固的管道，可以應付今年下半年的轉機。自從我們上次談論此事以來，過去 90 天並沒有發生太大變化。

Okay. Perfect. And just my last one, Eric. Just I continue to get a lot of questions just from investors around the cycle, the cyclicality of your business. So obviously, you guys have bucked the industrial production trend over the last couple of years.

好的。完美的。這是我最後一個問題，艾瑞克。我不斷收到投資者關於週期、業務週期性等許多問題。顯然，你們在過去幾年逆轉了工業生產的趨勢。

You offer a very high necessity, nondeferrable service. And Mike, I think, frankly, you laid out a number of idiosyncratic drivers. But can you just at a very high level, just talk about the cyclicality, specifically of the ES segment? And maybe just how cyclical the various lines of business are, again in ES? Just any color there, I think, would be helpful. Appreciate it giys.

您提供的是極為必要且不可延期的服務。麥克，坦白說，我認為你列出了許多特殊的驅動因素。但是您能否從非常高的層面談談週期性，特別是 ES 部分的周期性？也許 ES 中各個業務線的周期性如何？我認為，任何顏色都會有幫助。感謝你們。

Yes. I think we'd say, Tyler, that our business on the environmental side is really recession-resistant. We really see a continued strong growth in the second and third quarters around our GS, our SKE business, our FS business continues to be strong. IS, as we mentioned, a little bit -- that's going to flow up and down year-to-year based on the size and scope of the turnarounds. And we all know that maintenance work needs to be done.

是的。泰勒，我想我們會說，我們在環境方面的業務確實具有抗經濟衰退的能力。我們確實看到我們的 GS、SKE 業務和 FS 業務在第二季和第三季繼續保持強勁成長。正如我們所提到的，IS 有一點——根據扭轉的規模和範圍，它將逐年上下波動。我們都知道需要進行維護工作。

But really, our -- the cyclicality, we don't -- we're not really seeing any early recession trends or any recession trends at all in any of our businesses. As Eric just talked to, our pipeline across the board in our businesses, waste projects, our drum count and how we look at that coming out of March and into the second quarter already really, really strong. So we see some real positive momentum here.

但實際上，我們的週期性並沒有讓我們在任何業務中看到任何早期衰退趨勢或任何衰退趨勢。正如艾瑞克剛才談到的，我們的業務範圍涵蓋了廢棄物項目、我們的鼓數量，以及我們對 3 月和第二季前景的看法，這些都已經非常非常強勁。因此，我們在這裡看到了一些真正的積極勢頭。

Yes, Tyler, I would say -- to add on what Eric said, is that you see in a majority of the ES business, you see continued -- this is year three of kind of year-over-year margin expansion in light of the cyclicality in industrial that we saw, as Eric said in his prepared remarks, late last year and now, we see it again in Q1.

是的，泰勒，我想說——補充一下埃里克所說的，你可以看到，在大多數 ES 業務中，你會看到——這是連續第三年利潤率同比增長，考慮到工業的周期性，正如埃里克在他準備好的發言中所說的那樣，去年年底，我們在第一季度再次看到了這種情況。

But if you remember, Tyler, when the refineries were making all of their gasoline and with the inflation -- and this is back to 2022. And then we had a great 2023 because there, you said you can't delay these things forever. And so we're hopeful that that comes -- we're not a -- and we have a good pipeline.

但是泰勒，如果你還記得的話，當時煉油廠正在生產所有的汽油，而且通貨膨脹——這已經是 2022 年的事情了。然後我們度過了美好的 2023 年，因為你說過你不能永遠拖延這些事情。因此，我們希望這一天能夠到來——我們不是——而且我們擁有良好的管道。

We don't have an extraordinary pipeline, but we're hopeful that those things come to be and so the industrial business kind of recovers. And in the interim, we take out costs, we're managing the P&L very tightly and imagine that business as well, it still provides a fair margin for it. It is down year-over-year and in Q1, like it was in the back half of 2024.

我們沒有特別好的管道，但我們希望這些事情能夠實現，從而使工業業務得以復甦。在此期間，我們扣除成本，嚴格管理損益，並想像業務也能提供相當的利潤。與去年同期相比，第一季有所下降，就像 2024 年下半年的情況一樣。

Perfect, thank you, guys.

太好了，謝謝大家。

Thanks.

謝謝。

(Operator instructions)

（操作員指示）

Noah Kaye, Oppenheimer & Company.

諾亞·凱伊（Noah Kaye），奧本海默公司。

Hey, morning, folks. Thanks for taking the questions. Maybe we start with PFAS. Just give us an update, if you can, on the pipeline, what you're thinking for PFAS revenue growth this year? And maybe get your view on the plan of attack the administration announced on Monday. It looks like more frequent updates to destruction and disposal guidance could be positive, but just your thoughts there?

大家早安。感謝您回答這些問題。也許我們從 PFAS 開始。如果可以的話，請向我們提供最新消息，您對今年 PFAS 收入成長有何看法？也許可以聽聽您對政府週一宣布的攻擊計劃的看法。看起來更頻繁地更新銷毀和處置指南可能會帶來正面影響，但這只是您的想法嗎？

Yes. Noah, great question. So we continue to see a very strong robust pipeline growing quarter-to-quarter across our business. Team has done a great job reaching out to all those potential customers and servicing our existing.

是的。諾亞，好問題。因此，我們繼續看到整個業務的管道逐季度強勁成長。團隊在接觸所有潛在客戶和為現有客戶提供服務方面做得非常出色。

Yes, you mentioned on April 28, the EPA and Lee Zeldin put a great announcement out that really designated creating a PFAS lead, more frequent updates on destruction and disposal, using record authorities to address releases.

是的，您提到 4 月 28 日，美國環保署和 Lee Zeldin 發布了一份重要聲明，明確指定建立 PFAS 領導機制，更頻繁地更新銷毀和處置信息，並使用記錄機構來處理排放問題。

So we're continuing to see momentum there on strengthening regulatory framework that will drive PFAS collection disposal, our total PFAS solution as we've talked about it in a number of ways. And all that momentum is real positive for what we've been talking about for a long time.

