Clean Harbors Reports Strong Third-Quarter 2025 Results, Highlights Continued Growth and Margin Expansion
Clean Harbors, Inc. (“Clean Harbors” or the “Company”) (NYSE: CLH), the leading provider of environmental and industrial services across North America, today announced financial results for the third quarter ended September 30, 2025.
“Our third-quarter results reflected ongoing strength in our Technical Services and Safety-Kleen Environmental Services businesses,” said Eric Gerstenberg, Co-Chief Executive Officer. “We expanded our consolidated Adjusted EBITDA margin by 100 basis points year over year through effective cost management, operating efficiencies, and higher waste volumes processed through our disposal and recycling network. On the safety front, our teams continued their outstanding performance, achieving a year-to-date Total Recordable Incident Rate (TRIR) of just 0.49 — positioning us for a record year in safety performance.”
Third-Quarter 2025 Financial Performance
For the third quarter of 2025, Clean Harbors reported revenues of $1.55 billion, compared with $1.53 billion in the same period last year. Income from operations was $193.0 million, up slightly from $192.3 million a year earlier.
Net income increased to $118.8 million, or $2.21 per diluted share, compared with $115.2 million, or $2.12 per diluted share, in the prior-year quarter.
Adjusted EBITDA, a non-GAAP measure described below, rose Reports 6% to $320.2 million from $301.8 million in the third quarter of 2024.
Segment Review
Gerstenberg noted that the Company’s Environmental Services (ES) segment achieved its 14th consecutive quarter of year-over-year Adjusted EBITDA margin improvement, increasing 120 basis points to 26.8%.
“By leveraging our network, managing labor effectively, and maintaining disciplined pricing, the ES segment delivered another strong quarter,” Gerstenberg said. “Technical Services revenue grew 12%, leading the segment’s 3% overall top-line growth, despite soft demand from chemical sector customers impacted by macroeconomic uncertainty and tariffs. This growth was supported by increased remediation and waste project activity and strong demand for our Total PFAS Solution.”
Safety-Kleen Environmental Services revenue rose Reports 8%, driven by pricing gains and steady volume growth. Incineration utilization, excluding the new Kimball facility, was Reports 92%, while landfill volumes rose 40% due to strong project activity.
However, Field Services revenue declined year over year, reflecting the absence of medium- and large-scale emergency response projects in the quarter. In Industrial Services, customers in the chemical and refining sectors continued to restrict turnaround spending. These factors, combined with higher healthcare costs, contributed to lower-than-expected results for the Environmental Services segment.
“Despite these near-term headwinds, our team remains focused on margin expansion and cash flow generation,” said Gerstenberg. “As economic conditions improve, we believe our cost and efficiency initiatives position us to benefit significantly.”
Safety-Kleen Sustainability Solutions (SKSS)
Mike Battles, Co-Chief Executive Officer, said the Safety-Kleen Sustainability Solutions (SKSS) segment performed in line with expectations during the quarter.
“We significantly reduced waste oil collection costs and improved our product mix, even as base oil pricing weakened,” Battles said. “We collected 64 million gallons of waste oil, keeping our facilities fully utilized, and increased direct lubricant sales to 9% of total volume, supporting margin growth. As part of our long-term strategy, we continue to shift toward higher charge-for-oil (CFO) pricing to better align with current market conditions.”
Investing in SDA Technology to Unlock Byproduct Value
Clean Harbors also announced plans to build a state-of-the-art processing facility that will employ solvent de-asphalting (SDA) technology to convert a re-refining byproduct — vacuum tower asphalt extender (VTAE) — into high-value 600N base oil.
The Company expects to invest Reports $210 million to $220 million in the new facility, with commercial operations anticipated in 2028.
“Using proven SDA technology alongside our existing hydrotreating capabilities, we can transform an everyday byproduct into a premium, high-purity base oil used in heavy-duty industrial applications,” said Battles. “This facility should generate $30 million to $40 million in annual EBITDA, representing a six- to seven-year payback, comparable to returns from our incineration projects.”
Business Outlook and 2025 Guidance
Looking ahead, Clean Harbors expects its business momentum to continue through the end of the year and into 2026.
“We believe the market challenges we faced in the third quarter are temporary,” said Gerstenberg. “Growth in Technical Services and Safety-Kleen Environmental demonstrates the resilience and diversification of our business. Our incineration network remains robust, and project pipelines continue to feed our disposal and recycling operations.”
Gerstenberg added that macroeconomic headwinds are expected to ease: “Reshoring initiatives and incentives from the recent U.S. tax bill are driving a resurgence in domestic manufacturing, which will boost demand for remediation, waste management, and industrial services. As spending in key sectors such as chemicals and refining rebounds, our Industrial and Field Services businesses are poised to benefit.”
Battles added, “We believe our initiatives around CFO pricing, strategic partnerships, and Group III production have stabilized our SKSS business. We remain on track to reach our 2025 profitability target for the segment.”
Given current market conditions, Clean Harbors expects to finish 2025 with strong fourth-quarter results, including Adjusted EBITDA growth of 6–8% year over year.
For the full year, the Company is revising its guidance as follows:
- Adjusted EBITDA: Reports between $1.155 billion and $1.175 billion (midpoint of $1.165 billion), representing 4% growth year over year.
- GAAP net income: projected between $379 million and $400 million.
- Adjusted free cash flow: between $455 million and $495 million (midpoint of $475 million), up over 30% from the prior year.
- Net cash from operating activities: expected in the range of $795 million to $865 million.
Use of Non-GAAP Financial Measures
Clean Harbors reports Adjusted EBITDA and adjusted free cash flow, which are non-GAAP financial measures intended to provide supplemental insight into the Company’s operating performance and liquidity. Adjusted EBITDA is defined as net income adjusted for interest, taxes, depreciation, amortization, and other non-operating items. Adjusted free cash flow is defined as net cash from operating activities less capital expenditures, plus proceeds from asset sales, adjusted for non-operating cash impacts.
Management uses these metrics to evaluate business performance, capital allocation, and return on investment. Because other companies may calculate these measures differently, Clean Harbors advises investors to use them as supplemental—not substitute—indicators of financial performance.
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