Clean Harbors (CLH) 16th Annual Wells Fargo Industrials & Materials Conference summary

Key drivers of growth and margin expansion

• Achieved 19% CAGR in earnings over five years through volume growth, pricing strategies, and vertical integration across over 100 sites.

• Regulatory changes in retail and expansion into healthcare waste have driven incremental volumes.

• Environmental services segment reached 26% margin by 2025, ahead of Vision 2027 roadmap; targeting 30% margin by 2030.

• Margin expansion is expected across all four environmental services components, with technical services and Safety-Kleen branches showing strong growth.

• Employee retention at near all-time highs, supporting safety, efficiency, and margin improvement.

Market trends and operational flexibility

• Early signs of manufacturing and industrial activity expansion, with ISM readings in growth mode for several months.

• Industrial services have seen shorter, more intentional maintenance cycles, with increased focus on vendor consolidation and cross-selling.

• Ability to pivot between 50 lines of business and 300,000+ customers enables resilience during demand fluctuations.

• Field services growth supported by acquisitions and emergency response events, helping offset slowdowns in other verticals.

Safety-Kleen branch business performance

• Safety-Kleen branch business has grown at 7%+ annually, with margins now exceeding 30%, up from mid-to-high 20% five years ago.

• Route density, driver retention, and incentive programs have driven efficiency and cross-selling.

• Strong regulatory moat due to permits required for hazardous waste collection and treatment.