[Executive Summary](index=1&type=section&id=Executive%20Summary) Clean Harbors reported flat Q2 2025 revenues at $1.55 billion but achieved record Adjusted EBITDA of $336.2 million, driven by strong ES segment growth and effective SKSS stabilization, while management emphasized cost reduction and safety [Company Overview & Q2 2025 Highlights](index=1&type=section&id=Company%20Overview%20%26%20Q2%202025%20Highlights) Clean Harbors, a leading environmental and industrial services provider, announced Q2 2025 financial results, reporting flat revenues at $1.55 billion but achieving record Adjusted EBITDA of $336.2 million, a 60 bps margin increase. The Environmental Services (ES) segment showed growth, driven by strong incineration performance and robust demand - **Clean Harbors, Inc. (NYSE: CLH) is North America's leading provider** of environmental and industrial services[3](index=3&type=chunk)[18](index=18&type=chunk) Q2 2025 Key Financial Highlights | Metric | Value | | :-------------------------- | :------------ | | Revenues | **$1.55 billion** (flat YoY) | | Q2 Net Income | **$126.9 million** | | Diluted EPS | **$2.36** | | Record Q2 Adjusted EBITDA | **$336.2 million** | | Adjusted EBITDA Margin | **21.7%** (**+60 bps**) | - Environmental Services (ES) segment achieved **3% revenue growth** and **5% Adjusted EBITDA growth**, driven by strong incineration performance and robust demand[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Co-CEOs highlighted consistent profitable growth in the ES segment due to strong disposal asset demand and stabilization in the SKSS segment from effective collection strategies. They emphasized improved consolidated Adjusted EBITDA margin through cost structure reduction, particularly SG&A, and achieved the best quarterly safety results in company history - Environmental Services (ES) segment experienced consistent profitable growth with strong demand for disposal assets[4](index=4&type=chunk) - Safety-Kleen Sustainability Solutions (SKSS) segment stabilized, with favorable results from collection strategies[4](index=4&type=chunk) - Consolidated **Adjusted EBITDA margin improved by 60 basis points** year-over-year by lowering the overall cost structure with a sharp focus on SG&A spend[4](index=4&type=chunk) - **Achieved the best quarterly safety results in company history, generating a Total Recordable Incident Rate (TRIR) of 0.40**[4](index=4&type=chunk) [Second-Quarter 2025 Financial Results](index=1&type=section&id=Second-Quarter%202025%20Financial%20Results) Clean Harbors reported flat Q2 2025 revenues of $1.55 billion, with a slight decrease in net income but an increase in Adjusted EBITDA, driven by strong performance in the Environmental Services segment [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) For Q2 2025, Clean Harbors reported revenues of $1.55 billion, flat year-over-year. Income from operations decreased slightly to $210.3 million, and net income was $126.9 million ($2.36 per diluted share), down from $133.3 million ($2.46 per diluted share) in Q2 2024. Adjusted EBITDA, however, increased to $336.2 million from $327.8 million Q2 2025 Consolidated Financials (vs. Q2 2024) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change | | :-------------------------- | :--------------------- | :--------------------- | :----- | | Revenues | **$1,549,854** | **$1,552,719** | Flat | | Income from operations | **$210,298** | **$215,493** | (2.4%) | | Net income | **$126,905** | **$133,280** | (4.8%) | | Diluted EPS | **$2.36** | **$2.46** | (4.1%) | | Adjusted EBITDA | **$336,237** | **$327,816** | **2.6%** | | Adjusted EBITDA Margin | **21.7%** | **21.1%** | **+0.6 pts** | [Segment Performance](index=1&type=section&id=Segment%20Performance) The Environmental Services (ES) segment achieved 3% revenue growth and 5% Adjusted EBITDA growth, marking its 13th consecutive quarter of year-over-year Adjusted EBITDA margin improvement, driven by strong disposal volumes and pricing. The Safety-Kleen Sustainability Solutions (SKSS) segment exceeded expectations, supported by effective waste oil collection strategies and aggressive management of re-refining spread - ES segment achieved **3% growth in revenue** and **5% growth in Adjusted EBITDA**, marking its **13th consecutive quarter** of year-over-year improvement in segment **Adjusted EBITDA margin**[6](index=6&type=chunk)[7](index=7&type=chunk) - SKSS segment **results were ahead of expectations**, supported by waste oil collection strategies and aggressive management of re-refining spread[7](index=7&type=chunk) Q2 2025 Segment Revenue (vs. Q2 2024, in thousands) | Segment | Q2 2025 Third-Party Revenues | Q2 2024 Third-Party Revenues | Change | | :------------------------------ | :--------------------------- | :--------------------------- | :----- | | Environmental Services | **$1,330,059** | **$1,297,298** | **2.5%** | | Safety-Kleen Sustainability Solutions | **$219,706** | **$255,322** | (**13.9%**) | Q2 2025 Segment Adjusted EBITDA (vs. Q2 2024, in thousands) | Segment | Q2 2025 Adjusted EBITDA | Q2 2024 Adjusted EBITDA | Change | | :------------------------------ | :---------------------- | :---------------------- | :----- | | Environmental Services | **$376,194** | **$359,915** | **4.5%** | | Safety-Kleen Sustainability Solutions | **$38,313** | **$51,476** | (**25.6%**) | [Environmental Services (ES)](index=1&type=section&id=Environmental%20Services%20%28ES%29) The ES segment's top-line growth was