因此，我們繼續看到加強監管框架的勢頭，這將推動 PFAS 收集處置，以及我們以多種方式討論過的整體 PFAS 解決方案。所有這些勢頭對於我們長期以來談論的事情來說都是真正積極的。

The -- just an update on the study. We talked about that in the past, that we did our incineration secondary sampling and burn testing. We expect the results of those to be published in Q2. Really bullish about how that has demonstrated that high temperature, reference incineration is just the really sound way to manage, remediation and cleanup of all those nasty materials. So good stuff there.

這只是關於研究的更新。我們過去討論過這個問題，我們進行了焚燒二次採樣和燃燒測試。我們預計這些結果將在第二季公佈。確實令人樂觀的是，這表明高溫焚燒是管理、修復和清理所有這些有害物質的真正有效方法。那裡有好東西。

Thanks. And just to put a finer point on this, is this fair to think about kind of a 15% to 20% revenue growth for the year is still the right range, kind of your view towards that?

謝謝。為了更準確地說明這一點，我們是否可以公平地認為，今年的營收成長率在 15% 到 20% 之間仍然是正確的範圍，您對此有何看法？

Yes. We believe that's the continued path that we're seeing.

是的。我們相信這是我們所看到的持續發展道路。

But no -- regulated the team to talk about kind of ways to go faster on that. How do we -- and do we have the right resources? Do we have enough resources? Where do we go from there? So that's what we're committing to today. But make no mistake, we see this as a great opportunity for long-term growth for the company

但沒有——規定團隊討論如何加快這一進程。我們如何做－我們是否擁有合適的資源？我們的資源夠用嗎？我們接下來要去哪裡？這就是我們今天所承諾的。但毫無疑問，我們認為這是公司長期成長的絕佳機會

Nice. I want to ask about incineration. You get the mix-adjusted incineration ASP up over 5%. At the same time, you're ramping Kimball. And I think that maybe goes to a question that investors have had around the ability of this new capacity to see sufficient demand.

好的。我想問一下關於焚燒的問題。混合調整後的焚燒 ASP 可上漲 5% 以上。與此同時，你正在增強金博爾 (Kimball) 的力量。我認為這或許可以解答投資者對於新產能是否能滿足足夠需求的疑問。

Certainly seems like pricing off to a good start for the year. Is mid-single-digit kind of the right growth rate to think about for pricing for the balance of the year? And maybe you can comment on how Kimball might have affected the discussions that you've had with some of your customers as you think about offtake for the rest of the year?

看起來，今年的定價確實有一個好的開始。對於今年餘下的定價來說，中等個位數的成長率是否合適？當您考慮今年剩餘時間的銷售情況時，也許您可以評論 Kimball 可能對您與一些客戶進行的討論產生了什麼影響？

Yes. Noah, we certainly believe that the mid-single digits is a good point to really continue to think about our incineration pricing. Kimball did have an effect overall as we started up that plant. We said in our script that we processed over 5,000 tons. And our goal this year is to process over 28,000 tons.

是的。諾亞，我們當然相信中位數個位數是一個好點，讓我們能夠繼續認真考慮焚燒定價。當我們啟動工廠時，金博爾確實發揮了整體作用。我們在劇本裡說過，我們處理了超過5000噸。我們今年的目標是加工超過 28,000 噸。

We very much see that in reach. The team has done a great job working through some difficult weather events in January as we ramped up the momentum coming through March and into April is very strong. Our network of drums is very strong. So the ramp-up, we have a real solid outlook at being able to potentially exceed some of our early look at what we laid out for a plan there.

我們非常相信這是可以實現的。團隊在一月份克服了一些困難的天氣事件，並做出了出色的工作，這為我們在三月和四月份增強了勢頭，使其勢頭非常強勁。我們的鼓網絡非常強大。因此，我們有一個非常堅定的前景，有可能超越我們早期所製定的計劃。

Some of the concerns you had -- the investment community had around overcapacity is clearly not the case. I mean, we see that the plant is running well. It's got plenty of waste in the network. And as Eric said, March was a great month, and April beat that, April so far. And so we're really excited about the prospects of that plant and incineration pricing in general.

投資界對產能過剩的一些擔憂顯然並非如此。我的意思是，我們看到工廠運作良好。網路中存在大量浪費。正如艾瑞克所說，三月是一個偉大的月份，而四月則更勝一籌，到目前為止，四月是如此。因此，我們對該工廠的前景以及焚燒定價總體感到非常興奮。

Thanks. I'll turn it over.

謝謝。我把它翻過來。

Thanks, Noah.

謝謝，諾亞。

Larry Solow, CJS Securities.

索洛（Larry Solow），CJS 證券公司。

Great. Good morning, folks. I guess just following up on the guidance and the outlook. So it feels like the -- you haven't really changed guidance much, tweaks here and there. But a little bit industrial, a little bit slower and then obviously a little bit of direct tariff expenses. So -- but not building in, I guess my concern, is there any concern as the year goes on? Obviously, most of your work is domestic, but a lot of your customers are international.

偉大的。大家早安。我想只是遵循指導和展望。所以感覺就像——你並沒有真正改變太多指導方針，只是在這裡和那裡做了一些調整。但工業化程度有點高，速度有點慢，而且顯然有一點直接關稅費用。所以——但不是在建設中，我想我的擔憂是，隨著時間的推移是否有任何擔憂？顯然，您的大部分工作是在國內，但您的許多客戶是國際的。

So do you fear that a recession or a considerable slowdown in the economy or further slowdown could impact the outlook as the quarters progress? I guess, waste volumes are a little bit of a laggard, right? So just any thoughts on that as we head out?

那麼，您是否擔心經濟衰退或大幅放緩或進一步放緩可能會對本季的前景產生影響？我想，垃圾量有點落後，對吧？那麼我們出發時對此有什麼想法嗎？

Yes, Larry, I'll take a first shot at that one. So we -- what we're trying to do right now and when some of our customers are talking about tariffs and what the impacts could have on the business is, we're trying to get closer to our key customers and expand our overall wallet with them and grow within those key customers to drive Industrial Services, Field Services.

