Financial Data and Key Metrics Changes - Total revenue for Q3 increased to $1.55 billion, reflecting growth in environmental services and a diversified customer base [20][21] - Adjusted EBITDA rose 6% to $320 million, with a consolidated adjusted EBITDA margin expanding to 20.7%, driven by pricing initiatives and cost reduction efforts [20][21] - Net income grew modestly year over year, delivering earnings per share of $2.21 [23] Business Line Data and Key Metrics Changes - Environmental Services (ES) segment revenue increased by 3%, with adjusted EBITDA margin growing for the 14th consecutive quarter [5][6] - Technical services within ES saw a 12% revenue growth, while Safety-Kleen Environmental services rose 8% [8][20] - Field services revenue declined by 11% due to the absence of medium to large response projects [8][9] Market Data and Key Metrics Changes - Incineration utilization was high at 92%, with landfill volumes up 40% from a year ago [7][20] - PFAS-related sales are expected to generate $100 to $120 million in revenue this year, up 20% to 25% from the previous year [10][11] - The company anticipates that spending constraints in industrial services will loosen as economic conditions improve [18] Company Strategy and Development Direction - The company is focused on margin growth and productivity enhancements, with plans for significant internal investments exceeding $500 million over the next several years [16][17] - A new state-of-the-art processing plant (SDA unit) is planned, expected to generate annual EBITDA of $30 million to $40 million upon completion [15] - The company remains active in evaluating M&A opportunities while maintaining a disciplined approach to capital allocation [16][80] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong momentum in waste collection and disposal assets despite current macroeconomic challenges [5][18] - The company expects to navigate current economic turbulence and anticipates a recovery in industrial services and field services in the coming quarters [29] - Management highlighted the importance of ongoing cost management and operational efficiency to mitigate rising healthcare costs [33][40] Other Important Information - The company reported a record level of free cash flow in Q3, with cash and short-term marketable securities totaling $850 million [24][25] - SG&A expenses as a percentage of revenue increased to 12.2%, reflecting higher healthcare costs and professional fees [22] - The company has raised its full-year adjusted free cash flow guidance to a midpoint of $475 million, representing over 30% growth from 2024 [28] Q&A Session Summary Question: What were the main factors behind the $15 million guidance reduction? - The reduction was primarily due to shortfalls in industrial services ($7 million) and field services ($4 million), along with elevated healthcare costs impacting the overall company by about $6 million [33][34] Question: What is the outlook for EBITDA growth in 2026? - Management expects to target a 5% EBITDA growth based on cost-cutting initiatives and volume growth in waste businesses, despite not anticipating a rebound in industrial turnarounds until spring [41][42] Question: What is the company's M&A outlook? - The company is actively looking at both larger and smaller deals, maintaining a disciplined approach to ensure good returns on shareholder investments [44][80] Question: What is the expected range for SKSS EBITDA this year? - Management expressed high confidence in achieving the $140 million EBITDA mark for SKSS, with a potential range of a few million on either side [72][73] Question: How does the SDA unit investment relate to M&A strategy? - The SDA unit investment does not reflect a change in M&A appetite; it has been a planned investment for years, and the company remains open to various capital allocation opportunities [79][80]

