Clean Harbors Conference Call Summary Company Overview - **Company**: Clean Harbors - **Event**: 28th Annual Needham Growth Conference - **Presenters**: Co-CEO Mike Battles, SVP Jim Buckley Key Points Industry and Business Segments - Clean Harbors operates primarily in the environmental services and oil business sectors, with total revenue exceeding $6 billion in 2025, of which approximately $1 billion is from the oil business and $5 billion from environmental services [3][8]. Oil Business Performance - The oil business has seen a significant decline from $300 million to approximately $140 million due to falling oil prices and market challenges [4]. - The company shifted focus to collecting high-value used motor oil (UMO) instead of volume, leading to improved profitability despite lower collection volumes [5][6]. - The goal for 2026 is to stabilize the oil business and make it less volatile [6]. Environmental Services Business - The environmental services segment is performing well, with a 12% revenue growth in Q3 and 7% growth over the first nine months of 2025, driven by price increases and volume [9]. - The technical services (TS) business, which includes PFAS remediation, is expected to continue its growth trajectory, with pricing discipline being a key factor [10][25]. - The Safety-Kleen branch, focusing on small quantity hazardous waste, has also shown consistent growth of 7% over the past several years [11]. Industrial Services Challenges - The industrial services segment, valued at approximately $1.3 billion, has faced challenges with negative revenue growth of 5% due to delayed turnarounds in large plants [12][13]. - Leadership changes are anticipated to improve performance in this segment, with hopes of stabilizing revenue in 2026 [14]. PFAS Remediation - PFAS-related services are projected to grow at 20% annually, with Clean Harbors positioned as a leader in high-temperature incineration for PFAS disposal [27][30]. - Recent engagements with regulatory bodies and successful projects, such as the one in Hawaii, are expected to enhance growth in this area [36][37]. Pricing Strategy - Clean Harbors maintains a disciplined pricing strategy, with annual contract renewals allowing for price adjustments based on inflation and market conditions [55][57]. - The company has successfully navigated price negotiations, achieving mid-single-digit price increases [57]. M&A and Growth Strategy - Clean Harbors has a strong cash position with $1 billion available and plans for share buybacks, indicating a focus on shareholder value rather than aggressive M&A [58]. - The company is exploring smaller acquisitions in the environmental services space, particularly targeting privately owned businesses [62][63]. Internal Investments - Significant investments are being made in infrastructure, including the Kimball incinerator, which is expected to generate $20-$30 million in EBITDA in 2026 [40][41]. - The company is also developing mega hubs to enhance operational efficiency and margin improvement [71][73]. Future Outlook - Clean Harbors is optimistic about stabilizing its industrial services segment and continuing growth in environmental services and PFAS remediation [14][27]. - The company aims to leverage its strong market position and operational efficiencies to drive future profitability [25][66]. Additional Insights - The leadership emphasizes the importance of maintaining high margins and operational efficiency across all business segments [26][72]. - The company is cautious about the timing of potential captive incinerator closures, recognizing the long-term commitment involved [48][50]. This summary encapsulates the key insights and strategic directions discussed during the Clean Harbors conference call, highlighting both challenges and growth opportunities within the company and its industry.

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]