Core Insights - Clean Harbors reported mixed Q2 2025 results, with earnings per share of $2.36 beating estimates but revenues of $1.5 billion missing expectations [2][3] - The company's stock has increased by approximately 3.3% since the last earnings report, outperforming the S&P 500 [1] Financial Performance - Q2 2025 earnings of $2.36 per share exceeded the Zacks Consensus Estimate by 1.3% but decreased by 4.1% year-over-year [2] - Total revenues of $1.5 billion fell short of estimates by 2% and showed a slight year-over-year decline [2] - Environmental Services segment revenues reached $1.3 billion, a 2.5% increase from the previous year, driven by the HEPACO acquisition and higher pricing [3] - Safety-Kleen Sustainability Solutions revenues were $219.7 million, down 13.9% year-over-year due to lower base oil prices [3] - Adjusted EBITDA was $336.2 million, a 2.6% increase from the previous year, with a margin of 21.7% [4] - The adjusted EBITDA for Environmental Services was $376.2 million, up 4.5% year-over-year, while Safety-Kleen's adjusted EBITDA fell 25.6% to $38.3 million [4] Balance Sheet & Cash Flow - Clean Harbors ended the quarter with cash and cash equivalents of $600.2 million, up from $489.4 million in the previous quarter [5] - Long-term debt remained stable at $2.8 billion, with net cash from operating activities of $208 million and capital expenditures of $90 million [6] Guidance - For 2025, Clean Harbors updated its adjusted EBITDA guidance to $1.16-$1.20 billion and expects adjusted free cash flow of $430-$490 million [7] Market Sentiment - Since the earnings release, there has been an upward trend in estimates for Clean Harbors [8] - The company holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [10] Industry Comparison - Clean Harbors operates within the Zacks Waste Removal Services industry, where competitor Republic Services reported revenues of $4.24 billion, a year-over-year increase of 4.6% [11] - Republic Services has a Zacks Rank 4 (Sell) and is expected to post a slight decline in earnings for the current quarter [12]

Core Insights - Clean Harbors, Inc. (CLH) reported mixed second-quarter 2025 results, with earnings exceeding the Zacks Consensus Estimate but revenues falling short [1][8] - The stock price remained relatively stable despite the earnings beat, indicating limited market reaction [1][8] Financial Performance - CLH's earnings per share (EPS) were $2.36, surpassing the Zacks Consensus Estimate by 1.3% but down 4.1% year-over-year [2][8] - Total revenues reached $1.5 billion, missing the consensus estimate by 2% and showing a slight year-over-year decline [2][8] Segment Analysis - Environmental Services (ES) revenues were $1.3 billion, reflecting a 2.5% increase from the previous year, driven by the HEPACO acquisition and higher pricing [3] - Safety-Kleen Sustainability Solutions (SKSS) revenues totaled $219.7 million, a decline of 13.9% year-over-year, attributed to lower base oil prices due to weak demand [3] Profitability Metrics - Adjusted EBITDA was $336.2 million, a 2.6% increase from the prior year, exceeding estimates [4] - The adjusted EBITDA margin improved to 21.7%, up 60 basis points year-over-year [4] - Segment-wise, adjusted EBITDA for ES was $376.2 million, a 4.5% year-over-year increase, while SKSS saw a 25.6% decline to $38.3 million [4] Balance Sheet and Cash Flow - At the end of the quarter, CLH had cash and cash equivalents of $600.2 million, up from $489.4 million in the previous quarter [5] - Long-term debt remained stable at $2.8 billion, with net cash from operating activities at $208 million and capital expenditures of $90 million [6] 2025 Guidance - For 2025, CLH updated its adjusted EBITDA guidance to a range of $1.16-$1.20 billion, while adjusted free cash flow is expected to be between $430-$490 million [7]

PART I: FINANCIAL INFORMATION This section provides a comprehensive overview of the company's unaudited consolidated financial statements and management's discussion and analysis [ITEM 1: Unaudited Consolidated Financial Statements](index=4&type=section&id=ITEM%201%3A%20Unaudited%20Consolidated%20Financial%20Statements) This section presents the company's unaudited consolidated financial statements, including balance sheets, statements of operations, comprehensive income, cash flows, and stockholders' equity, along with detailed notes explaining accounting policies, revenue recognition, business combinations, and other financial details for the periods ended June 30, 2025 and December 31, 2024 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity at specific points in time Consolidated Balance Sheet Highlights (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :----------------------------- | :-------------- | :------------------ | | Total Assets | $7,439,929 | $7,377,278 | | Total Liabilities | $4,725,862 | $4,803,749 | | Total Stockholders' Equity | $2,714,067 | $2,573,529 | | Cash and cash equivalents | $600,186 | $687,192 | | Accounts receivable, net | $1,117,714 | $1,015,357 | | Goodwill | $1,479,805 | $1,477,199 | - Total assets increased by **$62.651 million**, and total stockholders' equity increased by **$140.538 million** from December 31, 2024, to June 30, 2025[10](index=10&type=chunk) [Unaudited Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance, reporting revenues, expenses, and net income over specific periods Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Revenues | $1,549,854 | $1,552,719 | $2,981,804 | $2,929,414 | | Income from operations | $210,298 | $215,493 | $321,917 | $340,968 | | Net income | $126,905 | $133,280 | $185,585 | $203,112 | | Basic EPS | $2.37 | $2.47 | $3.46 | $3.77 | | Diluted EPS | $2.36 | $2.46 | $3.44 | $3.75 | - Net income decreased by **4.8%** for the three months and **8.6%** for the six months ended June 30, 2025, compared to the prior year, primarily due to increased depreciation and amortization expense[12](index=12&type=chunk) [Unaudited Consolidated Statements of Comprehensive Income](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents net income alongside other comprehensive income items, reflecting total equity changes from non-owner sources Consolidated Statements of Comprehensive Income Highlights (in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $126,905 | $133,280 | $185,585 | $203,112 | | Other comprehensive income (loss), net of tax | $20,038 | $(4,864) | $15,106 | $(9,151) | | Comprehensive income | $146,943 | $128,416 | $200,691 | $193,961 | - Comprehensive income increased by **14.4%** for the three months and **3.5%** for the six months ended June 30, 2025, driven by positive foreign currency translation adjustments[14](index=14&type=chunk) [Unaudited Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) This section details cash inflows and outflows from operating, investing, and financing activities over specific periods Consolidated Statements of Cash Flows Highlights (in thousands, Six Months Ended June 30) | Item | 2025 | 2024 | | :--------------------------------- | :--------- | :--------- | | Net cash from operating activities | $209,645 | $234,594 | | Net cash used in investing activities | $(200,742) | $(730,670) | | Net cash (used in) from financing activities | $(101,169) | $455,503 | | Decrease in cash and cash equivalents | $(87,006) | $(42,706) | | Cash and cash equivalents, end of period | $600,186 | $401,992 | - Net cash from operating activities decreased by **$24.9 million**, while net cash used in investing activities significantly decreased by **$529.9 million**, primarily due to lower acquisition spending in 2025[17](index=17&type=chunk) - Financing activities shifted from a net inflow of **$455.5 million** in 2024 to a net outflow of **$101.2 million** in 2025, mainly due to prior year debt issuance for acquisitions and increased stock repurchases[17](index=17&type=chunk) [Unaudited Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section tracks changes in the company's equity accounts, including common stock, retained earnings, and other comprehensive income Consolidated Statements of Stockholders' Equity Highlights (in thousands) | Item | Balance at January 1, 2025 | Balance at June 30, 2025 | | :--------------------------------- | :------------------------- | :----------------------- | | Common Stock, $0.01 par value | $538 | $536 | | Additional Paid-in Capital | $421,749 | $361,598 | | Accumulated Other Comprehensive Loss | $(213,635) | $(198,529) | | Retained Earnings | $2,364,877 | $2,550,462 | | Total Stockholders' Equity | $2,573,529 | $2,714,067 | - Total stockholders' equity increased by **$140.538 million** from January 1, 2025, to June 30, 2025, primarily driven by net income and other comprehensive income, partially offset by common stock repurchases[18](index=18&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information supporting the consolidated financial statements and accounting policies [Note 1: Basis of Presentation](index=10&type=section&id=Note%201%3A%20Basis%20of%20Presentation) This note describes the basis for preparing interim financial statements, including SEC compliance and management's use of estimates - The accompanying consolidated interim financial statements are unaudited and prepared pursuant to SEC rules and regulations[20](index=20&type=chunk) - Management's estimates and assumptions are used, and actual results could differ from these estimates[20](index=20&type=chunk) - Interim period results are not necessarily indicative of results for the entire year or other interim periods[20](index=20&type=chunk) [Note 2: Significant Accounting Policies](index=10&type=section&id=Note%202%3A%20Significant%20Accounting%20Policies) This note outlines key accounting policies and recent accounting pronouncements relevant to the company's financial reporting - The One Big Beautiful Bill Act, enacted July 4, 2025, is not expected to have a material impact on the company's financial position, results of operations, or cash flows[21](index=21&type=chunk) - ASU No. 2023-07 (Segment Reporting) was adopted for the year ended December 31, 2024, primarily impacting disclosures[22](index=22&type=chunk) - ASU No. 2023-09 (Income Taxes) and ASU No. 2024-03 (Expense Disaggregation) are not yet adopted but are being evaluated for disclosure impacts, with no expected impact on