是的，拉里，我會先嘗試一下。因此，我們現在正在嘗試做的是，當我們的一些客戶談論關稅及其對業務可能產生的影響時，我們正在嘗試與我們的關鍵客戶更加接近，並與他們一起擴大我們的整體收入，並在這些關鍵客戶中成長，以推動工業服務和現場服務。

So we think there is great opportunity for the company to continue to grow with large customers and continue to work through that. Based on our presence, our capabilities, our network, our redundancy of our disposal network, all those are positive things of how we can continue to grow with those customers.

因此，我們認為公司有很大機會透過與大客戶一起繼續成長，並繼續努力實現這一目標。基於我們的存在、我們的能力、我們的網絡、我們的處置網絡的冗餘，所有這些都是我們如何能夠繼續與這些客戶共同成長的積極因素。

Larry, one thing that we talked about quite a bit -- this is Mike. One thing we talked about quite a bit is reshoring, and reshoring is happening. And so I think that is -- if there are concerns around tariffs and other things like that, that's a winner for us. We certainly see that kind of in our pipeline and in our network. And as we see -- talk to these larger customers, as Eric said.

拉里，我們經常談論的一件事是——我是麥克。我們經常談論的一件事就是回流，而且回流正在發生。所以我認為——如果人們對關稅和其他類似問題感到擔憂，那麼這對我們來說就是勝利。我們確實在我們的管道和網路中看到了這種情況。正如我們所看到的——與這些大客戶交談，正如艾瑞克所說的。

Also, is there a pressure on maybe there's vendor consolidation, and we're the large player in all the end markets that we operate in. So I think that's a great opportunity for us, as Eric said, to get more share of wallet.

此外，是否存在供應商整合的壓力，而且我們在所有經營的終端市場中都是大型參與者。因此，正如埃里克所說，我認為這對我們來說是一個很好的機會，可以獲得更多市場份額。

The last thing I'd say around is that when you look at recessions. And if there's a recession, I don't think there is one coming, but if there is one coming. When you look at the stock performance of the company over any recession, one of our sell-side analysts had a really interesting analysis around going back for years looking at performance of the stock in these recessionary times. They all did -- we all did great, came out. We came -- us and the industry came out the other side terrific.

我最後要說的是，當你看到經濟衰退。如果出現經濟衰退，我不認為它會到來，但如果出現經濟衰退，我認為它會到來。當您查看該公司在任何經濟衰退時期的股票表現時，我們的一位賣方分析師進行了一項非常有趣的分析，回顧了多年來該股票在經濟衰退時期的表現。他們都做到了——我們都做得很好，出來了。我們來了——我們和產業都取得了巨大的進步。

And so that's really just a testament to the fact that we are a fit earlier, recession resistant. And so I feel -- I really believe that. And I think that we're very nimble, and we're very aggressive in cost control and others if we need to get them go down that path.

所以這實際上證明了我們能夠更早適應並抵禦經濟衰退。所以我覺得——我真的相信這一點。我認為我們非常靈活，並且在成本控制方面非常積極，如果需要的話，我們也會讓其他人走這條路。

Right. No, that's all fair. And I appreciate all that color. And just on environmental, just I know you don't break exact price volume down in guidance. But incinerated pricing sounds like it's going up mid-single. Is it fair to say sort of the mid-single digit overall growth in environmental is maybe a little bit more favorite pricing and a little bit of volume growth? Is that kind of a good way to break that out on an overall basis?

正確的。不，這很公平。我很欣賞這些色彩。就環境而言，我知道您沒有在指導中細分確切的價格量。但焚燒價格聽起來像是中期上漲。是否可以說，環境方面的中等個位數整體成長可能略微受到青睞的定價和略微的銷售成長的影響？從總體上來說，這是一個很好的解決問題的方法嗎？

Yes, Larry, it's Eric Dugas here. I think that's fair. Certainly, in Q1, because of some of the tough weather at the beginning of the quarter, certainly price is playing a little bit greater piece in that [log] rhythm. But I think as we move throughout the year, kind of built into our guidance almost kind of a 50, 50 mix between those two.

是的，拉里，我是艾瑞克·杜加斯。我認為這是公平的。當然，在第一季度，由於季度初的一些惡劣天氣，價格在這種[對數]節奏中肯定會發揮更大的作用。但我認為，隨著全年的發展，我們的指導方針中幾乎已經包含了這兩者各佔一半的比例。

And if I could just squeeze one more, Kimball ramping, It sounds like pretty much in line. Fair to say that was probably a little bit dilutive or maybe just modestly positive on the earnings side? And anything you're learning from the ramp of Kimball versus El Dorado from a few years ago? Thanks.

如果我可以再擠一點，金博爾斜坡，聽起來就像是排成一條線。公平地說，這可能對盈利方面有一點稀釋作用，或者只是略有積極作用？您從幾年前 Kimball 與 El Dorado 的較量中學到了什麼嗎？謝謝。

I mean I'll address the first part of that, Larry, in terms of its contribution in the first quarter, and it did pretty much exactly as we thought. I think we had foreshadowed that it would -- probably would contribute much in earnings in Q1 and then ramp up throughout the year. And that's exactly how it's played out. I'll let you guys comment on kind of lessons learned, I think.

拉里，我的意思是，我將就其在第一季的貢獻來談談第一部分，它的表現與我們想像的差不多。我認為我們已經預示它可能會在第一季為收益做出很大貢獻，然後在全年逐漸增加。事情就是這樣發生的。我認為，我會讓你們評論一下我所學到的經驗教訓。

Yes, Larry, I'll talk to the ramp-up compared to El Dorado. This team has done an awesome job at bringing this plant online. And we continue to ramp up faster than what we did with El Dorado when that unit came online. The design has been proven. We worked through a lot of shakedown issues despite the weather and can't talk enough about how great the team did, and we are really excited about how it's run coming out of the gates here for us.

