What does Clean Harbors do and what are its main business segments?

What is the revenue and EPS growth rate for Clean Harbors year over year?

What guidance did Clean Harbors's management provide for the next earnings period?

What is Clean Harbors's gross profit margin?

What is Clean Harbors's latest dividend and current dividend yield?

What factors drove the changes in Clean Harbors's revenue and profit?

What is the market's earnings forecast for Clean Harbors next quarter?

What were the key takeaways from Clean Harbors’s earnings call?

- **Revenue Growth**: Q3 revenue of $1.55 billion (+3% YoY) driven by ES segment, with adjusted EBITDA up 6% to $320 million.
- **Margin Expansion**: Consolidated EBITDA margin of 20.7% (+100 bps YoY), with ES segment margin up 120 bps.
- **Challenges**: Field Services (-11%) and Industrial Services (-4%) underperformed due to project delays and customer cost-cutting.
- **Capital Allocation**: $210-220 million SDA Unit project to generate $30-40 million annual EBITDA; $50 million Q3 share buybacks.
- **PFAS Momentum**: 2025 PFAS revenue expected to reach $100-120 million (+20-25% YoY), supported by EPA study validation.
- **Free Cash Flow**: Raised to $75 million midpoint, up 30% YoY, with $850 million cash on hand.

**【CEO Summary Section】**
Clean Harbors reported Q3 2025 revenue of $1.55 billion, up 3% year-over-year, driven by Environmental Services (ES) growth. Adjusted EBITDA rose 6% to $320 million, with a consolidated margin of 20.7%, up 100 basis points from 2024. ES segment revenue increased 3%, supported by Technical Services (12% growth) and SK branch (8% growth). Field Services revenue declined 11% due to fewer medium/large projects, while Industrial Services fell 4% amid customer cost pressures. The company expects 5% EBITDA growth in 2026, targeting $1.155 billion to $1.175 billion, with PFAS-related revenue projected to reach $100-120 million in 2025, up 20-25% year-over-year.

**【CFO Financial Commentary】**
Eric Dugas highlighted Q3 operating cash flow of $302 million and record adjusted free cash flow of $231 million, up 30% year-over-year. The company ended the quarter with $850 million in cash, enabling $50 million in share buybacks. Full-year adjusted free cash flow guidance was raised to a midpoint of $75 million. Capital expenditures (net of disposals) are expected to be $340-370 million in 2025, excluding the $210-220 million SDA Unit project. The company maintained a strong balance sheet with net debt-to-EBITDA below 2x and a blended interest rate of 5.3%.

**【Q&A Highlights】**
1. **Revenue Miss Explanation**: The $15 million EBITDA shortfall was attributed to $7 million from Industrial Services, $4 million from Field Services, and $4 million in higher healthcare costs. Management expects recovery in Industrial Services during the 2026 spring turnaround season.
2. **Capital Allocation**: The company announced a $210-220 million SDA Unit project to upgrade VTAE into high-value 600N base oil, targeting $30-40 million annual EBITDA. Share buybacks ($50 million in Q3) and M&A remain priorities, with a focus on accretive bolt-on deals.
3. **PFAS Growth**: PFAS-related revenue is expected to accelerate, with the EPA's incineration study validating the company's ability to destroy PFAS at commercial scale. The pipeline supports $100-120 million in 2025 revenue, up 20-25% year-over-year.
4. **Healthcare Costs**: Q3 healthcare expenses increased due to high-cost claims, but management expects normalization in 2026 through cost-saving initiatives.
5. **Free Cash Flow Guidance**: Full-year adjusted free cash flow guidance was raised to $75 million (midpoint), reflecting strong cash generation and U.S. tax reforms.

Clean Harbors, Inc. (CLH) Q3 2025 Earnings Call Transcript

- **Record Safety Performance**: Q2 TRIR of 0.40, lowest ever, driving cost savings and reputational strength.
- **Strong EBITDA Growth**: 60 bps margin expansion to 21.7%, with ES segment leading 13th consecutive quarter of margin improvement.
- **SKSS Turnaround**: $140M full-year EBITDA target on track, with Q2 collection up 11% and focus on high-margin direct sales.
- **PFAS Leadership**: EPA study validates incineration efficiency, with growing pipeline and Kimball unit processing 10,000+ tons Q2.
- **M&A Momentum**: $700M cash and strong balance sheet support strategic hubs (e.g., Phoenix) and disciplined acquisitions.