led by Safety-Kleen Environmental Services and Technical Services, with strong incineration utilization and improved margins across Field and Industrial Services - Top-line growth in ES segment was led by **Safety-Kleen Environmental Services, which rose 9%** through pricing and growth in core offerings[7](index=7&type=chunk) - **Technical Services revenue grew 4%** on strength in disposal volumes[7](index=7&type=chunk) - **Incineration utilization (excluding new Kimball incinerator) was 89%**, with average incineration price rising **7%** on a mix-adjusted basis[7](index=7&type=chunk) - **Field Services and Industrial Services improved margins year-over-year**[7](index=7&type=chunk) [Safety-Kleen Sustainability Solutions (SKSS)](index=2&type=section&id=Safety-Kleen%20Sustainability%20Solutions%20%28SKSS%29) The SKSS segment exceeded expectations through effective waste oil collection strategies, aggressive re-refining spread management, and a strategic shift to higher charge-for-oil pricing - **Results in SKSS segment were ahead of expectations**, supported by waste oil collection strategies and success in aggressively managing re-refining spread[7](index=7&type=chunk) - **Collected 64 million gallons** of waste oil in the quarter, enabling production goals[7](index=7&type=chunk) - **Shift to higher charge-for-oil (CFO) pricing**, continued since November, positions the segment well for the back half of the year[7](index=7&type=chunk) - **Expects to achieve annual targets** for this business in 2025 while reducing volatility[7](index=7&type=chunk) [Business Outlook and Financial Guidance](index=2&type=section&id=Business%20Outlook%20and%20Financial%20Guidance) Clean Harbors anticipates strong second-half momentum, driven by a promising North American economic outlook and strategic initiatives, reiterating full-year 2025 Adjusted EBITDA and Adjusted Free Cash Flow guidance [Market Outlook and Strategic Focus](index=2&type=section&id=Market%20Outlook%20and%20Strategic%20Focus) Clean Harbors anticipates strong momentum in the second half of 2025, supported by a promising North American economic outlook and continued reshoring. Despite short-term tariff uncertainty, the company expects long-term customer activity to be driven by tax bill benefits and manufacturing incentives. The ES segment sees healthy demand and a substantial project pipeline, including remediation projects. For SKSS, the focus remains on managing collection rates, cost structure, and advancing value-added initiatives like the Castrol partnership and Group III production - Anticipates a strong second half of 2025 with considerable momentum across core markets, backed by a promising North American economic outlook as reshoring continues[8](index=8&type=chunk) - Expects tangible benefits of recent tax bill and incentives to invest in American manufacturing to drive customer activity over the longer-term, despite short-term tariff uncertainty[8](index=8&type=chunk) - ES segment continues to see healthy overall demand from customers, resulting in a substantial project pipeline, with multiple customers expected to proceed with remediation projects[8](index=8&type=chunk) - For SKSS, the focus will remain on actively managing collection rates and cost structure, while advancing value-added initiatives like the Castrol partnership and Group III production[8](index=8&type=chunk) [Full-Year 2025 Guidance](index=2&type=section&id=Full-Year%202025%20Guidance) Clean Harbors reiterated its full-year 2025 guidance, expecting Adjusted EBITDA in the range of $1.16 billion to $1.20 billion (midpoint $1.18 billion, 6% YoY growth) and Adjusted Free Cash Flow between $430 million and $490 million (midpoint $460 million, nearly 30% YoY increase). For Q3 2025, Adjusted EBITDA is projected to grow 9-12% year-over-year - In the third quarter of 2025, Clean Harbors expects **Adjusted EBITDA** to grow **9-12%** from the comparable quarter of the prior year[8](index=8&type=chunk) Full-Year 2025 Guidance Midpoints | Metric | Range | Midpoint | YoY Growth (Midpoint) | | :---------------------- | :-------------------- | :--------- | :-------------------- | | Adjusted EBITDA | **$1.16 billion** - **$1.20 billion** | **$1.18 billion** | **6%** | | Adjusted Free Cash Flow | **$430 million** - **$490 million** | **$460 million** | **~30%** | - The **Adjusted EBITDA** range is based on anticipated GAAP net income in the range of **$383 million to $419 million**[11](index=11&type=chunk)[13](index=13&type=chunk) - The **Adjusted free cash flow** range is based on anticipated **net cash from operating activities** in the range of **$775 million to $865 million**[11](index=11&type=chunk)[15](index=15&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides detailed reconciliations for non-GAAP financial measures, including Adjusted EBITDA and Adjusted Free Cash Flow, to their most directly comparable GAAP measures [Adjusted EBITDA Reconciliation](index=3&type=section&id=Adjusted%20EBITDA%20Reconciliation) Clean Harbors defines Adjusted EBITDA as a non-GAAP measure, supplementing GAAP net income, and uses it to evaluate business performance. The reconciliation table shows adjustments for items such as accretion of environmental liabilities, stock-based compensation, depreciation and amortization, other expense, interest expense, and provision for income taxes - **Adjusted EBITDA** is a **non-GAAP financial measure** used by management to routinely evaluate the performance