是的，拉里，我會談談與埃爾多拉多相比的增長情況。這個團隊在使該工廠投入運作方面做出了出色的工作。當 El Dorado 單位上線時，我們的成長速度比當時的速度還要快。該設計已被證明。儘管天氣不好，我們還是解決了很多試車問題，團隊表現得非常出色，我們對車隊的開局感到非常興奮。

Great. Thank you. I appreciate it all.

偉大的。謝謝。我非常感謝這一切。

Thanks, Larry.

謝謝，拉里。

David Manthey, Baird.

大衛‧曼西，貝爾德。

Thank you. Good morning, guys. In your comment about weather impacting multiple areas of your business, I'm wondering if you could just talk about the key areas of variability? And then related to that, do those revenues catch up in subsequent periods? Or are they just gone forever?

謝謝。大家早安。在您關於天氣影響您業務的多個領域的評論中，我想知道您是否可以談談變化的關鍵領域？那麼與此相關的是，這些收入在後續時期是否會追上來？還是他們就永遠消失了？

I would start, David, by saying that whether -- it's cold every winter, we kind of get that. But January and February were really great forward and us and other people in similar industries have said that kind of publicly. Some parts of our business, we can't recover. But when our customers are shut down, well, we're shut down. They're not producing waste, then there's nothing to go pick up. And so those are kind of lost forever.

大衛，首先我想說的是，無論每年冬天是否都很冷，我們都明白這一點。但一月和二月的進展確實很好，我們和其他類似行業的人都公開表示這一點。我們的某些業務部分無法恢復。但當我們的客戶關閉時，我們也關閉了。他們不產生廢棄物，所以就沒有什麼可收集的了。所以這些東西就永遠消失了。

So -- but I hope to view that March, heavier than in April -- that in January, excuse me, March is better than -- February and April is going to be better than March. And so I really feel like it was isolated to weather issues. I think that us and others in the industry thought that perhaps this was a concern, but it really was related to weather, and we talked about snow in New Orleans and all kinds of things like that. But I do believe that, that was a very temporary thing. And as you look at the back half of the year, we're going to get some of that back, but lost it.

所以 — — 但我希望看到三月的情況比四月份更嚴重 — — 一月份，對不起，三月份比 — — 二月份和四月份會比三月份更好。所以我真的覺得它只是跟天氣問題有關。我認為我們和業內其他人都認為這可能是一個令人擔憂的問題，但它確實與天氣有關，我們討論了新奧爾良的降雪以及諸如此類的事情。但我確實相信，那隻是暫時的。回顧下半年，我們會拿回一些，但也失去了一些。

Yes, David, I'd just add a couple of comments to that. Quarter-over-quarter, our deferred inventory increased. So we built a little bit of backlog of inventory. What's great about our network was starting Kimball up today and how we're running logistics and transportation. So we have the opportunity now to improve and get those services back as we get into the second quarter here and into the third quarter. So the network is moving better than ever to be able to deal with those unforeseen weather events, that was extreme weather events that Mike spoke about that we all saw in January and into February.

是的，大衛，我只想補充幾點評論。與上一季相比，我們的遞延庫存有所增加。因此我們積壓了一些庫存。我們的網路的偉大之處在於今天啟動了 Kimball，以及我們如何運行物流和運輸。因此，隨著我們進入第二季度和第三季度，我們現在有機會改進並恢復這些服務。因此，網路比以往任何時候都能夠更好地應對那些不可預見的天氣事件，也就是麥克所說的我們在一月和二月看到的極端天氣事件。

Okay. I'm hearing you say that some of it's related to production, some of it might be related to inefficiencies in transportation because of weather. It sounds like that's what you're saying?

好的。我聽到您說其中一些與生產有關，一些可能與天氣導致的運輸效率低下有關。聽起來這就是你要說的？

Yes, the impact of being able to service the customers due to those extreme weather events, but all that waste needs to be moved and has time frame set against it, and we'll get caught up.

是的，極端天氣事件會對為客戶提供服務產生影響，但所有廢物都需要清除，並且有時間限制，我們會趕上進度。

Got it. Okay. And then a quick one on PFAS allowable contaminant levels. If the number goes from four parts per trillion to something higher, even parts per billion, that wouldn't be a significant change in your prospects relative to PFAS, would it?

知道了。好的。然後快速討論一下 PFAS 允許的污染物含量。如果這個數字從萬億分之四上升到更高的數字，甚至是十億分之幾，這不會對你相對於 PFAS 的前景產生重大影響，不是嗎？

No, we don't think so at all. In fact, what we've really said all along here is that we are seeing customers not really react around a contaminant level, but knowing any contamination of PFAS that they're acting. They're beginning to work with us as our pipeline has been growing on making sure that they remediate PFAS or deal with treatment of PFAS and drinking water and industrial water. So the -- yes, that really is relatively -- we don't see that as an impact at all to how we would service our customers.

不，我們根本不這麼認為。事實上，我們一直在說的是，我們看到顧客並不是真正對污染物水平做出反應，而是知道他們所採取的行動是否受到 PFAS 污染。隨著我們的管道不斷擴大，他們開始與我們合作，以確保他們修復 PFAS 或處理 PFAS 和飲用水和工業用水。所以 — — 是的，這確實是相對而言 — — 我們認為這根本不會對我們為客戶提供服務的方式產生影響。

Dave, we like the news at came out by the EPA talking about updated in guidance every year. I mean that's been a gate to our -- gate to some acceleration of growth and the fact that Zeldin and the administration is very supportive of PFAS remediation. And as Eric said, it's going to put a leader of PFAS waking up every day, think about how to remediate PFAS is really kind of music to our ears.

戴夫，我們喜歡美國環保署發布的有關每年更新指導意見的消息。我的意思是，這是我們加速成長的大門，事實上，澤爾丁和政府非常支持 PFAS 修復。正如埃里克所說，這會讓 PFAS 領域的領導者每天醒來，思考如何解決 PFAS 問題，這對我們來說真的是一種天籟之音。

Yes, definitely sounds positive. Alright, guys. Thank you.

是的，聽起來確實很正面。好吧，夥計們。謝謝。

Thanks David.

謝謝大衛。

James Ricchiuti, Needham & Co.

