Did Clean Harbors beat or miss consensus estimates last quarter?

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

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

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

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- **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.

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