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]

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]