of its businesses, viewed as a supplement to GAAP measurements[9](index=9&type=chunk) Adjusted EBITDA Reconciliation (Q2 2025 vs. Q2 2024, in thousands) | Item | Q2 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | | Net income | **$126,905** | **$133,280** | | Accretion of environmental liabilities | **$3,591** | **$3,304** | | Stock-based compensation | **$6,063** | **$8,515** | | Depreciation and amortization | **$116,285** | **$100,504** | | Other expense, net | **$603** | **$167** | | Interest expense, net of interest income | **$37,106** | **$36,449** | | Provision for income taxes | **$45,684** | **$45,597** | | **Adjusted EBITDA** | **$336,237** | **$327,816** | | Adjusted EBITDA Margin | **21.7%** | **21.1%** | Projected Adjusted EBITDA Reconciliation (FY 2025, in millions) | Item | Low End | High End | | :-------------------------- | :------ | :------- | | Projected GAAP net income | **$383** | **$419** | | Accretion of environmental liabilities | **$15** | **$14** | | Stock-based compensation | **$28** | **$31** | | Depreciation and amortization | **$450** | **$440** | | Interest expense, net | **$147** | **$142** | | Provision for income taxes | **$137** | **$154** | | **Projected Adjusted EBITDA** | **$1,160** | **$1,200** | [Adjusted Free Cash Flow Reconciliation](index=3&type=section&id=Adjusted%20Free%20Cash%20Flow%20Reconciliation) Adjusted free cash flow is a non-GAAP liquidity measure defined as net cash from operating activities less additions to property, plant and equipment, plus proceeds from sale and disposal of fixed assets, with adjustments for non-operating cash impacts. The company excludes significant one-time growth investments, such as the Phoenix Hub investment, from this measure as they are not indicative of current period free cash flow generation - **Adjusted free cash flow** is a **non-GAAP measure of liquidity**, defined as **net cash from operating activities** less additions to property, plant and equipment plus proceeds from sale and disposal of fixed assets, adjusted for non-operating activities[10](index=10&type=chunk) - Significant one-time growth investments, such as the **cash investment in Phoenix Hub**, are excluded from **adjusted free cash flow** as they are not indicative of free cash flow generation for the current period[14](index=14&type=chunk) Adjusted Free Cash Flow Reconciliation (Q2 2025 vs. Q2 2024, in thousands) | Item | Q2 2025 | Q2 2024 | | :---------------------------------- | :------ | :------ | | Net cash from operating activities | **$208,040** | **$216,045** | | Additions to property, plant and equipment | (**$90,029**) | (**$135,110**) | | Cash investment in Phoenix Hub | **$12,436** | — | | Proceeds from sale and disposal of fixed assets | **$2,720** | **$3,287** | | **Adjusted free cash flow** | **$133,167** | **$84,222** | Projected Adjusted Free Cash Flow Reconciliation (FY 2025, in millions) | Item | Low End | High End | | :---------------------------------- | :------ | :------- | | Projected net cash from operating activities | **$775** | **$865** | | Additions to property, plant and equipment | (**$370**) | (**$400**) | | Cash investment in Phoenix Hub | **$15** | **$15** | | Proceeds from sale and disposal of fixed assets | **$10** | **$10** | | **Projected adjusted free cash flow** | **$430** | **$490** | [Company Information](index=4&type=section&id=Company%20Information) This section provides details on the Q2 2025 conference call, an overview of Clean Harbors' services and operations, a safe harbor statement regarding forward-looking information, and investor relations contacts [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) Clean Harbors hosted a conference call on July 30, 2025, at 9:00 a.m. ET to discuss financial results, business outlook, and growth strategy. Investors could access the webcast and slides via the company's Investor Relations website or by dialing in. An archived webcast is available for those unable to attend live - Conference call held on July 30, 2025, at 9:00 a.m. (ET) to discuss financial results, business outlook, and growth strategy[16](index=16&type=chunk) - Webcast and accompanying slides available on the Investor Relations section of www.cleanharbors.com[17](index=17&type=chunk) - Live call accessible by dialing 877.709.8155 or 201.689.8881; webcast will be archived on the Company's website[17](index=17&type=chunk) [About Clean Harbors](index=5&type=section&id=About%20Clean%20Harbors) Clean Harbors (NYSE: CLH) is North America's leading provider of environmental and industrial services, serving a diverse customer base including Fortune 500 companies and government agencies. Its services encompass hazardous waste management, emergency spill response, industrial cleaning, and recycling. Through its Safety-Kleen subsidiary, it also provides parts washers, environmental services, and is North America's largest re-refiner and recycler of used oil. Founded in 1980, the company operates across the US, Canada, Mexico, Puerto Rico, and India - **Clean Harbors (NYSE: CLH) is North America's leading provider** of environmental and industrial services[18](index=18&type=chunk) - Serves a diverse customer base, including a majority of Fortune 500 companies, across industries like chemical, manufacturing, refining, and government agencies[18](index=18&type=chunk) - Offers services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services[18](index=18&type=chunk) - Through its Safety-Kleen