Financial Data and Key Metrics Changes - Total revenue for Q3 increased to $1.55 billion, with adjusted EBITDA rising 6% to $320 million, reflecting the company's ability to drive profitable growth despite macroeconomic challenges [20][21][22] - Consolidated adjusted EBITDA margin expanded to 20.7%, with a 120 basis point improvement in environmental services [20][21] - Net income grew modestly year over year, delivering earnings per share of $2.21 [22] Business Line Data and Key Metrics Changes - Environmental Services (ES) segment revenue grew 3%, with adjusted EBITDA margin increasing for the 14th consecutive quarter [6][7] - Technical services within ES led with 12% growth, while Safety-Kleen Environmental services rose 8% [7][8] - Field services revenue declined 11% due to the absence of medium to large response projects, while industrial services saw a 4% revenue decrease [9][20] Market Data and Key Metrics Changes - Incineration utilization was high at 92%, with landfill volumes up 40% year over year [7] - PFAS-related sales are expected to generate $100 to $120 million in revenue for the year, up 20% to 25% from the previous year [10][11] Company Strategy and Development Direction - The company is focused on margin growth through pricing initiatives, cost reduction, and productivity gains [4][21] - Plans to construct a new processing plant (SDA unit) with an expected total spend of $210 million to $220 million, anticipated to generate annual EBITDA of $30 million to $40 million [15][17] - The company is evaluating both bolt-on transactions and larger acquisitions to enhance market position [16][80] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about future growth despite current macroeconomic challenges, anticipating a recovery in industrial services and field services spending [18][28] - The project pipeline remains substantial, with growing PFAS opportunities expected to contribute meaningfully to future activity [18][28] Other Important Information - The company reported record cash flows in Q3, with cash and short-term marketable securities totaling $850 million [22][23] - Share repurchases totaled $50 million in Q3, with approximately $380 million remaining under authorization [24] Q&A Session Summary Question: Impact of industrial malaise on guidance - Management indicated that the $15 million reduction in guidance was primarily due to shortfalls in industrial and field services, with healthcare costs also contributing [34][35] Question: Expectations for EBITDA growth in 2026 - Management expects to continue growing EBITDA across waste collection and service businesses, targeting 5% growth despite anticipated industrial service challenges [39][40] Question: Capital allocation and M&A outlook - Management is actively evaluating both larger and smaller M&A opportunities while remaining disciplined in capital allocation [40][42] Question: Clarification on SKSS guidance - Management expressed high confidence in achieving the $140 million EBITDA target for SKSS, with a potential range of a few million on either side [72][73] Question: Incinerator pricing and growth rates - Incineration pricing is expected to grow in the mid-single digits, with technical services showing double-digit growth [76][77]