Clean Harbors, Inc.

What they do

Clean Harbors provides hazardous and non-hazardous waste collection, treatment, recycling, and disposal through a network of over 100 facilities, including incinerators, landfills, TSDFs, and wastewater treatment plants. The company also offers industrial maintenance, emergency response, and PFAS-related services. Its Safety-Kleen Sustainability Solutions segment collects used oil, re-refines it into base oil and VGO, and formulates and packages lubricants.

Revenue drivers

• Environmental Services (ES) — Largest segment; generates revenue from waste disposal, recycling, remediation projects, PFAS-related work, and industrial/field services. Q2 2026 revenue grew 18% in Technical Services on strong disposal demand.
• Safety-Kleen Sustainability Solutions (SKSS) — Collects used oil and related fluids, re-refines them into base oil, VGO, and lubricants. Q2 2026 revenue increased 41% on higher market pricing for re-refined products.
• Parts cleaning and related environmental services — Largest provider in North America to general manufacturing, automotive, and commercial customers; contributes recurring revenue from containerized waste and vacuum services.

Recent performance

In Q2 2026, Clean Harbors reported record revenue of $1.74 billion, up 12% year-over-year, and net income of $170.5 million, up 34%. Adjusted EBITDA increased 22% to $409.0 million, with margin expanding 190 basis points to 23.6%. ES segment delivered its 17th consecutive quarter of Adjusted EBITDA margin expansion at 27.9%, while SKSS Adjusted EBITDA was 143% higher. Incineration utilization rose to 91% from 86% a year ago, and landfill volumes increased 7%.

Strategy

Management focuses on strategic pricing to offset inflation and fuel costs, and on winning base business and large projects, including PFAS-related work. The company is expanding Field Services through a planned $305 million acquisition of ES H. It also announced a ten-year disposal contract valued at approximately $600 million, expected to commence in Q4 2026 and reach full capacity in 2030. Ongoing initiatives include producing Group III base oil gallons and selling more blended volume.

Risks

• Operational and safety risks — Accidents, spills, or failures at waste disposal facilities could result in liabilities, fines, and reputational damage.
• Oil price and supply volatility — SKSS segment is highly sensitive to market pricing for re-refined products and used oil collection costs, which can fluctuate with global supply conditions.
• Regulatory and environmental liability — Extensive environmental laws and regulations impose compliance costs and potential liability for past or future contamination.
• Acquisition and integration risk — The planned ES H acquisition and other strategic transactions may not achieve expected synergies or may involve unforeseen liabilities.

Outlook

Management raised 2026 guidance for Adjusted EBITDA and Adjusted Free Cash Flow, reflecting sustained demand trends in both segments. The new ten-year disposal contract is expected to commence in Q4 2026 and ramp to full capacity by 2030. SKSS supply conditions and favorable market pricing are expected to extend into Q3 2026.