Clean Harbors Announces Third-Quarter 2025 Financial Results

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 third quarter ended September 30, 2025.

“Our third-quarter performance reflected continued growth in our Technical Services and Safety-Kleen Environmental Services revenues,” said Eric Gerstenberg, Co-Chief Executive Officer. “We increased our consolidated Adjusted EBITDA margin by 100 basis points from a year ago by continuing to manage costs, driving operating efficiencies and increasing waste volumes handled through our disposal and recycling network. Within safety, our team did an excellent job protecting themselves and each other; at quarter end our year-to-date Total Recordable Incident Rate (TRIR) was just 0.49, putting us on track for a record year.”

Third-Quarter 2025 Results

Revenues were $1.55 billion, compared with $1.53 billion in the same period of 2024. Income from operations was $193.0 million, compared with $192.3 million in the third quarter of 2024.

Net income was $118.8 million, or $2.21 per diluted share, compared with $115.2 million, or $2.12 per diluted share, for the same period in 2024.

Adjusted EBITDA (see description and reconciliation below) increased 6% to $320.2 million from $301.8 million for the same period in 2024.

Q3 2025 Segment Review

“By leveraging our network, focusing on labor management and continuing our pricing strategies, our ES segment achieved its 14th consecutive quarter of year-over-year improvement in Adjusted EBITDA margin, which increased by 120 basis points to 26.8%,” said Gerstenberg. “The segment’s 3% top-line growth was led by Technical Services, which grew 12% despite slowdowns with customers in some key verticals such as the chemical space due to general economic conditions and tariff driven uncertainty. Offsetting these slowdowns was significant growth from other verticals, increased remediation and waste project work, and demand for our Total PFAS Solution. Safety-Kleen Environmental Services revenue rose 8% through a combination of price and steady volume growth. High demand for disposal led to incineration utilization, excluding the new Kimball incinerator, of 92%, while landfill volumes were up 40% on project strength. Field Services revenue declined from prior year due to the absence of medium- to large-scale emergency response projects in the quarter. Within Industrial Services, chemical and refining customers continued to limit their turnaround spending. The softness in these end markets, combined with the lack of large emergency response projects and increased healthcare costs, resulted in lower-than-anticipated results for the Environmental Services segment. However, the team remains focused on margin growth and cash flow generation, and we believe that initiatives in those areas puts us in a position to greatly benefit as economic conditions improve.”

“Our Safety-Kleen Sustainability Solutions (SKSS) segment results in the quarter were consistent with our expectations. We dramatically lowered waste oil collection costs and improved our mix of products sold in the face of weaker base oil pricing,” said Mike Battles, Co-Chief Executive Officer. “We gathered 64 million gallons of waste oil, which kept our plants at full production. We incrementally increased our direct lubricant gallons sold to 9% of total volume, which helped drive our margin improvement in the segment. As highlighted in our recent news release, we are advancing our strategic shift toward higher charge-for-oil (CFO) pricing for our collection services to proactively address base oil market conditions.”

Investing in SDA Unit to Unlock Value of Re-refining Byproducts

Clean Harbors today announced plans to build a state-of-the-art processing plant that employs innovative solvent de-asphalting (SDA) technology to convert a re-refining byproduct – vacuum tower asphalt extender (VTAE) – into a high-value 600N base oil. Total investment in this facility is expected to be $210 million to $220 million with commercial launch anticipated in 2028.

“By using an industry-proven SDA process, combined with our existing hydrotreating capabilities, we expect to unlock incremental value from an everyday byproduct generated today at our re-refineries,” Battles said. “For several years we have been evaluating ways to upgrade VTAE, which we currently sell to roofing and paving markets, into a more valuable and profitable product. Because of its durability and high-performance characteristics, 600N is a high-purity base oil typically used in heavy-duty industrial applications. We expect this facility to generate annual EBITDA of $30 million to $40 million, a six- to seven-year payback on the investment once completed, which rivals the returns on our incineration projects.”

