Clean Harbors Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.88%.
Did CLH Beat Earnings? Q1 2025 Results
Clean Harbors posted a mixed but broadly solid first quarter, nudging past earnings expectations while falling just short on revenue as the environmental services giant navigated a quarter defined by acquisition-driven cost pressures and strong operational momentum. Diluted EPS of $1.09 edged above the consensus estimate of $1.05 by 3.62%, even as net income slipped to $58.68 million from $69.83 million a year ago, weighed down by elevated depreciation and amortization tied to acquisitions and the new Kimball incinerator. Revenue grew 4.0% year over year to $1.43 billion, coming in fractionally below the $1.44 billion consensus estimate. The Environmental Services segment led the way, with Field Services surging 32% on the HEPACO acquisition and incineration utilization hitting 88%, while the Safety-Kleen Sustainability Solutions segment showed signs of a turnaround, with executives signaling the business has turned a corner despite a softer commodity backdrop. Looking ahead, management reaffirmed full-year 2025 Adjusted EBITDA guidance of $1.15 billion to $1.21 billion and projected adjusted free cash flow of $430 million to $490 million, reflecting confidence in the Kimball ramp-up and emerging PFAS opportunities.
- Field Services revenue increased 32% driven by HEPACO acquisition
- Technical Services revenue grew 5% on strength of volumes and pricing
- Incineration utilization at 88% (excluding Kimball), up from 79% year-ago period
- Average incineration price rose more than 5% on a mix-adjusted basis
- Safety-Kleen Environmental Services posted 5% revenue increase in ES segment
- SKSS revenue increased 9% on greater volumes sold from Noble Oil acquisition and shift to higher charge-for-oil pricing
- Higher depreciation and amortization of $112.0 million vs. $95.1 million from acquisitions and Kimball incinerator weighed on operating income
- Best quarterly safety results in company history with TRIR of 0.46
“We began 2025 with a solid, first-quarter performance as our Environmental Services (ES) segment closed Q1 with a strong March helping to overcome unfavorable weather impacts early in the quarter and results in our Safety-Kleen Sustainability Solutions (SKSS) segment exceeded our expectations. Demand trends for our disposal and recycling assets were very strong in the quarter. In addition, we posted the best quarterly safety results in our history, registering a Total Recordable Incident Rate (TRIR) of 0.46.”
Clean Harbors CEO, on the earnings call
Forward Guidance & Outlook
Clean Harbors confirmed full-year 2025 guidance with Adjusted EBITDA expected in the range of $1.15 billion to $1.21 billion (midpoint $1.18 billion, representing 6% YoY growth) based on anticipated GAAP net income of $377 million to $428 million. Adjusted free cash flow is expected in the range of $430 million to $490 million (midpoint $460 million), representing nearly 30% growth from the prior year. For Q2 2025, the company expects Adjusted EBITDA to grow 1-3% year over year, with 3-5% growth in the ES segment and lower corporate expenses more than offsetting an expected decline in SKSS. Management acknowledged uncertainty around U.S. trade and tariff policies but has taken pricing actions to offset anticipated tariff costs and has not seen demand reduction for core services.
CLH YoY Financials
CLH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.