Clean Harbors (NYSE:CLH) Q4 2025 Earnings call February 18, 2026 09:00 AM ET Company ParticipantsAdam Bubes - VP of Equity ResearchEric Dugas - EVP and CFOEric Gerstenberg - Co-CEOLarry Solow - PartnerMichael McDonald - General CounselMike Battles - Co-CEOTobey Sommer - Managing DirectorTyler Brown - Financial AdvisorConference Call ParticipantsBryan Burgmeier - Equity Research AnalystDavid Manthey - Senior Research AnalystJames Schumm - Senior AnalystNoah Kaye - Senior Research AnalystNone - AnalystOperato ...

Financial Data and Key Metrics Changes - Gogoro achieved a record-high full-year adjusted EBITDA of $59.9 million, up from $44.7 million in 2024 [4] - Operating cash flow increased more than three times year-over-year to $31.1 million [5] - Gross margin improved to 8.3%, up from 2.6% in 2024, while non-IFRS margin reached 19.5%, up from 14.9% [5][20] - For the full year 2025, total revenue was $281.5 million, a 9.4% decline year-over-year [16][18] - Net loss narrowed to $80.8 million, down from $122.8 million in the previous year [20][21] Business Line Data and Key Metrics Changes - Battery swapping revenue grew 8.1% to $149 million, demonstrating the strength of the subscription model [18] - Hardware revenue was $132.5 million, down 23.3% due to a substantial drop in vehicle sales [18][19] - Vehicle volumes reflected a strategic tightening, with Gogoro accounting for 28,176 units, or 57% of all electric vehicles [15] Market Data and Key Metrics Changes - The Taiwan scooter market declined for the second consecutive year to 708,392 units, down 5.9% year-over-year [14] - Gogoro maintained leadership in the electric scooter segment, accounting for 68% of the overall electric two-wheeler market [15] Company Strategy and Development Direction - The company focused on operational efficiency and sustainability, prioritizing long-term goals over short-term results [4] - Plans for 2026 include launching new products and expanding the battery swapping network [9][10] - The strategy emphasizes value creation in both energy and vehicle businesses, with a focus on high-value segments [9][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2025 but emphasized the importance of establishing a solid foundation for future growth [4][13] - The company expects new products and operational leverage to drive continued cash flow and set the path towards profitability in 2026 [16][23] - Management is confident in achieving profitability in the energy business by the end of 2026 [32] Other Important Information - The company secured an $80 million equity investment commitment for 2026 from its largest shareholder [22] - A new scooter model specifically engineered for durability and performance is set to launch in Vietnam [12] Q&A Session Summary Question: How should we think about your strategy for the scooter business, which appears to be underperforming? - Management emphasized the need for stabilization and execution, focusing on selective models and aligning investments with returns [25][26] Question: Can you sustain the level of OpEx savings, and can we expect ongoing improvements in gross margin? - Management acknowledged the hard work on cost savings in 2025 but indicated that replicating the same level of savings in 2026 would be challenging [27][28]

Investment Activities - CPPIB is investing up to US$162 million in SC Capital, which has been a global institutional investor since 2022 [1] - CPPIB will also invest up to US$1.05 billion in a US$10.1 billion transaction for an indirect non-controlling interest in Castrol, expected to close by the end of 2026 [3] - Kelso & Co. has acquired a 25% stake in Wellington-Altus Financial Inc. for nearly US$400 million, with over 99% shareholder support [4] - Portage has closed a deal with Point72 Ventures to manage select fintech assets, moving them into a US$280 million continuation vehicle [8] Market Insights - Japan is highlighted as a key hospitality market due to strong inbound tourism and domestic demand, with SC Capital managing approximately US$9 billion in assets, 75% of which are in Japan [2] - The Canadian accredited investor market is projected to double between 2024 and 2029, prompting Maples Group to launch a fund administrative service for alternative investment funds [7] Real Estate Developments - BGO has entered the North American student housing market by acquiring a two-tower residential complex in Edmonton, which includes 272 residential units and 493 student beds [6]

BP (BP) said it has reached an agreement to sell a 65% shareholding in Castrol to Stonepeak, at an enterprise value of $10.1B. The transaction is expected to result in total net proceeds to BP of $6B, which includes $800M for the pre-payment of future dividend income over the short to medium term on BP’s retained 35% stake. The implied total equity value of Castrol is $8B after deducting joint venture minority interests totaling $1.8B and other debt-like obligations of $300M. Upon completion of the transac ...

