Clean Harbors' Q2 2025: Unpacking Key Contradictions in Turnarounds, PFAS Growth, and M&A Strategy

Turnaround schedule and impact on guidance, PFAS pipeline and revenue growth expectations, M&A activity and strategy, PFAS incineration and market demand, environmental services margins and market strategy are the key contradictions discussed in Clean Harbors' latest 2025Q2 earnings call.



Financial Performance and Margin Improvement:
- Clean Harbors reported an adjusted EBITDA margin of 21.7%, a 60 basis point increase from the previous year, with a total adjusted EBITDA of $336 million.
- This improvement was driven by strong demand for disposal and recycling assets, and lower SG&A costs due to strategic cost-cutting actions.

Segment Performance and Growth:
- Environmental Services (ES) saw a 13th consecutive quarter of year-over-year growth in segment adjusted EBITDA margin, driven by increased volumes, pricing, and efficiency gains.
- The growth was supported by strong pricing and increased demand in segments like Safety-Kleen Environmental and Technical Services.

PFAS Remediation Opportunities:
- Clean Harbors emphasized the growing demand for PFAS remediation, with the potential to become a multibillion-dollar opportunity.
- The company highlighted its unique position with high-temperature incinerators and favorable EPA guidance, which should enhance market demand for its services.

SKSS Transformation and Outlook:
- SKSS exceeded expectations in the first half of the year, with a revenue of $38 million, driven by improved collection rates and optimized operations.
- The positive momentum is expected to continue in the second half of the year, with a focus on disciplined pricing strategies and expanding its direct blended sales.