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Clean Harbors(CLH) - 2025 Q2 - Earnings Call Presentation

Financial Performance - Revenue remained relatively flat at $1.55 billion compared to the prior year[8, 24] - Net income was $126.9 million, resulting in earnings per share (EPS) of $2.36[8] - Adjusted EBITDA increased to $336.2 million, with the Adjusted EBITDA margin rising by 60 bps to 21.7%[8] - Adjusted free cash flow was $133.2 million, aligning with company expectations[8] Segment Performance - Environmental Services segment experienced growth, driven by a favorable revenue mix and strong demand for services and disposal assets; Revenue increased by 3% from $1,309.4 million to $1,352.0 million, and Adjusted EBITDA increased by 5% from $359.9 million to $376.2 million[8, 10] - Safety-Kleen Sustainability Solutions (SKSS) segment met Q2 expectations through effective management of re-refining spread and a lower cost structure; Revenue decreased by 19% from $243.2 million to $197.7 million, and Adjusted EBITDA decreased by 26% from $51.5 million to $38.3 million[8, 15] Operational Highlights - The company's safety performance was excellent, achieving a Q2 TRIR (Total Recordable Incident Rate) of 0.40, the lowest in its history[8] - Incinerator utilization in the Environmental Services segment was 89% compared to 88% in Q2 2024, with prices up by 7% on a mix-adjusted basis[13] - SK Environmental Services revenue increased by 9%, driven by pricing strategies and growth in core offerings[13] - Waste oil collection in the SKSS segment totaled 64 million gallons, compared to 67 million gallons in Q2 2024[18] Financial Position and Guidance - The company maintains a disciplined capital allocation strategy focused on organic growth, acquisitions, share repurchases, and debt repayment[19, 20, 21] - Full-year 2025 guidance includes a net income range of $383 million to $419 million and an Adjusted EBITDA range of $1.16 billion to $1.20 billion[28] - Full-year 2025 guidance projects net cash from operating activities between $775 million and $865 million, and adjusted free cash flow between $430 million and $490 million[28]