financial condition, results, or cash flows[23](index=23&type=chunk)[24](index=24&type=chunk) [Note 3: Revenues](index=10&type=section&id=Note%203%3A%20Revenues) This note details revenue recognition policies and disaggregates revenues by operating segment and source - The company generates revenues through two operating segments: Environmental Services and Safety-Kleen Sustainability Solutions (SKSS)[25](index=25&type=chunk) - Revenue from services is generally recognized over time, while product revenue is recognized at a point in time upon transfer of control[31](index=31&type=chunk) Third-Party Revenues by Source and Segment (Three Months Ended June 30, 2025, in thousands) | Sources of Revenue | Environmental Services | Safety-Kleen Sustainability Solutions | Corporate | Total | | :-------------------------------- | :----------------------- | :-------------------------------------- | :---------- | :---------- | | Technical Services | $463,421 | — | — | $463,421 | | Industrial Services and Other | $361,580 | — | $89 | $361,669 | | Field and Emergency Response Services | $242,791 | — | — | $242,791 | | Safety-Kleen Environmental Services | $262,267 | $72,463 | — | $334,730 | | Safety-Kleen Oil | — | $147,243 | — | $147,243 | | **Total third-party revenues** | **$1,330,059** | **$219,706** | **$89** | **$1,549,854** | [Note 4: Business Combinations](index=15&type=section&id=Note%204%3A%20Business%20Combinations) This note provides information on recent acquisitions, including purchase accounting finalizations and their impact on segments - The company finalized purchase accounting for the HEPACO acquisition (March 22, 2024) in Q1 2025, expanding the Environmental Services segment's field services for **$392.2 million** cash[36](index=36&type=chunk)[37](index=37&type=chunk) - Purchase accounting for the Noble Oil Services acquisition (March 1, 2024) was finalized in Q1 2025, expanding the SKSS segment's oil collection operations for **$68.7 million** cash[39](index=39&type=chunk)[40](index=40&type=chunk) - Three additional privately-owned businesses were acquired in 2024 for **$17.1 million**, consolidated into the Environmental Services and SKSS segments[42](index=42&type=chunk) [Note 5: Inventories and Supplies](index=17&type=section&id=Note%205%3A%20Inventories%20and%20Supplies) This note presents the breakdown of inventories and supplies, including oil, solvents, and other materials Inventories and Supplies (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :------------------------ | :-------------- | :------------------ | | Supplies | $215,415 | $200,905 | | Oil and oil related products | $137,812 | $152,992 | | Solvent and solutions | $11,837 | $12,458 | | Other | $18,287 | $18,302 | | **Total inventories and supplies** | **$383,351** | **$384,657** | - Total inventories and supplies remained relatively stable, decreasing slightly by **$1.306 million** from December 31, 2024, to June 30, 2025[43](index=43&type=chunk) [Note 6: Property, Plant and Equipment](index=17&type=section&id=Note%206%3A%20Property%2C%20Plant%20and%20Equipment) This note details property, plant, and equipment, net of depreciation, and related depreciation expenses Property, Plant and Equipment, net (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :-------------- | :------------------ | | Total property, plant and equipment, net | $2,507,101 | $2,447,941 | - Net property, plant and equipment increased by **$59.160 million** from December 31, 2024, to June 30, 2025[44](index=44&type=chunk) - Depreciation expense, inclusive of landfill and finance lease amortization, increased to **$201.2 million** for the six months ended June 30, 2025, from **$168.7 million** in the prior year, driven by the Kimball incinerator and other assets[46](index=46&type=chunk) [Note 7: Goodwill and Other Intangible Assets](index=17&type=section&id=Note%207%3A%20Goodwill%20and%20Other%20Intangible%20Assets) This note provides information on goodwill by segment and other intangible assets, including changes and amortization expense Goodwill by Segment (in thousands) | Segment | Balance at January 1, 2025 | Balance at June 30, 2025 | | :-------------------------------- | :------------------------- | :----------------------- | | Environmental Services | $1,296,204 | $1,298,174 | | Safety-Kleen Sustainability Solutions | $180,995 | $181,631 | | **Totals** | **$1,477,199** | **$1,479,805** | - Goodwill increased by **$2.606 million** for the six months ended June 30, 2025, due to measurement period adjustments and foreign currency translation[47](index=47&type=chunk) Total Permits and Other Intangible Assets, net (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :-------------- | :------------------ | | Total permits and other intangible assets | $677,180 | $701,987 | - Amortization expense for permits and other intangible assets was **$27.0 million** for the six months ended June 30, 2025, consistent with **$26.9 million** in the prior year[50](index=50&type=chunk) [Note 8: Accrued Expenses and Other Current Liabilities](index=18&type=section&id=Note%208%3A%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) This note itemizes various accrued expenses and other current liabilities, such as insurance, compensation, and taxes Accrued Expenses and Other Current Liabilities (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :-------------- | :------------------ | | Accrued insurance | $111,550 | $112,367 | | Accrued compensation and benefits | $97,129 | $134,458 | | Accrued income, real estate, sales and other taxes | $37,419 | $35,394 | | Accrued interest | $33,254 | $33,259 | | Accrued other | $97,233 | $103,967 | | **Total** | **$376,585** | **$419,445** | - Total accrued expenses and other current liabilities decreased by **$42.860 million** from December 31, 2024, to June 30, 2025, primarily due to lower accrued compensation and benefits[52](index=52&type=chunk) [Note 9: Closure and Post-Closure Liabilities](index=19&type=section&id=Note%209%3A%20Closure%20and%20Post-Closure%20Liabilities) This note details liabilities for facility closure and post-closure care, including changes during the period Changes to Closure and Post-Closure Liabilities (in thousands, Six Months Ended June 30, 2025) | Item | Amount | | :--------------------------------- | :------- | | Balance at January 1, 2025 | $129,788 | | Accretion | $5,241 | | New asset retirement obligations | $1,813 | | Expenditures | $(2,392) | | **Balance at June 30, 2025** | **$136,887** | - Closure and post-closure liabilities increased by **$7.099 million** for the six months ended June 30, 2025, driven by accretion and new obligations[53](index=53&type=chunk) [Note 10: Remedial Liabilities](index=19&type=section&id=Note%2010%3A%20Remedial%20Liabilities) This note describes liabilities for environmental remediation, including changes in estimates and expenditures Changes to Remedial Liabilities (in thousands, Six Months Ended June 30, 2025) | Item | Amount | | :--------------------------------- | :------- | | Balance at January 1, 2025 | $111,745 | | Changes in estimates recorded to consolidated statement of operations | $(9,772) | | Expenditures | $(4,659) | | **Balance at June 30, 2025** | **$99,312** | - Remedial liabilities decreased by **$12.433 million** for the six months ended June 30, 2025, primarily due to a **$10 million** reduction for a site where loss was no longer probable[54](index=54&type=chunk) [Note 11: Financing Arrangements](index=20&type=section&id=Note%2011%3A%20Financing%20Arrangements) This note outlines long-term debt, revolving credit facilities, and interest rate swap agreements Long-Term Debt (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :-------------- | :------------------ | | Long-term debt, at carrying value | $2,766,530 | $2,771,117 | - The estimated fair value of outstanding long-term debt was **$2.8 billion** as of June 30, 2025[57](index=57&type=chunk) - The company maintains a **$600.0 million** revolving credit facility with **$452.1 million** available to borrow as of June 30, 2025[58](index=58&type=chunk) - Interest rate swap agreements effectively fixed the interest rate on **$600.0 million** of term loans at **3.71%** (including margin), expiring September 30, 2027[60](index=60&type=chunk) [Note 12: Earnings Per Share](index=20&type=section&id=Note%2012%3A%20Earnings%20Per%20Share) This note presents the calculation of basic and diluted earnings per share, including weighted-average shares outstanding Earnings Per Share (except per share amounts) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic earnings per share | $2.37 | $2.47 | $3.46 | $3.77 | | Diluted earnings per share | $2.36 | $2.46 | $3.44 | $3.75 | | Weighted-average shares outstanding, diluted | 53,799 | 54,248 | 53,895 | 54,231 | - Both basic and diluted EPS decreased for the three and six months ended June 30, 2025, compared to the prior year, reflecting lower net income[64](index=64&type=chunk) [Note 13: Accumulated Other Comprehensive Loss](index=22&type=section&id=Note%2013%3A%20Accumulated%20Other%20Comprehensive%20Loss) This note details components and changes in accumulated other comprehensive loss, including foreign currency adjustments Changes in Accumulated Other Comprehensive Loss (in thousands, Six Months Ended June 30, 2025) | Component | Balance at January 1, 2025 | Other comprehensive income (loss) | Amounts reclassified out | Tax (provision) benefit | Balance at June 30, 2025 | | :--------------------------------- | :------------------------- | :-------------------------------- | :----------------------- | :---------------------- | :----------------------- | | Foreign Currency Translation Adjustments | $(236,702) | $24,714 | — | — | $(211,988) | | Unrealized Gain on Available-For-Sale Securities | $33 | $120 | — | $(25) | $128 | | Unrealized Gain on Fair Value of Interest Rate Hedges | $23,652 | $(6,132) | $(7,114) | $3,576 | $13,982 | | Unrealized Loss on Pension | $(618) | $(33) | — | — | $(651) | | **Total** | **$(213,635)** | **$18,669** | **$(7,114)** | **$3,551** | **$(198,529)** | - Accumulated other comprehensive loss decreased by **$15.106 million** for the six months ended June 30, 2025, primarily due to positive foreign currency translation adjustments[65](index=65&type=chunk) [Note 14: Stock-Based