Business Outlook and Financial Guidance

“Looking ahead, we believe that the market challenges we faced in the third quarter are temporary and brought on by macro-economic conditions. The continued growth in Technical Services and Safety-Kleen Environmental demonstrates the diversification of our end markets and continued resilience of our business model. We expect our incinerators to continue to run strong through year-end and projects to continue to feed our entire disposal and recycling network,” Gerstenberg said. “The North American economy has been navigating through short-term turbulence, but the economic outlook looks promising as reshoring continues. Based on conversations with our customers, we anticipate incentives to reshore and the benefits of the recent U.S. tax bill will drive a meaningful lift in American manufacturing, as well as continue to support remediation and waste projects. Spending constraints related to key verticals, such as chemicals and refining, should loosen in the coming quarters as economic conditions improve, benefiting our Industrial Services and Field Services businesses. Labor efficiencies and other margin generating initiatives we have undertaken put us in a good position to benefit when those key verticals rebound. Overall, we continue to see a substantial project pipeline that is only strengthened by growing PFAS opportunities. We believe our initiatives around CFO, partnerships and Group III production have stabilized our SKSS business. As a result, we expect to achieve our profitability target for this business in 2025.”

Battles concluded, “Given our current market outlook, we expect to conclude 2025 with a strong fourth-quarter performance that includes Adjusted EBITDA growth in the six to eight percent range compared with a year ago. We remain on track to deliver a record level of annual Adjusted EBITDA and adjusted free cash flow in 2025 with a healthy long-term market outlook.”

For full-year 2025, Clean Harbors is revising its prior guidance and now expects:

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

Nine Months Ended

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

Net income

118,799

115,213

304,384

318,325

Accretion of environmental liabilities

3,499

3,618

10,710

10,139

Stock-based compensation

8,922

5,837

22,620

20,690

Depreciation and amortization

114,729

100,063

342,994

295,632

Other (income) expense, net

(3,517

)

1,123

(1,982

)

2,431

Interest expense, net of interest income

35,700

35,779

108,883

100,767

Provision for income taxes

42,027

40,181

103,641

111,741

Adjusted EBITDA

320,159

301,814

891,250

859,725

Adjusted EBITDA Margin

20.7

19.7

19.3

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

Nine Months Ended

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

Net cash from operating activities

301,987

239,239

511,632

473,833

Additions to property, plant and equipment

(94,445

)

(96,803

)

(303,169

)

(369,826

)

Cash investment in Solvent De-Asphalting Unit

11,813

—

11,813

—

Cash investment in Phoenix Hub

—

12,527

—

Proceeds from sale and disposal of fixed assets

11,187

2,058

15,250

6,353

Adjusted free cash flow

230,633

144,494

248,053

110,360

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

$379

$400

Adjustments:

Accretion of environmental liabilities

Stock-based compensation

Depreciation and amortization

455

445

Interest expense, net

147

142

Provision for income taxes

131

143

Projected Adjusted EBITDA

$1,155

$1,175

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

$795

$865

Additions to property, plant and equipment

(400

)

(430

)

Cash investment in Solvent De-Asphalting Unit

Cash investment in Phoenix Hub

Proceeds from sale and disposal of fixed assets

Projected adjusted free cash flow

$455

$495

Conference Call Information

Clean Harbors will conduct a conference call for investors today at 9:00 a.m. (ET) to discuss the information contained in this press release. During the call, management will discuss Clean Harbors’ financial results, business outlook and growth strategy. Investors who wish to listen to the webcast and view the accompanying slides should visit the Investor Relations section of the Company’s website at www.cleanharbors.com. The live call also can be accessed by dialing 877.709.8155 or 201.689.8881 prior to the start time. If you are unable to listen to the live conference call, the webcast will be archived on the Company’s website.

About Clean Harbors

Clean Harbors (NYSE: CLH) is North America’s leading provider of environmental and industrial services. The Company serves a diverse customer base, including a majority of Fortune 500 companies. Its customer base spans a number of industries, including chemical, manufacturing and refining, as well as numerous government agencies. These customers rely on Clean Harbors to deliver a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services. Through its Safety-Kleen subsidiary, Clean Harbors also is a leading provider of parts washers and environmental services to commercial, industrial and automotive customers, as well as North America’s largest re-refiner and recycler of used oil. Founded in 1980 and based in Massachusetts, Clean Harbors operates in the United States, Canada, Mexico, Puerto Rico and India. For more information, visit www.cleanharbors.com.