subsidiary, it is a leading provider of parts washers and environmental services, and **North America's largest re-refiner and recycler of used oil**[18](index=18&type=chunk) [Safe Harbor Statement](index=5&type=section&id=Safe%20Harbor%20Statement) The document contains forward-looking statements, identifiable by specific terminology, regarding future financial and operating results, plans, strategy, and market conditions. These statements are based on management's beliefs as of the press release date and are subject to various risks and uncertainties, including operational, safety, cybersecurity, economic, regulatory, and litigation risks, which could cause actual results to differ materially. Readers are cautioned not to place undue reliance on these statements, and Clean Harbors disclaims any obligation to revise them beyond SEC filings - Statements that are not historical facts are **forward-looking statements**, identifiable by words like 'believes,' 'expects,' 'intends,' 'anticipates,' 'plans to,' 'seeks,' 'will,' 'should,' 'estimates,' 'projects,' 'may,' 'likely,' 'potential,' 'outlook' or similar expressions[19](index=19&type=chunk) - Such statements are based upon the beliefs and expectations of Clean Harbors' management as of the date of the press release and are subject to certain risks and uncertainties that could cause actual results to differ materially[19](index=19&type=chunk) - Risks include operational and safety risks, cybersecurity risks, natural disasters, retention of key personnel, environmental liability, negative economic developments, regulatory changes, litigation, and other factors identified as 'Risk Factors' in SEC filings[19](index=19&type=chunk)[20](index=20&type=chunk) - Readers are cautioned not to place undue reliance on these **forward-looking statements**, and Clean Harbors undertakes no obligation to revise or publicly release the results of any revision other than through SEC filings[20](index=20&type=chunk) [Contacts](index=7&type=section&id=Contacts) Investor relations contacts for Clean Harbors are Eric J. Dugas, EVP and Chief Financial Officer, and Jim Buckley, SVP Investor Relations. Both can be reached at 781.792.5100 or via email at InvestorRelations@cleanharbors.com or Buckley.James@cleanharbors.com - Contacts for investor relations are Eric J. Dugas (EVP and Chief Financial Officer) and Jim Buckley (SVP Investor Relations)[21](index=21&type=chunk) - Contact phone number: **781.792.5100**[21](index=21&type=chunk) - Contact emails: InvestorRelations@cleanharbors.com and Buckley.James@cleanharbors.com[21](index=21&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated statements of operations, balance sheets, cash flows, and supplemental segment data for Clean Harbors [Statements of Operations](index=8&type=section&id=Statements%20of%20Operations) The unaudited condensed consolidated statements of operations show that for the three months ended June 30, 2025, revenues were $1,549,854 thousand, with net income of $126,905 thousand, resulting in diluted EPS of $2.36. For the six months ended June 30, 2025, revenues were $2,981,804 thousand, with net income of $185,585 thousand and diluted EPS of $3.44 Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | **$1,549,854** | **$1,552,719** | **$2,981,804** | **$2,929,414** | | Cost of revenues | **$1,033,497** | **$1,035,542** | **$2,055,381** | **$2,006,612** | | Selling, general and administrative expenses | **$186,183** | **$197,876** | **$369,030** | **$379,744** | | Income from operations | **$210,298** | **$215,493** | **$321,917** | **$340,968** | | Net income | **$126,905** | **$133,280** | **$185,585** | **$203,112** | | Diluted EPS | **$2.36** | **$2.46** | **$3.44** | **$3.75** | [Balance Sheets](index=9&type=section&id=Balance%20Sheets) As of June 30, 2025, Clean Harbors reported total assets of $7,439,929 thousand, an increase from $7,377,278 thousand at December 31, 2024. Total current assets were $2,475,381 thousand, and total stockholders' equity was $2,714,067 thousand Condensed Consolidated Balance Sheets (in thousands) | Item | June 30, 2025 (unaudited) | December 31, 2024 | | :------------------------------------ | :-------------------------- | :------------------ | | Cash and cash equivalents | **$600,186** | **$687,192** | | Total current assets | **$2,475,381** | **$2,433,796** | | Property, plant and equipment, net | **$2,507,101** | **$2,447,941** | | Goodwill | **$1,479,805** | **$1,477,199** | | Total assets | **$7,439,929** | **$7,377,278** | | Total current liabilities | **$1,011,750** | **$1,102,666** | | Long-term debt, less current portion | **$2,766,530** | **$2,771,117** | | Total stockholders' equity, net | **$2,714,067** | **$2,573,529** | | Total liabilities and stockholders' equity | **$7,439,929** | **$7,377,278** | [Statements of Cash Flows](index=10&type=section&id=Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities was $209,645 thousand, a decrease from $234,594 thousand in the prior year period. Net cash used in investing activities was $200,742 thousand, significantly lower than $730,670 thousand in H1 2024, primarily due to no major acquisitions. Net cash used in financing activities was $101,169 thousand, compared to net cash from financing activities of $455,503 thousand in H1 2024, largely due to debt issuance in the prior year. Cash and cash equivalents at period end were $600,186 thousand Unaudited Consolidated Statements of Cash Flows (Six Months Ended, in