Question-and-Answer SessionEric DugasExecutive VP & CFO Yes. It's a great question and something we like to highlight. I mean, to simplify it, Adam, we oftentimes talk about roughly 500 margin -- or excuse me, 500 basis points of margin over the last 5 years. And even if you go back further, about 800 over the last 8 years, so really truly a great story. I think a couple of things that I think about over that time frame that's really kind of driven those margins is when you think about our business, first o ...

Clean Harbors (NYSE:CLH) 2025 Conference Summary Industry Overview - **Company**: Clean Harbors - **Industry**: Environmental Services Key Points and Arguments Margin Expansion - Clean Harbors has expanded margins by approximately 480 basis points since 2019 and about 800 basis points over the last eight years, driven by: - Increased volumes from strategic partnerships, such as with 3M, and growth in underlying verticals [6][7] - Focus on pricing during high inflation periods while maintaining service quality [7] - Environmental services margins are projected to finish the year just over 26%, with a long-term goal of reaching 30% and above [8] Volume and Pricing Drivers - Major drivers for margin improvement include: - Continued volume growth and pricing strategies [10] - Tailwinds from reshoring, infrastructure build-out, and PFAS opportunities [10][11] Incineration Business - The new Kimball Incinerator is expected to generate $10 million in EBITDA this year, with a target of $40 million run rate by 2027 [12][14] - The facility has exceeded throughput goals, with expectations of $25 million to $30 million EBITDA in 2026 [14] - The incineration market remains strong, with high utilization rates expected to continue [18] Captive Incinerator Opportunities - There are currently 41 active captive incinerators, with a trend of companies moving waste to commercial incinerators like Clean Harbors [19][21] - Clean Harbors aims to attract more waste from these captive facilities, similar to the arrangement with 3M [23] Industrial Services Segment - The industrial services business is valued at approximately $1.3 billion, with 50% of revenue from day-to-day maintenance and 20% from turnaround services [28][30] - Turnaround work has slowed due to deferred shutdowns, but improvements are expected in 2026 [31][32] PFAS Opportunity - PFAS revenues are currently around $100 million, growing at 20% [38] - The company is expanding its PFAS solutions, including water treatment and disposal, with significant contracts like the one at Pearl Harbor expected to generate $110 million over three years [41][42] - Regulatory developments are anticipated to create further opportunities in PFAS destruction [45] M&A and Capital Allocation - Clean Harbors has allocated nearly $2 billion toward M&A over the past five years, focusing on synergies and operational efficiencies [50][51] - The company is currently prioritizing high-return organic investments and share buybacks due to higher valuations in the M&A space [53][55] - Plans for $500 million in internal investments include enhancing throughput and developing regional hubs [56][57] Safety-Kleen Segment - The Safety-Kleen segment has shown consistent growth, with a business model that supports all Clean Harbors facilities [60][62] - The segment has been resilient despite market pressures, with a focus on subscription-based services and efficient route management [62][63] Additional Important Insights - Clean Harbors is well-positioned to leverage its capabilities in the growing PFAS market and capitalize on regulatory changes [49][50] - The company maintains a competitive edge through continuous improvement and high service levels, despite increasing competition in the environmental services sector [59]

Core Thesis - Clean Harbors, Inc. (CLH) is positioned as a leading provider in hazardous waste disposal, with a strong growth outlook driven by regulatory needs and industrial demand [1][6] Company Overview - CLH operates the largest network of incinerators in North America, supported by a robust logistics system with over 20,000 vehicles and 5,000 drivers [2] - The company specializes in complex waste streams from various sectors, including semiconductor manufacturing and emergency response [2] Business Segments - The Safety-Kleen Sustainability Solutions (SKSS) segment focuses on used-oil recycling, which is more sensitive to global oil prices and has lower margins compared to core environmental services [3] - CLH's competitive advantage lies in its extensive network of incinerators and regulatory expertise, particularly in PFAS destruction, which is a growing market contributing $100–125 million in revenue with a 20% annual growth rate [3] Market Position and Competition - CLH competes with major firms like Veolia, Waste Management, and Republic Services but offers a more comprehensive service for industrial clients [4] - While organic growth has historically been low to mid-single digits, factors like PFAS demand and reshoring may provide additional growth opportunities [4] Financial Metrics - As of November 28th, CLH's share price was $227.56, with trailing and forward P/E ratios of 31.61 and 28.82 respectively [1] - The company has a run-rate free cash flow of approximately $400 million against an enterprise value of around $13.5 billion, indicating modest returns without further expansion or higher oil prices [4] Investment Considerations - The stock is viewed as fundamentally strong but may be overvalued, suggesting a cautious approach to investment until more attractive valuations emerge [5]

