Core Viewpoint - Depot Connect International (DCI) has entered into a definitive agreement to sell its Industrial Services and Rail Services business to Clean Harbors for approximately $130 million, marking a strategic move to streamline its portfolio and focus on core operations [1]. Group 1: Transaction Details - The sale includes five strategic locations across Ohio, Louisiana, and Texas and is expected to close in the first half of 2026, pending customary closing conditions [1]. - The divestiture is part of DCI's long-term strategy to enhance its core business functions and reinvest in its depot network and specialized services [1]. Group 2: Future Collaboration - Post-sale, DCI will maintain a collaborative relationship with Clean Harbors, continuing to provide tank trailer cleaning and maintenance services at major facilities in Baton Rouge, Louisiana, and Pasadena, Texas [1]. - Both companies will sustain an active partnership for essential transportation services and wastewater treatment, ensuring a smooth transition for customers [1]. Group 3: Company Profiles - Depot Connect International is a leading provider of mission-critical services to the transportation industry, specializing in tank trailer cleaning, maintenance, and container solutions [1]. - Clean Harbors is North America's leading provider of environmental and industrial services, with annual revenues of approximately $6 billion and a diverse customer base, including many Fortune 500 companies [1].

Clean Harbors (NYSE:CLH) 2025 Conference Summary Industry Overview - **Company**: Clean Harbors - **Industry**: Environmental Services Key Points and Arguments Margin Expansion - Clean Harbors has expanded margins by approximately 480 basis points since 2019 and about 800 basis points over the last eight years, driven by: - Increased volumes from strategic partnerships, such as with 3M, and growth in underlying verticals [6][7] - Focus on pricing during high inflation periods while maintaining service quality [7] - Environmental services margins are projected to finish the year just over 26%, with a long-term goal of reaching 30% and above [8] Volume and Pricing Drivers - Major drivers for margin improvement include: - Continued volume growth and pricing strategies [10] - Tailwinds from reshoring, infrastructure build-out, and PFAS opportunities [10][11] Incineration Business - The new Kimball Incinerator is expected to generate $10 million in EBITDA this year, with a target of $40 million run rate by 2027 [12][14] - The facility has exceeded throughput goals, with expectations of $25 million to $30 million EBITDA in 2026 [14] - The incineration market remains strong, with high utilization rates expected to continue [18] Captive Incinerator Opportunities - There are currently 41 active captive incinerators, with a trend of companies moving waste to commercial incinerators like Clean Harbors [19][21] - Clean Harbors aims to attract more waste from these captive facilities, similar to the arrangement with 3M [23] Industrial Services Segment - The industrial services business is valued at approximately $1.3 billion, with 50% of revenue from day-to-day maintenance and 20% from turnaround services [28][30] - Turnaround work has slowed due to deferred shutdowns, but improvements are expected in 2026 [31][32] PFAS Opportunity - PFAS revenues are currently around $100 million, growing at 20% [38] - The company is expanding its PFAS solutions, including water treatment and disposal, with significant contracts like the one at Pearl Harbor expected to generate $110 million over three years [41][42] - Regulatory developments are anticipated to create further opportunities in PFAS destruction [45] M&A and Capital Allocation - Clean Harbors has allocated nearly $2 billion toward M&A over the past five years, focusing on synergies and operational efficiencies [50][51] - The company is currently prioritizing high-return organic investments and share buybacks due to higher valuations in the M&A space [53][55] - Plans for $500 million in internal investments include enhancing throughput and developing regional hubs [56][57] Safety-Kleen Segment - The Safety-Kleen segment has shown consistent growth, with a business model that supports all Clean Harbors facilities [60][62] - The segment has been resilient despite market pressures, with a focus on subscription-based services and efficient route management [62][63] Additional Important Insights - Clean Harbors is well-positioned to leverage its capabilities in the growing PFAS market and capitalize on regulatory changes [49][50] - The company maintains a competitive edge through continuous improvement and high service levels, despite increasing competition in the environmental services sector [59]

Core Insights - EMCOR Group, Inc. is set to report its second-quarter 2025 results on July 31, with expectations of continued growth in earnings and revenue driven by strong demand in key sectors [1][10]. Financial Performance - In the last reported quarter, EMCOR achieved earnings per share (EPS) of $5.41, surpassing expectations by 18.4% and reflecting a 30% increase year-over-year [2]. - Revenue for the last quarter was $3.87 billion, marking a 12.7% year-over-year growth and exceeding the Zacks Consensus Estimate by 1.9% [2]. - The company's adjusted operating margin expanded to 8.5%, supported by prefabrication and virtual design capabilities [2]. - The backlog (Remaining Performance Obligations, or RPOs) grew 28.1% year-over-year to $11.8 billion [2]. Future Estimates - The Zacks Consensus Estimate for the second-quarter EPS is $5.68, indicating an 8.2% growth from the previous year, while the revenue estimate is $4.1 billion, suggesting an 11.9% year-over-year increase [4]. - For the full year 2025, EMCOR is expected to see a 12.7% growth in revenues and a 9.6% growth in EPS compared to the previous year [4]. Market Dynamics - Despite inflationary pressures and economic uncertainty, EMCOR's revenues and earnings are anticipated to have increased due to heightened project flows in high-tech manufacturing and network communications sectors, particularly in semiconductor and data center construction [5][6]. - The Electrical Construction segment is benefiting from strong demand in data centers, with 85% of the network and communications backlog linked to this area [7]. - The Mechanical Construction segment shows strength in healthcare, institutional, and water/wastewater markets, bolstered by the integration of Miller Electric [7]. Segment Performance - The U.S. Building Services segment is expected to improve in the second quarter, with a shift towards higher-margin technician-based services [8]. - The Industrial Services segment is projected to recover from weather-related disruptions in the first quarter, aided by a normalization of credit loss provisions [9]. - The U.K. Building Services segment is expected to maintain stable performance, with healthy project demand despite initial mobilization costs affecting margins [11]. Overall Outlook - EMCOR anticipates a strong second quarter in 2025, driven by construction segments, a rebound in Industrial Services, and margin resilience across the board [12].