Clean Harbors (CLH) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $1.55B, flat year-over-year, with Environmental Services (ES) up 3.3% and SKSS down 18.7% due to lower oil product sales; net income was $126.9M, or $2.36 per diluted share, down from $133.3M, or $2.46, in Q2 2024.

• Adjusted EBITDA reached a record $336.2M, with margin up 60 bps to 21.7%, driven by strong 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

• Q2 2025 net income: $126.9M (Q2 2024: $133.3M); Q2 2025 revenue: $1,549.9M (Q2 2024: $1,552.7M); Q2 2025 diluted EPS: $2.36 (Q2 2024: $2.46).

• Adjusted EBITDA for Q2 2025 was $336.2M, margin 21.7% (Q2 2024: 21.1%).

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

• Gross margin for Q2 2025 was 33.3%; SG&A as a percentage of revenue decreased to 12.0%.

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

Outlook and guidance

• Full-year 2025 Adjusted EBITDA guidance is $1.16–$1.2B, representing 6% year-over-year growth; Q3 Adjusted EBITDA expected to grow 9–12% year-over-year.

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

• 2025 capital spending expected at $345–$390M, including $15M for Phoenix hub.

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

• Guidance does not depend on a significant ramp in industrial turnarounds; any upside would be incremental.