**【CEO Summary Section】**
- **Safety Performance**: Q2 TRIR of 0.40, lowest ever, with year-to-date TRIR of 0.45, reflecting operational excellence and cost savings.
- **Financial Highlights**: Consolidated adjusted EBITDA margin increased 60 bps to 21.7%, driven by Environmental Services (ES) growth and SKSS stabilization. ES segment EBITDA margin expanded for the 13th consecutive quarter.
- **Segment Performance**: 
  - **Environmental Services (ES)**: 9% growth in Safety-Kleen Environmental, 4% increase in Technical Services, and improved Industrial Services margins despite lower customer spending.
  - **SKSS**: Q2 revenue exceeded expectations, with 64M gallons of waste oil collected (11% sequential growth) and focus on direct sales and partnerships (e.g., BP Castrol).
- **PFAS Strategy**: End-to-end solution with RCRA-permitted incinerators, achieving 6-9s destruction efficiency. EPA study results highlight scalability and safety, with growing pipeline demand.

**【CFO Financial Commentary】**
- **Q2 Results**: Adjusted EBITDA of $336M, up 60 bps in margin. Free cash flow record of $133M, up 60% YoY. Net debt-to-EBITDA ratio improved to 2x.
- **Balance Sheet**: $700M cash, low leverage, and strong free cash flow guidance ($430M-$490M). Share buyback program with $430M remaining.
- **Guidance**: 2025 adjusted EBITDA target of $1.18B (midpoint). Q3 EBITDA growth 9%-12%, driven by ES (10%-14% growth). SKSS full-year EBITDA expected at $140M.

**【Q&A Highlights】**
- **Macro Trends**: Reshoring and industrial expansion driving demand. ES volumes at all-time highs, with pipeline up YoY. No dependency on IS turnaround ramp for Q3 guidance.
- **SKSS Confidence**: Q3 EBITDA growth YoY due to lower cost inventory and FIFO benefits. Direct sales and partnerships (e.g., Group III gallons) support stability.
- **M&A Strategy**: Active pipeline with focus on bolt-ons and strategic hubs (e.g., Phoenix). Disciplined on returns, cultural fit, and synergy potential.
- **PFAS Update**: EPA guidance delay, but market acting as if regulations are in place. Kimball incinerator processing 10,000+ tons Q2, with long-term EBITDA contribution expected.


Clean Harbors, Inc. (CLH) Q2 2025 Earnings Call Transcript

- **Record Safety**: Q1 TRIR 0.46, best in company history.
- **Revenue Growth**: Total +4% YoY, ES EBITDA +4%, SKSS outperformed guidance.
- **Key Metrics**: Incineration utilization 88% (vs 79% YoY), CFO pricing doubled, 58M gallons collected.
- **2025 Outlook**: EBITDA $1.18B midpoint (+6%), free cash flow $460M (+30%).
- **Strategic Moves**: Kimball ramping to 28,000+ tons YoY, Group III oil +2-3M gallons YoY.
- **Risks**: Industrial services down 10% YoY, cautious on refinery spending.

**【CEO Summary Section】**
- **Safety Performance**: Q1 TRIR of 0.46, the best quarter in company history.
- **Revenue Growth**: Total revenue up 4% YoY, driven by ES segment (4% EBITDA growth) and SKSS outperformance.
- **Segment Highlights**: 
  - **ES**: Field services grew 32% (HEPACO acquisition), incineration utilization 88% vs 79% YoY, pricing up >5%.
  - **SKSS**: CFO pricing doubled, volumes 58M gallons (up 5% YoY), idling California re-refinery to reduce costs.
- **Challenges**: Industrial services down 10% YoY due to refinery delays, cautious on tariffs' impact.