詹姆斯‧里基烏蒂 (James Ricchiuti)，李約瑟公司

Hi, thanks. Good morning. So I know from the standpoint of the economy, you guys still feel things are pretty firm. But I'm just wondering, if we are going into a slower patch, what does that do to the M&A pipeline? And maybe if you could just talk to what you're seeing out there, just in the current environment?

你好，謝謝。早安.所以我知道從經濟的角度來看，你們還是覺得情況相當穩固。但我只是想知道，如果我們進入一個較慢的階段，這會對併購管道產生什麼影響？也許您可以談談您在當前環境下所看到的情況？

Hey, Jim, this is Mike. I'll start, and Eric certainly can chime in. The way I see it is that valuations are still pretty hot for these valuable assets, the permanent related facilities, the valuations per assets are still high. As Eric Dugas said in his prepared remarks, we have a very strong balance sheet, and we have a network of assets and that we can leverage those assets to drive synergies, both from a cost standpoint and a cross-sell initiative to drive value and to make these deals work. And so we're excited about the pipeline of deals.

嘿，吉姆，我是麥克。我先開始，艾瑞克當然也可以加入。我認為這些寶貴資產、永久性相關設施的估值仍然很高，每項資產的估值仍然很高。正如 Eric Dugas 在其準備好的發言中所說，我們擁有非常強大的資產負債表，我們擁有資產網絡，我們可以利用這些資產來推動協同效應，無論是從成本角度還是從交叉銷售計劃的角度來推動價值並使這些交易發揮作用。因此，我們對交易的進展感到非常興奮。

We haven't seen the deals slow up or speed up. It's still the same store, a lot of assets to look at. We've been very busy in that area. We want to be very selective. We want to be -- have to make financial sense, it has to make strategic sense. It has to make comfortable sense. It all has to work.

我們並未看到交易放緩或加速。它仍然是同一家商店，有很多資產可供查看。我們在那個地區一直很忙。我們希望做到有選擇性。我們希望──這必須具有財務意義，必須具有戰略意義。它必須讓人感到舒服。一切都必須有效。

But if we get to those points -- and we look at a lot of assets -- we'll be aggressive in the marketplace. And we do feel like -- as you know, you've followed us for many years. When things are tough, that's a great opportunity for us to find that. And we've been able to capitalize on that and be a little contrarian, and that has been the basis of the company.

但如果我們達到這些目標——並且我們考慮了很多資產——我們就會在市場上積極進取。我們確實感覺到——正如你所知，你已經關注我們很多年了。當事情變得艱難時，這對我們來說是一個很好的機會來找到它。我們能夠利用這一點，並且稍微打破常規，這就是公司的基礎。

Got it. And just moving another follow-up question as it relates to Kimball. It sounds like you're satisfied with how it's progressing, notwithstanding some weather. What can you say -- you guys have talked in the past about the opportunity with captives as it relates to Kimball. What are you seeing there? Any new developments to talk about?

知道了。這只是提出與金博爾相關的另一個後續問題。聽起來，儘管天氣有些惡劣，但你對進展感到滿意。您能說什麼呢——你們過去曾談論過與金博爾有關的俘虜機會。你在那裡看到了什麼？有什麼新進展可以談嗎？

Yes. We have continued active discussions with multiple captives and helping to evaluate their cost structure. As we've said multiple times in the past, every captive -- every company that owns captive out there is part of our customer base. We service them during shutdowns and other waste streams that their incinerator can handle. We also do see today, a continued opportunity that people are evaluating their cost structure.

是的。我們繼續與多家俘虜公司進行積極討論，並協助評估他們的成本結構。正如我們過去多次說過的那樣，每一家自保公司——每一家擁有自保公司的公司都是我們客戶群的一部分。我們在停工期間以及焚化爐可以處理的其他廢物流期間為他們提供服務。我們今天也確實看到，人們正在評估其成本結構，這是一個持續的機會。

And knowing that we have such a great network of service branches to be able to make sure that their waste volumes are moved on time, should they contemplate a captive. We can provide that as a company, and that's unique to us and the industry. So it's continues to be a great opportunity. And yes, the pipeline and opportunities look strong for us.

我們知道，如果他們考慮自保，我們擁有如此龐大的服務分支機構網絡，能夠確保他們的廢物量能夠及時處理。作為一家公司，我們可以提供這種服務，這對我們和整個行業來說都是獨一無二的。所以這仍然是一個很好的機會。是的，我們的管道和機會看起來都很充足。

How important is that opportunity in relation to how you see Kimball scaling next year?

就您認為 Kimball 明年的擴張而言，這個機會有多重要？

It's not -- we did not base our ramp up, the growth of the company at all on additional captive closures. So as we've talked about, how we'll go from 28,000 tons to ramp up over the next couple, three years, captive closures was not contemplated at all in that volume that we're going to take in and manage as a company.

事實並非如此——我們的成長和公司的成長根本不是建立在額外的自保關閉基礎上的。因此，正如我們所討論的，我們將如何在未來兩年或三年內從 28,000 噸增加到現在的水平，而我們作為一家公司要接收和管理的數量根本沒有考慮到封閉式開採。

Yes, as we talked about it in our investor presentation, it's all upside to any models.

是的，正如我們在投資者演示中談到的那樣，這對任何模型來說都是有利的。

Good. Thank you.

好的。謝謝。

Thank you.

謝謝。

Thank you.

謝謝。

James Schumm, TD Cowen.

詹姆斯·舒姆（James Schumm），TD Cowen。

Hey, good morning, guys. Congrats on reiterating guidance in a tough environment. Can you talk a little bit about base oil pricing over the past month or so, given the weakness in oil prices?

嘿，大家早安。恭喜您在艱難的環境中重申指引。鑑於油價疲軟，您能否談談過去一個月左右基礎油的價格情況？

Yes. James, this is Mike. I'll take a shot at this. The base oil pricing has been under pressure, lower than our expectations. And so -- but what really happened was that the team, as I said in my remarks, they did an excellent job of driving kind of the UMO collection costs and a charge for oil versus a pay for oil, where we were earlier this -- earlier in 2024.