Compensation](index=22&type=section&id=Note%2014%3A%20Stock-Based%20Compensation) This note provides information on stock-based compensation expense, including unrecognized costs for various award types Stock-Based Compensation Cost (in thousands) | Period | 2025 | 2024 | | :--------------------------------- | :------- | :------- | | Three Months Ended June 30 | $6,100 | $8,500 | | Six Months Ended June 30 | $13,700 | $14,900 | - Total stock-based compensation cost decreased by **28.8%** for the three months and **7.8%** for the six months ended June 30, 2025, compared to the prior year[66](index=66&type=chunk) - As of June 30, 2025, unrecognized compensation cost for restricted stock awards was **$44.7 million** (weighted average period of **2.3 years**) and for performance stock awards was **$9.9 million**[68](index=68&type=chunk)[71](index=71&type=chunk) [Note 15: Commitments and Contingencies](index=25&type=section&id=Note%2015%3A%20Commitments%20and%20Contingencies) This note discloses legal proceedings, environmental liabilities, and other commitments and contingencies Reserves for Legal and Administrative Proceedings (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :-------------- | :------------------ | | Total reserves | $17,200 | $29,800 | | Related to pending legal/administrative proceedings (incl. Superfund) | $9,600 | $23,300 | | Related to federal, state, provincial enforcement actions | $7,600 | $6,500 | - The company is involved in approximately **70** pending Safety-Kleen product liability cases and **132** Superfund-related sites[78](index=78&type=chunk)[80](index=80&type=chunk) - Management believes that potential liability beyond recorded amounts will not have a material effect on the company's financial position, results of operations, or cash flows[76](index=76&type=chunk) [Note 16: Segment Reporting](index=26&type=section&id=Note%2016%3A%20Segment%20Reporting) This note provides financial information by operating segment, including revenues and Adjusted EBITDA, as evaluated by management - The company is managed and reports as two operating segments: Environmental Services and Safety-Kleen Sustainability Solutions (SKSS)[85](index=85&type=chunk) - Adjusted EBITDA is the primary financial measure used by the chief operating decision maker (CODM) to evaluate segment performance[88](index=88&type=chunk) Total Reportable Segment Adjusted EBITDA (in thousands, Six Months Ended June 30) | Segment | 2025 | 2024 | | :-------------------------------- | :--------- | :--------- | | Environmental Services | $650,785 | $624,390 | | Safety-Kleen Sustainability Solutions | $66,565 | $81,176 | | **Total Reportable Segment Adjusted EBITDA** | **$717,350** | **$705,566** | [ITEM 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=ITEM%202%3A%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's Discussion and Analysis provides an overview of the company's business, highlights key financial performance, and offers a detailed analysis of segment-specific revenues, costs, and expenses. It also covers liquidity, capital resources, and critical accounting policies, explaining the factors influencing financial results for the periods presented [Forward-Looking Statements](index=29&type=section&id=Forward-Looking%20Statements) This section cautions readers about forward-looking statements, subject to risks and uncertainties that may cause actual results to differ - This report contains forward-looking statements identifiable by words like 'believes,' 'expects,' 'intends,' and 'anticipates,' which are subject to risks and uncertainties that could cause actual results to differ materially[95](index=95&type=chunk) - Readers are cautioned not to place undue reliance on these statements, and the company undertakes no obligation to revise or publicly release results of any revisions[95](index=95&type=chunk) [Overview](index=29&type=section&id=Overview) This section describes the company's business, market position, and how segment performance is evaluated - Clean Harbors is North America's leading provider of environmental and industrial services, serving over **350,000** customers, including most Fortune 500 companies[96](index=96&type=chunk) - The company operates the largest number of hazardous waste incinerators, landfills, and treatment, storage, and disposal facilities (TSDFs) in North America[96](index=96&type=chunk) - Segment performance is primarily evaluated using Adjusted EBITDA, alongside operational factors like waste volumes, utilization rates, and market pricing[97](index=97&type=chunk) [Highlights](index=31&type=section&id=Highlights) This section summarizes key financial performance metrics, including revenues, net income, Adjusted EBITDA, and cash flow Key Financial Highlights (in millions) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Direct Revenues | $1,549.9 | $1,552.7 | $2,981.8 | $2,929.4 | | Income from operations | $210.3 | $215.5 | $321.9 | $341.0 | | Net income | $126.9 | $133.3 | $185.6 | $203.1 | | Adjusted EBITDA | $336.2 | $327.8 | $571.1 | $557.9 | | Net cash from operating activities | N/A | N/A | $209.6 | $234.6 | | Adjusted free cash flow | N/A | N/A | $17.4 | $(34.1) | - Environmental Services direct revenues increased by **3.3%** (three months) and **3.2%** (six months), while Safety-Kleen Sustainability Solutions direct revenues decreased by **18.7%** (three months) and **6.0%** (six months)[99](index=99&type=chunk) - Adjusted free cash flow improved significantly, moving from an outflow of **$34.1 million** in 2024 to an inflow of **$17.4 million** in 2025 for the six-month period[101](index=101&type=chunk) [Segment Performance](index=34&type=section&id=Segment%20Performance) This section analyzes the financial performance of the company's operating segments, including direct revenues and Adjusted EBITDA Segment Performance Summary (in thousands, Six Months Ended June 30) | Item | Environmental Services 2025 | Environmental Services 2024 | SKSS 2025 | SKSS 2024 | Corporate 2025 | Corporate 2024 | Total 2025 | Total 2024 | | :--------------------------------- | :-------------------------- | :-------------------------- | :-------- | :-------- | :------------- | :------------- | :--------- | :--------- | | Direct Revenues | $2,561,148 | $2,481,893 | $420,470 | $447,320 | $186 | $201 | $2,981,804 | $2,929,414 | | Cost of Revenues | $1,720,813 | $1,666,603 | $318,005 | $325,321 | $16,563 | $14,688 | $2,055,381 | $2,006,612 | | Selling, General & Administrative Expenses | $189,550 | $190,900 | $35,900 | $40,823 | $129,882 | $133,168 | $355,332 | $364,891 | | Adjusted EBITDA | $650,785 | $624,390 | $66,565 | $81,176 | $(146,259) | $(147,655) | $571,091 | $557,911 | | Adjusted EBITDA as a % of Direct Revenues | 25.4% | 25.2% | 15.8% | 18.1% | (4.9)% | (5.0)% | 19.2% | 19.0% | - Environmental Services Adjusted EBITDA increased by **4.2%** for the six months ended June 30, 2025, while Safety-Kleen Sustainability Solutions Adjusted EBITDA decreased by **18.0%**[102](index=102&type=chunk) [Direct Revenues](index=36&type=section&id=Direct%20Revenues) This section discusses factors influencing changes in direct revenues for Environmental Services and SKSS segments - Environmental Services direct revenues increased by **$42.7 million** (**3.3%**) for the three months and **$79.3 million** (**3.2%**) for the six months ended June 30, 2025[108](index=108&type=chunk)[109](index=109&type=chunk) - Growth in Environmental Services was driven by Safety-Kleen core services, Technical Services (higher incineration volumes), and incremental revenue from the HEPACO acquisition, partially offset by fewer large-scale emergency response events[108](index=108&type=chunk)[109](index=109&type=chunk) - Safety-Kleen Sustainability Solutions (SKSS) direct revenues decreased by **$45.5 million** (**18.7%**) for the three months and **$26.9 million** (**6.0%**) for the six months ended June 30, 2025, primarily due to lower base and blended oil product sales[110](index=110&type=chunk)[111](index=111&type=chunk) - SKSS declines were partially offset by increased revenue from used oil collection due to higher pricing and incremental contributions from the Noble acquisition[110](index=110&type=chunk)[111](index=111&type=chunk) [Cost of Revenues](index=37&type=section&id=Cost%20of%20Revenues) This section examines changes in cost of revenues for each segment and their impact on gross margins - Environmental Services cost of revenues increased by **$27.2 million** (**3.2%**) for the three months and **$54.2 million** (**3.3%**) for the six months ended June 30, 2025, remaining consistent as a percentage of revenues (**65.2%** and **67.2%** respectively)[114](index=114&type=chunk)[115](index=115&type=chunk) - Cost increases in Environmental Services were due to equipment, supplies, and labor, partially offset by **$12.2 million** in decreased third-party labor costs due to internalization efforts[114](index=114&type=chunk)[115](index=115&type=chunk) - SKSS cost of revenues decreased by **$29.9 million** (**17.5%**) for the three months and **$7.3 million** (**2.2%**) for the six months ended June 30, 2025, driven by lower sales volumes and used oil feedstock costs[116](index=116&type=chunk)[119](index=119&type=chunk) - As a percentage of revenues, SKSS cost of revenues increased to **71.1%** (three months) and **75.6%** (six months) due to market-related volume and pricing decreases and product mix changes[116](index=116&type=chunk)[119](index=119&type=chunk) [Selling, General and Administrative Expenses](index=39&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses) This section analyzes trends and drivers behind selling, general, and administrative expenses across the company and its segments - Environmental Services SG&A expenses decreased by **$1.4 million** (**0.7%**) for the six months ended June 30, 2025, and remained consistent as a percentage of revenues (**7.4%**)[124](index=124&type=chunk) - This decrease included a **$10 million** reduction in estimated remediation costs for a site, partially offset by higher labor and benefits from the HEPACO acquisition[124](index=124&type=chunk) - SKSS SG&A expenses decreased by **$4.9 million** (**12.1%**) for the six months ended June 30, 2025, due to cost reduction initiatives and strategic headcount management[126](index=126&type=chunk) - Corporate