Q2 2025 Clean Harbors Inc Earnings Call Transcript
Key Points
- Clean Harbors Inc (CLH) achieved its lowest ever quarterly Total Recordable Incident Rate (TRIR) of 0.40, reflecting a strong commitment to safety and operational excellence.
- The company reported a consolidated adjusted EBITDA margin increase of 60 basis points to 21.7%, driven by strong demand for disposal and recycling assets and lower SG&A costs.
- Environmental Services segment adjusted EBITDA margin grew for the 13th consecutive quarter, supported by increased volumes, pricing, and efficiency gains.
- The company is well-positioned to capitalize on the growing PFAS remediation market, with its high-temperature incinerators demonstrating effective destruction of PFAS compounds.
- Clean Harbors Inc (CLH) maintains a strong balance sheet with nearly $700 million in cash and a net debt-to-EBITDA ratio of approximately 2x, providing flexibility for growth and strategic investments.
- Field Services revenue was down year-over-year due to fewer large emergency response events, impacting overall segment performance.
- The Industrial Services segment faced challenges with lower average spend on turnarounds, despite an increase in the number of turnarounds.
- The Safety-Kleen Sustainable Solutions (SKSS) segment experienced a year-over-year revenue decrease due to lower market pricing and reduced volume sold.
- Higher insurance, severance costs, and technology investments partly offset the cost-cutting actions and nonrecurring items from the previous year.
- The company faces ongoing tariff uncertainties that have impacted some customer activities, although it remains optimistic about future demand.
Greetings, and welcome to the Clean Harbors second quarter 2025 financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Michael McDonald, General Counsel for Clean Harbors.
Mr. McDonald, please go ahead.
Thank you, Christine, and good morning, everyone. With me on today's call are our Co-Chief Executive Officer, Eric Gerstenberg; and Mike Battles, our EVP and Chief Financial Officer, Eric Dugas, and our SVP of Investor Relations, Jim Buckley.
Slides for today's call are posted on our Investor Relations website, and we invite you to follow along. Matters we are discussing today that are not historical facts are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Participants are cautioned not to place undue reliance on these statements, which reflect management's opinions all as of today, July 30, 2025. Information on
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