Core Insights - Gabelli Funds, LLC is hosting its third annual PFAS Symposium on September 17, 2025, at The Harvard Club in New York City, focusing on the critical issues surrounding PFAS and their environmental impact [1][2]. Industry Overview - PFAS (Per- and Polyfluoroalkyl Substances) are man-made chemicals used since the 1940s in various industrial applications and consumer products, known for their resistance to water, oil, and heat, and linked to significant environmental and health risks [4]. Event Details - The symposium will include company presentations, fireside chats, and one-on-one meetings, aiming to foster dialogue on the environmental and public health challenges posed by PFAS [2]. - The preliminary agenda features presentations from various companies, including 374Water Inc., BP Polymers, Arq Inc, and others, with topics related to PFAS remediation and management [3]. Company Background - Gabelli Funds, LLC is a registered investment adviser known for its research-driven investment process and offers a diverse range of investment products for individual and institutional investors [4].

Financial Performance - Total revenue reached $28.6 million, a 13% year-over-year increase driven by improved Average Selling Price (ASP) and end-market diversification[6] - Gross margin was 33.3%, reflecting sustainable improvement in PAC performance[6] - Adjusted EBITDA was $3.7 million, compared to $1.1 million in the prior year period, marking 5 consecutive quarters of positive Adjusted EBITDA[7, 11] - PAC pricing grew by 9% year-over-year in Q2 2025, with an average quarterly growth of approximately 16% in PAC ASP since Q2 2023[6, 16] GAC Commissioning and Expansion - The company completed the commissioning of its transformational GAC facility at Red River, with ramp-up to nameplate capacity underway[6, 24] - The company is targeting a Final Investment Decision (FID) for a 2nd GAC line prior to year-end 2025[8, 27] - The Red River plant is expected to add production of GAC and expand the plant to deliver an incremental 25 million pounds of GAC product[32] Market and Regulatory Landscape - EPA regulations could boost municipal water market demand by 3 to 5 times from approximately 170 million pounds per year[37] - The company is benefiting from U S tariffs due to its fully integrated domestic supply chain[38] Strategic Initiatives - The company is developing new markets, including the Arq-Enabled Great Lakes Restoration Project, which is the largest PAC sediment remediation in U S history[41, 42] - The company is exploring growth beyond activated carbon, with multiple initiatives focused on developing additional product opportunities and revenue streams from Corbin feedstock[43]

Financial Data and Key Metrics Changes - The company achieved a consolidated adjusted EBITDA margin of 21.7%, an increase of 60 basis points year-over-year, driven by strong demand for disposal and recycling assets and lower SG&A costs [5][24]. - Total company revenue was essentially flat compared to 2024, with growth in Environmental Services offsetting a decline in Safety Kleen Sustainable Solutions (SKSS) [23]. - Adjusted free cash flow reached a record of $133 million, up nearly $50 million or approximately 60% from the prior year [26]. Business Line Data and Key Metrics Changes - Environmental Services (ES) segment adjusted EBITDA margin grew year-over-year for the thirteenth consecutive quarter, driven by increased volumes, pricing, and efficiency gains [6][7]. - Safety Kleen Environmental revenue increased by 9% due to pricing gains and growth in core service offerings, despite a slight decline in parts wash services [7]. - Technical Services saw a 4% revenue increase supported by higher incineration and landfill volumes, with incineration prices rising by 7% on a mix-adjusted basis [8]. Market Data and Key Metrics Changes - The company noted strong demand for incineration services, with utilization rates at 89%, up from 88% a year ago, indicating robust market conditions despite tariff uncertainties [8][9]. - The threat of PFAS litigation is creating urgency at various government levels, positioning the company to capitalize on a multibillion-dollar remediation opportunity [12]. Company Strategy and Development Direction - The company is focused on capital allocation strategies to generate long-term returns, with plans for both organic investments and strategic M&A opportunities [17][19]. - The company is actively evaluating bolt-on transactions and larger acquisitions to enhance its market position and unlock long-term value [19][80]. - The ongoing reshoring trend and substantial planned industrial investments in the U.S. are expected to drive greater customer activity and demand for services [20][21]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, noting that customer activity is expected