thousands) | Item | June 30, 2025 | June 30, 2024 | | :------------------------------------ | :-------------- | :-------------- | | Net income | **$185,585** | **$203,112** | | Depreciation and amortization | **$228,265** | **$195,569** | | Net cash from operating activities | **$209,645** | **$234,594** | | Net cash used in investing activities | (**$200,742**) | (**$730,670**) | | Net cash (used in) from financing activities | (**$101,169**) | **$455,503** | | Decrease in cash and cash equivalents | (**$87,006**) | (**$42,706**) | | Cash and cash equivalents, end of period | **$600,186** | **$401,992** | - **Cash payments for interest** were **$76,570 thousand** for H1 2025, compared to **$74,079 thousand** for H1 2024[28](index=28&type=chunk) - **Income taxes paid, net of refunds**, were **$64,534 thousand** for H1 2025, compared to **$70,307 thousand** for H1 2024[28](index=28&type=chunk) [Supplemental Segment Data](index=11&type=section&id=Supplemental%20Segment%20Data) Supplemental segment data for Q2 2025 shows Environmental Services (ES) with third-party revenues of $1,330,059 thousand and Adjusted EBITDA of $376,194 thousand. Safety-Kleen Sustainability Solutions (SKSS) reported third-party revenues of $219,706 thousand and Adjusted EBITDA of $38,313 thousand for the quarter. For the six months ended June 30, 2025, ES third-party revenues were $2,537,097 thousand and Adjusted EBITDA was $650,785 thousand, while SKSS reported $444,521 thousand in third-party revenues and $66,565 thousand in Adjusted EBITDA Supplemental Segment Revenue (in thousands) | Segment | Q2 2025 Third-Party Revenues | Q2 2024 Third-Party Revenues | H1 2025 Third-Party Revenues | H1 2024 Third-Party Revenues | | :------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Environmental Services | **$1,330,059** | **$1,297,298** | **$2,537,097** | **$2,458,577** | | Safety-Kleen Sustainability Solutions | **$219,706** | **$255,322** | **$444,521** | **$470,636** | | Corporate | **$89** | **$99** | **$186** | **$201** | | **Total** | **$1,549,854** | **$1,552,719** | **$2,981,804** | **$2,929,414** | Supplemental Segment Adjusted EBITDA (in thousands) | Segment | Q2 2025 Adjusted EBITDA | Q2 2024 Adjusted EBITDA | H1 2025 Adjusted EBITDA | H1 2024 Adjusted EBITDA | | :------------------------------ | :---------------------- | :---------------------- | :---------------------- | :---------------------- | | Environmental Services | **$376,194** | **$359,915** | **$650,785** | **$624,390** | | Safety-Kleen Sustainability Solutions | **$38,313** | **$51,476** | **$66,565** | **$81,176** | | Corporate | (**$78,270**) | (**$83,575**) | (**$146,259**) | (**$147,655**) | | **Total** | **$336,237** | **$327,816** | **$571,091** | **$557,911** |

Group 1 - Clean Harbors (NYSE: CLH) has seen a significant stock increase since March, aligning with the bullish thesis presented earlier this year [1] - The company is focused on sectors such as technology, infrastructure, and internet services, emphasizing strong fundamentals and growth potential [1] - The analyst aims to provide value to readers and investors interested in long-term investing strategies [1] Group 2 - The article does not contain any stock positions or plans to initiate positions in the mentioned companies [2] - The opinions expressed in the article are solely those of the author and do not reflect the views of Seeking Alpha as a whole [3]

Core Viewpoint - Clean Harbors, Inc. (CLH) reported strong first-quarter 2024 results, with earnings and revenues exceeding the Zacks Consensus Estimate, leading to a 5.9% stock price increase since the results announcement on April 30 [1][2]. Financial Performance - CLH's earnings per share (EPS) were $1.09, surpassing the Zacks Consensus Estimate by 6.9%, although this represents a 15.5% decrease from the same quarter last year [2]. - Total revenues reached $1.4 billion, slightly exceeding the consensus estimate and reflecting a 4% year-over-year increase [2]. Segment Performance - Environmental Services (ES) revenues were $1.2 billion, a 3.9% increase from the previous year, driven by the HEPACO acquisition, higher pricing, and increased incineration utilization [3]. - Safety-Kleen Sustainability Solutions (SKSS) generated revenues of $224.8 million, a 4.4% year-over-year increase, but fell short of the estimate of $230.1 million, with growth attributed to pricing initiatives and new product offerings [4]. Profitability Metrics - Adjusted EBITDA was $234.9 million, slightly above projections but marginally increased from the previous year, with an adjusted EBITDA margin of 16.4%, down 30 basis points year-over-year [5]. - Segment-wise, adjusted EBITDA for ES was $274.6 million, a 3.8% year-over-year increase, while SKSS adjusted EBITDA was $28.3 million, down 4.9% from the previous year [6]. Balance Sheet and Cash Flow - At the end of the quarter, CLH had cash and cash equivalents of $489.4 million, down from $687.2 million in the previous quarter, with inventories at $376 million [7]. - Long-term debt remained stable at $2.8 billion, and the company generated $1.6 billion in net cash from operating activities, with capital expenditures of $118.7 million [8]. Future Guidance - For Q2 2025, CLH has lowered its adjusted EBITDA growth guidance to 1-3%, down from the previous estimate of 4-6% [9]. - The guidance for adjusted EBITDA for 2025 is set at $1.15-$1.21 billion, with expected adjusted free cash flow of $430-$490 million [9].

