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CLEAN HARBORS INC (CLH)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered revenue of $1.55B, diluted EPS of $2.21, and adjusted EBITDA of $320.2M; adjusted EBITDA margin expanded 100 bps YoY to 20.7% as ES pricing, productivity and disposal volumes offset macro softness in industrial and field services .
  • Versus consensus, CLH missed on revenue ($1.549B vs $1.572B*) and EPS ($2.21 vs $2.39*); prior Q2 also missed revenue and modestly missed EPS, while Q1 beat EPS but modestly missed revenue* .
  • FY25 guidance: adjusted EBITDA lowered to $1.155–$1.175B (midpoint $1.165B) while adjusted free cash flow raised to $455–$495M (midpoint $475M); D&A raised to $445–$455M reflecting stronger landfill performance .
  • Strategic update: announced $210–$220M SDA unit to upgrade VTAE into 600N base oil (EBITDA run-rate $30–$40M, payback 6–7 years, launch 2028); buybacks of $50M in Q3; net leverage <2x and blended interest rate 5.3% provide balance sheet flexibility .
  • Near-term stock drivers: estimate misses and guide-down on EBITDA vs strong FCF raise, high incineration utilization (92% ex-Kimble), PFAS momentum ($100–$120M revenue in 2025), and capital allocation optionality (M&A + internal projects) .

What Went Well and What Went Wrong

What Went Well

  • ES segment achieved its 14th straight quarter of YoY margin improvement; ES adjusted EBITDA margin rose 120 bps to 26.8% on pricing, labor management, and network leverage .
  • Disposal network KPIs were strong: incineration utilization 92% ex-Kimble (88% including ramping Kimble); landfill volumes up ~40% YoY; Technical Services revenue +12% on steady demand and projects .
  • PFAS momentum and credibility strengthened: EPA-published study validates safe, cost-effective destruction at commercial scale; PFAS revenue expected at $100–$120M in 2025 (+20–25% YoY) .
  • Cash generation: Q3 operating cash flow $302M and record adjusted FCF $230.6M; capital discipline with net CapEx down YoY; share repurchases of $50M; net debt/EBITDA <2x and blended interest 5.3% .

Selected management quotes:

  • “ES segment achieved its 14th consecutive quarter of year-over-year improvement in Adjusted EBITDA margin… increased by 120 basis points to 26.8%.”
  • “The study confirmed… our high-temperature incinerators can… safely destroy these forever chemicals… at a cost-effective commercial scale.”

What Went Wrong

  • Industrial Services revenue declined ~4% YoY as chemical and refining customers deferred turnaround scope; Field Services revenue fell ~11% YoY with absence of medium-to-large response projects .
  • Healthcare expense spike: elevated high-cost claims drove SG&A up and were a notable headwind; management is modifying plans to mitigate in 2026 .
  • Estimate performance: Q3 missed revenue and EPS vs consensus; Q2 also missed both, while Q1 beat EPS but missed revenue* .

Financial Results

Consolidated P&L and Margins (Q1–Q3 2025)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Billions)$1.432 $1.550 $1.549
Diluted EPS ($)$1.09 $2.36 $2.21
Adjusted EBITDA ($USD Millions)$234.9 $336.2 $320.2
Adjusted EBITDA Margin (%)16.4% 21.7% 20.7%

Consensus vs Actuals (Q1–Q3 2025)

MetricQ1 2025 Estimate*Q1 2025 ActualQ2 2025 Estimate*Q2 2025 ActualQ3 2025 Estimate*Q3 2025 Actual
Revenue ($USD Billions)$1.441*$1.432 $1.592*$1.550 $1.572*$1.549
Primary EPS ($)$1.052*$1.09 $2.388*$2.36 $2.391*$2.21
# of Estimates (Revenue)11*—9*—9*—
# of Estimates (EPS)8*—9*—9*—

Values retrieved from S&P Global.

Segment Breakdown (Q3 2025 vs Q3 2024)

SegmentQ3 2024 Revenue ($MM)Q3 2025 Revenue ($MM)YoYQ3 2024 Adj. EBITDA ($MM)Q3 2025 Adj. EBITDA ($MM)
Environmental Services (ES)$1,287.7 $1,318.6 +2.4%$332.5 $357.2
SK Sustainability Solutions (SKSS)$241.7 $230.8 -4.5%$41.2 $40.9
Total$1,529.4 $1,549.3 +1.3%$301.8 $320.2

Operating and Cash KPIs (Q3 2025)

