Clean Harbors(US:CLH)2026-02-18 18:02Revenue Performance - Total direct revenues for 2025 increased by 2.4% or $140.9 million to $6,030.8 million, compared to $5,890.0 million in 2024[219]. - Environmental Services segment direct revenues rose by $188.5 million or 3.8% in 2025, driven by growth in Technical Services and Field and Emergency Response services[219]. - Safety-Kleen Sustainability Solutions segment revenues decreased by $47.4 million in 2025 due to lower market pricing for oil products and reduced volumes sold[219]. - Environmental Services direct revenues for the year ended December 31, 2025, increased by $188.5 million to $5,193.3 million, a growth of 3.8% compared to 2024[228]. - Technical services revenue contributed $126.2 million to the revenue increase, driven by stronger volumes at incinerator and landfill facilities[228]. - Safety-Kleen branch revenues increased by $67.3 million, primarily due to improved pricing for containerized waste and parts washer services[228]. Profitability Metrics - Adjusted EBITDA for 2025 was $1,169.9 million, an increase of 4.7% from $1,116.9 million in 2024, primarily driven by the Environmental Services segment[221]. - Environmental Services segment Adjusted EBITDA was $1,343.8 million in 2025, reflecting a 6.0% increase from 2024[222]. - Safety-Kleen Sustainability Solutions segment Adjusted EBITDA decreased by 6.5% to $137.5 million in 2025[222]. - Net income for 2025 was $391.0 million, a decrease of $11.3 million or 2.8% compared to $402.3 million in 2024[220]. - Adjusted EBITDA for 2025 was $1,169,939, representing a 4.0% increase from $1,116,934 in 2024, and 19.4% of direct revenues[253]. Cash Flow and Investments - Net cash from operating activities for 2025 was $866.7 million, an increase of $89.0 million from 2024, attributed to improved working capital and lower environmental expenditures[221]. - Adjusted free cash flow for 2025 was $509.3 million, representing a $151.4 million increase over 2024[221]. - Net cash used in investing activities decreased to $425.786 million in 2025, down $477.9 million from $903.674 million in 2024, mainly due to reduced acquisition costs[269]. - Net cash used in financing activities for 2025 was $309.342 million, compared to a net cash inflow of $377.032 million in 2024, driven by increased stock repurchases[271]. Costs and Expenses - Total cost of revenues for 2025 was $4,144.6 million, an increase of 2.0% from $4,061.4 million in 2024[222]. - Environmental Services cost of revenues for 2025 increased by $96.0 million to $3,461.9 million, but improved as a percentage of revenues to 66.7%[235]. - SG&A expenses for Environmental Services in 2025 rose by $16.3 million to $387.5 million, representing 7.5% of direct revenues[240]. - Cost of revenues for Safety-Kleen in 2025 decreased by $32.3 million to $626.9 million, remaining consistent at 74.9% of direct revenues[237]. Taxation and Legal Matters - The provision for income taxes for 2025 increased by $5.8 million to $136.993 million, with an effective tax rate of 25.9%, up from 24.6% in 2024[263]. - The company had reserves of $16.2 million for legal matters as of December 31, 2025, including $11.4 million related to pending legal or administrative proceedings[306]. Environmental Liabilities - Total environmental liabilities decreased to $230.697 million in 2025, down $10.836 million from $241.533 million in 2024, primarily due to expenditures and reduced liability estimates[284]. - Landfill final closure and post-closure liabilities recorded at December 31, 2025, were $59.8 million, compared to $59.4 million in 2024[294]. - Non-landfill closure and post-closure liabilities recorded at December 31, 2025, were $75.6 million, an increase from $70.4 million in 2024[296]. - Remedial liabilities recorded at December 31, 2025, were $95.4 million, down from $111.7 million in 2024[297]. Debt and Financing - As of December 31, 2025, the company held $1,260.0 million in variable rate debt under secured senior term loans due in 2032, with an interest rate margin of 1.50%[309]. - The company entered into interest rate swap agreements in 2022, resulting in an effective annual interest rate of approximately 3.46% on $600.0 million of the 2032 Term Loans[310]. - The total borrowings as of December 31, 2025, included $2,805.0 million in long-term debt, with scheduled maturities extending to 2033[312]. - Interest payments on the $600.0 million secured senior term loan, effectively fixed by the 2022 Swaps, are approximately $1.7 million per month[314]. - The company has a revolving credit agreement with a maximum borrowing capacity of $600.0 million, with $453.5 million available to borrow as of December 31, 2025[315]. Other Financial Metrics - Stock-based compensation increased by $4.7 million in 2025, totaling $32,702, driven by performance metrics and the Employee Stock Purchase Plan[254]. - Depreciation and amortization rose by $45.1 million in 2025, totaling $446,006, due to new acquisitions and asset placements[256]. - Interest expense, net of interest income, increased by $8.1 million in 2025, totaling $143,104, primarily due to lower capitalized interest[260]. - Other income (expense), net, improved to $5,200 in 2025 from a loss of $1,454 in 2024[258].