Clean Harbors (NYSE:CLH) executives highlighted record financial and safety performance for 2025, capped by a fourth quarter that exceeded the company’s late-October outlook. Management also introduced 2026 guidance calling for continued growth in adjusted EBITDA and free cash flow, while outlining acquisitions, internal investment plans, and ongoing share repurchases.
Record 2025 performance and safety results
Co-CEO Eric Gerstenberg opened the call by emphasizing safety, noting Clean Harbors delivered a record total recordable incident rate of 0.49 in 2025, which he described as industry-leading and well below the prior year.
Management also pointed to operational milestones during 2025, including the first-year ramp-up of the new Kimball Incinerator, creation of the Phoenix Hub, handling nearly 22,000 emergency response events, issuing a PFAS incineration study with the EPA, and reducing voluntary turnover by 150 basis points to a five-year low.
Environmental Services strength and PFAS momentum
In the fourth quarter, ES revenue increased 6%, which Gerstenberg called the largest quarterly increase of the year. He attributed the growth to demand for disposal and recycling services, project volumes, growth in PFAS services, and emergency response work.
- Technical Services revenue rose 8% in Q4.
- Safety-Kleen Environmental Services revenue increased 7%, driven by pricing and higher volumes, particularly vacuum services.
- Field Services revenue grew 13% in the quarter, supported by large-scale emergency response projects that generated about $30 million in revenue.
Incineration utilization, excluding the new Kimball Incinerator, was 87% in Q4 and 89% for the full year, compared with 88% in 2024. Landfill volumes rose more than 50% in Q4, largely due to project volumes, management said. ES adjusted EBITDA increased 8% in the quarter, with fourth-quarter margin up 50 basis points due to pricing discipline, volumes, mix, and workforce management initiatives. Gerstenberg noted ES delivered its 15th straight quarter of year-over-year adjusted EBITDA margin growth.
Gerstenberg also flagged “considerable momentum” in PFAS heading into 2026. He said the PFAS incineration study completed with the EPA (and referenced as being in partnership with the Department of War) has generated inbound customer discussions. He also cited a November appearance at a Senate hearing and a three-year, $110 million contract announced in December tied to PFAS water filtration work at Pearl Harbor.
Management discussed additional regulatory developments it expects, including Pentagon reporting requirements within 180 days under the National Defense Authorization Act regarding PFAS at more than 700 U.S. military installations, and anticipated EPA work on frameworks and rules. While executives described PFAS as a sizable growth opportunity, Gerstenberg said the company’s 2026 guidance assumes PFAS revenue growth of 20%, consistent with recent years.
Safety-Kleen Sustainability Solutions: pricing actions offset base oil declines
Co-CEO Mike Battles said the base oil pricing environment continued to weaken in Q4, contributing to a slight decline in segment revenue. However, Safety-Kleen Sustainability Solutions (SKSS) adjusted EBITDA was $30 million in the quarter, up 22% from the fourth quarter of 2024, and full-year adjusted EBITDA totaled $137 million.
Battles said Clean Harbors raised its “charge for oil” (CFO) pricing in Q4, with rates roughly 50% above the third-quarter average, and emphasized CFO pricing and lower waste oil collection costs as primary levers to manage continued base oil pricing declines. Despite the higher CFO, he said the company collected 56 million gallons of waste oil to feed its re-refining network. Executives also pointed to growth in direct lubricant gallons sold and increased Group Three production, which carries a premium versus conventional Group Two volumes.
Capital allocation: acquisition, fleet investment, and expanded buyback capacity
Battles announced Clean Harbors signed a purchase and sale agreement to acquire environmental businesses from Depot Connect International (DCI) for about $130 million. The company expects the carve-out businesses to be integrated into its technical services and field services operations. Management said the acquired operations are expected to generate about $40 million of annual revenue and $11 million of annual adjusted EBITDA, which Battles described as roughly a 12x multiple. The assets include five locations in Ohio, Louisiana, and Texas, along with trucks and other equipment, and provide services including waste handling, tank cleaning, and rail car cleaning. Two facilities have wastewater treatment and solidification capabilities. Clean Harbors expects the deal to close in the first half of the year, subject to customary conditions.
Clean Harbors also announced a targeted $50 million expansion of its vacuum truck fleet, aimed at capturing growth opportunities tied to the Safety-Kleen brand business. Due to limited availability of the specialized assets, the expansion is planned over 2026 and 2027. Battles said the program is expected to generate incremental adjusted EBITDA of $12 million to $14 million in 2028 once fully ramped.
On shareholder returns, management highlighted $133 million of repurchases in Q4 and $250 million for the full year (more than 1.1 million shares). Battles said the board approved expanding the authorization by $350 million, leaving $600 million of remaining capacity.
Financial details and 2026 guidance
CFO Eric Dugas said Q4 revenue increased 5% to $1.5 billion and adjusted EBITDA rose 8% to $279 million. Full-year adjusted EBITDA was approximately $1.17 billion. Consolidated Q4 adjusted EBITDA margin was 18.6%, up 60 basis points year over year, driven by pricing, volume growth, cost control, and efficiency initiatives.
Dugas said operating cash flow in Q4 grew 17% to a record $355 million and adjusted free cash flow was a Q4 record $261 million. Full-year adjusted free cash flow was a record $509 million, above guidance, driven largely by collections and lower cash taxes paid. Clean Harbors ended the year with more than $950 million in cash and short-term marketable securities, and net debt to EBITDA of about 1.8x, which Dugas said was the lowest leverage in nearly 15 years.
For 2026, Clean Harbors guided to adjusted EBITDA of $1.20 billion to $1.26 billion (midpoint $1.23 billion), implying about 5% growth. It also guided to adjusted free cash flow of $480 million to $540 million (midpoint $510 million). Dugas said the company expects Net CapEx (excluding an expected $85 million spend on the SDA unit and $25 million related to the strategic fleet investment) to be $340 million to $400 million, with a midpoint of $370 million.
Management said the guidance includes $5 million to $6 million of adjusted EBITDA from the DCI acquisition, reflecting uncertainty around closing timing. For SKSS, the company guided to about $135 million of adjusted EBITDA, with Dugas noting the outlook assumes base oil prices continue to decline slightly over the year, though not to the extent seen in 2025.
In the question-and-answer session, executives discussed active conversations with customers regarding potential captive incinerator closures, noting there are about 40 captive sites that remain customers today. They also said they expect to continue driving incineration pricing improvements in the mid- to upper-single digits. Management characterized industrial services expectations as conservative within the 2026 guide, while citing early signs of improved momentum and customer discussions around turnaround needs.
About Clean Harbors (NYSE:CLH)
Clean Harbors, Inc is a leading provider of environmental, energy and industrial services in North America. The company specializes in the collection, transportation and disposal of hazardous and non-hazardous wastes, emergency spill response and remediation, industrial cleaning and on-site field services. Its comprehensive service offering also includes chemical neutralization, drum crushing, high-pressure water blasting, tank cleaning and vacuum services designed to help customers meet stringent environmental regulations.
Founded in 1980 by Alan S.
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