We came across a bullish thesis on Clean Harbors, Inc., on Beeli Capital’s Substack by Andrew Beeli. In this article, we will summarize the bulls’ thesis on CLH. Clean Harbors, Inc.'s share price was $227.56 as of November 28th. CLH’s trailing and forward P/E were 31.61 and 28.82 respectively according to Yahoo Finance. chemical, industry Adam Gregor/Shutterstock.com Clean Harbors (CLH) is the leading provider of hazardous and environmentally sensitive waste disposal in North America, operating the cont ...

The company secured additional work from an existing client with deep pockets.Environmental and industrial services company Clean Harbors (CLH +4.82%) was cleaning up on the stock market Tuesday, with a nearly 5% gain in price on the day. That was mainly due to a new set of contracts it won for a project deep in the Pacific Ocean. Filtering successThat morning, Clean Harbors announced it had been awarded a series of contracts collectively worth $110 million at the U.S. military's Joint Base Pearl Harbor-Hic ...

Core Insights - Clean Harbors reported disappointing Q3 2025 results, with earnings and revenues missing estimates, leading to concerns about future performance [3][12] - The company's stock has seen a 5.5% increase over the past month, outperforming the S&P 500, but analysts are cautious about sustainability [1][2] Financial Performance - Q3 earnings were $2.21 per share, missing the Zacks Consensus Estimate by 6.8%, but up 4.3% year-over-year [3] - Total revenues reached $1.5 billion, missing estimates by 1.7%, but showing a 1.3% increase year-over-year [3] - Environmental Services segment revenues were $1.3 billion, a 2.4% increase from the previous year, while Safety-Kleen Sustainability Solutions revenues declined by 4.5% to $230.8 million [4] - Adjusted EBITDA was $320.2 million, a 6.1% increase year-over-year, but below estimates [5] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the quarter were $759.2 million, up from $600.2 million in the previous quarter [7] - Long-term debt remained flat at $2.8 billion, with net cash from operating activities at $302 million [8] Guidance and Estimates - Updated guidance for adjusted EBITDA in 2025 is $1.16-$1.18 billion, slightly down from the previous estimate [9] - Adjusted free cash flow guidance has been increased to $445-$495 million [9] - Estimates for the stock have trended downward, leading to a Zacks Rank 4 (Sell) [12] Industry Comparison - Clean Harbors operates in the Waste Removal Services industry, where competitor Waste Connections reported a 5.1% year-over-year revenue increase and a 3.5% stock gain over the past month [13] - Waste Connections has a Zacks Rank 3 (Hold) and is expected to post earnings of $1.29 per share, indicating an 11.2% year-over-year change [14]

Core Insights - Clean Harbors, Inc. (CLH) has experienced a stock price dip following the release of its Q3 2025 results, raising questions about the underlying reasons for this decline [1]. Company Analysis - The article indicates that the recent quarterly results were not surprising, suggesting that the market reaction may be linked to expectations versus actual performance [1]. - The author emphasizes a focus on companies with strong fundamentals and real potential, which may imply that Clean Harbors is being evaluated against these criteria [1]. Market Context - The analysis reflects a broader interest in understanding how businesses grow and how market reactions can be influenced by data narratives, particularly in sectors like tech, infrastructure, and internet services [1].

Core Insights - Clean Harbors, Inc. (CLH) has experienced a stock price dip following the release of its Q3 2025 quarterly results, raising questions about the underlying reasons for this decline [1]. Company Analysis - The article indicates that the recent quarterly results were not surprising, suggesting that the market reaction may be linked to expectations versus actual performance [1]. - The author emphasizes a focus on companies with strong fundamentals and real potential, which may imply that Clean Harbors is being evaluated against these criteria [1]. Industry Context - The analysis reflects a broader interest in how businesses grow and how market reactions can be influenced by data narratives, particularly in sectors like tech, infrastructure, and internet services [1].