SG&A expenses decreased by **$3.3 million** (**2.5%**) for the six months ended June 30, 2025, primarily due to **$5.3 million** lower environmental and legal reserve related costs[128](index=128&type=chunk) [Adjusted EBITDA](index=41&type=section&id=Adjusted%20EBITDA) This section provides a reconciliation and analysis of Adjusted EBITDA, a key non-GAAP measure of operating performance - Adjusted EBITDA increased by **$8.4 million** (**2.6%**) for the three months and **$13.2 million** (**2.4%**) for the six months ended June 30, 2025[133](index=133&type=chunk) - Adjusted EBITDA is a non-GAAP measure used by management and investors to understand operating performance, excluding certain non-core expenses[129](index=129&type=chunk)[130](index=130&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $126,905 | $133,280 | $185,585 | $203,112 | | Accretion of environmental liabilities | $3,591 | $3,304 | $7,211 | $6,521 | | Stock-based compensation | $6,063 | $8,515 | $13,698 | $14,853 | | Depreciation and amortization | $116,285 | $100,504 | $228,265 | $195,569 | | Other expense, net | $603 | $167 | $1,535 | $1,308 | | Interest expense, net of interest income | $37,106 | $36,449 | $73,183 | $64,988 | | Provision for income taxes | $45,684 | $45,597 | $61,614 | $71,560 | | **Adjusted EBITDA** | **$336,237** | **$327,816** | **$571,091** | **$557,911** | [Stock-based Compensation](index=42&type=section&id=Stock-based%20Compensation) This section details stock-based compensation expense and factors contributing to its changes during the periods Stock-based Compensation (in thousands) | Period | 2025 | 2024 | Change | % Change | | :--------------------------------- | :------- | :------- | :------- | :------- | | Three Months Ended June 30 | $6,063 | $8,515 | $(2,452) | (28.8)% | | Six Months Ended June 30 | $13,698 | $14,853 | $(1,155) | (7.8)% | - The decrease in stock-based compensation was due to higher expense in 2024 for performance awards, a longer recognition period for 2025 awards, and higher forfeitures in 2025, partially offset by increased ESPP expense[134](index=134&type=chunk) [Depreciation and Amortization](index=42&type=section&id=Depreciation%20and%20Amortization) This section explains changes in depreciation and amortization expense, driven by capital investments and acquisitions Total Depreciation and Amortization (in thousands) | Period | 2025 | 2024 | Change | % Change | | :--------------------------------- | :------- | :------- | :------- | :------- | | Three Months Ended June 30 | $116,285 | $100,504 | $15,781 | 15.7% | | Six Months Ended June 30 | $228,265 | $195,569 | $32,696 | 16.7% | - The increase was primarily driven by depreciation for the new Kimball incinerator, assets from the HEPACO and Noble acquisitions, and other business growth investments[135](index=135&type=chunk)[136](index=136&type=chunk) [Interest Expense, Net of Interest Income](index=43&type=section&id=Interest%20Expense%2C%20Net%20of%20Interest%20Income) This section analyzes the company's net interest expense, including the impact of outstanding debt and interest rates Interest Expense, Net of Interest Income (in thousands) | Period | 2025 | 2024 | Change | % Change | | :--------------------------------- | :------- | :------- | :------- | :------- | | Three Months Ended June 30 | $37,106 | $36,449 | $657 | 1.8% | | Six Months Ended June 30 | $73,183 | $64,988 | $8,195 | 12.6% | - The increase for the six-month period was primarily due to higher levels of outstanding debt from the March 2024 issuance, partially offset by a **$2.8 million** increase in interest income[138](index=138&type=chunk) - The effective interest rate on debt was **5.3%** as of June 30, 2025[139](index=139&type=chunk) [Provision for Income Taxes](index=43&type=section&id=Provision%20for%20Income%20Taxes) This section discusses the provision for income taxes and the effective tax rate, highlighting factors influencing tax expense Provision for Income Taxes (in thousands) | Period | 2025 | 2024 | Change | % Change | | :--------------------------------- | :------- | :------- | :------- | :------- | | Three Months Ended June 30 | $45,684 | $45,597 | $87 | 0.2% | | Six Months Ended June 30 | $61,614 | $71,560 | $(9,946) | (13.9)% | | Effective tax rate (6 months) | 24.9% | 26.1% | (1.2)% | N/A | - The decrease for the six-month period was driven by lower pre-tax income and a reduced effective tax rate, influenced by the write-off of a deferred tax asset related to a remedial liability change[141](index=141&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's cash flows, capital expenditures, debt, and financial flexibility to meet obligations Summary of Cash Flow Activity (in thousands, Six Months Ended June 30) | Item | 2025 | 2024 | | :--------------------------------- | :--------- | :--------- | | Net cash from operating activities | $209,645 | $234,594 | | Net cash used in investing activities | $(200,742) | $(730,670) | | Net cash (used in) from financing activities | $(101,169) | $455,503 | - Net cash from operating activities decreased by **$24.9 million** due to increased working capital balances[144](index=144&type=chunk) - Net cash used in investing activities decreased by **$529.9 million**, primarily due to lower acquisition payments in 2025 compared to the prior year's HEPACO and Noble acquisitions[145](index=145&type=chunk) - Adjusted free cash flow was an inflow of **$17.4 million** for the six months ended June 30, 2025, compared to an outflow of **$34.1 million** in the prior year, mainly due to lower cash paid for property, plant, and equipment[148](index=148&type=chunk) - Capital expenditures for the first six months of 2025 were **$208.7 million**, a decrease of **$64.3 million** from 2024, with full-year 2025 capital spending expected to be **$360.0 million** to **$390.0 million**[151](index=151&type=chunk) - The company repurchased **$66.8 million** of common stock during the six months ended June 30, 2025, with **$432.4 million** remaining available under the board-approved plan[155](index=155&type=chunk)[156](index=156&type=chunk) - Total environmental liabilities decreased by **$5.3 million** to **$236.2 million** as of June 30, 2025, primarily due to reductions in estimates and expenditures[157](index=157&type=chunk) [ITEM 3: Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=ITEM%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes to the company's quantitative and qualitative disclosures about market risk from the information provided in its Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to market risk disclosures compared to the prior annual report on Form 10-K[163](index=163&type=chunk) [ITEM 4: Controls and Procedures](index=46&type=section&id=ITEM%204%3A%20Controls%20and%20Procedures) The Co-Chief Executive Officers and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025. There were no material changes in internal control over financial reporting during the quarter - Disclosure controls and procedures were effective as of June 30, 2025[164](index=164&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter ended June 30, 2025[165](index=165&type=chunk) PART II: OTHER INFORMATION This section includes information on legal proceedings, risk factors, equity security sales, defaults, and other required disclosures [ITEM 1: Legal Proceedings](index=47&type=section&id=ITEM%201%3A%20Legal%20Proceedings) This section refers to Note 15 of the unaudited consolidated financial statements for detailed information regarding the company's legal proceedings and claims - Details on legal proceedings are incorporated by reference from Note 15, 'Commitments and Contingencies,' in Item 1 of this report[167](index=167&type=chunk) [ITEM 1A: Risk Factors](index=47&type=section&id=ITEM%201A%3A%20Risk%20Factors) No material changes to risk factors from the prior annual report on Form 10-K were reported - No material changes to the risk factors from the information provided in the Company's Annual Report on Form 10-K for the year ended December 31, 2024[168](index=168&type=chunk) [ITEM 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=ITEM%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased common stock, with $432.4 million remaining available for repurchases as of June 30, 2025 Common Stock Repurchase Program (April 1, 2025 through June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--------------------------------- | :------------------------------- | :--------------------------- | | April 1, 2025 through April 30, 2025 | 64,299 | $191.09 | | May 1, 2025 through May 31, 2025 | 1,252 | $217.38 | | June 1, 2025 through June 30, 2025 | 4,260 | $226.79 | | **Total** | **69,811** | **$193.74** | - As of June 30, 2025, **$432.4 million** remained available for repurchase under the board-approved plan[169](index=169&type=chunk)[171](index=171&type=chunk) - Repurchases are funded through available cash resources and may be made on the open market or in privately negotiated transactions[171](index=171&type=chunk) [ITEM 3: Defaults Upon Senior Securities](index=47&type=section&id=ITEM%203%3A%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - No defaults upon senior securities were reported[170](index=170&type=chunk) [ITEM 4: Mine Safety Disclosures](index=47&type=section&id=ITEM%204%3A%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine Safety Disclosures are not applicable to the company[170](index=170&type=chunk) [ITEM 5: Other Information](index=47&type=section&id=ITEM%205%3A%20Other%20Information) No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[170](index=170&type=chunk) [ITEM 6: Exhibits](index=49&type=section&id=ITEM%206%3A%20Exhibits) This section lists exhibits filed with the Form 10-Q, including certifications from executive officers and XBRL taxonomy documents - Exhibits include Rule 13a-14a/15d-14(a) Certifications from the Co-CEOs and CFO, Section 1350 Certifications, and Inline XBRL Taxonomy Extension documents[172](index=172&type=chunk) [Signatures](index=50&type=section&id=Signatures) The report is duly signed on behalf of Clean Harbors, Inc. by its Co-Chief Executive Officers and Chief Financial Officer - The report was signed by Michael L. Battles (Co-Chief Executive Officer and Co-President), Eric W. Gerstenberg (Co-Chief Executive Officer and Co-President), and Eric J. Dugas (Executive Vice President and Chief Financial Officer) on July 30, 2025[177](index=177&type=chunk)

