Clean Harbors(CLH) - 2025 Q3 - Earnings Call Presentation

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]