Clean Harbors, Inc. Q2 2026 Filing Summary
Business Context and Reporting Period
Clean Harbors, Inc. (CLH) filed its Form 10-Q for the quarterly period ended June 30, 2026. The company operates as North America's leading provider of environmental and industrial services, managing hazardous waste, emergency response, and industrial cleaning. Operations are reported in two segments: Environmental Services and Safety-Kleen Sustainability Solutions (SKSS).
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Total Revenues | $1,735.0 million | $1,549.9 million | $3,194.5 million | $2,981.8 million |
| Net Income | $170.5 million | $126.9 million | $233.7 million | $185.6 million |
| Diluted EPS | $3.22 | $2.36 | $4.41 | $3.44 |
| Adjusted EBITDA | $409.0 million | $336.2 million | $656.9 million | $571.1 million |
| Operating Cash Flow (YTD) | $245.5 million (vs. $209.6 million YTD 2025) | |||
| Cash & Equivalents | $408.4 million (as of June 30, 2026) | |||
| Total Debt (Carrying Value) | $2.77 billion (Long-term) + $12.6 million (Current) |
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased 11.9% in Q2 and 7.1% YTD compared to 2025. SKSS revenues surged 40.8% in Q2 due to higher oil product pricing and waste collection fees. Environmental Services grew 7.7% in Q2, driven by Technical Services (including a large PFAS filtration project) and Safety-Kleen core services.
- Profitability: Net income rose 34.3% in Q2 and 25.9% YTD. Adjusted EBITDA margins expanded by 190 basis points in Q2 and 140 basis points YTD.
- Acquisitions: The company completed significant acquisitions in the first half of 2026, including Terra Nova Solutions ($225.8 million) and Depot Connect International businesses ($131.8 million), expanding its Technical and Field Services capabilities. A pending acquisition of ES&H ($305 million) was announced in July 2026.
- Cost Management: Despite higher fuel and labor costs, gross margins expanded in both segments. SKSS cost of revenues decreased as a percentage of revenue by 12.7% in Q2 due to favorable feedstock costs and higher product pricing.
Guidance, Outlook, and Risks
- Capital Expenditures: Management anticipates 2026 capital spending to range between $490.0 million and $550.0 million. This includes strategic growth investments in a Solvent De-Asphalting (SDA) unit, fleet expansion, and data center market assets.
- Share Repurchases: The company repurchased $50.0 million of stock YTD. As of June 30, 2026, $549.4 million remained available under the repurchase program.
- Liquidity: The company maintains a $600.0 million revolving credit facility with $460.8 million available. Management expects operating cash flows to fund operations and capital needs.
- Risks: Key risks include environmental liabilities (Superfund proceedings and product liability claims regarding Safety-Kleen solvents), regulatory changes, and volatility in oil prices. The company has recorded reserves of $21.6 million for legal and administrative proceedings.
Investor Verification Checklist
- Acquisition Integration: Verify the financial impact and integration progress of the Terra Nova and Depot Connect acquisitions on Q3 and Q4 results.
- PFAS Project Sustainability: Assess whether the $30+ million revenue contribution from the large PFAS filtration project in Q2 is a one-time event or indicative of a growing trend.
- Oil Price Sensitivity: Monitor the correlation between global oil prices and SKSS margins, as the segment's performance is heavily tied to commodity pricing.
- Capital Spending Execution: Track actual capital expenditures against the raised guidance range ($490M-$550M) to ensure cash flow remains sufficient for debt service and dividends.
- Legal Reserves: Review updates on Safety-Kleen product liability cases and Superfund site liabilities, as these could impact future reserves.