Clean Harbors (CLH) FY Conference Summary Company Overview - **Company**: Clean Harbors (CLH) - **Event**: Oppenheimer's 20th Annual Industrial Growth Conference - **Date**: May 08, 2025 Key Points Industry Insights - **Safety Culture**: Clean Harbors emphasizes a strong safety culture, reporting a record low Total Recordable Incident Rate (TRIR) in Q1. The company believes that safety improvements can lead to long-term financial benefits, although the financial impact may take time to materialize due to the lag in incident reporting and treatment costs [3][4][6][7]. - **Healthcare and Legal Costs**: Rising healthcare costs and legal judgments are significant concerns for the industry. Clean Harbors aims to offset these costs through improved safety measures, which can reduce the frequency and severity of incidents [6][7][8]. Financial Performance - **Margin Targets**: The company aims for a 22% margin by 2027, with a current target of 19% by the end of 2024. Environmental services have shown consistent margin expansion over the past 12 quarters, with a goal of reaching 30% margins [13][19][21][22]. - **Revenue Composition**: Environmental services account for 91% of the company's EBITDA, indicating a strong focus on this segment for future growth [20][21]. Capital Allocation Strategy - **Return on Invested Capital (ROIC)**: Clean Harbors prioritizes capital allocation based on ROIC, focusing on organic growth, mergers and acquisitions (M&A), and returning capital to shareholders. The company has $430 million remaining under its buyback program and no debt due until 2027 [24][25][29][30]. - **M&A Landscape**: The environmental services industry remains fragmented, presenting opportunities for acquisitions, particularly in areas where Clean Harbors holds a smaller market share [31][32][33]. Operational Developments - **Tech Services Growth**: The captive market for hazardous waste management is expected to shrink, providing growth opportunities for Clean Harbors as competitors close operations. The company is well-positioned to capture market share from these closures [36][37][38]. - **New Capacity**: The company is ramping up operations at its new facility, expecting to process 28,000 tons of waste this year. The demand pipeline appears strong, with significant waste streams from various industries [40][41][49]. PFAS Incineration - **EPA and DOD Collaboration**: Clean Harbors is conducting tests with the EPA and DOD for PFAS incineration, which could unlock significant opportunities for the company, particularly in military installations where PFAS contamination is prevalent [52][54][57][58]. Industrial Services Outlook - **Deferred Maintenance**: Customers are deferring maintenance and turnaround work, which may lead to increased spending in the latter half of the year. The company anticipates modest growth in industrial services despite a challenging start to the year [59][60][61][62]. Technology and Safety Innovations - **Automation and Safety**: Clean Harbors is investing in technology to enhance safety and efficiency in its operations, including the use of drones for inspections and advanced water jetting techniques [66][67][69][70]. Field Services Expansion - **New Locations**: The company plans to open approximately 30 new field service branches this year, significantly increasing its footprint in the market. This expansion is aimed at capturing more business in a fragmented industry [75][76][78]. Containerized Waste Services - **Demand Growth**: The containerized waste services segment is performing well, driven by route density and entrepreneurial efforts from the team to capture more business [82][84]. Cross-Selling Opportunities - **Integrated Services**: Clean Harbors is leveraging its integrated service model to cross-sell between its various service lines, enhancing customer engagement and operational efficiency [86][88][90]. Conclusion Clean Harbors is strategically positioned for growth in the environmental services industry, focusing on safety, margin expansion, and capital allocation. The company is actively pursuing opportunities in M&A, technology advancements, and expanding its operational footprint to enhance its market presence and financial performance.

Clean Harbors (CLH) Conference Summary Industry Overview - Clean Harbors is the largest hazardous industrial waste service company in North America, focusing primarily on hazardous waste with some medical waste services due to incineration capabilities [4][10] - The waste industry is becoming more integrated, covering solid, industrial, and medical waste [4] Macroeconomic Outlook - The macroeconomic outlook has improved since the beginning of the year, with a strong pipeline and growth observed in April [7][8] - Despite concerns about cyclicality, Clean Harbors has shown resilience, with no signs of customers reducing demand [8][20] Business Segments Environmental Services - The Environmental Services segment has improved margins by 500 basis points over the last six to eight years, attributed to new incinerator capacity, better pricing strategies, and operational efficiencies [10][11] - The company has experienced 12 consecutive quarters of year-over-year EBITDA margin growth in this segment [17] Used Oil and Safety Clean Solutions - The used oil segment has faced profitability challenges post-pandemic, but a shift in strategy to prioritize pricing over volume has led to improved stability [81][86] - The company processes approximately 250 million gallons of used motor oil annually, converting it into base oil [82] Capacity and Market Dynamics - There is ample landfill capacity, but incineration capacity is constrained due to the complex nature of waste streams [28][30] - Clean Harbors has added new incineration capacity and expects this to be absorbed by the market due to ongoing demand [30][34] Regulatory Environment and PFAS - Clean Harbors has introduced a total PFAS solution, which includes testing, remediation, and disposal services, with projected revenue growth of 10% to 20% in this area [64][70] - The company is actively involved in addressing PFAS issues, with a long-term view on regulatory developments and market needs [68][69] Mergers and Acquisitions - The company has expanded its market share through acquisitions, allowing for better pricing discipline and stability in the Environmental Services segment [50][52] - Future M&A strategies will focus on geographic expansion and enhancing capabilities in waste management [53] Conclusion - Clean Harbors is positioned well within the hazardous waste industry, demonstrating resilience against macroeconomic challenges and adapting its business strategies to maintain profitability and growth [17][19][88]