Safe Harbor Statement

Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans to,” “seeks,” “will,” “should,” “estimates,” “projects,” “may,” “likely,” “potential,” “outlook” or similar expressions. Such statements may include, but are not limited to, statements about the Company’s future financial and operating results, plans, strategy, objectives and goals, cost management initiatives, pricing and productivity initiatives, contingent liabilities, liquidity, business, economic and market conditions, trends, customer demand, impacts of tariffs and new legislation, acquisitions, growth opportunities, expectations, challenges and other statements that are not historical facts. Such statements are based upon the beliefs and expectations of Clean Harbors’ management as of the date of this press release only and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, without limitation: operational and safety risks; risks relating to the failure of new or existing technologies; cybersecurity risks; the occurrence of natural disasters or other catastrophic events, as well as their residual macroeconomic effects; risks associated with retaining and hiring key personnel; environmental liability and product liability risks relating to hazardous waste management and other components of the Company’s business; negative economic, industry or other developments, including market volatility or economic downturns; risks associated with management’s assumptions relating to expansion of the Company’s landfills; reductions in the demand for emergency response services at industrial facilities or on roadways, railways or waterways, and other remedial projects and regulatory developments; reductions in the demand for oil products and automotive services and volatility in oil prices in the markets the Company serves; changes in statutory and regulatory requirements and risks relating to extensive environmental laws and regulations; risks associated with existing and potential litigation; risks associated with the Company’s identification and execution of strategic acquisitions and divestitures and their related liabilities; risks relating to the availability and sufficiency of the Company’s insurance coverage, self-insurance, surety bonds, letters of credit and other forms of financial assurance; the impact of new tax legislation or changes in tax regulations and interpretations; the imposition of trade sanctions or tariffs; fluctuations in interest rates and foreign currency exchange rates; risks relating to the Company’s indebtedness and covenants in its debt agreements; risks associated with certain anti-takeover provisions under the Massachusetts Business Corporation Act and the Company’s By-Laws, and those items identified as “Risk Factors” in Clean Harbors’ most recently filed reports on Form 10-K and Form 10-Q. Forward-looking statements are neither historical facts nor assurances of future performance. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Clean Harbors undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its filings with the Securities and Exchange Commission, which may be viewed in the “Investors” section of Clean Harbors’ website at www.cleanharbors.com.

CLEAN HARBORS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

Three Months Ended

Nine Months Ended

September 30,

2025

2024

2025

2024

Revenues

1,549,337

1,529,422

4,531,141

4,458,836

Cost of revenues (exclusive of items shown separately below)

1,048,490

1,055,599

3,103,871

3,062,211

Selling, general and administrative expenses

189,610

177,846

558,640

557,590

Accretion of environmental liabilities

3,499

3,618

10,710

10,139

Depreciation and amortization

114,729

100,063

342,994

295,632

Income from operations

193,009

192,296

514,926

533,264

Other income (expense), net

3,517

(1,123

)

1,982

(2,431

)

Interest expense, net

(35,700

)

(35,779

)

(108,883

)

(100,767

)

Income before provision for income taxes

160,826

155,394

408,025

430,066

Provision for income taxes

42,027

40,181

103,641

111,741

Net income

118,799

115,213

304,384

318,325

Earnings per share:

Basic

2.22

2.14

5.67

5.90

Diluted

2.21

2.12

5.65

5.87

Shares used to compute earnings per share - Basic

53,518

53,951

53,659

53,936

Shares used to compute earnings per share - Diluted

53,713

54,229

53,871

54,229

CLEAN HARBORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

September 30, 2025

December 31, 2024

Current assets:

(unaudited)

Cash and cash equivalents

759,197

687,192

Short-term marketable securities

91,176

102,634

Accounts receivable, net

1,104,805

1,015,357

Unbilled accounts receivable

182,059

162,215

Inventories and supplies

377,308

384,657

Prepaid expenses and other current assets

93,716

81,741

Total current assets

2,608,261

2,433,796

Property, plant and equipment, net

2,497,600

2,447,941

Other assets:

Operating lease right-of-use assets

241,048

250,853

Goodwill

1,478,831

1,477,199

Permits and other intangibles, net

663,965

701,987

Other long-term assets

50,594

65,502

Total other assets

2,434,438

2,495,541

Total assets

7,540,299

7,377,278

Current liabilities:

Current portion of long-term debt

15,102

Accounts payable

444,119

487,286

Deferred revenue

91,966

88,545

Accrued expenses and other current liabilities

415,170

419,445

Current portion of closure, post-closure and remedial liabilities

28,814

20,625

Current portion of operating lease liabilities

72,241

71,663

Total current liabilities

1,067,412

1,102,666

Other liabilities:

Closure and post-closure liabilities, less current portion

122,546

119,484

Remedial liabilities, less current portion

85,299

101,424

Long-term debt, less current portion

2,764,231

2,771,117

Operating lease liabilities, less current portion

173,137

182,883

Deferred tax liabilities

358,597

363,623

Other long-term liabilities

193,237

162,552

Total other liabilities

3,697,047

3,701,083

Total stockholders’ equity, net

2,775,840

2,573,529

Total liabilities and stockholders’ equity

7,540,299

7,377,278

CLEAN HARBORS, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Nine Months Ended