**【CFO Financial Commentary】**
- **Q1 Results**: Adjusted EBITDA $235M (16.4% margin), net income $1.09 EPS.
- **Cash Flow**: $600M cash balance, net debt/EBITDA 2.1x, Moody's credit upgrade near investment grade.
- **2025 Guidance**: Adjusted EBITDA $1.15B-$1.21B (midpoint +6%), free cash flow $430M-$490M.
- **Segment Outlook**: 
  - **ES**: 5%-8% EBITDA growth, Kimball ramping to 28,000+ tons YoY.
  - **SKSS**: Full-year EBITDA $140M, Group III oil production +2-3M gallons YoY.

**【Q&A Key Highlights】**
- **Weather Impact**: $10M-$12M EBITDA drag in Q1, March recovery offset 50% of losses.
- **Industrial Services**: 150+ turnarounds booked, cautious on 2025 refinery spending but strong pipeline.
- **PFAS Growth**: Pipeline supports 15%-20% revenue growth, EPA study on incineration expected Q2.
- **Kimball Performance**: Processed 5,000 tons Q1, on track for 28,000+ YoY, outperforming El Dorado ramp.
- **M&A Strategy**: Selective deals with focus on synergies, $430M remaining buyback authorization.
- **Labor Costs**: Voluntary turnover lowest in 3 years, pricing initiatives offset inflation.

Clean Harbors (CLH)-30 Apr 25-2025 Q1 Earnings call transcript

- **ES Segment Dominance**: 11% EBITDA growth in Q4, 25%+ margin, with Kimball incinerator adding 12% capacity. 
- **2025 Growth Drivers**: ES segment +5-8% YoY, Kimball contributing $8-12M, PFAS pipeline expanding 20% QoQ. 
- **SKSS Challenges**: $140M EBITDA guidance for 2025, with cautious base oil pricing assumptions. 
- **Balance Sheet Strength**: $790M cash, 2.0x net debt/EBITDA, $430-490M free cash flow target. 
- **Strategic Moves**: $15M Phoenix expansion, aggressive CFO pricing in SKSS, and active M&A pipeline. 


**【CEO & Co-CEO Summary】**
- **Q4 2024 Performance**: Consolidated EBITDA up 10% YoY, driven by Environmental Services (ES) segment with 11% EBITDA growth and 25%+ adjusted EBITDA margin. SKSS segment faced challenges due to base oil pricing decline, but actions taken to offset costs (e.g., idling California re-refinery, shifting to CFO pricing). 
- **Strategic Milestones**: 
  - Kimball, Nebraska incinerator launched in Q4 with 12% capacity increase, targeting $8-12M EBITDA contribution in 2025. 
  - 20,000+ emergency response events in 2024, highlighting operational resilience. 
  - PFAS solution expansion with first state AFFF collection contract. 
- **2025 Outlook**: 
  - ES segment expected to grow 5-8% YoY, supported by Kimball ramp-up and PFAS demand. 
  - SKSS segment guided to $140M EBITDA, with cautious assumptions on base oil pricing. 
  - Free cash flow target of $430-490M, excluding $15M Phoenix expansion. 

**【CFO Financial Highlights】**
- **Q4 2024 Results**: 
  - Total revenue up 7% QoQ, ES segment EBITDA up 15% YoY. 
  - Adjusted EBITDA margin 18%, down 100bps YoY due to SKSS challenges. 
  - Free cash flow $248M (Q4) and $358M (FY2024), driven by working capital improvements. 
- **Balance Sheet**: 
  - Cash $790M, net debt/EBITDA 2.0x, stable financial position. 
  - Share buybacks $55M in FY2024, maintaining flat share count. 
- **2025 Guidance**: 
  - Adjusted EBITDA $1.15-1.21B (midpoint $1.18B), +5-8% ES growth. 
  - CapEx $345-375M, excluding Phoenix project. 

**【Q&A Key Takeaways】**
- **Wildfires & Bird Flu**: Minimal impact on FY2024 results, but potential incremental opportunities in 2025. 
- **Captive Incinerator Closures**: 20-30% of 41 captives may convert to commercial services over 3-5 years, with Kimball positioning as key differentiator. 
- **M&A Pipeline**: Active in specialty waste, targeting deals with strategic fit and financial returns. 
- **PFAS Market**: Pipeline growing 20% QoQ, but no material revenue in 2025 guidance. 
- **SKSS Pricing**: CFO collection pricing to remain aggressive in 2025 to offset base oil softness. 


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