Financial Performance - Total revenues for Q1 2025 reached $1,431,950, an increase of 4.0% compared to $1,376,695 in Q1 2024[13] - Net income for Q1 2025 was $58,680, down 16.0% from $69,832 in Q1 2024[13] - Earnings per share (EPS) for Q1 2025 were $1.09, compared to $1.29 in Q1 2024, reflecting a decrease of 15.5%[13] - Comprehensive income for Q1 2025 was $53,748, down from $65,545 in Q1 2024, a decrease of 18.0%[17] - Adjusted EBITDA for the Environmental Services segment was $274,591,000 for Q1 2025, compared to $264,475,000 in Q1 2024, reflecting an increase of about 4.3%[90] - Total Reportable Segment Adjusted EBITDA for Q1 2025 was $302,843,000, an increase from $294,175,000 in Q1 2024, representing a growth of 2.3%[93] Assets and Liabilities - Total current assets decreased to $2,310,682 as of March 31, 2025, from $2,433,796 at the end of 2024, a decline of 5.0%[11] - Cash and cash equivalents decreased to $489,417 from $687,192, representing a decline of 28.8%[11] - Total liabilities decreased slightly to $4,675,563 as of March 31, 2025, from $4,673,749 at the end of 2024[11] - Total stockholders' equity as of March 31, 2025, was $2,571,224, a slight decrease from $2,573,529 at the end of 2024[11] - As of March 31, 2025, the company had total long-term debt of $2.77 billion, slightly down from $2.79 billion as of December 31, 2024[61] Revenue Segments - Environmental Services segment revenues for the three months ended March 31, 2025, were $1,207.04 million, compared to $1,161.28 million in the same period of 2024, reflecting an increase of about 4%[37] - Safety-Kleen Sustainability Solutions revenues for the three months ended March 31, 2025, were $224.82 million, up from $215.31 million in the prior year, indicating a growth of approximately 4%[37] - Technical Services generated revenues of $426.21 million for the three months ended March 31, 2025, compared to $407.49 million in the same period of 2024, marking an increase of approximately 5%[37] - Industrial Services and Other revenues were $322.46 million for the three months ended March 31, 2025, compared to $359.50 million in the same period of 2024, reflecting a decrease of about 10%[37] - Field and Emergency Response Services revenues were $215.70 million for the three months ended March 31, 2025, compared to $163.47 million in the same period of 2024, indicating a significant increase of approximately 32%[37] Acquisitions - The Company acquired HEPACO on March 22, 2024, for an all-cash purchase price of $392.2 million, enhancing its Environmental Services segment[40] - The Company finalized the purchase accounting for the acquisition of Noble Oil Services, Inc. for an all-cash purchase price of $68.7 million, net of cash acquired[43] - The Company completed the acquisition of three additional privately-owned businesses for a total cash consideration of $17.1 million in 2024[47] Cash Flow and Investments - Cash flows from operating activities were $1,605 for Q1 2025, a significant decrease from $18,549 in Q1 2024[19] - The company reported a net cash used in investing activities of $120,330, compared to $609,873 in Q1 2024[19] - The company repurchased $55,000 in common stock during Q1 2025, compared to $5,000 in Q1 2024[19] Legal and Regulatory Matters - As of March 31, 2025, the Company has been identified as a potentially responsible party for 132 Superfund sites, with potential monetary liability exceeding $1.0 million at three of these sites[83] - The Company has approximately 71 pending product liability cases related to Safety-Kleen's products, with insurance coverage expected to cover most claims, excluding punitive damages[81] - The company has indemnification agreements at 17 of the 126 third-party Superfund sites, which cover liabilities for waste disposed of prior to acquisition[84] Expenses - Selling, general and administrative expenses for the reportable segments totaled $111,630,000 for Q1 2025, compared to $114,633,000 for Q1 2024, indicating a decrease of approximately 2.6%[90] - Interest expense for Q1 2025 was $36,077,000, compared to $28,539,000 in Q1 2024, reflecting a significant increase of 26.4%[93] - Corporate costs for Q1 2025 amounted to $67,989,000, up from $64,080,000 in Q1 2024, indicating an increase of 4.5%[93] Stock and Compensation - Total stock-based compensation cost recognized for the three months ended March 31, 2025, was $7.6 million, an increase from $6.3 million in the same period of 2024[69] - The total fair value of restricted stock vested during the three months ended March 31, 2025, was $15 million, compared to $3.7 million in the prior year[70] - As of March 31, 2025, there was $11.9 million of total unrecognized compensation cost arising from performance stock awards deemed probable of vesting[73]

Core Insights - Clean Harbors reported revenue of $1.43 billion for the quarter ended March 2025, a year-over-year increase of 4% [1] - The company's EPS for the same period was $1.09, down from $1.29 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.42 billion, resulting in a surprise of +0.89% [1] - Clean Harbors delivered an EPS surprise of +6.86%, with the consensus EPS estimate being $1.02 [1] Revenue Breakdown - Environmental Services revenue was $1.21 billion, matching the average estimate from three analysts, representing a year-over-year increase of +3.1% [4] - Safety-Kleen Sustainability Solutions revenue was $222.74 million, exceeding the average estimate of $194.66 million, with a year-over-year change of +9.1% [4] - Corporate Items revenue was $0.10 million, consistent with the average estimate from two analysts, but down -4.9% compared to the year-ago quarter [4] Adjusted EBITDA Performance - Adjusted EBITDA for Environmental Services was $274.59 million, slightly above the estimate of $273.41 million from three analysts [4] - Adjusted EBITDA for Corporate Items was -$67.99 million, compared to the average estimate of -$66.52 million from three analysts [4] - Adjusted EBITDA for Safety-Kleen Sustainability Solutions was $28.25 million, surpassing the estimate of $22.88 million from three analysts [4] Stock Performance - Clean Harbors shares returned +6.6% over the past month, while the Zacks S&P 500 composite experienced a -0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Clean Harbors reported quarterly earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $1.02 