Q3 2025 Clean Harbors Inc Earnings Call Transcript
Key Points
- Clean Harbors Inc (CLH) achieved a record safety performance with a TRIR of 0.49, enhancing operational efficiency and employee retention.
- The Environmental Services (ES) segment showed strong growth with a 12% increase in Technical Services revenue and a 40% rise in landfill volumes.
- The company reported a 100 basis point increase in consolidated adjusted EBITDA margin to 20.7%, driven by pricing strategies and cost-saving measures.
- Clean Harbors Inc (CLH) successfully completed a PFAS incineration study with the EPA, confirming the safe and cost-effective destruction of PFAS chemicals.
- The Safety-Kleen Sustainable Solutions (SKSS) segment managed to stabilize its business despite pricing headwinds, achieving a 100 basis point margin improvement.
- Q3 results fell slightly short of expectations due to slowness in Field Services and Industrial Services, along with higher-than-anticipated employee health care costs.
- Field Services revenue declined by 11% year-over-year, impacted by the absence of medium to large response projects.
- Industrial Services revenue decreased by 4% as customers in the chemical and refining sectors limited spending on turnarounds.
- Corporate segment costs increased due to higher insurance expenses and health care costs, partially offsetting cost-cutting actions.
- The company revised its 2025 adjusted EBITDA guidance downward, reflecting challenges in Industrial and Field Services and elevated health care costs.
Greetings, and welcome to the Clean Harbors third 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. Thank you, sir. You may begin.
Thank you, Christine, and good morning, everyone. With me on today's call are our Co-Chief Executive Officers, 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 only as of today, October 29, 2025. Information on potential
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