Core Insights - Clean Harbors reported revenue of $1.55 billion for the quarter ended June 2025, a slight decrease of 0.2% year-over-year, with EPS at $2.36 compared to $2.46 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $1.58 billion by 2.04%, while the EPS exceeded the consensus estimate of $2.33 by 1.29% [1] Revenue Breakdown - Environmental Services revenue was $1.35 billion, surpassing the average estimate of $1.34 billion by analysts, reflecting a year-over-year increase of 4.2% [4] - Safety-Kleen Sustainability Solutions revenue was $197.73 million, significantly below the estimated $245.05 million, marking a decline of 22.6% year-over-year [4] - Corporate Items revenue was $0.09 million, slightly below the average estimate of $0.1 million, representing a year-over-year decrease of 10.1% [4] Adjusted EBITDA Performance - Adjusted EBITDA for Environmental Services was reported at $376.19 million, slightly above the average estimate of $375.89 million [4] - Adjusted EBITDA for Corporate Items was -$78.27 million, better than the average estimate of -$82.47 million [4] - Adjusted EBITDA for Safety-Kleen Sustainability Solutions was $38.31 million, slightly below the estimated $38.82 million [4] Stock Performance - Clean Harbors shares have returned +3.8% over the past month, outperforming the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company achieved a consolidated adjusted EBITDA margin of 21.7%, an increase of 60 basis points year-over-year, driven by strong demand for disposal and recycling assets and lower SG&A costs [5][24]. - Total company revenue was essentially flat compared to 2024, with growth in Environmental Services offsetting a decline in Safety Kleen Sustainable Solutions (SKSS) [23]. - Adjusted free cash flow reached a record of $133 million, up nearly $50 million or approximately 60% from the prior year [26]. Business Line Data and Key Metrics Changes - Environmental Services (ES) segment adjusted EBITDA margin grew year-over-year for the thirteenth consecutive quarter, driven by increased volumes, pricing, and efficiency gains [6][7]. - Safety Kleen Environmental revenue increased by 9% due to pricing gains and growth in core service offerings, despite a slight decline in parts wash services [7]. - Technical Services saw a 4% revenue increase supported by higher incineration and landfill volumes, with incineration prices rising by 7% on a mix-adjusted basis [8]. Market Data and Key Metrics Changes - The company noted strong demand for incineration services, with utilization rates at 89%, up from 88% a year ago, indicating robust market conditions despite tariff uncertainties [8][9]. - The threat of PFAS litigation is creating urgency at various government levels, positioning the company to capitalize on a multibillion-dollar remediation opportunity [12]. Company Strategy and Development Direction - The company is focused on capital allocation strategies to generate long-term returns, with plans for both organic investments and strategic M&A opportunities [17][19]. - The company is actively evaluating bolt-on transactions and larger acquisitions to enhance its market position and unlock long-term value [19][80]. - The ongoing reshoring trend and substantial planned industrial investments in the U.S. are expected to drive greater customer activity and demand for services [20][21]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, noting that customer activity is expected to remain strong despite near-term trade headwinds [20][31]. - The company anticipates continued growth in the second half of the year, supported by a solid project pipeline and favorable macroeconomic conditions [28][31]. - Management highlighted that the worst of maintenance deferrals from industrial services customers appears to be behind them, indicating potential for increased activity [10][56]. Other Important Information - The company is addressing the potential for further processing of re-refining byproducts, believing there is value to be harvested in this area [19]. - The company has a strong balance sheet with nearly $700 million in cash and short-term marketable securities, providing flexibility for future investments [25]. Q&A Session Summary Question: Broad view on the macro environment and market share - Management noted that volumes into their network are at all-time highs, with a strong project pipeline and no signs of demand slowing down [40][41]. Question: Confidence in SKSS guidance and potential risks - Management expressed confidence in achieving the $140 million EBITDA target for SKSS, citing improved collection rates and pricing strategies [55][109]. Question: Outlook for turnaround activity and major projects - Management indicated that while turnaround activity is up, the guidance does not depend on a significant ramp-up, suggesting cautious optimism for the back half of the year [56][60]. Question: Impact of tariff uncertainty on remediation projects - Management clarified that growth in projects and remediation is not correlated with tariff issues, emphasizing a strong project pipeline [63][65]. Question: Update on PFAS incineration study and regulatory guidelines - Management confirmed successful results from a PFAS study and anticipates further guidance from the EPA in the near future [68][69]. Question: Expectations for Kimball and EBITDA contribution - Management is confident in the ramp-up of the Kimball facility, expecting strong volumes and EBITDA contributions in the coming quarters [73][75]. Question: M&A opportunities and capital deployment strategy - Management highlighted a full pipeline of M&A opportunities while maintaining a disciplined approach to capital deployment based on returns [79][82]. Question: Environmental Services margins and future trends - Management expects continued margin expansion in Environmental Services, supported by pricing, labor management, and cost efficiencies [88][90].

Financial Data and Key Metrics Changes - The company achieved a consolidated adjusted EBITDA margin of 21.7%, an increase of 60 basis points year-over-year, driven by strong demand for disposal and recycling assets and lower SG&A costs [5][24]. - Q2 adjusted EBITDA was $336 million, reflecting higher earnings in the Environmental Services segment and improved corporate costs, offsetting lower contributions from Safety Kleen Sustainable Solutions (SKSS) [24][30]. - Total company revenue was essentially flat compared to 2024, with growth in Environmental Services offsetting the decline in SKSS [23]. Business Line Data and Key Metrics Changes - Environmental Services (ES) segment adjusted EBITDA margin grew year-over-year for the thirteenth consecutive quarter, driven by increased volumes, pricing, and efficiency gains [6][7]. - Safety Kleen Environmental led growth at 9%, driven by pricing gains and growth in core service offerings, despite a slight decline in parts wash services [7][8]. - Technical Services saw a 4% revenue increase supported by higher incineration and landfill volumes, with incineration prices rising 7% on a mix-adjusted basis [9]. Market Data and Key Metrics Changes - The company reported strong demand for incineration services, with utilization rates at 89%, up from 88% a year ago, excluding new facilities [9][10]. - The threat of PFAS litigation is creating urgency at various government levels to address contamination, positioning the company to lead in PFAS remediation solutions [12][13]. - The reshoring trend and planned industrial investments in the U.S. are expected to drive greater customer activity and demand for services [20][21]. Company Strategy and Development Direction - The company is focused on executing a capital allocation strategy aimed at generating long-term returns, with plans for both organic investments and strategic M&A opportunities [17][19]. - The company is enhancing its operational efficiencies and pricing strategies to drive further margin improvement, with a goal of achieving record top-line and bottom-line results in 2025 [21][30]. - The company is actively evaluating opportunities for acquisitions that align with its market position and can unlock long-term value [18][79]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, noting that customer activity remains strong despite near-term trade headwinds [20][31]. - The company anticipates continued growth in the second half of the year, supported by a robust project pipeline and favorable macroeconomic conditions [29][31]. - Management highlighted that the worst of maintenance deferrals from industrial services customers appears to be behind them, indicating potential for increased activity [11][58]. Other Important Information - The company reported cash and short-term marketable securities of nearly $700 million, with a net debt to EBITDA ratio of approximately 2x [26]. - Adjusted free cash flow reached a record $133 million in Q2, up nearly $50 million from the prior year [27]. - The company expects full-year adjusted EBITDA guidance to be in the range of $1.16 billion to $1.2 billion, representing a year-over-year growth of 6% [29]. Q&A Session Summary Question: Broad view on the macro environment and market share - Management noted strong volumes and a robust sales pipeline, indicating potential market share gains despite a slow industrial macro [38][40]. Question: Confidence in SKSS guidance and refinery turnarounds - Management clarified that the back half of the year does not heavily depend on a significant ramp in industrial services turnarounds, focusing instead on servicing high-margin customers [45][46]. Question: Impact of bonus depreciation on investments - Management expects incremental cash tax savings from recent tax changes, which may drive further investment in the U.S. manufacturing sector [47][48]. Question: Outlook for SKSS and Environmental Services pricing - Management indicated that lower cost inventory will support profitability in SKSS, with a disciplined pricing improvement plan in place for Environmental Services [106][110]. Question: Update on PFAS remediation efforts - Management confirmed successful PFAS incineration study results and anticipates further regulatory guidance from the EPA [67][70].