Q3 2025 Performance Highlights - Revenue reached $1.55 billion, driven by growth in the Environmental Services (ES) segment[8] - Net income was $118.8 million, resulting in earnings per share (EPS) of $2.21[8] - Adjusted EBITDA was $320.2 million, with an adjusted EBITDA margin increase of 100 basis points to 20.7%[8] - Adjusted free cash flow reached a record $230.6 million[8] Environmental Services (ES) Segment - ES segment revenue increased to $1.3313 billion in Q3 2025, a 3% increase compared to $1.2972 billion in Q3 2024[10] - ES adjusted EBITDA increased to $357.2 million in Q3 2025, a 7% increase compared to $332.5 million in Q3 2024[10] - Adjusted EBITDA margin for ES increased by 120 bps due to pricing, network efficiency, and productivity gains[13] - SK Environmental Services revenue grew by 8% due to pricing and volume growth[13] Safety-Kleen Sustainability Solutions (SKSS) Segment - SKSS revenue decreased by 6% to $218.0 million in Q3 2025 from $232.1 million in Q3 2024, reflecting market pricing and lower volumes[18] - SKSS adjusted EBITDA was relatively flat at $40.9 million in Q3 2025 compared to $41.2 million in Q3 2024, but the margin increased by 100 bps[18, 21] - The company gathered 64 million gallons of waste oil, compared to 69 million gallons in Q3 2024[21] Capital Allocation and Future Investments - The company plans to build a Solvent De-Asphalting (SDA) Unit with a total project spend of $210 million to $220 million[24] - The SDA unit is expected to contribute $30 million to $40 million in annual EBITDA[24] - $12 million has been spent YTD on the SDA unit, with an anticipated total of $30 million in 2025[24] Full-Year 2025 Guidance - The company projects net income between $379 million and $400 million[35] - Adjusted EBITDA is projected to be between $1.155 billion and $1.175 billion[35] - Net cash from operating activities is expected to range from $795 million to $865 million[35] - Adjusted free cash flow is projected to be between $455 million and $495 million[35]

Core Insights - The company reported significant profitability improvement in its Facility Services businesses while maintaining stable performance in its Circular Economy Business [4][5][11] - The outlook for 2025 estimates net sales to remain at the same level as the previous year, with adjusted operating profit projected between EUR 44 million and EUR 48 million [3][83] Financial Performance - For January-September 2025, net sales totaled EUR 571.4 million, a decrease of 0.9% compared to EUR 576.5 million in the same period last year [4][14] - Adjusted operating profit for the same period was EUR 37.7 million, up 15.5% from EUR 32.7 million, indicating improved profitability [14][17] - In the third quarter, net sales increased by 3.8% to EUR 199.5 million, with adjusted operating profit slightly up to EUR 20.1 million [10][14] Business Segments - In the Circular Economy Business, net sales for January-September were EUR 315.5 million, down from EUR 318.6 million, with adjusted operating profit declining to EUR 31.1 million from EUR 33.0 million [21][22] - Facility Services Finland experienced a decrease in net sales to EUR 170.2 million, but adjusted operating profit improved significantly to EUR 11.1 million from EUR 6.8 million [27][28] - Facility Services Sweden saw an increase in net sales to EUR 87.3 million, with adjusted operating results improving to a loss of EUR 2.9 million from a loss of EUR 6.0 million [31][32] Sustainability and Efficiency - The company's carbon footprint decreased by 19% compared to the previous year, driven by the use of renewable fuels and investments in a low-emission fleet [8][47] - An efficiency program was launched aiming for an annual performance improvement of at least EUR 8 million by the end of 2026, with fixed costs decreasing by approximately EUR 3 million in the review period [43][43] Demerger Plans - The company is preparing for a partial demerger to separate its Circular Economy business into a new publicly listed company, with the plan approved by the Board of Directors on August 7, 2025 [9][80] - The demerger is subject to approval at an Extraordinary General Meeting scheduled for December 4, 2025, with an effective date planned for December 31, 2025 [81][82]