Core Insights - Clean Harbors, Inc. (CLH) reported disappointing third-quarter 2025 results, with earnings and revenues falling short of the Zacks Consensus Estimate, leading to a 15.2% decline in stock price since the results were released on October 29 [1][9]. Financial Performance - CLH's earnings per share were $2.21, missing the Zacks Consensus Estimate by 6.8%, but showing a 4.3% increase year-over-year. Total revenues reached $1.5 billion, missing estimates by 1.7% but increasing 1.3% year-over-year [2]. - Adjusted EBITDA was $320.2 million, a 6.1% increase from the previous year, but below the estimate of $328.9 million. The adjusted EBITDA margin improved to 20.7%, up 100 basis points from the year-ago quarter [4]. - Segment-wise, Environmental Services (ES) revenues were $1.3 billion, a 2.4% increase year-over-year, while Safety-Kleen Sustainability Solutions (SKSS) revenues totaled $230.8 million, down 4.5% year-over-year [3][9]. Segment Analysis - Adjusted EBITDA for ES was $357.2 million, a 7.4% year-over-year increase but below the estimate of $378 million. For SKSS, adjusted EBITDA was $40.9 million, slightly down from the previous year but exceeding the estimate of $38.4 million [5]. Balance Sheet & Cash Flow - At the end of the quarter, CLH had cash and cash equivalents of $759.2 million, up from $600.2 million in the previous quarter. Inventories were $377.3 million, down from $383.4 million [6]. - Long-term debt remained flat at $2.8 billion. The company generated $302 million in net cash from operating activities, with capital expenditures of $94.4 million and adjusted free cash flow utilized at $230.6 million [7]. 2025 Guidance - For 2025, CLH updated its guidance for adjusted EBITDA to $1.16-$1.18 billion, down from the previous range of $1.16-$1.20 billion. However, the adjusted free cash flow outlook was raised to $445-$495 million, compared to the prior estimate of $430-$490 million [8].

Core Insights - The company experienced slight shortfalls in Q3 results primarily due to slowdowns in field and industrial services, alongside higher-than-expected employee healthcare costs, but remains optimistic about growth in waste collection and disposal assets [1][18][26] - Year-on-year growth was driven by increased waste volumes, pricing gains, and productivity improvements, with a consolidated adjusted EBITDA margin increase of 100 basis points to 20.7% [2][18] - The company reported total revenue of $1.55 billion in Q3, with adjusted EBITDA rising 6% to $320 million, reflecting effective pricing and cost-saving strategies [18][19] Financial Performance - Q3 revenue increased by 3% year-over-year, with adjusted EBITDA up 7%, driven by waste volumes and pricing, despite a decline in industrial and field services [4][19] - The adjusted EBITDA margin for Environmental Services grew for the fourteenth consecutive quarter, reflecting strong operational performance [4][19] - Net income grew modestly year-over-year, delivering earnings per share of $2.21, with cash and short-term marketable securities totaling $850 million [20][21] Segment Performance - The Environmental Services segment saw a 12% growth in Technical Services, with landfill volumes up 40% year-over-year and incineration utilization at 92% [4][5] - Safety Kleen Environmental Services reported an 8% increase in revenue, driven by pricing gains and growth in core service offerings [5][19] - Field services revenue declined by 11% due to the absence of medium to large response projects, while industrial services also faced a 4% revenue decline [6][7][19] Strategic Initiatives - The company is focused on margin growth and has implemented productivity and cost-saving initiatives, which are expected to benefit from improving macroeconomic conditions [1][2][19] - A successful PFAS incineration study in partnership with the EPA is anticipated to generate $100 million to $120 million in revenue this year, representing a 20% to 25% increase from the previous year [8][9] - Plans to construct a new state-of-the-art process plant are underway, with an expected total spend of $210 million to $220 million, projected to generate annual EBITDA of $30 million to $40 million [12][13] Capital Allocation and Future Outlook - The company is evaluating both bolt-on transactions and larger acquisitions, with a potential investment of over $500 million in internal projects over the next several years [14][15] - Share repurchases totaled $50 million in Q3, with a remaining authorization of approximately $380 million [24][25] - The company anticipates a strong finish to the year, with expectations for continued growth in waste projects and a positive economic outlook despite recent challenges [16][26][28]