Group 1: Earnings Performance - Clean Harbors reported quarterly earnings of $2.36 per share, exceeding the Zacks Consensus Estimate of $2.33 per share, but down from $2.46 per share a year ago, representing an earnings surprise of +1.29% [1] - The company posted revenues of $1.55 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.04%, with year-ago revenues also at $1.55 billion [2] - Over the last four quarters, Clean Harbors has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Clean Harbors shares have increased by approximately 3.5% since the beginning of the year, compared to the S&P 500's gain of 8.3% [3] - The company's earnings outlook will be crucial for future stock movements, with current consensus EPS estimates at $2.31 for the coming quarter and $7.44 for the current fiscal year [4][7] - The estimate revisions trend for Clean Harbors was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Waste Removal Services industry, to which Clean Harbors belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Financial Performance - Revenue remained relatively flat at $1.55 billion compared to the prior year[8, 24] - Net income was $126.9 million, resulting in earnings per share (EPS) of $2.36[8] - Adjusted EBITDA increased to $336.2 million, with the Adjusted EBITDA margin rising by 60 bps to 21.7%[8] - Adjusted free cash flow was $133.2 million, aligning with company expectations[8] Segment Performance - Environmental Services segment experienced growth, driven by a favorable revenue mix and strong demand for services and disposal assets; Revenue increased by 3% from $1,309.4 million to $1,352.0 million, and Adjusted EBITDA increased by 5% from $359.9 million to $376.2 million[8, 10] - Safety-Kleen Sustainability Solutions (SKSS) segment met Q2 expectations through effective management of re-refining spread and a lower cost structure; Revenue decreased by 19% from $243.2 million to $197.7 million, and Adjusted EBITDA decreased by 26% from $51.5 million to $38.3 million[8, 15] Operational Highlights - The company's safety performance was excellent, achieving a Q2 TRIR (Total Recordable Incident Rate) of 0.40, the lowest in its history[8] - Incinerator utilization in the Environmental Services segment was 89% compared to 88% in Q2 2024, with prices up by 7% on a mix-adjusted basis[13] - SK Environmental Services revenue increased by 9%, driven by pricing strategies and growth in core offerings[13] - Waste oil collection in the SKSS segment totaled 64 million gallons, compared to 67 million gallons in Q2 2024[18] Financial Position and Guidance - The company maintains a disciplined capital allocation strategy focused on organic growth, acquisitions, share repurchases, and debt repayment[19, 20, 21] - Full-year 2025 guidance includes a net income range of $383 million to $419 million and an Adjusted EBITDA range of $1.16 billion to $1.20 billion[28] - Full-year 2025 guidance projects net cash from operating activities between $775 million and $865 million, and adjusted free cash flow between $430 million and $490 million[28]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Clean Harbors reported flat Q2 2025 revenues at $1.55 billion but achieved record Adjusted EBITDA of $336.2 million, driven by strong ES segment growth and effective SKSS stabilization, while management emphasized cost reduction and safety [Company Overview & Q2 2025 Highlights](index=1&type=section&id=Company%20Overview%20%26%20Q2%202025%20Highlights) Clean Harbors, a leading environmental and industrial services provider, announced Q2 2025 financial results, reporting flat revenues at $1.55 billion but achieving record Adjusted EBITDA of $336.2 million, a 60 bps margin increase. The Environmental Services (ES) segment showed growth, driven by strong incineration performance and robust demand - **Clean Harbors, Inc. (NYSE: CLH) is North America's leading provider** of environmental and industrial services[3](index=3&type=chunk)[18](index=18&type=chunk) Q2 2025 Key Financial Highlights | Metric | Value | | :-------------------------- | :------------ | | Revenues | **$1.55 billion** (flat YoY) | | Q2 Net Income | **$126.9 million** | | Diluted EPS | **$2.36** | | Record Q2 Adjusted EBITDA | **$336.2 million** | | Adjusted EBITDA Margin | **21.7%** (**+60 bps**) | - Environmental Services (ES) segment achieved **3% revenue growth** and **5% Adjusted EBITDA growth**, driven by strong incineration performance and robust demand[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Co-CEOs highlighted consistent profitable growth in the ES segment due to strong disposal asset demand and stabilization in the SKSS segment from effective collection strategies. They emphasized improved consolidated Adjusted EBITDA margin through cost structure reduction, particularly SG&A, and achieved the best quarterly safety results in company history - Environmental Services (ES) segment experienced consistent profitable growth with strong demand for disposal assets[4](index=4&type=chunk) - Safety-Kleen Sustainability Solutions (SKSS) segment stabilized, with favorable results from collection strategies[4](index=4&type=chunk) - Consolidated **Adjusted EBITDA margin improved by 60 basis points** year-over-year by lowering the overall cost structure with a sharp focus on SG&A spend[4](index=4&type=chunk) - **Achieved the best quarterly safety results in company history, generating a Total Recordable Incident Rate (TRIR) of 0.40**[4](index=4&type=chunk) [Second-Quarter 2025 Financial Results](index=1&type=section&id=Second-Quarter%202025%20Financial%20Results) Clean Harbors reported flat Q2 2025 revenues of $1.55 billion, with a slight decrease in net income but an increase in Adjusted EBITDA, driven by strong performance in the Environmental Services segment [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) For Q2 2025, Clean Harbors reported revenues of $1.55 billion, flat year-over-year. Income from operations decreased slightly to $210.3 million, and net income was $126.9 million ($2.36 per diluted share), down from $133.3 million ($2.46 per diluted share) in Q2 2024. Adjusted EBITDA, however, increased to $336.2 million from $327.8 million Q2 2025 Consolidated Financials (vs. Q2 2024) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Change | | :-------------------------- | :--------------------- | :--------------------- | :----- | | Revenues | **$1,549,854** | **$1,552,719** | Flat | | Income from operations | **$210,298** | **$215,493** | (2.4%) | | Net income | **$126,905** | **$133,280** | (4.8%) | | Diluted EPS | **$2.36** | **$2.46** | (4.1%) | | Adjusted EBITDA | **$336,237** | **$327,816** | **2.6%** | | Adjusted EBITDA Margin | **21.7%** | **21.1%** | **+0.6 pts** | [Segment Performance](index=1&type=section&id=Segment%20Performance) The Environmental Services (ES) segment achieved 3% revenue growth and 5% Adjusted EBITDA growth, marking its 13th consecutive quarter of year-over-year Adjusted EBITDA margin improvement, driven by strong disposal volumes and pricing. The Safety-Kleen Sustainability Solutions (SKSS) segment exceeded expectations, supported by effective waste oil collection strategies and aggressive management of re-refining spread - ES segment achieved **3% growth in revenue** and **5% growth in Adjusted EBITDA**, marking its **13th consecutive quarter** of year-over-year improvement in segment **Adjusted EBITDA margin**[6](index=6&type=chunk)[7](index=7&type=chunk) - SKSS segment **results were ahead of expectations**, supported by waste oil collection strategies and aggressive management of re-refining spread[7](index=7&type=chunk) Q2 2025 Segment Revenue (vs. Q2 2024, in thousands) | Segment | Q2 2025 Third-Party Revenues | Q2 2024 Third-Party Revenues | Change | | :------------------------------ | :--------------------------- | :--------------------------- | :----- | | Environmental Services | **$1,330,059** | **$1,297,298** | **2.5%** | | Safety-Kleen Sustainability Solutions | **$219,706** | **$255,322** | (**13.9%**) | Q2 2025 Segment Adjusted EBITDA (vs. Q2 2024, in thousands) | Segment | Q2 2025 Adjusted EBITDA | Q2 2024 Adjusted EBITDA | Change | | :------------------------------ | :---------------------- | :---------------------- | :----- | | Environmental Services | **$376,194** | **$359,915** | **4.5%** | | Safety-Kleen Sustainability Solutions | **$38,313** | **$51,476** | (**25.6%**) | [Environmental Services (ES)](index=1&type=section&id=Environmental%20Services%20%28ES%29) The ES segment's top-line growth was led by Safety-Kleen Environmental Services and Technical Services, with strong incineration utilization and improved margins across Field and Industrial Services - Top-line growth in ES segment was led by **Safety-Kleen Environmental Services, which rose 9%** through pricing and growth in core offerings[7](index=7&type=chunk) - **Technical Services revenue grew 4%** on strength in disposal volumes[7](index=7&type=chunk) - **Incineration utilization (excluding new Kimball incinerator) was 89%**, with average incineration price rising **7%** on a mix-adjusted basis[7](index=7&type=chunk) - **Field Services and Industrial Services improved margins year-over-year**[7](index=7&type=chunk) [Safety-Kleen Sustainability Solutions (SKSS)](index=2&type=section&id=Safety-Kleen%20Sustainability%20Solutions%20%28SKSS%29) The SKSS segment exceeded expectations through effective waste oil collection strategies, aggressive re-refining