Clean Harbors Announces Second-Quarter 2025 Financial Results

Reports Revenue of $1.55 Billion with Growth in Environmental Services Delivers Strong Incineration Performance Based on Robust Demand Generates Q2 Net Income of $126.9 Million, or EPS of $2.36 Achieves Record Q2 Adjusted EBITDA of $336.2 Million; Increases Adjusted EBITDA Margin 60 bps to 21.7% Confirms Full-Year 2025 Adjusted EBITDA and Adjusted Free Cash Flow Guidance NORWELL, Mass.--(BUSINESS WIRE)--Clean Harbors, Inc. (“Clean Harbors” or the “Company”) (NYSE: CLH), the leading provider of environmental and industrial services throughout North America, today announced financial results for the second quarter ended June 30, 2025. “Our second-quarter results reflect the consistent profitable growth of our Environmental Services (ES) segment, where we experienced strong demand for our disposal assets, and a stabilization of our Safety-Kleen Sustainability Solutions (SKSS) segment, where our collection strategies yielded favorable results,” said Mike Battles, Co-Chief Executive Officer. “We improved our consolidated Adjusted EBITDA margin by 60 basis points from a year ago through lowering our overall cost structure with a sharp focus on our SG&A spend. In addition, we posted the best quarterly safety results in our history by generating a Total Recordable Incident Rate (TRIR) of just 0.40. We stand at 0.45 for the first half of the year – well on track to achieve our annual target as our programs and emphasis on working safely are helping to keep our employees protected.” Second-Quarter 2025 Results Revenues were $1.55 billion, flat with the same period of 2024. Income from operations was $210.3 million, compared with $215.5 million in the second quarter of 2024. Net income was $126.9 million, or $2.36 per diluted share, compared with $133.3 million, or $2.46 per diluted share, for the same period in 2024. Adjusted EBITDA (see description and reconciliation below) increased to $336.2 million, compared with $327.8 million in the same period of 2024. Q2 2025 Segment Review “Despite substantial growth in the year ago quarter, our ES segment still achieved 3% growth in revenue and 5% growth in Adjusted EBITDA. This revenue growth, combined with pricing and SG&A cost controls, enabled our ES segment to achieve its 13th consecutive quarter of year-over-year improvement in segment Adjusted EBITDA margin,” said Eric Gerstenberg, Co-Chief Executive Officer. “Top-line growth in the segment was led by Safety-Kleen Environmental Services, which rose 9% through pricing and growth in its core offerings. Technical Services revenue grew 4% on strength in disposal volumes. Incineration utilization, excluding the new Kimball incinerator, was outstanding at 89% as our facilities maximized throughput. Average incineration price rose 7% on a mix-adjusted basis. Field Services and Industrial Services performed well in the quarter, improving margins year-over-year.” “Results in our SKSS segment were ahead of our expectations, supported by our waste oil collection strategies and success in aggressively managing our re-refining spread,” said Battles. “We gathered 64 million gallons of waste oil in the quarter, which enabled us to hit our production goals. We believe that our shift to higher charge-for-oil (CFO) pricing, which has continued since our strategic program rollout last November, positions us well for the back half of the year. We currently expect to achieve our annual targets for this business in 2025, while reducing the volatility we’ve seen in recent years.” Business Outlook and Financial Guidance “We enter the back half of 2025 with considerable momentum across our core markets, backed by a promising North American economic outlook as reshoring continues,” Gerstenberg said. “While tariff uncertainty has impacted some customers in the short-term, we expect the tangible benefits of the recent tax bill and incentives to invest in American manufacturing to drive customer activity over the longer-term. We continue to see healthy overall demand from customers within our ES segment, resulting in a substantial project pipeline. Multiple customers are expected to proceed with remediation projects in the coming quarters, which will further support our disposal and recycling network. We are excited about the continued progress at our new Kimball incinerator, which achieved its Q2 volume target. We look forward to further ramping up the facility with a broader mix of waste streams in the second half of this year. For SKSS, our focus will remain on actively managing our collection rates and cost structure, while advancing value-added initiatives like our Castrol partnership and Group III production.” Battles concluded, “We anticipate a strong second half of the year for the Company based on numerous tailwinds that should drive both top- and bottom-line improvement from a year ago. With an encouraging market outlook, we are also continuing to execute on our pricing strategies, cost mitigation