Core Insights - The company reported significant profitability improvement in its Facility Services businesses, while the Circular Economy Business showed stable performance despite a slight decline in adjusted operating profit [3][4][11]. Financial Performance - For January to September 2025, net sales totaled EUR 571.4 million, a decrease of 0.9% compared to the previous year [6][13]. - Adjusted operating profit for the same period was EUR 37.7 million, up 15.5% from EUR 32.7 million in the previous year [6][13]. - The third quarter net sales were EUR 199.5 million, representing a year-on-year increase of 3.8% [10][17]. - Adjusted operating profit for the third quarter was EUR 20.1 million, slightly up from EUR 20.0 million in the previous year [10][17]. Business Segments Circular Economy Business - Net sales for the Circular Economy Business in January to September were EUR 315.5 million, down from EUR 318.6 million [19]. - Adjusted operating profit for this segment was EUR 31.1 million, a decline from EUR 33.0 million in the previous year [19]. - Demand for recycling and waste management services decreased, particularly in the construction industry [4][20]. Facility Services - Facility Services Finland reported net sales of EUR 170.2 million, down from EUR 179.2 million, but adjusted operating profit improved to EUR 11.1 million from EUR 6.8 million [26][27]. - Facility Services Sweden saw an increase in net sales to EUR 87.3 million from EUR 80.9 million, with adjusted operating results improving to a loss of EUR 2.9 million from a loss of EUR 6.0 million [29][30]. Outlook - The company estimates that net sales in 2025 will be at the same level as in the previous year, with adjusted operating profit projected to be between EUR 44 million and EUR 48 million [2][77]. Sustainability Performance - The company's carbon footprint decreased by 19% compared to the previous year, driven by the use of renewable fuels and investments in a low-emission fleet [8][45]. - Customer satisfaction reached an all-time high with a Net Promoter Score (NPS) of 41 [8][45]. Demerger Plans - The company is preparing for a partial demerger to separate its Circular Economy business into a new publicly listed company, with the plan approved by the Board of Directors on August 7, 2025 [9][75]. - The demerger is subject to approval at an Extraordinary General Meeting scheduled for December 4, 2025, with an effective date planned for December 31, 2025 [9][76].

Core Insights - 374Water Inc. has entered into a $4 million agreement with the City of Olathe, KS for the sale and deployment of an AirSCWO 6 system and a full-scale pre-treatment and dewatering system over the next two years [2][4] - The project aims to assess the Supercritical Water Oxidation (SCWO) process as a sustainable alternative for traditional sludge management practices, including the removal of contaminants like PFAS from wastewater sludge [2][4] - The partnership is expected to provide valuable data that could inform the future adoption of AirSCWO systems by other municipalities seeking to reduce sludge disposal costs and comply with regulatory standards [4] Company Overview - 374Water Inc. is a global leader in organic waste destruction technology, focusing on wastewater treatment and waste management solutions for industrial, municipal, and federal markets [5] - The company's AirSCWO technology is designed to efficiently destroy a wide range of organic wastes, producing safe dischargeable water, mineral effluent, vent gas, and recoverable heat energy [5] - 374Water aims to assist customers in meeting discharge requirements, reducing disposal costs, and mitigating environmental risks while promoting a greener future [5]

Market Overview - U.S. stock futures showed mixed movements following a positive trading session on Monday, where benchmark indices reached new records due to successful trade negotiations with China [1] - The Federal Reserve is expected to announce a decision on interest rates, with a 97.8% likelihood of a cut in the October meeting [2] - Major indices' futures showed slight declines for Dow Jones and S&P 500, while Nasdaq 100 saw a minor increase [2] Company Earnings and Performance - United Parcel Service (UPS) is expected to report earnings of $1.31 per share on revenue of $20.83 billion, with a short-term stronger price trend but weaker medium and long-term trends [5] - UnitedHealth Group (UNH) anticipates earnings of $2.81 per share on revenue of $113.06 billion, showing a strong medium and short-term price trend but weaker long-term performance [5] - Cameco Corp. (CCJ) rose 9.67% and Brookfield Asset Management (BAM) advanced 3.52% after announcing a partnership with the U.S. Government for $80 billion in new nuclear reactors, maintaining a strong price trend [5] - 3D Systems Corp. (DDD) gained 9.45% due to significant milestones in its Saudi joint venture, indicating a strong price trend across all time frames [5] - Waste Management Inc. (WM) shares dropped 2.51% after reporting weaker-than-expected third-quarter results, maintaining a poor growth ranking [6] Sector Performance - Information technology, communication services, and consumer discretionary sectors recorded the biggest gains, contributing to a positive close for most sectors on the S&P 500 [7] - Consumer staples and materials sectors, however, closed lower, bucking the overall market trend [7] Analyst Insights - Professor Jeremy Siegel highlighted robust corporate profits as a key driver for the market, expecting a 25-basis point cut from the Federal Open Market Committee [9] - Siegel noted that earnings are strong and the real economy looks good, despite some tariff-related price noise being temporary [10] - Cautious market sentiment persists, with positioning remaining hedged and skeptical, which Siegel views as a healthy sign for future growth [11]