spread management, and a strategic shift to higher charge-for-oil pricing - **Results in SKSS segment were ahead of expectations**, supported by waste oil collection strategies and success in aggressively managing re-refining spread[7](index=7&type=chunk) - **Collected 64 million gallons** of waste oil in the quarter, enabling production goals[7](index=7&type=chunk) - **Shift to higher charge-for-oil (CFO) pricing**, continued since November, positions the segment well for the back half of the year[7](index=7&type=chunk) - **Expects to achieve annual targets** for this business in 2025 while reducing volatility[7](index=7&type=chunk) [Business Outlook and Financial Guidance](index=2&type=section&id=Business%20Outlook%20and%20Financial%20Guidance) Clean Harbors anticipates strong second-half momentum, driven by a promising North American economic outlook and strategic initiatives, reiterating full-year 2025 Adjusted EBITDA and Adjusted Free Cash Flow guidance [Market Outlook and Strategic Focus](index=2&type=section&id=Market%20Outlook%20and%20Strategic%20Focus) Clean Harbors anticipates strong momentum in the second half of 2025, supported by a promising North American economic outlook and continued reshoring. Despite short-term tariff uncertainty, the company expects long-term customer activity to be driven by tax bill benefits and manufacturing incentives. The ES segment sees healthy demand and a substantial project pipeline, including remediation projects. For SKSS, the focus remains on managing collection rates, cost structure, and advancing value-added initiatives like the Castrol partnership and Group III production - Anticipates a strong second half of 2025 with considerable momentum across core markets, backed by a promising North American economic outlook as reshoring continues[8](index=8&type=chunk) - Expects tangible benefits of recent tax bill and incentives to invest in American manufacturing to drive customer activity over the longer-term, despite short-term tariff uncertainty[8](index=8&type=chunk) - ES segment continues to see healthy overall demand from customers, resulting in a substantial project pipeline, with multiple customers expected to proceed with remediation projects[8](index=8&type=chunk) - For SKSS, the focus will remain on actively managing collection rates and cost structure, while advancing value-added initiatives like the Castrol partnership and Group III production[8](index=8&type=chunk) [Full-Year 2025 Guidance](index=2&type=section&id=Full-Year%202025%20Guidance) Clean Harbors reiterated its full-year 2025 guidance, expecting Adjusted EBITDA in the range of $1.16 billion to $1.20 billion (midpoint $1.18 billion, 6% YoY growth) and Adjusted Free Cash Flow between $430 million and $490 million (midpoint $460 million, nearly 30% YoY increase). For Q3 2025, Adjusted EBITDA is projected to grow 9-12% year-over-year - In the third quarter of 2025, Clean Harbors expects **Adjusted EBITDA** to grow **9-12%** from the comparable quarter of the prior year[8](index=8&type=chunk) Full-Year 2025 Guidance Midpoints | Metric | Range | Midpoint | YoY Growth (Midpoint) | | :---------------------- | :-------------------- | :--------- | :-------------------- | | Adjusted EBITDA | **$1.16 billion** - **$1.20 billion** | **$1.18 billion** | **6%** | | Adjusted Free Cash Flow | **$430 million** - **$490 million** | **$460 million** | **~30%** | - The **Adjusted EBITDA** range is based on anticipated GAAP net income in the range of **$383 million to $419 million**[11](index=11&type=chunk)[13](index=13&type=chunk) - The **Adjusted free cash flow** range is based on anticipated **net cash from operating activities** in the range of **$775 million to $865 million**[11](index=11&type=chunk)[15](index=15&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides detailed reconciliations for non-GAAP financial measures, including Adjusted EBITDA and Adjusted Free Cash Flow, to their most directly comparable GAAP measures [Adjusted EBITDA Reconciliation](index=3&type=section&id=Adjusted%20EBITDA%20Reconciliation) Clean Harbors defines Adjusted EBITDA as a non-GAAP measure, supplementing GAAP net income, and uses it to evaluate business performance. The reconciliation table shows adjustments for items such as accretion of environmental liabilities, stock-based compensation, depreciation and amortization, other expense, interest expense, and provision for income taxes - **Adjusted EBITDA** is a **non-GAAP financial measure** used by management to routinely evaluate the performance of its businesses, viewed as a supplement to GAAP measurements[9](index=9&type=chunk) Adjusted EBITDA Reconciliation (Q2 2025 vs. Q2 2024, in thousands) | Item | Q2 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | | Net income | **$126,905** | **$133,280** | | Accretion of environmental liabilities | **$3,591** | **$3,304** | | Stock-based compensation | **$6,063** | **$8,515** | | Depreciation and amortization | **$116,285** | **$100,504** | | Other expense, net | **$603** | **$167** | | Interest expense, net of interest income | **$37,106** | **$36,449** | | Provision for income taxes | **$45,684** | **$45,597** | | **Adjusted EBITDA** | **$336,237** | **$327,816** | | Adjusted EBITDA Margin | **21.7%** | **21.1%** | Projected Adjusted EBITDA Reconciliation (FY 2025, in millions) | Item | Low End | High End | | :-------------------------- | :------ | :------- | | Projected GAAP net income | **$383** | **$419** | | Accretion of environmental liabilities | **$15** | **$14** | | Stock-based compensation | **$28** | **$31** | | Depreciation and amortization | **$450** | **$440** | | Interest expense, net | **$147** | **$142** | | Provision for income taxes | **$137** | **$154** | | **Projected Adjusted EBITDA** | **$1,160** | **$1,200** | [Adjusted Free Cash Flow Reconciliation](index=3&type=section&id=Adjusted%20Free%20Cash%20Flow%20Reconciliation) Adjusted free cash flow is a non-GAAP liquidity measure defined as net cash from operating activities less additions to property, plant and equipment, plus proceeds from sale and disposal of fixed assets, with adjustments for non-operating cash impacts. The company excludes significant one-time growth investments, such as the Phoenix Hub investment, from this measure as they are not indicative of current period free cash flow generation - **Adjusted free cash flow** is a **non-GAAP measure of liquidity**, defined as **net cash from operating activities** less additions to property, plant and equipment plus proceeds from sale and disposal of fixed assets, adjusted for non-operating activities[10](index=10&type=chunk) - Significant one-time growth investments, such as the **cash investment in Phoenix Hub**, are excluded from **adjusted free cash flow** as they are not indicative of free cash flow generation for the current period[14](index=14&type=chunk) Adjusted Free Cash Flow Reconciliation (Q2 2025 vs. Q2 2024, in thousands) | Item | Q2 2025 | Q2 2024 | | :---------------------------------- | :------ | :------ | | Net cash from operating activities | **$208,040** | **$216,045** | | Additions to property, plant and equipment | (**$90,029**) | (**$135,110**) | | Cash investment in Phoenix Hub | **$12,436** | — | | Proceeds from sale and disposal of fixed assets | **$2,720** | **$3,287** | | **Adjusted free cash flow** | **$133,167** | **$84,222** | Projected Adjusted Free Cash Flow Reconciliation (FY 2025, in millions) | Item | Low End | High End | | :---------------------------------- | :------ | :------- | | Projected net cash from operating activities | **$775** | **$865** | | Additions to property, plant and equipment | (**$370**) | (**$400**) | | Cash investment in Phoenix Hub | **$15** | **$15** | | Proceeds from sale and disposal of fixed assets | **$10** | **$10** | | **Projected adjusted free cash flow** | **$430** | **$490** | [Company Information](index=4&type=section&id=Company%20Information) This section provides details on the Q2 2025 conference call, an overview of Clean Harbors' services and operations, a safe harbor statement regarding forward-looking information, and investor relations contacts [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) Clean Harbors hosted a conference call on July 30, 2025, at 9:00 a.m. ET to discuss financial results, business outlook, and growth strategy. Investors could access the webcast and slides via the company's Investor Relations website or by dialing in. An archived webcast is available for those unable to attend live - Conference call held on July 30, 2025, at 9:00 a.m. (ET) to discuss financial results, business outlook, and growth strategy[16](index=16&type=chunk) - Webcast and accompanying slides available on the Investor Relations section of www.cleanharbors.com[17](index=17&type=chunk) - Live call accessible by dialing 877.709.8155 or 201.689.8881; webcast will be archived on the Company's website[17](index=17&type=chunk) [About Clean Harbors](index=5&type=section&id=About%20Clean%20Harbors) Clean Harbors (NYSE: CLH) is North America's leading provider of environmental and industrial services, serving a diverse customer base including Fortune 500 companies and government agencies. Its services encompass hazardous waste management, emergency spill response, industrial cleaning, and recycling. Through its Safety-Kleen subsidiary, it also provides parts washers, environmental services, and is North America's largest re-refiner and recycler