Clean Harbors (CLH) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $1.55 billion, flat year-over-year, with strong Environmental Services growth and SKSS declines due to lower oil product sales; net income was $126.9 million, or $2.36 per diluted share, down from $133.3 million, or $2.46, in Q2 2024.

• Adjusted EBITDA reached a record $336.2 million, with margin up 60 bps to 21.7%, driven by ES growth and cost controls.

• Safety performance improved, achieving a record-low TRIR of 0.40 in Q2.

• Corporate costs declined year-over-year due to headcount savings and absence of prior year non-recurring items.

• Acquisitions of HEPACO and Noble in 2024 contributed to segment performance and integration efforts continued in 2025.

Financial highlights

• Gross profit was $516.4 million, with gross margin steady at 33.3% year-over-year; income from operations was $210.3 million, down from $215.5 million in Q2 2024.

• SG&A expenses decreased to $186.2 million (12.0% of revenue) from $197.9 million (12.7%) year-over-year.

• Depreciation and amortization rose to $116.3 million from $100.5 million year-over-year.

• Adjusted free cash flow for Q2 was $133.2 million, up from $84.2 million in Q2 2024.

• Cash and short-term marketable securities at June 30, 2025, were $699.1 million; long-term debt stood at $2.77 billion.

Outlook and guidance

• Full-year 2025 Adjusted EBITDA guidance is $1.16–$1.20 billion, representing 6% growth; Q3 Adjusted EBITDA expected to grow 9–12% year-over-year.

• Full-year adjusted free cash flow guidance is $430–$490 million, nearly 30% above prior year.

• 2025 capital spending expected to be $360–$390 million, including $15 million for the Phoenix hub project.

• Management anticipates sufficient operating cash flows to fund ongoing operations and capital needs.

• PFAS remediation and reshoring trends seen as significant upside drivers for the back half of 2025 and beyond.