是的。詹姆斯，這是麥克。我會嘗試一下。基礎油定價一直承受壓力，低於我們的預期。所以 — — 但實際情況是，正如我在發言中所說，團隊在推動 UMO 收集成本和石油收費與石油付費方面做得非常出色，我們早在 2024 年就已經這樣做了。

And so that really -- that changed. And I said in my remarks, double the price that we were charging from where we ended in December to where we ended in March is just a terrific offset to lower base oil pricing. I think we were very aggressive. We talked, we issued a press release back in November, if you recall, and really drove that pricing.

所以這確實發生了改變。我在發言中說過，從 12 月底到 3 月底，我們的價格翻了一番，這對基礎油價格的下降起到了很大的抵消作用。我認為我們非常積極。如果你還記得的話，我們在 11 月進行了討論並發布了一份新聞稿，這確實推動了這項定價。

And really, as I said in my remarks, we closed one of our re-refineries, not just to close a high-cost plant, which it was. But we also to limit the need for the collection of used motor oil to drive our teams to make sure that we're getting the price that we need to hit our targets. And so base oil pricing go up, they go down, but we are assuming that oil prices deteriorated a bit in the guide.

事實上，正如我在發言中所說，我們關閉了其中一家煉油廠，而不只是為了關閉高成本工廠。但我們也要限制對廢機油收集的需求，以推動我們的團隊確保我們獲得實現目標所需的價格。因此基礎油價格有漲有跌，但我們假設指南中的油價會略有下降。

Okay. So the guidance contemplated some of that. Okay. I'm just -- because I know that there's a lag from when you collect to when you refine it and sell it. And so I was thinking that maybe you'd have a hard time not lowering guidance in this environment. But -- maybe could you talk about the SKSS inventories? Where were they last quarter? Where are they now? How is that looking?

好的。因此，指導意見考慮到了其中的一些內容。好的。我只是——因為我知道從收集到提煉並出售之間存在一個滯後。因此，我在想，在這種環境下，你可能很難不降低指導。但是——也許您可以談談 SKSS 庫存？上個季度他們在哪裡？他們現在在哪裡？看起來怎麼樣？

Yes, Jim, Eric Dugas here. So when you think about kind of the inventory values, your comment a moment ago around the lag, there is probably a quarter, 1.5 quarters of lag between when we're talking about we used to pay for oil, and now we're charging for oil. What that creates is as we close out Q1 here, our inventory costs are lower than they've been in historical periods.

是的，吉姆，我是艾瑞克‧杜加斯。因此，當您考慮庫存價值時，您剛才關於滯後的評論是，當我們談論我們過去支付石油費用和現在收取石油費用之間可能存在四分之一到 1.5 個季度的滯後。這意味著，當我們結束第一季時，我們的庫存成本低於歷史水準。

And that's what gives us a good feeling about Q2. In our guide, we do have profitability in the business increasing a bit in Q2, and some of that is because of the lower cost of our base oil inventories. So that's sort of where you see that lag come through kind of on the cost side.

這讓我們對第二季感到滿意。在我們的指南中，我們第二季度的業務盈利能力確實有所提高，部分原因是我們的基礎油庫存成本較低。這就是成本方面落後的表現。

Yes. Jim, just reiterate to you that we all feel pretty comfortable about continuing to focus on that 140 as our guide this year. Team has done an awesome job of turning around our used motor oil collections to a high CFO rate, as Michael talked about.

是的。吉姆，我只是想向你重申，我們都很放心繼續以今年的 140 作為我們的指導方針。正如邁克爾所說，團隊出色地完成了工作，將我們的廢機油收集率提高到了較高的 CFO 率。

So we feel pretty good about where we -- what we've done, how we're operating, how we've managed costs in the business even with some continued anticipated fluctuations in base oil pricing. So we're in a good spot, we think.

因此，儘管預計基礎油價格將持續波動，但我們對自己的工作、營運方式以及業務成本管理方式感到非常滿意。因此我們認為我們處於一個良好的狀態。

And we think we've turned the corner, to be fair.

公平地說，我們認為我們已經渡過了難關。

Okay. That's great. And then just lastly for me because I get this question a lot. But I know in the past, you were never interested in selling this business because there would be some dissynergies, if that's a word. But I'm curious if your thinking there has changed at all or what would have to occur for that to happen? Or is that even possible?

好的。那太棒了。最後，對我來說，這是因為我經常被問到這個問題。但我知道，過去你從來沒有想過要出售這項業務，因為會產生一些不協同效應（如果可以這麼說的話）。但我很好奇，您的想法是否有所改變，或者需要發生什麼才能實現這一點？或者這有可能嗎？

Yes. So obviously, we always think about all these types of things and what the best interest of our shareholders are. So we're always thinking about kind of what we do with all our assets and whatever business. So we do that from time to time related to the SKSS business.

是的。因此，顯然，我們始終考慮所有這些事情以及股東的最大利益是什麼。因此，我們一直在思考如何處理我們的所有資產和業務。因此，我們會不時地進行與 SKSS 業務相關的工作。

The challenge in that business is that, as I've said publicly, is that it's just many of the locations, they're shared locations. With our SK branch business, which, as Eric said in his remarks, was having continued to have a terrific few years as far as an industry leader. So our concern is even when we get through the exercise of separating the business, from (inaudible) to try to sell it or do something with it, it would -- there's a risk there that the buyer of that business would want to create a competitor to our SK branch business.

正如我公開說過的，該業務面臨的挑戰是，許多地點都是共享地點。正如 Eric 在發言中所說，我們的 SK 分公司業務作為行業領先者，在過去的幾年裡持續表現優異。因此，我們擔心的是，即使我們完成了業務分離，（聽不清楚）試圖出售或處理它，也存在這樣的風險，即該業務的買家可能會想要為我們的 SK 分公司業務創造競爭對手。

And we wouldn't be able to offer a bundled offering that we do today like some of our competitors do. So not only is the competitive disadvantage of the SK branch business, but perhaps we could create a competitor to our SK branch business because obviously, those -- whoever buys that business would have to go and service our customers just like we do and perhaps they want to sell and similar types of services.

