Clean Harbors (CLH) Q4 2025 earnings summary

Executive summary

• Achieved record safety performance in 2025 with a TRIR of 0.49, the lowest ever, and voluntary turnover at a five-year low.

• Delivered record revenue, Adjusted EBITDA, and Adjusted Free Cash Flow, with margin expansion in both operating segments.

• Environmental Services segment posted its 15th consecutive quarter of year-over-year Adjusted EBITDA margin growth and led overall company growth.

• Notable milestones included ramp-up of the Kimball Incinerator, creation of the Phoenix Hub, and handling nearly 22,000 emergency response events.

• Repurchased $250 million in shares, expanded buyback authorization by $350 million, and announced a $50 million fleet investment.

Financial highlights

• 2025 revenue surpassed $6 billion for the first time, reaching $6.03 billion, with Adjusted EBITDA up 5% to $1.17 billion.

• Q4 revenue grew 5% to $1.5 billion; Q4 Adjusted EBITDA increased 8% to $279 million.

• Full-year Adjusted EBITDA margin improved to 19.4%; Q4 margin was 18.6%.

• Record annual Adjusted Free Cash Flow of $509.3 million, representing 44% of Adjusted EBITDA.

• Q4 net income was $86.6 million (EPS $1.62); full-year net income was $391.0 million (EPS $7.28).

Outlook and guidance

• 2026 Adjusted EBITDA guidance: $1.20–$1.26 billion (midpoint $1.23 billion), with net income guidance of $410–$461 million.

• 2026 Adjusted Free Cash Flow guidance: $480–$540 million (midpoint $510 million), with net cash from operating activities expected at $820–$940 million.

• Q1 2026 ES segment Adjusted EBITDA expected to grow 4–7% year-over-year; consolidated Adjusted EBITDA up 1–3%.

• ES segment expected to grow Adjusted EBITDA just over 5% in 2026, with continued PFAS and remediation project growth.

• Continued focus on organic growth, fleet expansion, and acquisition integration.