Clean Harbors (CLH) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of $1.46 billion, up 2% year-over-year, with both Environmental Services (ES) and Safety-Kleen Sustainability Solutions (SKSS) segments delivering higher profitability despite challenging weather conditions.

• Net income increased 7.7% to $63.2 million, with EPS of $1.19 and Adjusted EBITDA up 6% to $247.9 million, margin expanding by 60 basis points to 17.0%.

• Achieved record safety performance with a Total Recordable Incident Rate (TRIR) of 0.39 in Q1.

• Raised full-year 2026 guidance for Adjusted EBITDA to $1.24–$1.30 billion and free cash flow to $490–$550 million, citing strong Q1 performance and positive demand trends.

• Continued strategic investments and acquisitions, including the DCI acquisition and expansion of the share repurchase program.

Financial highlights

• Q1 2026 revenue increased to $1.46 billion, with gross profit rising to $445.4 million and gross margin improving to 30.5%.

• Adjusted EBITDA rose 6% to $247.9 million, with a consolidated margin of 17.0%.

• Net income grew to $63.2 million, with diluted EPS up to $1.19 from $1.09 year-over-year.

• SG&A expense as a percentage of revenue increased to 14.2% in Q1.

• Cash and short-term marketable securities at quarter-end were $669 million; net debt to EBITDA ratio at 2x.

Outlook and guidance

• 2026 Adjusted EBITDA guidance raised to $1.24–$1.30 billion (midpoint $1.27 billion), up $40 million from prior guidance.

• Adjusted free cash flow guidance increased to $490–$550 million (midpoint $520 million).

• Q2 2026 Adjusted EBITDA expected to grow 5–9% year-over-year.

• Net CapEx for 2026 expected at $350–$520 million, including strategic growth investments.

• Full-year 2026 net income guidance: $421–$472 million; net cash from operating activities projected at $840–$960 million.