Clean Harbors, Inc. (CLH) 2025 Annual Report Summary
Business Context and Reporting Period
This summary covers the Form 10-K for Clean Harbors, Inc. for the fiscal year ended December 31, 2025. Clean Harbors is a leading provider of environmental and industrial services in North America, operating through two primary segments: Environmental Services (hazardous waste management, industrial services, emergency response) and Safety-Kleen Sustainability Solutions (SKSS) (used oil collection, re-refining, and lubricant sales). The company operates over 100 waste disposal facilities, including ten commercial hazardous waste incinerators and seven landfills.
Key Financial Metrics (Year Ended Dec 31, 2025)
| Metric | 2025 Value | 2024 Value |
|---|---|---|
| Total Revenues | $6,030.8 million | $5,890.0 million |
| Net Income | $391.0 million | $402.3 million |
| Adjusted EBITDA | $1,169.9 million | $1,116.9 million |
| Operating Cash Flow | $866.7 million | $777.8 million |
| Adjusted Free Cash Flow | $509.3 million | $357.9 million |
| Long-Term Debt | $2.80 billion (par) | $2.79 billion (par) |
| Cash & Marketable Securities | $953.7 million | $789.8 million |
| Environmental Liabilities | $230.7 million | $241.5 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased 2.4% ($140.9 million) driven by the Environmental Services segment (+3.8%), which offset a decline in the SKSS segment (-5.4%).
- Segment Performance:
- Environmental Services: Growth was driven by Technical Services (stronger volumes/pricing), Safety-Kleen branch core services (improved pricing), and Field/Emergency Response (incremental revenue from the 2024 HEPACO acquisition). Industrial Services declined due to lower turnaround activity.
- SKSS: Revenues decreased due to lower market-based pricing for base and blended oil products and reduced volumes, partially offset by higher revenue from used oil collection services.
- Profitability: Net income decreased 2.8% to $391.0 million, primarily due to higher depreciation and amortization ($45.1 million increase) related to new assets and acquisitions. However, Adjusted EBITDA increased 4.7% to $1,169.9 million.
- Capital Allocation: The company repurchased $250.0 million of common stock in 2025 (compared to $55.2 million in 2024). Capital expenditures were $403.4 million, net of disposals.
- Debt Refinancing: In Q4 2025, the company refinanced its Term Loan debt and Senior Notes, resulting in an $8.3 million loss on early extinguishment of debt.
Guidance, Outlook, and Risks
- Capital Expenditure Guidance: Management anticipates 2026 capital spending, net of disposals, to be in the range of $450.0 million to $510.0 million. This includes strategic growth investments in a Solvent De-Asphalting (SDA) unit in East Chicago, Indiana (expected operational in 2028), and a Phoenix Hub facility.
- Strategic Initiatives: The company continues to pursue selective acquisitions. On February 17, 2026, it signed an agreement to acquire certain environmental businesses of Depot Connect International for approximately $130.0 million.
- Key Risks:
- Regulatory & Environmental: Extensive federal, state, and local regulations regarding hazardous waste, PFAS, and climate change could increase costs or limit operations. The company holds $230.7 million in environmental liabilities.
- Commodity Volatility: The SKSS segment is sensitive to oil price volatility and demand for automotive services.
- Operational Safety: While safety metrics improved (TRIR of 0.49, a 25% year-over-year improvement), operational risks remain inherent to handling hazardous materials.
- Debt Covenants: The company maintains significant debt levels ($2.8 billion) and must adhere to financial covenants, though it was in compliance as of year-end.
Investor Verification Checklist
- Verify the impact of the new Kimball, Nebraska incinerator (ramping up in 2025, full capacity expected end of 2026) on future Environmental Services margins.
- Monitor the progress and cost overruns of the Solvent De-Asphalting (SDA) unit in East Chicago, a multi-year strategic project.
- Assess the integration and revenue contribution of the proposed Depot Connect International acquisition (announced Feb 2026).
- Review the stability of SKSS margins given the volatility in base oil pricing and the company's strategy to manage re-refinery spreads.
- Confirm the status of the $130.0 million acquisition of Depot Connect International and the $350.0 million expansion of the share repurchase program announced in February 2026.