Core Viewpoint - BP is selling a $6 billion stake in Castrol to reduce its $26 billion debt, marking its largest sale in 12 years and coinciding with a leadership change [1][4][10]. Group 1: Company Overview - Castrol, established 126 years ago, gained fame through motorsports sponsorship and is recognized for its green, red, and white logo [2]. - The company was founded by Charles Wakefield, who created lubricants capable of withstanding high engine temperatures, contributing to its distinctive smell [3]. Group 2: Financial Details - BP is selling a 65% stake in Castrol, valuing the company at $10 billion, which exceeds many analysts' expectations [4][5]. - The sale is part of BP's strategy to reduce its debt, with a target to cut net debt by $14 billion to $18 billion by 2027 [7][6]. Group 3: Strategic Implications - Carol Howle, BP's interim CEO, stated that the sale is beneficial for all stakeholders and represents a significant step in the company's reset strategy [8][9]. - The reset strategy involves reducing complexity and refocusing on core integrated businesses, moving away from renewables [10].

Core Viewpoint - BP has agreed to divest a majority stake in its Castrol lubricants business to Stonepeak for a $10 billion enterprise value, generating approximately $6 billion in proceeds to accelerate debt reduction and streamline its downstream portfolio [1][2]. Group 1: Transaction Details - The deal values Castrol at an implied 8.6x EV/LTM EBITDA, with Stonepeak acquiring a 65% stake and BP retaining 35% [2]. - The sale will provide BP with around $6 billion in net proceeds, including $800 million in accelerated dividend pre-payments linked to BP's retained stake [3]. - The transaction simplifies BP's downstream operations and supports its strategy of focusing on integrated businesses with higher returns [3]. Group 2: Strategic Implications - This divestment is part of BP's broader strategy to tighten its balance sheet, optimize its portfolio, and enhance cash generation, having completed or announced over half of its $20 billion divestment program with cumulative proceeds of approximately $11 billion [4]. - Castrol remains a well-recognized lubricant brand with significant market positions across automotive, industrial, and marine sectors, allowing BP to retain exposure to its growth trajectory through the new joint venture [4][5]. Group 3: Future Outlook - Stonepeak plans to support Castrol's expansion while BP maintains minority participation, with Castrol having posted nine consecutive quarters of year-over-year earnings growth [5]. - Regulatory approvals for the transaction are expected to be completed by the end of 2026, after which BP will account for its retained stake under the equity method [6].

Core Viewpoint - BP has agreed to sell a 65% stake in its Castrol unit to investment firm Stonepeak for approximately $6 billion [1] Company Summary - The transaction involves BP divesting a significant portion of its Castrol business, indicating a strategic shift in its investment focus [1] - The sale reflects BP's ongoing efforts to streamline operations and focus on core areas of growth [1] Industry Summary - The deal highlights the increasing interest from investment firms in acquiring stakes in established brands within the lubricants sector [1] - This transaction may signal a trend of consolidation in the industry as companies seek to optimize their portfolios and enhance shareholder value [1]

Core Viewpoint - Stonepeak, a prominent alternative investment firm, has announced an agreement to acquire a majority controlling interest in Castrol from BP, valuing the business at approximately $10.1 billion [1] Group 1: Transaction Details - The transaction involves Stonepeak acquiring a majority controlling interest in Castrol, a global leader in lubricants [1] - BP will retain a 35% minority interest in Castrol as part of the transaction [1] Group 2: Company Background - Castrol is recognized as a global leader in the lubricants industry [1] - Stonepeak specializes in infrastructure and real assets, indicating a strategic alignment with Castrol's operations [1]

Group 1 - The sale of the lubricants business is part of the British energy giant's strategy to raise $20 billion through asset sales [1] - This divestment aligns with the company's broader efforts to streamline operations and focus on core areas of growth [1] - The lubricants business is expected to attract significant interest from potential buyers due to its established market presence [1] Group 2 - The company aims to utilize the proceeds from asset sales to strengthen its balance sheet and invest in renewable energy projects [1] - This move reflects a growing trend in the energy sector where companies are divesting non-core assets to enhance financial flexibility [1] - The planned asset sales are part of a larger restructuring initiative aimed at improving operational efficiency and shareholder returns [1]

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]