per share, but down from $1.29 per share a year ago, indicating a 15.5% year-over-year decline in earnings [1][2] Financial Performance - The company achieved revenues of $1.43 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.89% and showing a year-over-year increase from $1.38 billion [2] - Over the last four quarters, Clean Harbors has surpassed consensus EPS estimates three times and topped revenue estimates four times [2] Stock Performance - Clean Harbors shares have declined approximately 7% since the beginning of the year, compared to a 5.5% decline in the S&P 500 [3] - The current Zacks Rank for Clean Harbors is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $2.31 on revenues of $1.58 billion, and for the current fiscal year, it is $7.50 on revenues of $6.12 billion [7] - The trend of estimate revisions for Clean Harbors is currently mixed, which may change following the recent earnings report [6] Industry Context - The Waste Removal Services industry, to which Clean Harbors belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Q1 2025 Financial Performance - Revenue reached $1.43 billion, a 4% year-over-year increase, driven by growth in both operating segments[8] - Net income was $58.7 million, resulting in earnings per share (EPS) of $1.09[8] - Adjusted EBITDA was $234.9 million, with an Adjusted EBITDA margin of 16.4%[8] - Adjusted free cash flow was ($115.7) million, aligning with expectations due to the timing of certain items[8] Segment Performance - Environmental Services revenue increased to $1.21 billion, a 3% increase year-over-year, with Adjusted EBITDA of $274.6 million and a margin of 22.7%[10] - Safety-Kleen Sustainability Solutions revenue increased to $222.7 million, a 9% increase year-over-year, but Adjusted EBITDA decreased to $28.3 million with a margin of 12.7%[14] - Safety-Kleen Sustainability Solutions gathered 58 million gallons of waste oil, compared to 55 million gallons in Q1 2024[17] Financial Position - Cash and short-term marketable securities totaled $595.3 million as of March 31, 2025[25] - Current and long-term debt stood at $2.78 billion as of March 31, 2025[25] - Share repurchases amounted to $55.0 million in Q1 2025[26] Full-Year 2025 Guidance - The company projects net income between $377 million and $428 million[27] - The company anticipates Adjusted EBITDA between $1.15 billion and $1.21 billion[27] - The company expects Adjusted Free Cash Flow between $430 million and $490 million[27]

Financial Data and Key Metrics Changes - Company revenue increased by 4% in Q1, totaling $55 million growth, with the Environmental Services (ES) segment contributing two-thirds of that growth [27][8] - Adjusted EBITDA for Q1 was $235 million, with a margin of 16.4%, slightly down year-over-year but in line with expectations [28][27] - Net income for Q1 was down compared to the same period last year, with earnings per share reported at $1.09 [29] Business Line Data and Key Metrics Changes - The ES segment saw a 3% increase in revenue and a 4% increase in adjusted EBITDA, driven by the acquisition of Hefeco and higher incineration utilization [9][8] - Safety Kleen Environmental Services (SKSS) revenue increased year-over-year, reflecting greater volumes and a shift to a higher Charge for Oil (CFO), although adjusted EBITDA decreased slightly [15][16] - Industrial Services revenue declined by 10% year-over-year due to refinery customers delaying spending and maintenance [12][13] Market Data and Key Metrics Changes - The total recordable incident rate (TRIR) for safety was reported at 0.46, marking the best quarter in the company's history [5][6] - Incineration utilization improved to 88% from 79% in Q1 2024, with incineration pricing rising more than 5% on a mix-adjusted basis [10][11] - The company processed 5,000 tons in its new kiln during Q1, with a goal to process over 28,000 tons for the year [11][19] Company Strategy and Development Direction - The company is focusing on internal and external growth opportunities, with a strong cash balance and low leverage to support its growth strategy [20][22] - There is an emphasis on capitalizing on synergies through M&A while also investing in expanding processing and recycling capabilities [20][21] - The company aims to stabilize the SKSS segment while maximizing the value of its assets and minimizing downside potential [24][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for services, particularly in disposal and recycling, despite potential impacts from tariffs [22][70] - The company anticipates a strong second half of the year, with a robust pipeline of remediation and waste projects [24][22] - Management remains cautious about the industrial services segment but believes in the long-term prospects due to the necessity of the services provided [24][70] Other Important Information - The company ended Q1 with a cash balance approaching $600 million and a net debt to EBITDA ratio of approximately 2.1 times [29][30] - A credit rating upgrade by Moody's was received during the quarter, reflecting strong financial performance and capital policies [30][29] - Adjusted free cash flow for Q1 was negative $116 million, consistent with the previous year, primarily due to timing of incentive comp payments and seasonal working capital increases [31][30] Q&A Session Summary Question: Impact of weather on ES segment performance - Management indicated that weather negatively impacted Q1 performance, estimating a loss of $10 million to $12 million in EBITDA due to difficult conditions in January [41][42] Question: Guidance for Q2 and refinery turnarounds - Management confirmed that Q2 guidance does not include large-scale emergency response events and expects a better second half with over 150 planned refinery turnarounds [44][45] Question: Cyclicality of the ES segment - Management described the ES segment as recession-resistant, with continued strong growth expected in the second and third quarters [49][50] Question: Update on PFAS revenue growth - Management confirmed a strong pipeline for PFAS solutions, expecting revenue growth in the range of 15% to 20% for the year [59][60] Question: Base oil pricing and inventory status - Management acknowledged pressure on base oil pricing but highlighted successful pricing initiatives that doubled the average price charged for used oil collection [100][101] Question: M&A pipeline and current environment - Management noted that valuations remain high for assets, but the company is actively reviewing multiple deals while being selective [91][92]