Clean Harbors, Inc.

Q2 revenue increased 12% year over year to $1.74 billion. Q2 adjusted EBITDA increased 22% to $409 million, and consolidated adjusted EBITDA margin was 23.6%, up 190 basis points year over year. Q2 EPS was $3.22, up 34% year over year, and income from operations was $269 million, up 28%. Environmental Services revenue increased by more than $100 million, with segment adjusted EBITDA up 8% and margin at 27.9%; Safety-Kleen Sustainability Solutions revenue rose more than 40% and adjusted EBITDA increased 143%. Cash from operations was $239 million, capex net of disposals was $124 million, and adjusted free cash flow was $136 million. For 2026, management now expects adjusted EBITDA of $1.35 billion to $1.41 billion, adjusted free cash flow of $520 million to $580 million, net capex of $370 million to $430 million, D&A of $475 million to $485 million, and SG&A as a percentage of revenue in the mid- to high-12% range. The 2026 guide assumes approximately $275 million of SKSS adjusted EBITDA and includes about $5 million from Terra Nova, but no contribution yet from ES&H.

The co-CEOs emphasized broad-based operational strength and said the company is executing well across both operating segments. Eric Gerstenberg highlighted safety, utilization, margin expansion, strong disposal demand, a large new long-term disposal contract, and early traction in data centers and PFAS. Mike Battles framed the quarter as evidence that Clean Harbors is benefiting from reshoring, customer demand for bundled waste solutions, and a disciplined approach to both acquisitions and internal investment.

Eric Dugas said Q2 results came in well ahead of prior expectations, with revenue of $1.74 billion, adjusted EBITDA of $409 million, and EPS of $3.22. He pointed to higher volume, market share gains, added waste streams, and better fleet utilization as drivers of the margin improvement, while also noting higher incentive comp, insurance/claims, and strategic investments pushed SG&A to 12.4% of revenue. He also cited $517 million of cash and marketable securities, net debt-to-EBITDA of about 2x, $239 million of operating cash flow, and updated 2026 guidance for EBITDA, FCF, and capex after adding investment tied to growth wins and PFAS work.

Analysts focused on the composition of the raised guidance, especially how much came from SKSS versus Environmental Services and what that implied for the second half. Management said ES guidance was lifted by about $30 million, including $10 million from Terra Nova, with additional momentum from volume, pricing, and the new long-term disposal contract; they also said Industrial Services is roughly flat versus last year unless turnaround activity improves. Questions on data centers, PFAS, and the manufacturing contract elicited detailed answers: management said the data center opportunity leverages existing flushing, passivation, and filtration capabilities and is targeted at $200 million of annual revenue by 2028/2029, while PFAS is now growing at 30%+ year over year and the new manufacturing deal will ramp over 4 to 5 years to an $80 million to $100 million run rate.