Clean Harbors (CLH) 28th Annual Needham Growth Conference Virtual summary

2025 business performance and strategic shifts

• Adjusted EBITDA guidance narrowed as the year progressed, reflecting operational challenges and market volatility.

• Oil business revenue declined from $300M to $140M, prompting a shift to focus on high-value used motor oil and refinery closures.

• Environmental services segment showed strong growth, with technical services up 12% in Q3 and 7% YTD, driven by pricing and volume.

• Industrial services experienced a 5% revenue decline due to delayed plant turnarounds, with leadership changes aimed at stabilizing performance.

• Field services saw a temporary slowdown in Q3 but is expected to recover, supported by a steady stream of emergency response work.

Margin expansion and operational discipline

• Achieved 14 consecutive quarters of year-over-year margin growth in environmental services.

• Margin gains driven by disciplined pricing, new incinerator capacity (Kimball), and incentive compensation tied to margin improvement.

• Kimball incinerator contributed $8–$10M EBITDA in 2025, expected to reach $20–$30M in 2026 and $40M at full run rate.

• Ongoing investments in mega hubs and network efficiencies are expected to further enhance margins.

PFAS remediation and growth opportunities

• PFAS-related business grew to $100–$120M in 2025, with a projected 20% annual growth rate.

• Secured a high-profile water remediation project at Pearl Harbor, expected to generate $15–$30M over five years.

• EPA validation and regulatory attention have positioned the company as a leader in PFAS incineration.

• Comprehensive PFAS solutions span sampling, remediation, and disposal, with strong customer interest post-EPA report.