and operational efficiencies to drive further margin improvement.” In the third quarter of 2025, Clean Harbors expects Adjusted EBITDA to grow 9-12% from the comparable quarter of the prior year. For full-year 2025, Clean Harbors is reiterating the midpoints of its prior guidance and expects: Adjusted EBITDA in the range of $1.16 billion to $1.20 billion, or a midpoint of $1.18 billion, which represents 6% growth year over year. This Adjusted EBITDA range is based on anticipated GAAP net income in the range of $383 million to $419 million. Adjusted free cash flow in the range of $430 million to $490 million, or a midpoint of $460 million, which represents a nearly 30% increase from prior year. This range is based on anticipated net cash from operating activities in the range of $775 million to $865 million. Non-GAAP Results Clean Harbors reports Adjusted EBITDA, which is a non-GAAP financial measure and should not be considered an alternative to net income or other measurements under generally accepted accounting principles (GAAP) but viewed only as a supplement to those measurements. Adjusted EBITDA is not calculated identically by all companies, and therefore the Company’s measurement of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Clean Harbors believes that Adjusted EBITDA provides additional useful information to investors because the Company’s management routinely evaluates the performance of its businesses based upon levels of Adjusted EBITDA. The Company defines Adjusted EBITDA as described in the following reconciliation showing the differences between reported GAAP net income and Adjusted EBITDA (in thousands, except percentages): Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net income $ 126,905 $ 133,280 $ 185,585 $ 203,112 Accretion of environmental liabilities 3,591 3,304 7,211 6,521 Stock-based compensation 6,063 8,515 13,698 14,853 Depreciation and amortization 116,285 100,504 228,265 195,569 Other expense, net 603 167 1,535 1,308 Interest expense, net of interest income 37,106 36,449 73,183 64,988 Provision for income taxes 45,684 45,597 61,614 71,560 Adjusted EBITDA $ 336,237 $ 327,816 $ 571,091 $ 557,911 Adjusted EBITDA Margin 21.7 % 21.1 % 19.2 % 19.0 % Adjusted Free Cash Flow Reconciliation Clean Harbors reports adjusted free cash flow, a non-GAAP measure, which it considers to be a measurement of liquidity that provides useful information to investors about its ability to generate cash. The Company defines adjusted free cash flow as net cash from operating activities less additions to property, plant and equipment plus proceeds from sale and disposal of fixed assets. When necessary, the Company adjusts for the cash impact of items derived from non-operating activities. Adjusted free cash flow should not be considered an alternative to net cash from operating activities or other measurements under GAAP. Adjusted free cash flow is not calculated identically by all companies, and therefore the Company’s measurement of adjusted free cash flow may not be comparable to similarly titled measures reported by other companies. An itemized reconciliation between reported GAAP net cash from operating activities and adjusted free cash flow is as follows (in thousands): Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net cash from operating activities $ 208,040 $ 216,045 $ 209,645 $ 234,594 Additions to property, plant and equipment (90,029 ) (135,110 ) (208,724 ) (273,023 ) Cash investment in Phoenix Hub 12,436 — 12,436 — Proceeds from sale and disposal of fixed assets 2,720 3,287 4,063 4,295 Adjusted free cash flow $ 133,167 $ 84,222 $ 17,420 $ (34,134 ) Adjusted EBITDA Guidance Reconciliation An itemized reconciliation between projected GAAP net income and projected Adjusted EBITDA is as follows (in millions): For the Year Ending December 31, 2025 Projected GAAP net income $383 to $419 Adjustments: Accretion of environmental liabilities 15 to 14 Stock-based compensation 28 to 31 Depreciation and amortization 450 to 440 Interest expense, net 147 to 142 Provision for income taxes 137 to 154 Projected Adjusted EBITDA $1,160 to $1,200 Adjusted Free Cash Flow Guidance Reconciliation An itemized reconciliation between projected GAAP net cash from operating activities and projected adjusted free cash flow is as follows (in millions). The Company excludes significant one-time growth investments, which the Company expects to realize future long-term benefits from, as they are not indicative of free cash flow generation for the current period. For the Year Ending December 31, 2025 Projected net cash from operating activities $775 to $865 Additions to property, plant and equipment (370 ) to (400 ) Cash investment in Phoenix Hub 15 to 15 Proceeds from sale and disposal of fixed assets 10 to 10 Projected adjusted free cash flow $430 to $490 Conference Call InformationRead the full story here

Clean Harbors Announces Second-Quarter 2025 Financial Results

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