September 30, 2025

September 30, 2024

Cash flows from operating activities:

Net income

304,384

318,325

Adjustments to reconcile net income to net cash from operating activities:

Depreciation and amortization

342,994

295,632

Allowance for doubtful accounts

6,520

5,674

Amortization of deferred financing costs and debt discount

5,024

4,623

Accretion of environmental liabilities

10,710

10,139

Changes in environmental liability estimates

(8,933

)

4,347

Deferred income taxes

—

(418

)

Other (income) expense, net

(1,982

)

2,431

Stock-based compensation

22,620

20,690

Environmental expenditures

(10,960

)

(19,679

)

Changes in assets and liabilities, net of acquisitions:

Accounts receivable and unbilled accounts receivable

(113,131

)

(145,647

)

Inventories and supplies

8,301

(39,673

)

Other current and long-term assets

(5,467

)

(47,826

)

Accounts payable

(35,492

)

30,004

Other current and long-term liabilities

(12,956

)

35,211

Net cash from operating activities

511,632

473,833

Cash flows used in investing activities:

Additions to property, plant and equipment

(303,169

)

(369,826

)

Proceeds from sale and disposal of fixed assets

15,250

6,353

Acquisitions, net of cash acquired

—

(474,011

)

Proceeds from sale of business

—

750

Additions to intangible assets including costs to obtain or renew permits

(1,528

)

(2,545

)

Purchases of available-for-sale securities

(62,108

)

(73,682

)

Proceeds from sale of available-for-sale securities

74,968

100,021

Net cash used in investing activities

(276,587

)

(812,940

)

Cash flows (used in) from financing activities:

Change in uncashed checks

(2,639

)

(5,852

)

Tax payments related to withholdings on vested restricted stock

(13,833

)

(11,514

)

Repurchases of common stock

(117,001

)

(30,215

)

Proceeds from employee stock purchase plan

3,360

—

Deferred financing costs paid

—

(8,316

)

Payments on finance leases

(25,088

)

(23,596

)

Principal payments on debt

(11,327

)

(11,327

)

Proceeds from issuance of debt, net of discount

—

499,375

Net cash (used in) from financing activities

(166,528

)

408,555

Effect of exchange rate change on cash

3,488

(1,775

)

Increase in cash and cash equivalents

72,005

67,673

Cash and cash equivalents, beginning of period

687,192

444,698

Cash and cash equivalents, end of period

759,197

512,371

Supplemental information:

Cash payments for interest and income taxes:

Interest paid

133,520

134,177

Income taxes paid, net of refunds

93,531

100,752

Non-cash investing activities:

Property, plant and equipment accrued

36,604

43,604

ROU assets obtained in exchange for operating lease liabilities

51,736

98,927

ROU assets obtained in exchange for finance lease liabilities

59,937

53,391

Supplemental Segment Data (in thousands)

Three Months Ended

Revenue

September 30, 2025

September 30, 2024

Third-Party Revenues

Intersegment Revenues (Expenses), net

Direct Revenues

Third-Party Revenues

Intersegment Revenues (Expenses), net

Direct Revenues

Environmental Services

1,318,580

12,720

1,331,300

1,287,650

9,537

1,297,187

Safety-Kleen Sustainability Solutions

230,757

(12,720

)

218,037

241,676

(9,537

)

232,139

Corporate

—

Total

1,549,337

—

1,549,337

1,529,422

—

1,529,422

Nine Months Ended

Revenue

September 30, 2025

September 30, 2024

Third-Party Revenues

Intersegment Revenues (Expenses), net

Direct Revenues

Third-Party Revenues

Intersegment Revenues (Expenses), net

Direct Revenues

Environmental Services

3,855,677

36,771

3,892,448

3,746,227

32,853

3,779,080

Safety-Kleen Sustainability Solutions

675,278

(36,771

)

638,507

712,312

(32,853

)

679,459

Corporate

186

—

186

297

—

297

Total

4,531,141

—

4,531,141

4,458,836

—

4,458,836

Three Months Ended

Nine Months Ended

Adjusted EBITDA

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

Environmental Services

357,229

332,502

1,008,014

956,892

Safety-Kleen Sustainability Solutions

40,937

41,226

107,502

122,402

Corporate

(78,007

)

(71,914

)

(224,266

)

(219,569

)

Total

320,159

301,814

891,250

859,725