而且，我們也無法像一些競爭對手一樣提供像今天這樣的捆綁服務。因此，這不僅是 SK 分行業務的競爭劣勢，而且也許我們可以為我們的 SK 分行業務創造一個競爭對手，因為顯然，那些 — — 無論誰購買該業務，都必須像我們一樣為我們的客戶提供服務，也許他們想要銷售類似類型的服務。

So there's a lot of reasons behind that. We think it would be very difficult to separate the permits. We think it would be very difficult to separate the locations. But even we get through all of that, I think we create not only a competitor, but then also perhaps hurt what we think is a very profitable and growing business in our SK branch business.

這背後有很多原因。我們認為分開許可證會非常困難。我們認為分開這些地點會非常困難。但即使我們克服了所有困難，我認為我們不僅創造了一個競爭對手，而且可能還會損害我們認為的 SK 分公司業務中非常有利可圖且不斷增長的業務。

Right. That makes a lot of sense. Okay. Thanks, Mike, and thanks, guys for all the color. Appreciate it.

正確的。這很有道理。好的。謝謝，麥克，也謝謝大家帶來的顏色。非常感謝。

Thank you.

謝謝。

Jerry Revich, Goldman Sachs.

高盛的傑瑞·雷維奇。

Hi, this is Adam Bubes on for Jerry Revich today. In Safety-Kleen -- hi, good morning. I'm wondering, in Safety-Kleen, it's pretty impressive because the 1Q results are very similar to last year in a much worse base oil pricing environment. How does the charge for oil that you're flowing through right now compare to past cycles and similar base oil pricing environment? Are you seeing any changes in the competitive landscape there? And is that having an impact?

大家好，我是 Adam Bubes，今天為 Jerry Revich 主持節目。在 Safety-Kleen ——嗨，早安。我想知道，在 Safety-Kleen 中，這非常令人印象深刻，因為第一季的結果與去年非常相似，而基礎油定價環境卻糟糕得多。您目前流通的石油價格與過去的週期和類似的基礎油定價環境相比如何？您是否看到那裡的競爭格局發生了任何變化？這會產生影響嗎？

Adam, this is Mike. And first of all, thank you for pointing that out. We appreciate the recognition. We've had our challenges with that business, so I appreciate you acknowledging that has done well. What I would say is that we changed tactics and we're very aggressive on CFO pricing, and we did that with a public announcement, and we were aggressive in Q4, we stayed aggressive in Q1, and we're going to continue to stay aggressive.

亞當，這是麥克。首先，感謝您指出這一點。我們感謝您的認可。我們在這項業務上遇到了挑戰，因此我很感謝您承認我們做得很好。我想說的是，我們改變了策略，在 CFO 定價方面非常積極，我們透過公開聲明做到了這一點，我們在第四季度很積極，在第一季度我們保持了積極的態度，我們將繼續保持積極的態度。

I think the industry has followed. That's your question. We do think that there's been -- that there's -- since we're the national player, we're the largest collector of used motor oil in the country, I think that other people recognize the fact that they're under pressure to try to manage the spread as well. So they're having to do the same thing.

我認為業界已經跟進了。這就是你的問題。我們確實認為，由於我們是全國性的參與者，我們是全國最大的廢機油收集者，我認為其他人也認識到他們也面臨著試圖控制蔓延的壓力。所以他們必須做同樣的事情。

So I don't -- I see this as -- we were assuming we lose more gallons. And that's really what surprised us for the quarter, that the collection gallons are actually up year-over-year. And there's an M&A in there that clouds that a little bit. But the level of collection gallons will still be very high kind of year-over-year, which is a testament to the fact that we believe that the industry is kind of full of used motor oil. Pricing is there.

所以我不認為——我認為這是——我們假設我們會損失更多的加侖。本季度真正令我們感到驚訝的是，收集加侖數實際上同比增長。其中的併購事件讓情況稍微模糊。但收集量仍將比去年同期高出許多，證明我們認為該行業充斥著廢機油。價格就在那裡。

We're going to -- we are aggressive, we're going to remain aggressive. And I'm really excited about -- as Eric said, we feel good about the 140 we kind of committed to today. And nothing changes that. As a matter of fact, I feel better than I did 90 days ago.

我們將－我們將積極進取，我們將保持積極進取。我真的很興奮——正如埃里克所說，我們對今天承諾的 140 感到很高興。沒有什麼能改變這一點。事實上，我感覺比 90 天前好多了。

Great. And then in Environmental Services, guidance embeds an acceleration in organic growth in Q2 and then another acceleration in the back half of the year. Obviously, you have Kimball ramping, weather presumably won't be a headwind. But you also have some Field Services projects that were a good guy in 2Q last year. So just wondering if you can parse out the puts and takes on the organic growth cadence in the balance of the year? And any other moving pieces we should be thinking of?

偉大的。在環境服務方面，指導意見預計第二季有機成長將加速，下半年將再次加速。顯然，金博爾正在努力，天氣大概不會是逆風。但你們也有一些現場服務項目在去年第二季表現不錯。所以我只是想知道您是否可以分析今年餘額中有機成長節奏的利弊？我們還應該考慮其他什麼活動部件嗎？

Sure, Adam, Eric here. So you're exactly right. As we move into kind of Q2 and Q3, the organic growth does increase from Q1 here, which -- as we tried to call out, it was greatly impacted by weather. But as we move into Q2, obviously, the pricing strategies, the great volume momentum we're seeing -- we do have a headwind with those ERs in Q2. I think last year, when we spoke to the Street in July around Q2, we talked about roughly $24 million of larger types of ERs.

當然，我是亞當，我是艾瑞克。所以你說得完全正確。隨著我們進入第二季度和第三季度，有機成長確實比第一季增加，正如我們試圖指出的那樣，它受到了天氣的極大影響。但隨著我們進入第二季度，顯然，定價策略、我們看到的巨大銷售勢頭——我們在第二季度確實面臨這些 ER 的阻力。我想，去年，當我們在第二季度左右與華爾街交談時，我們談論了大約 2400 萬美元的大型 ER。

So that is a headwind, but making up for some of that will be just overall growth in Field Services. So we opened 10 new Field Services branches this quarter, so there will be some organic growth there to help offset.