KPIQ3 2024Q3 2025Notes
Incineration Utilization (ex-Kimble)89% 92% Demand steady; Kimble ramp ongoing (88% incl. Kimble)
Landfill Volumes YoY—+40% Project strength
Technical Services Revenue YoY—+12% Steady demand
Field Services Revenue YoY—-11% Fewer medium/large responses
Industrial Services Revenue YoY—-4% Deferred turnaround scope
Parts Washer Services (#)—249,000 Higher average ticket
Waste Oil Collected (MM gallons)—64 Plants at full production
Direct Lubricant Sales Mix (%)—9% High-margin mix
TRIR (YTD)—0.49 Record year trajectory
Operating Cash Flow ($MM)$239.2 $302.0 YoY increase
Adjusted Free Cash Flow ($MM)$144.5 $230.6 Record quarter
Net CapEx ($MM)—~$83 (Q3) Down YoY
Share Repurchases—208,000 shares / $50M Authorization ~$380M remaining
Leverage & Rate—Net debt/EBITDA <2x; blended rate 5.3% Conservative profile

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EBITDA ($B)FY 2025$1.160–$1.200 (mid $1.180) $1.155–$1.175 (mid $1.165) Lowered
Adjusted Free Cash Flow ($MM)FY 2025$430–$490 (mid $460) $455–$495 (mid $475) Raised
GAAP Net Income ($MM)FY 2025$383–$419 $379–$400 Lowered
D&A ($MM)FY 2025$440–$450 $445–$455 Raised (reflects landfill performance)
ES Adjusted EBITDA GrowthFY 2025Not quantified>5% YoY vs 2024 (midpoint basis) New qualitative target
SKSS Adjusted EBITDA ($MM)FY 2025“Achieve annual targets” (no numeric) ~$140 (midpoint) Clarified numeric
Corporate Adjusted EBITDA (negative)FY 2025Not specifiedUp 3–5% YoY New qualitative

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3 2025)Trend
Disposal Network/Incineration UtilizationEx-Kimble 88% in Q1; strong demand and price/mix (+5% price) . Q2 ex-Kimble 89%; avg price +7% .Ex-Kimble 92%; incl. Kimble 88%; landfill volumes +40%; Technical Services +12% .Strengthening throughput and margin leverage.
PFAS OpportunityPipeline highlighted; emerging market tailwind (Q1) .EPA study validates incineration; PFAS revenue $100–$120M (+20–25% YoY) .Accelerating demand and credibility.
Industrial Services SoftnessQ1 IS -10% YoY; customer deferrals . Q2 margins improved YoY but backdrop cautious .IS -4% YoY; deferred scope; recovery expected with spring turnarounds .Soft near term; cautious recovery.
Field Services Project VariabilityQ1 +32% from HEPACO acquisition .-11% YoY due to lack of medium/large projects; episodic nature acknowledged .Episodic; project timing risk.
SKSS Stabilization & CFO PricingQ1 revenue +9%; managing re-refining spread; CFO pricing shift . Q2 ahead of expectations; 64M gallons collected .64M gallons; 9% direct lube mix; margin +100 bps; SKSS EBITDA strongest in a year; FY25 ~$140M .Stabilizing, margin-positive.
Kimble Incinerator RampSuccessful Q1 performance; ramp plan . Q2 met volume target .>10K tons processed in Q3; routing and transportation efficiencies building; ramp to 2026 targets .On track; network efficiency benefits.
Tariffs/Macro/ReshoringQ1: pricing moves to offset tariffs, resilient demand . Q2: tariff uncertainty; positive reshoring outlook .Macro softness in chemicals; benefits expected from tax bill and reshoring; optimistic on 2026 .Near-term headwinds; constructive medium-term.
Capital AllocationQ1: disciplined; Kimble ramp; Castrol partnership . Q2: confirm guidance; outlook positive .$50M buybacks; SDA $210–$220M with $30–$40M EBITDA; internal investment pipeline >$500M; active M&A pipeline .Balanced internal + M&A optionality.
Healthcare CostsNot a focus in Q1/Q2.Elevated high-cost claims; plan changes to mitigate in 2026 .Transitory but monitored.

Management Commentary

  • “Our consolidated Adjusted EBITDA margin increased by 100 basis points… demonstrating the effectiveness of our pricing, the leverage in our network of permitted facilities, and cost-saving strategies.”
  • “Incineration utilization remained high… 92% versus 89%… landfill volumes were up 40% from a year ago.”
  • “This study… confirmed… our high-temperature incinerators can… safely destroy [PFAS]… at a cost-effective commercial scale… PFAS… $100 to $120 million in revenue this year, up 20% to 25% from a year ago.”
  • “We dramatically lowered our waste oil collection costs… gathered 64 million gallons… increased our direct lubricant sales… to 9%… margin improvement.”
  • “We… plan to construct… SDA… upgrade VTAE into… 600N base oil… total spend $210–$220 million… EBITDA… $30–$40 million… commercial launch… 2028.”
  • “Operating cash flow of $302 million and… record adjusted free cash flow of $231 million… underscores the… cash generative nature of our business.”
  • “We are revising our 2025 adjusted EBITDA guidance to… $1.155 billion to $1.175 billion… We are raising our full year adjusted free cash flow guidance to a midpoint of $475 million.”