of used oil. Founded in 1980, the company operates across the US, Canada, Mexico, Puerto Rico, and India - **Clean Harbors (NYSE: CLH) is North America's leading provider** of environmental and industrial services[18](index=18&type=chunk) - Serves a diverse customer base, including a majority of Fortune 500 companies, across industries like chemical, manufacturing, refining, and government agencies[18](index=18&type=chunk) - Offers services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services[18](index=18&type=chunk) - Through its Safety-Kleen subsidiary, it is a leading provider of parts washers and environmental services, and **North America's largest re-refiner and recycler of used oil**[18](index=18&type=chunk) [Safe Harbor Statement](index=5&type=section&id=Safe%20Harbor%20Statement) The document contains forward-looking statements, identifiable by specific terminology, regarding future financial and operating results, plans, strategy, and market conditions. These statements are based on management's beliefs as of the press release date and are subject to various risks and uncertainties, including operational, safety, cybersecurity, economic, regulatory, and litigation risks, which could cause actual results to differ materially. Readers are cautioned not to place undue reliance on these statements, and Clean Harbors disclaims any obligation to revise them beyond SEC filings - Statements that are not historical facts are **forward-looking statements**, identifiable by words like 'believes,' 'expects,' 'intends,' 'anticipates,' 'plans to,' 'seeks,' 'will,' 'should,' 'estimates,' 'projects,' 'may,' 'likely,' 'potential,' 'outlook' or similar expressions[19](index=19&type=chunk) - Such statements are based upon the beliefs and expectations of Clean Harbors' management as of the date of the press release and are subject to certain risks and uncertainties that could cause actual results to differ materially[19](index=19&type=chunk) - Risks include operational and safety risks, cybersecurity risks, natural disasters, retention of key personnel, environmental liability, negative economic developments, regulatory changes, litigation, and other factors identified as 'Risk Factors' in SEC filings[19](index=19&type=chunk)[20](index=20&type=chunk) - Readers are cautioned not to place undue reliance on these **forward-looking statements**, and Clean Harbors undertakes no obligation to revise or publicly release the results of any revision other than through SEC filings[20](index=20&type=chunk) [Contacts](index=7&type=section&id=Contacts) Investor relations contacts for Clean Harbors are Eric J. Dugas, EVP and Chief Financial Officer, and Jim Buckley, SVP Investor Relations. Both can be reached at 781.792.5100 or via email at InvestorRelations@cleanharbors.com or Buckley.James@cleanharbors.com - Contacts for investor relations are Eric J. Dugas (EVP and Chief Financial Officer) and Jim Buckley (SVP Investor Relations)[21](index=21&type=chunk) - Contact phone number: **781.792.5100**[21](index=21&type=chunk) - Contact emails: InvestorRelations@cleanharbors.com and Buckley.James@cleanharbors.com[21](index=21&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated statements of operations, balance sheets, cash flows, and supplemental segment data for Clean Harbors [Statements of Operations](index=8&type=section&id=Statements%20of%20Operations) The unaudited condensed consolidated statements of operations show that for the three months ended June 30, 2025, revenues were $1,549,854 thousand, with net income of $126,905 thousand, resulting in diluted EPS of $2.36. For the six months ended June 30, 2025, revenues were $2,981,804 thousand, with net income of $185,585 thousand and diluted EPS of $3.44 Unaudited Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | **$1,549,854** | **$1,552,719** | **$2,981,804** | **$2,929,414** | | Cost of revenues | **$1,033,497** | **$1,035,542** | **$2,055,381** | **$2,006,612** | | Selling, general and administrative expenses | **$186,183** | **$197,876** | **$369,030** | **$379,744** | | Income from operations | **$210,298** | **$215,493** | **$321,917** | **$340,968** | | Net income | **$126,905** | **$133,280** | **$185,585** | **$203,112** | | Diluted EPS | **$2.36** | **$2.46** | **$3.44** | **$3.75** | [Balance Sheets](index=9&type=section&id=Balance%20Sheets) As of June 30, 2025, Clean Harbors reported total assets of $7,439,929 thousand, an increase from $7,377,278 thousand at December 31, 2024. Total current assets were $2,475,381 thousand, and total stockholders' equity was $2,714,067 thousand Condensed Consolidated Balance Sheets (in thousands) | Item | June 30, 2025 (unaudited) | December 31, 2024 | | :------------------------------------ | :-------------------------- | :------------------ | | Cash and cash equivalents | **$600,186** | **$687,192** | | Total current assets | **$2,475,381** | **$2,433,796** | | Property, plant and equipment, net | **$2,507,101** | **$2,447,941** | | Goodwill | **$1,479,805** | **$1,477,199** | | Total assets | **$7,439,929** | **$7,377,278** | | Total current liabilities | **$1,011,750** | **$1,102,666** | | Long-term debt, less current portion | **$2,766,530** | **$2,771,117** | | Total stockholders' equity, net | **$2,714,067** | **$2,573,529** | | Total liabilities and stockholders' equity | **$7,439,929** | **$7,377,278** | [Statements of Cash Flows](index=10&type=section&id=Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities was $209,645 thousand, a decrease from $234,594 thousand in the prior year period. Net cash used in investing activities was $200,742 thousand, significantly lower than $730,670 thousand in H1 2024, primarily due to no major acquisitions. Net cash used in financing activities was $101,169 thousand, compared to net cash from financing activities of $455,503 thousand in H1 2024, largely due to debt issuance in the prior year. Cash and cash equivalents at period end were $600,186 thousand Unaudited Consolidated Statements of Cash Flows (Six Months Ended, in thousands) | Item | June 30, 2025 | June 30, 2024 | | :------------------------------------ | :-------------- | :-------------- | | Net income | **$185,585** | **$203,112** | | Depreciation and amortization | **$228,265** | **$195,569** | | Net cash from operating activities | **$209,645** | **$234,594** | | Net cash used in investing activities | (**$200,742**) | (**$730,670**) | | Net cash (used in) from financing activities | (**$101,169**) | **$455,503** | | Decrease in cash and cash equivalents | (**$87,006**) | (**$42,706**) | | Cash and cash equivalents, end of period | **$600,186** | **$401,992** | - **Cash payments for interest** were **$76,570 thousand** for H1 2025, compared to **$74,079 thousand** for H1 2024[28](index=28&type=chunk) - **Income taxes paid, net of refunds**, were **$64,534 thousand** for H1 2025, compared to **$70,307 thousand** for H1 2024[28](index=28&type=chunk) [Supplemental Segment Data](index=11&type=section&id=Supplemental%20Segment%20Data) Supplemental segment data for Q2 2025 shows Environmental Services (ES) with third-party revenues of $1,330,059 thousand and Adjusted EBITDA of $376,194 thousand. Safety-Kleen Sustainability Solutions (SKSS) reported third-party revenues of $219,706 thousand and Adjusted EBITDA of $38,313 thousand for the quarter. For the six months ended June 30, 2025, ES third-party revenues were $2,537,097 thousand and Adjusted EBITDA was $650,785 thousand, while SKSS reported $444,521 thousand in third-party revenues and $66,565 thousand in Adjusted EBITDA Supplemental Segment Revenue (in thousands) | Segment | Q2 2025 Third-Party Revenues | Q2 2024 Third-Party Revenues | H1 2025 Third-Party Revenues | H1 2024 Third-Party Revenues | | :------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Environmental Services | **$1,330,059** | **$1,297,298** | **$2,537,097** | **$2,458,577** | | Safety-Kleen Sustainability Solutions | **$219,706** | **$255,322** | **$444,521** | **$470,636** | | Corporate | **$89** | **$99** | **$186** | **$201** | | **Total** | **$1,549,854** | **$1,552,719** | **$2,981,804** | **$2,929,414** | Supplemental Segment Adjusted EBITDA (in thousands) | Segment | Q2 2025 Adjusted EBITDA | Q2 2024 Adjusted EBITDA | H1 2025 Adjusted EBITDA | H1 2024 Adjusted EBITDA | | :------------------------------ | :---------------------- | :---------------------- | :---------------------- | :---------------------- | | Environmental Services | **$376,194** | **$359,915** | **$650,785** | **$624,390** | | Safety-Kleen Sustainability Solutions | **$38,313** | **$51,476** | **$66,565** | **$81,176** | | Corporate | (**$78,270**) | (**$83,575**) | (**$146,259**) | (**$147,655**) | | **Total** | **$336,237** | **$327,816** | **$571,091** | **$557,911** |

Group 1 - Clean Harbors (NYSE: CLH) has seen a significant stock increase since March, aligning with the bullish thesis presented earlier this year [1] - The company is focused on sectors such as technology, infrastructure, and internet services, emphasizing strong fundamentals and growth potential [1] - The analyst aims to provide value to readers and investors interested in long-term investing strategies [1] Group 2 - The article does not contain any stock positions or plans to initiate positions in the mentioned companies [2] - The opinions expressed in the article are solely those of the author and do not reflect the views of Seeking Alpha as a whole [3]