to remain strong despite near-term trade headwinds [20][31]. - The company anticipates continued growth in the second half of the year, supported by a solid project pipeline and favorable macroeconomic conditions [28][31]. - Management highlighted that the worst of maintenance deferrals from industrial services customers appears to be behind them, indicating potential for increased activity [10][56]. Other Important Information - The company is addressing the potential for further processing of re-refining byproducts, believing there is value to be harvested in this area [19]. - The company has a strong balance sheet with nearly $700 million in cash and short-term marketable securities, providing flexibility for future investments [25]. Q&A Session Summary Question: Broad view on the macro environment and market share - Management noted that volumes into their network are at all-time highs, with a strong project pipeline and no signs of demand slowing down [40][41]. Question: Confidence in SKSS guidance and potential risks - Management expressed confidence in achieving the $140 million EBITDA target for SKSS, citing improved collection rates and pricing strategies [55][109]. Question: Outlook for turnaround activity and major projects - Management indicated that while turnaround activity is up, the guidance does not depend on a significant ramp-up, suggesting cautious optimism for the back half of the year [56][60]. Question: Impact of tariff uncertainty on remediation projects - Management clarified that growth in projects and remediation is not correlated with tariff issues, emphasizing a strong project pipeline [63][65]. Question: Update on PFAS incineration study and regulatory guidelines - Management confirmed successful results from a PFAS study and anticipates further guidance from the EPA in the near future [68][69]. Question: Expectations for Kimball and EBITDA contribution - Management is confident in the ramp-up of the Kimball facility, expecting strong volumes and EBITDA contributions in the coming quarters [73][75]. Question: M&A opportunities and capital deployment strategy - Management highlighted a full pipeline of M&A opportunities while maintaining a disciplined approach to capital deployment based on returns [79][82]. Question: Environmental Services margins and future trends - Management expects continued margin expansion in Environmental Services, supported by pricing, labor management, and cost efficiencies [88][90].

Financial Data and Key Metrics Changes - For Q1 2025, the company generated revenue of $543,000, an increase from $315,000 in the prior year quarter, primarily from equipment manufacturing services and demonstrations [24] - Total operating expenses rose by 6% to $3,900,000 compared to $1,900,000 in the prior year quarter, driven by increases in professional fees, general and administrative expenses, and compensation [25] - The net loss for Q1 2025 was $3,700,000, compared to $2,000,000 in the prior year quarter [25] - Cash and cash equivalents as of March 31, 2025, were $6,900,000, down from $10,700,000 as of December 31, 2024 [26] Business Line Data and Key Metrics Changes - The revenue increase was primarily attributed to a full-scale demonstration for a customer, resulting in a services revenue increase of $376,000, offset by a decrease in equipment manufacturing revenue of approximately $162,000 [24] Market Data and Key Metrics Changes - The company is targeting a $450 billion waste destruction and management market, with a goal of achieving $250 million to $500 million in annual revenue in five years [6][21] - The company is seeing strong interest from municipal officials and the federal government, which has made significant commitments to PFAS removal and destruction [19] Company Strategy and Development Direction - The company aims to create a national network of treatment, storage, and disposal facilities (TSDF) to cover the entire United States, enhancing its waste destruction service capabilities [34] - The strategy includes a diversified approach to market development, focusing on municipal, federal, and industrial sectors [18][21] - The company is advancing strategic partnerships to establish on-site waste destruction services operations [20] Management's Comments on Operating Environment and Future Outlook - Management believes the demand for advanced environmental technologies is accelerating, positioning the company for leadership in the waste destruction sector [27] - The company is optimistic about the potential for significant revenue growth and environmental impact, with a focus on scalable and effective waste destruction solutions [29] Other Important Information - The company has made progress in optimizing its AirSquove system and has secured contracts for waste destruction services, including a significant contract with the