- \n
- Delivers Highest Q1 Revenue in Company\u2019s History at $1.46 Billion<\/i><\/li>\n
- Generates Q1 Net Income of $63.2 Million, or EPS of $1.19<\/i><\/li>\n
- Achieves 6% Growth in Q1 Adjusted EBITDA to $247.9 Million; Expands Adjusted EBITDA Margin YoY by 60 Basis Points<\/i><\/li>\n
- Raises 2026 Guidance for Adjusted EBITDA and Adjusted Free Cash Flow<\/i><\/li>\n<\/ul>\n
NORWELL, Mass.–(BUSINESS WIRE<\/a>)–Clean Harbors, Inc.<\/a> (\u201cClean Harbors\u201d or the \u201cCompany\u201d) (NYSE: CLH), the leading provider of environmental and industrial services throughout North America,today announced financial results for the first quarter ended March 31, 2026.<\/p>\n
\n\u201cWe began 2026 with better-than-expected first-quarter results, including higher profitability in both of our operating segments,\u201d said Eric Gerstenberg, Co-Chief Executive Officer. \u201cOur Environmental Services (ES) segment delivered its 16th consecutive quarter of year-over-year Adjusted EBITDA margin improvement, navigating challenging weather conditions that impacted our collection and services businesses. At the same time, our Safety-Kleen Sustainability Solutions (SKSS) segment benefited from our continued focus around charge-for-oil (CFO) services and a late-quarter surge in base oil pricing. Our safety performance was outstanding, with the team achieving the lowest quarterly Total Recordable Incident Rate in our history at 0.39.\u201d<\/p>\n
First-Quarter 2026 Results<\/b><\/p>\n
\nRevenues increased to $1.46 billion, compared with $1.43 billion in the same period of 2025. Income from operations rose 7% to $118.9 million, compared with $111.6 million in the first quarter of 2025.<\/p>\n
\nNet income increased to $63.2 million, or $1.19 per diluted share, compared with $58.7 million, or $1.09 per diluted share, for the same period in 2025.<\/p>\n
\nAdjusted EBITDA (see description and reconciliation below) increased 6% to $247.9 million from $234.9 million for the same period in 2025.<\/p>\n
First-Quarter 2026 Segment Review<\/b><\/p>\n
\n\u201cOur ES segment delivered a 50-basis-point improvement in Adjusted EBITDA margin as we leveraged top-line growth while continuing to effectively manage costs and generate operational efficiencies,\u201d said Gerstenberg. \u201cWithin the segment, Technical Services grew revenue by 5% on demand for disposal and recycling services, including higher project and PFAS-related work, as well as collecting more volumes. Safety-Kleen Environmental Services\u2019 revenue in the segment increased by 7%, driven by pricing and growth in its core offerings. Incineration utilization, including the new Kimball incinerator, was 80%, in line with our expectations and reflecting a high number of planned maintenance days and weather impacts in the quarter. At the same time, landfill volumes rose 34% due to sizeable project activity. Field Services revenue grew 7%, as we responded to a steady stream of customer emergency events across the U.S., including a large-scale project that generated approximately $10 million in revenue. Overall, our ES segment delivered solid Q1 results despite regional softness in our Industrial Services business. Following a strong March, we exited the quarter with considerable momentum heading into the balance of the year.\u201d<\/p>\n
\n\u201cWithin our SKSS segment, we began the quarter by advancing our CFO pricing strategy for our waste oil collection services and finished amid an improving pricing environment for base oil and related products,\u201d said Mike Battles, Co-Chief Executive Officer. \u201cWe exceeded our Q1 expectations by growing segment Adjusted EBITDA by 17% and achieving a 320-basis-point improvement in Adjusted EBITDA margin. We gathered 53 million gallons of waste oil while continuing to increase revenues generated from our oil collection services. We also continued to execute on our profitability-enhancing initiatives, such as Group III production and increasing our direct lubricant gallons sold.\u201d<\/p>\n
Business Outlook and Financial Guidance<\/b><\/p>\n
\n\u201cWe are seeing positive demand trends and increased opportunities across our key lines of business to start the year,\u201d Gerstenberg said. \u201cAn improving U.S. economic backdrop is creating growth opportunities for our expanding disposal and recycling network, fueled by reshoring, PFAS, and project services. Safety-Kleen Environmental Services should deliver another consistent year of profitable growth. Branch expansion and investments within our Field Services business further solidifies our reputation as the national go-to provider for environmental emergencies. Although our Industrial Services business continues to operate in a challenged market, strategic initiatives being undertaken now will ensure growth as conditions improve. For SKSS, we are operating in a rising pricing and demand environment, with a focus on improving profitability and strengthening long-term customer relationships.\u201d<\/p>\n
\nBattles concluded, \u201cWe remain excited about our organic growth and acquisition prospects in 2026. The demand environment is highly favorable across our core lines of business, which is driving our capex decisions to accelerate near-term revenue growth. Through sustained execution of our capital allocation strategy, we continue to expect Clean Harbors to deliver strong profitable growth and robust free cash flow this year.\u201d<\/p>\n
\nIn the second quarter of 2026, Clean Harbors expects Adjusted EBITDA to grow 5% to 9% year over year. Based on its first-quarter performance and current market conditions, Clean Harbors is raising the midpoint of its 2026 Adjusted EBITDA guidance by $40 million and the midpoint of its adjusted free cash flow guidance by $10 million. For the full year, Clean Harbors now expects:<\/p>\n
- \n
- \nAdjusted EBITDA in the range of $1.24 billion to $1.30 billion, with a midpoint of $1.27 billion. This Adjusted EBITDA range is based on anticipated GAAP net income in the range of $421 million to $472 million.<\/p>\n<\/li>\n
- \nAdjusted free cash flow in the range of $490 million to $550 million, with a midpoint of $520 million. This range is based on anticipated net cash from operating activities in the range of $840 million to $960 million.<\/p>\n<\/li>\n<\/ul>\n
Non-GAAP Results:<\/b><\/p>\n
Adjusted EBITDA Reconciliation<\/b><\/p>\n
\nClean Harbors reports Adjusted EBITDA, which is a non-GAAP financial measure and should not be considered an alternative to net income or other measurements under generally accepted accounting principles (GAAP) but viewed only as a supplement to those measurements. Adjusted EBITDA is not calculated identically by all companies, and therefore the Company\u2019s measurement of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Clean Harbors believes that Adjusted EBITDA provides additional useful information to investors because the Company\u2019s management routinely evaluates the performance of its businesses based upon levels of Adjusted EBITDA. The Company defines Adjusted EBITDA as described in the following reconciliation showing the differences between reported net income and Adjusted EBITDA for the three months ended March 31, 2026 and 2025 (in thousands, except percentages):<\/p>\n
- Generates Q1 Net Income of $63.2 Million, or EPS of $1.19<\/i><\/li>\n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20260505814915\/en\/2795932\/3\/7_22_FINAL_CH_Logo_RED_rgb.jpg\"){kind=logo}
<\/td>\n<\/tr>\n