Q&A Highlights

  • Guidance drivers: $15M midpoint takedown mainly from IS ($7M), Field Services ($4M), healthcare ($6M company-wide) .
  • Forward outlook: preliminary target of ~5% EBITDA growth in 2026, largely ES-driven, with industrial recovery aligned to spring turnarounds .
  • Free cash flow conversion: long-term target ~40% of EBITDA; extraordinary organic investments (e.g., SDA) will be excluded from FCF reporting going forward .
  • SDA underwriting: 600N pricing modeled conservatively; internal VTAE feedstock drives baseline; potential upside from third-party VTAE; disciplined, on-time/on-budget track record .
  • Incineration pricing: mid-single-digit price growth across the population; SK branch ~8% growth; Field Services down ~9–11%; IS down ~3–4% .
  • Healthcare costs: elevated high-cost claims in Q3; plan changes underway to temper in 2026; base trend still upward but not at Q3’s pace .

Estimates Context

  • Q3 2025: Revenue $1.549B vs $1.572B*, EPS $2.21 vs $2.391* (miss). Q2 2025: Revenue $1.550B vs $1.592B*, EPS $2.36 vs $2.388* (miss). Q1 2025: Revenue $1.432B vs $1.441B* (miss), EPS $1.09 vs $1.052* (beat) .
  • FY 2025 consensus: Revenue ~$6.00B*, EBITDA ~$1.164B*, EPS (normalized) ~7.25*, Target Price ~$252*; FY 2026 consensus: Revenue ~$6.23B*, EBITDA ~$1.229B*, EPS (normalized) ~8.00* [GetEstimates].

Values retrieved from S&P Global.

Detailed Estimates Tables

MetricQ1 2025 Estimate*Q1 2025 ActualQ2 2025 Estimate*Q2 2025 ActualQ3 2025 Estimate*Q3 2025 Actual
Revenue ($USD Billions)$1.441*$1.432 $1.592*$1.550 $1.572*$1.549
Primary EPS ($)$1.052*$1.09 $2.388*$2.36 $2.391*$2.21
# of Estimates (Revenue)11*—9*—9*—
# of Estimates (EPS)8*—9*—9*—
MetricFY 2025 Estimate*FY 2026 Estimate*
Revenue ($USD Billions)$5.996*$6.230*
EBITDA ($USD Billions)$1.164*$1.229*
EPS Normalized ($)$7.25*$8.00*
Target Price ($)$252.36*$252.36*
Target Price – # of Estimates11*11*

Values retrieved from S&P Global.

Key Takeaways for Investors

  • Core disposal assets remain the earnings engine: high incineration utilization, strong landfill throughput, and pricing discipline continue to expand margins despite service-line softness .
  • PFAS is a durable growth vector: scientific validation plus multi-offering “Total PFAS Solution” support rising revenues and a growing project pipeline .
  • SKSS is stabilizing with CFO pricing and mix; near-term margin gains and FY25 ~$140M EBITDA target reduce volatility risk vs prior cycles .
  • FY25 EBITDA guide-down is partially mitigated by a raised FCF outlook; cash generation enables continued internal investments (Kimble ramp, SDA) and opportunistic buybacks/M&A with low leverage .
  • Healthcare cost spike and industrial turnaround deferrals are transitory risks; management is acting to mitigate healthcare expense and sees turnaround normalization by spring 2026 .
  • Near-term trading lens: headline misses on revenue/EPS and EBITDA guide-down could pressure shares; watch for Q4 execution on disposal throughput, PFAS wins, and any updates on internal projects/M&A as potential positive catalysts .
  • Medium-term thesis: network leverage, PFAS demand, reshoring tailwinds, and disciplined capital allocation (SDA, hubs, selective M&A) support multi-year EBITDA and FCF growth, with downside buffered by recurring waste flows across diversified verticals .

Appendix: Source Citations

  • Q3 Press Release and 8-K: revenue, EPS, adjusted EBITDA, segment data, guidance, reconciliations .
  • Q3 Earnings Call: segment commentary, PFAS study, SKSS metrics, capital allocation, OCF/FCF, D&A, healthcare costs, industrial/field services dynamics, pricing, Kimble ramp .
  • Prior quarters PRs for trend/guidance baselines .