CLH Q2 2026 Earnings Call Summary | Stock Taper
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CLH

CLH — Clean Harbors, Inc.

NYSE

Q2 2026 Earnings Call Summary

July 29, 2026

Clean Harbors (CLH) Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

  • Total Revenue: Increased by 12% to $1.74 billion.
  • Adjusted EBITDA: Up 22% to $409 million, with a record margin of 23.6%, a 190 basis point improvement year-over-year.
  • Net Income: Increased 34%, resulting in EPS of $3.22 per share.
  • Cash Flow: Cash provided from operations was $239 million, up 15% from the previous year.
  • CapEx: Increased to $124 million, primarily for strategic growth investments.
  • Debt Metrics: Net debt-to-EBITDA ratio at approximately 2x, with a blended interest rate of 5.2%.

2. Strategic Updates and Business Highlights

  • Safety Performance: Year-to-date total recordable incident rate of 0.46, outperforming industry benchmarks.
  • Segment Performance:
    • Environmental Services (ES): Revenue increased by over $100 million, with strong demand for disposal and recycling services. Adjusted EBITDA margin improved to 27.9%.
    • Safety-Kleen Sustainability Solutions (SKSS): Revenue grew by over 40%, with a remarkable 143% increase in adjusted EBITDA due to elevated market pricing.
  • New Contracts: Secured a significant 10-year disposal contract valued at $600 million with a manufacturing customer, expected to generate $10 million in revenue this year.
  • Data Center Market: Introduced integrated solutions targeting a growth of $200 million in annual revenue by 2028, with a $50 million CapEx investment planned over three years.
  • Acquisitions: Announced the acquisition of ES&H for $305 million, expected to close in H2 2026, enhancing Field Services capabilities.

3. Forward Guidance and Outlook

  • 2026 Adjusted EBITDA Guidance: Revised to a range of $1.35 billion to $1.41 billion, with a midpoint of $1.38 billion, reflecting an increase of $110 million from previous guidance.
  • Q3 Expectations: Anticipated adjusted EBITDA growth of 24% to 28% year-over-year.
  • Environmental Services: Expected adjusted EBITDA growth of 6% to 9% for the year, with strong demand across all businesses.
  • SKSS Segment: Projected adjusted EBITDA of approximately $275 million, doubling from 2025 levels.

4. Bad News, Challenges, or Points of Concern

  • Industrial Services: Facing challenges due to limited refinery downtime, which may impact revenue growth in this segment.
  • Market Uncertainty: Potential fluctuations in base oil pricing and the duration of current market conditions could affect future performance.
  • Corporate Costs: Anticipated increase in corporate adjusted EBITDA losses due to higher incentive compensation and strategic investments.

5. Notable Q&A Insights

  • Market Share Gains: Management expressed confidence in gaining market share through enhanced customer relationships and total waste management services.
  • Data Center Strategy: Emphasized leveraging existing capabilities to meet the growing demand for data center services, particularly in flushing and filtration.
  • PFAS Business Growth: Expectations for PFAS-related projects have accelerated, with a projected growth rate exceeding 30% year-over-year.
  • Acquisition Strategy: Management highlighted a disciplined approach to acquisitions, focusing on synergistic opportunities with attractive returns.

Overall, Clean Harbors reported a strong Q2 2026 performance, driven by robust demand across its segments, strategic investments, and successful contract acquisitions, while also acknowledging challenges in specific areas such as Industrial Services and market uncertainties.

← Q1 2026