University of North Carolina [8][17] - The company is actively pursuing additional TSDF agreements and expects to finalize more contracts in the near future [20] Q&A Session Summary Question: What is the revenue potential for the Crystal Clean deal? - The revenue potential for the AirSquo 30 unit is projected to be between $12 million and $20 million annually, depending on the material processed and utilization [34][35] Question: When is the Department of Defense demo expected to ramp up? - Mobilization for the Department of Defense demo will start in June, with on-site work beginning in July, followed by several months of demonstrations [36] Question: When will the aqueous foam destruction for North Carolina start and finish? - The initial 1,000 gallons of aqueous foam destruction is expected to start within the next month [38]

Financial Data and Key Metrics Changes - For Q1 2025, the company generated revenue of $543,000, an increase from $315,000 in the prior year quarter, primarily from equipment manufacturing services and treatability study services [24] - Total operating expenses increased by 6% to $3,900,000 compared to $1,900,000 in the prior year quarter, driven by increases in professional fees, general and administrative expenses, and compensation [25] - The net loss for Q1 2025 was $3,700,000, compared to a net loss of $2,000,000 in the prior year quarter [25] - Cash and cash equivalents as of March 31, 2025, were $6,900,000, down from $10,700,000 as of December 31, 2024 [26] Business Line Data and Key Metrics Changes - The revenue increase was primarily attributable to a full-scale demonstration for a customer, resulting in an increase in services revenue of $376,000, offset by a decrease in equipment manufacturing revenue of approximately $162,000 [24] Market Data and Key Metrics Changes - The company is targeting a $450 billion waste destruction and management market, with a goal of achieving $250 million to $500 million in annual revenue in five years [6][22] - The U.S. government has made significant commitments to the removal and destruction of PFAS and other contaminants, which positions the company to secure a meaningful share of this work [20] Company Strategy and Development Direction - The company aims to create a national network of treatment storage and disposal facilities (TSDF) to unlock material contracts and address the growing demand for advanced waste destruction solutions [28] - The commercial model includes waste destruction as a service, capital sales, and leases, providing multiple revenue streams [28] Management's Comments on Operating Environment and Future Outlook - Management believes the demand for advanced environmental technologies is accelerating, positioning the company for leadership in the sector [27] - The company is entering a pivotal phase for scaling its technology and business, with a focus on municipal, federal, and industrial markets [22][29] Other Important Information - The company has secured a waste destruction services contract with the University of North Carolina at Chapel Hill, which could be worth over $5 million in future revenues [9] - The company is advancing partner negotiations to establish regional waste destruction service operations across North America [9] Q&A Session Summary Question: What is the revenue forecast for a typical destruction as a service deal? - Management indicated that the revenue potential will depend on the type of material processed and the size of the AirSquove unit, with projections for the AirSquove 30 unit being between $12 million and $20 million annually [33] Question: When is the Department of Defense demo expected to ramp up? - The mobilization for the Department of Defense demo is expected to start in June, with on-site work beginning in July, followed by several months to complete the demonstrations [35] Question: When will the aqueous foam destruction for North Carolina start and finish? - The company is in the process of arranging to pick up the initial 1,000 gallons and expects to start the work within the next month [37]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $13.9 million, a slight increase of 2.2% from $13.6 million in Q1 2024 [16] - Gross profit for the quarter was $657,000, compared to a gross loss of $620,000 in Q1 2024 [17] - Net loss for the quarter remained consistent at $3.6 million, with a loss per share of $0.19 compared to $0.26 in the prior year [17] - EBITDA from continuing operations was a negative $3.3 million, an improvement from a negative $4.0 million last year [18] Business Segment Data and Key Metrics Changes - Treatment Segment revenue increased by $477,000 or 5.5% year over year, driven by higher waste volumes received and processed [16] - Services Segment revenue decreased by $175,000 due to delays in federal procurement activity [17] - Gross