所以這是一個阻力，但彌補其中一部分的將是現場服務的整體成長。因此，我們在本季開設了 10 個新的現場服務分支機構，因此將有一些有機成長來幫助抵銷。

And then as you move into Q3, again, same kind of pricing strategies, good volume. And as Eric Gerstenberg mentioned a moment ago, that's where we're hoping to see some stronger turnarounds in the Industrial Services business that will go up against that Q3 comp last year.

然後，當你進入第三季時，同樣的定價策略，良好的銷售量。正如 Eric Gerstenberg 剛才提到的那樣，我們希望看到工業服務業務出現更強勁的復甦，與去年第三季相比有所改善。

And then Q4, probably a little bit smaller just sequentially from an organic growth, but again, growth over last year. So those are the largest puts and takes, but the underpinning of all that is all the great things we're doing in the businesses in Environmental Services. The Kimball ramp up, pricing strategies, cost-cutting initiatives, all those things, introduction of some new technologies, those are all driving the organic growth.

然後，第四季度，可能與有機成長相比略有下降，但與去年相比仍有成長。這些是最大的投入和產出，但這一切的基礎是我們在環境服務業務中所做的所有偉大的事情。Kimball 的成長、定價策略、削減成本的舉措、所有這些以及一些新技術的引入都在推動有機成長。

Great. Thanks so much.

偉大的。非常感謝。

Tobey Sommer, Truist Securities.

托比·索默（Tobey Sommer），Truist Securities。

Yeah, good morning. I wanted to ask on the labor expense side. If we do get a pickup in inflation, how do you think the company is positioned to be able to adjust pricing midyear and respond to that to keep the margins and return profile that you're targeting?

是的，早安。我想問一下人工費用方面的問題。如果通貨膨脹確實加劇，您認為公司如何能夠在年中調整定價並做出反應，以保持您所期望的利潤率和回報率？

Yes, Tobey, Eric here. We will continue to outpace through pricing initiatives, our increased costs due to labor. Would say that on the labor side that team has done a great job of continuing to reduce our turnover in a difficult environment. Strong employee base, but we will no doubt work through increases in labor by price adjustments in the market.

是的，托比，我是艾瑞克。我們將繼續透過定價措施來降低因勞動力而增加的成本。可以說，在勞動力方面，該團隊在困難的環境中繼續降低我們的營業額方面做得很好。員工基礎強大，但毫無疑問，我們將透過市場價格調整來解決勞動力增加的問題。

Yes. Just to follow on what Eric just said, our voluntary turnover for our direct labor, our cost of goods sold labor is the lowest it's been in over three years. And it really is a testament to the -- all the things and all the investments we've been making in our organization and our people. And that allows us to be aggressive in how we price and our customer service, and it really has a virtuous cycle that we're in right now.

是的。正如艾瑞克剛才所說，我們的直接勞動力自願流動率、我們的銷售勞動成本是三年多來的最低水準。這確實證明了我們為我們的組織和員工所做的一切以及所做的所有投資。這使我們能夠積極主動地制定定價和提供客戶服務，目前我們正處於一個良性循環之中。

(Operator instructions)

（操作員指示）

Davis Banton, BMO Capital Markets.

戴維斯班頓 (Davis Banton)，BMO 資本市場。

Hi, good morning. This is Davis on for Devin Dodge. Just a quick question for me. I'm just wondering if there's an update or any commentary you can give on how the ramp-up of Group III oil processing is going?

嗨，早安。這是戴維斯代替德文道奇上場。這只是一個簡單的問題。我只是想知道您是否能提供有關第三類石油加工升級進度的最新消息或評論？

Yes, Davis, I can answer that question. It's growing. It's going to grow up two to three more gallons this year than last year. It's a slow ramp. I mean, we want to make sure our plant works well, and collection logistics is always a challenge. We sure we're getting all the Group III that we need to build the plant and move forward. But that goes along kind of unabated here in 2025.

是的，戴維斯，我可以回答這個問題。它正在成長。今年的產量將比去年增加兩到三加侖。這是一個緩慢的坡道。我的意思是，我們希望確保我們的工廠運作良好，而收集物流始終是一項挑戰。我們確信我們已獲得建造工廠和向前推進所需的所有 III 類材料。但到了 2025 年，這種趨勢仍將持續下去。

And Davis, probably just to add to that, our Castrol partnership, they've really expressed a lot of interest in helping to grow and manage the Group III that we're producing under the Castrol brand. So there's good, solid opportunities there.

戴維斯，可能只是想補充一下，我們與嘉實多的合作夥伴關係，他們確實表現出很大的興趣，希望幫助發展和管理我們在嘉實多品牌下生產的第三類產品。所以那裡有很好、很穩固的機會。

Okay, great. Thanks I'll turn it over.

好的，太好了。謝謝，我會把它翻過來。

Thank you.

謝謝。

Thank you. Ladies and gentlemen, that concludes our time allowed for questions. I'll turn the floor back to Mr. Gerstenberg for any final comments.

謝謝。女士們、先生們，我們的提問時間到此結束。我將把發言權交還給格斯滕伯格先生，請他發表最後的評論。

Thank you, and thank everyone for joining us today. Next week, management will be at the Waste Expo in Las Vegas and participating in Stifel's Investor Summit Deck, as well as the virtual Oppenheimer Industrial Growth Conference later in the week. We also have several conferences lined up in Boston and in New York in early June. Based on that active calendar, we look forward to seeing some of you at those events. Have a great rest of your week, and please stay safe.

謝謝大家，也謝謝大家今天的到來。下週，管理層將參加在拉斯維加斯舉行的廢棄物博覽會，並參加 Stifel 的投資者峰會，以及本週稍後舉行的虛擬奧本海默工業成長會議。我們也計劃於六月初在波士頓和紐約舉辦幾場會議。根據這個活躍的日程表，我們期待在這些活動中見到你們。祝您本週剩餘時間過得愉快，並注意安全。

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。現在您可以斷開線路。感謝您的參與。