Clean Harbors (CLH) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached a record $1.74 billion, up 12% year-over-year, with strong growth in both Environmental Services (ES) and Safety-Kleen Sustainability Solutions (SKSS) segments.

• Net income increased 34% year-over-year to $170.5 million, with diluted EPS of $3.22.

• Adjusted EBITDA grew 22% to $409 million, with margin expanding 190 basis points to 23.6%.

• Major new long-term contracts and strategic acquisitions, including a ten-year, $600 million disposal contract and the $305 million ES&H acquisition, are fueling growth and expanding the company’s footprint.

• Safety performance remains a key differentiator, with a year-to-date total recordable incident rate of 0.46, outperforming industry benchmarks.

Financial highlights

• Gross profit rose to $608.8 million, with gross margin expanding to 35.1%.

• Cash from operations was $239 million, up 15% year-over-year; adjusted free cash flow was $135.7 million.

• Income from operations increased 28% to $268.9 million; SG&A expenses were 12.4% of revenue.

• Diluted EPS for Q2 2026 was $3.22, up from $2.36 in Q2 2025.

• Share repurchases totaled $52.1 million in the first half of 2026; $549.4 million remains under authorization.

Outlook and guidance

• Full-year 2026 Adjusted EBITDA guidance raised to $1.35–$1.41 billion; midpoint $1.38 billion.

• Adjusted free cash flow guidance for 2026 increased to $520–$580 million.

• Q3 2026 Adjusted EBITDA expected to grow 24–28% year-over-year.

• 2026 capital spending expected at $490–$550 million, including investments in solvent de-asphalting, fleet, and data center assets.

• SKSS segment 2026 Adjusted EBITDA now expected at $275 million, double 2025 levels.