Market Overview - U.S. stock futures showed mixed movements following a positive trading session on Monday, where benchmark indices reached new records due to successful trade negotiations with China [1] - The Federal Reserve is expected to announce a decision on interest rates, with a 97.8% likelihood of a cut in the October meeting [2] - Major indices' futures showed slight declines for Dow Jones and S&P 500, while Nasdaq 100 saw a minor increase [2] Company Earnings and Performance - United Parcel Service (UPS) is expected to report earnings of $1.31 per share on revenue of $20.83 billion, with a short-term strong price trend but weak medium and long-term trends [5] - UnitedHealth Group (UNH) anticipates earnings of $2.81 per share on revenue of $113.06 billion, showing a strong medium and short-term price trend but weaker long-term performance [5] - Cameco Corp. (CCJ) rose 9.67% and Brookfield Asset Management (BAM) advanced 3.52% after announcing a partnership with the U.S. Government for $80 billion in new nuclear reactors, maintaining a strong price trend [5] - 3D Systems Corp. (DDD) gained 9.45% due to significant milestones in its Saudi joint venture, indicating a strong price trend across all time frames [5] - Waste Management Inc. (WM) shares fell 2.51% after reporting weaker-than-expected third-quarter results, maintaining a poor growth ranking [6] Sector Performance - Information technology, communication services, and consumer discretionary sectors recorded the biggest gains, contributing to a positive close for most sectors on the S&P 500 [7] - Consumer staples and materials sectors, however, closed lower, bucking the overall market trend [7] Analyst Insights - Professor Jeremy Siegel highlighted robust corporate profits as a key driver for the market, expecting a 25-basis point cut from the Federal Open Market Committee [9] - Siegel noted that earnings are strong and the real economy looks good, despite some tariff-related price noise being temporary [10] - Sentiment remains cautious, with positioning still hedged, which Siegel views as a healthy sign for the market's future [11]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - The Growth Score evaluates a company's financial health and future outlook through projected earnings and sales [4] - The Momentum Score identifies stocks with upward or downward trends using price changes and earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection [6] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988, outperforming the S&P 500 [7] - There are typically over 800 stocks rated 1 or 2, making it essential to utilize Style Scores for effective selection [8] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing return potential [9] Stock Highlight: Waste Connections (WCN) - Waste Connections is an integrated solid waste services company operating in the U.S. and Canada, providing waste collection, disposal, and recycling services [11] - WCN holds a 3 (Hold) Zacks Rank with a VGM Score of B and a Momentum Style Score of A, having increased by 2.6% over the past four weeks [12] - Analysts have revised WCN's earnings estimate upwards, with the Zacks Consensus Estimate rising by $0.05 to $5.15 per share, and an average earnings surprise of +2.5% [12][13]

Core Viewpoint - 374Water Inc. is taking steps to align shareholder interests through new executive leadership, open market stock purchases, and a proposed reverse stock split to support long-term shareholder value and maintain its Nasdaq listing [1][2][3] Financial Position - The company has fortified its balance sheet with approximately $7.0 million in gross proceeds from an at-the-market facility, extending its cash runway into the second quarter of 2026 [1][3] Shareholder Meeting - A Special Meeting of Stockholders is scheduled for December 15, 2025, to seek approval for a reverse stock split at a ratio between 1 for 8 and 1 for 20, which aims to maintain market capitalization while reducing the number of shares outstanding [1][2] Leadership and Governance - New leadership, including the Interim President and CEO Stephen J. Jones, aims to improve communication with shareholders and align interests through a Minimum Equity Ownership Policy for the Board of Directors [2][3] Operational Developments - The company is making significant progress in developing its AirSCWO technology and Waste Destruction Services, which are designed to eliminate hazardous and non-hazardous wastes [4][6]

Earnings Report - Waste Management, Inc. is set to release its third-quarter earnings results on October 27, with expected earnings of $2.01 per share, an increase from $1.96 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $6.5 billion, compared to $5.61 billion a year earlier [1] Recent Performance - In the second quarter, Waste Management reported better-than-expected financial results, although shares fell by 0.2% to close at $216.11 [2]