profit in the Treatment Segment increased by $302,000, while gross profit in the Services Segment increased by $975,000 due to lower variable costs [17] Market Data and Key Metrics Changes - Waste backlog grew to over $10 million by quarter end, up approximately 30% from 2024 [6] - International waste receipts improved, with approximately $7 million worth of waste received from Canada, Mexico, and Germany [11] Company Strategy and Development Direction - The company is focusing on expanding its PFAS program, with significant advancements and commercial shipments from the federal government [9] - Strategic partnerships are being developed to enhance capabilities in PFAS destruction technology [9] - The company aims to diversify revenue through international expansion and strategic partnerships, particularly in Europe and Latin America [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stronger performance in the second half of 2025, supported by key growth drivers including waste treatment backlog and federal procurement visibility [14] - The company is encouraged by the proposed federal budget, which is expected to favorably impact revenue from the DOE [22][23] - Management noted that the operational readiness for the DF Law program at Hanford is on track for an August 1 start, which could lead to significant high-margin recurring revenue [10] Other Important Information - The company is making targeted investments to support new waste receipt capabilities, including staffing and facility readiness [6] - The new EPA Administrator's focus on PFAS remediation is seen as a positive development for the company's future prospects [10] Q&A Session Summary Question: Impact of the 2026 federal budget on 2025 and 2026 - Management indicated that the proposed budget is favorable, with no reduction in Hanford funding and a significant increase in the NNSA side, which could lead to more remediation projects [22][23] Question: Current waste receipts from Hanford - Management confirmed receiving $2 million to $3 million a month from Hanford, significantly higher than in the past [25] Question: Margins from Hanford contracts - Management did not disclose specific margins but emphasized a focus on cost management and operational efficiency [26] Question: Update on grouting and near-term priorities - Management stated that DOE is expected to inform the state of their strategy by December 2025, with optimism about the company's role in the grouting program [34] Question: Contribution from the second-generation PFAS unit - Management expects initial revenue from the new unit to be around $1 million a month, with long-term goals of $20 million a year [39] Question: Update on services and project opportunities - Management noted an increase in project opportunities, particularly in the $20 million to $40 million range, and a positive outlook for upcoming bids [43] Question: CapEx priorities for the next quarters - Management anticipates CapEx in the range of $5 million to $6 million, focusing on sustaining operations and the second-generation reactor [47] Question: Commentary on competition and market dynamics - Management acknowledged competition but expressed confidence in securing a significant portion of the waste due to local operations and community ties [86]

Financial Performance - Total revenue reached $27.2 million, a 25% year-over-year increase, driven by improved Average Selling Price (ASP) and end-market diversification[6, 10] - Adjusted EBITDA was $4.1 million, compared to a loss of $0.4 million in the prior year period, marking four consecutive quarters of positive Adjusted EBITDA[7, 10] - The company achieved net profitability during Q1 2025, with a net income of $0.2 million compared to a net loss of $3.4 million in Q1 2024[10] - Gross margin remained strong at 36.4% in Q1 2025[6, 20] PAC Business - The company achieved its 8th consecutive quarter of double-digit year-over-year growth in PAC ASP, with an approximately 13% ASP increase year-over-year[6, 11, 18] - 100% of PAC contracts are now net cash producers, as loss-making contracts have been eliminated[6, 7, 18] GAC Business & Red River Project - The Red River project is expected to add 25 million pounds of incremental GAC product capacity[27, 31] - The company has entered into supply contracts for approximately 16 million pounds of the Red River plant's nameplate capacity[31] - First commercial-scale production of on-specification GAC product is anticipated by the end of Q2 or early Q3 2025[31, 35] PFAS Regulations & Market Impact - EPA regulations potentially increase municipal water market demand by 3-5x vs the existing approximately 170 million pounds per year[39] - The company estimates that the annual GAC market could grow approximately 75% to over 700 million pounds[108]

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]