Clean Harbors Earnings Call Transcripts
Fiscal Year 2026
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PFAS remediation, reshoring, and regulatory trends are driving strong growth, with robust demand expected to absorb new incinerator capacity and support margin expansion. Recent acquisitions align with core business lines, and free cash flow conversion is targeted to rise above 45%.
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Earnings growth has been driven by volume, pricing, and vertical integration, with margin expansion across all environmental services. Safety-Kleen branches now exceed 30% margins, and PFAS-related opportunities are accelerating, supported by regulatory and market tailwinds.
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Raised full-year guidance to 9% EBITDA growth, driven by strong Q1 results, robust landfill and project work, and higher base oil prices. PFAS remediation pipeline is accelerating, with 25%-35% growth expected and margin accretive opportunities. Acquisition activity and share buybacks remain key capital allocation priorities.
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Q1 2026 delivered strong results with 2% revenue growth and 6% higher adjusted EBITDA, prompting a raised full-year outlook. Both segments outperformed, with SKSS benefiting from higher base oil prices and ES seeing robust project and field service demand.
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A leading hazardous waste management provider highlighted its integrated collection, transportation, and disposal network, strong competitive moat, and robust financial performance. Growth is driven by PFAS remediation, reshoring trends, disciplined M&A, and technology investments, with AI projects enhancing efficiency and compliance.
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Strong segment performance and margin expansion were driven by pricing, volume growth, and operational efficiency. New incinerator capacity and regulatory tailwinds, especially in PFAS, support a positive outlook for 2026 and beyond.
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2025 saw strategic shifts to stabilize oil operations, strong growth in environmental services, and margin expansion through disciplined pricing and operational investments. PFAS remediation emerged as a major growth driver, while M&A remained selective amid high valuations. Kimball incinerator ramp-up and internal investments are set to fuel future growth.
Fiscal Year 2025
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Record 2025 results included over $6B in revenue, 5% Adjusted EBITDA growth, and strong free cash flow. 2026 guidance calls for continued margin expansion, robust ES segment growth, and stable SKSS performance, supported by strategic investments and M&A.
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Environmental services margins have expanded significantly, driven by volume, pricing, and operational improvements. Incineration capacity is ramping up, with strong demand and pricing, while PFAS and Safety-Kleen segments offer robust growth opportunities. Capital allocation is focused on high-return internal investments and disciplined M&A.
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Q3 2025 delivered year-over-year growth in revenue and margins, driven by strong waste volumes, pricing, and productivity, despite softness in industrial and field services and higher healthcare costs. PFAS and technical services led growth, while a major SDA unit investment and robust free cash flow support future expansion.
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Q2 saw record safety, strong adjusted EBITDA margin growth, and robust cash flow, with Environmental Services driving margin expansion and SKSS exceeding expectations through strategic pricing and cost controls. Guidance for 2025 remains strong, supported by a healthy project pipeline and disciplined capital allocation.
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Record safety performance is driving both cultural and financial benefits, while Environmental Services margins continue to expand with a target of 30% in the coming years. Capital allocation remains disciplined, with a focus on high-ROIC investments and buybacks, and growth is supported by new incinerator capacity, field service expansion, and technology adoption.
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Strong growth and margin improvements continue, supported by structural changes, tight incineration capacity, and disciplined M&A. PFAS solutions and regulatory drivers are fueling new opportunities, while used oil profitability has stabilized after a strategic shift.
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Q1 2025 results exceeded expectations with 4% revenue growth, strong safety, and robust demand in most segments. Guidance for 2025 is reiterated, targeting 6% adjusted EBITDA growth and a 30% increase in free cash flow, with continued momentum in incineration and PFAS projects.
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The company leads North America in hazardous waste collection and disposal, leveraging a vast network of high-barrier assets and a large transportation fleet. Strong organic and acquisitive growth, strategic investments, and a focus on emerging issues like PFAS position it for continued expansion.
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Hazardous waste management leader reported strong 2024 growth, driven by volume, pricing, and acquisitions. Regulatory trends and PFAS solutions offer long-term tailwinds, while new incinerator investments and disciplined M&A support future expansion.
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Environmental services achieved strong organic growth, driven by regulation and pricing, while the HEPACO acquisition and new Kimball incinerator expanded capacity and synergies. Oil re-refining faced headwinds, but aggressive pricing and cost actions are underway. M&A and internal investments remain key capital priorities.
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Management highlighted strong 2024 growth in environmental services, the launch of a new incinerator, and the HEPACO acquisition. PFAS regulations and infrastructure trends are key 2025 growth drivers, while economic and regulatory risks remain manageable.
Fiscal Year 2024
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Strong 2024 results were driven by Environmental Services, with record revenue and margin expansion, while SKSS faced commodity headwinds. The Kimball incinerator launch, robust cash flow, and a positive 2025 outlook with continued margin improvement and growth investments position the company well.
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Environmental services margins have expanded significantly due to strong demand, complex waste streams, and network advantages. Technology and AI are driving further efficiency, while disciplined M&A and strategic investments in base oil production support growth. Margin expansion and operational improvements remain key priorities.
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Q3 delivered strong revenue and Adjusted EBITDA growth, led by robust ES segment performance and successful integration of acquisitions, while SKSS faced late-quarter pricing and demand headwinds. 2024 guidance was revised lower for SKSS and free cash flow, but the outlook for 2025 remains positive, supported by new capacity and regulatory tailwinds.
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Record Q2 revenue and adjusted EBITDA were driven by strong ES and SKSS segment performance, successful integration of HEPACO and Noble Oil, and robust project pipelines. Raised 2024 guidance reflects continued margin expansion, strong cash flow, and a favorable outlook supported by new capacity and disciplined capital allocation.
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Strong asset network and recurring revenue streams drive stable growth, with the oil business baseline EBITDA at $190–200 million and high free cash flow conversion. PFAS remediation and incineration capacity expansion present growth opportunities, while potential M&A in Canada is under consideration.