CLEAN HARBORS INC (CLH): Results of Operations and Financial Condition
CLEAN HARBORS INC (CLH) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 Press Release Clean Harbors Announces Second-Quarter 2026 Financial Results • Increases Q2 Revenue 12% to a Record $1.74 Billion Driven by Both Operating Segments • Generates 34% Increase in Q2 Net Income to $170.5 Million, or EPS of $3.22 • Achieves 22% Growth in Q2
How this was made
The 30-second read
Why it matters
Q2 results show broad-based growth (revenue, net income, adjusted EBITDA) and management commentary points to continued demand into 2H. The new disposal contract ($600M estimated value) and the ES&H acquisition ($305M cash) add identifiable growth and synergy expectations, but both introduce execution and regulatory risks.
Market read
This is a multi-catalyst filing: earnings beat with margin expansion, a large multi-year contract award, and a signed acquisition deal, plus raised 2026 guidance.
What to watch
Investors may discount the $600M contract if ramp-up timing to full capacity in 2030 is slower than expected, and should scrutinize how much of the margin expansion is sustainable versus one-off pricing and utilization (e.g., incineration utilization at 91%).
Clean Harbors Announces Second-Quarter 2026 Financial Results
Record revenue grew 12%, net income rose 34%, Adjusted EBITDA increased 22%, and the Company raised its 2026 Adjusted EBITDA and adjusted free cash flow guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $1.74 billion | – | 12% |
| Income from operationsGAAP | $268.9 million | – | 28% |
| Net incomeGAAP | $170.5 million | – | 34% |
| Diluted earnings per shareGAAP | $3.22 per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $409.0 million | – | 22% |
| Adjusted EBITDA Marginnon-GAAP | 23.6% | – | 190 Basis Points |
| Six-month net incomeGAAP | $ 233,665 (in thousands) | – | – |
| Six-month Adjusted EBITDAnon-GAAP | $ 656,878 (in thousands) | – | – |
| Six-month Adjusted EBITDA Marginnon-GAAP | 20.6 % | – | – |
| Q2 accretion of environmental liabilitiesother | 3,502 (in thousands) | – | – |
| Q2 stock-based compensationother | 14,818 (in thousands) | – | – |
| Q2 depreciation and amortizationother | 121,807 (in thousands) | – | – |
| Q2 other (income) expense, netother | (430) (in thousands) | – | – |
| Q2 interest expense, net of interest incomeGAAP | 37,208 (in thousands) | – | – |
| Q2 provision for income taxesGAAP | 61,655 (in thousands) | – | – |
| Year-to-date Total Recordable Incident Rateother | 0.46 | – | – |
| Incineration utilizationother | 91% | – | – |
| Landfill volumesother | 7% | – | 7% |
| Waste oil gatheredother | 61 million gallons | – | – |
Third quarter of 2026 and full year 2026 outlook
- NoteIn the third quarter of 2026, Clean Harbors expects Adjusted EBITDA to grow 24% to 28% year over year.
- NoteAdjusted EBITDA in the range of $1.35 billion to $1.41 billion, with a midpoint of $1.38 billion.
- NoteThis Adjusted EBITDA range is based on anticipated GAAP net income in the range of $481 million to $531 million.
- NoteAdjusted free cash flow in the range of $520 million to $580 million, with a midpoint of $550 million.
- NoteThis range is based on anticipated net cash from operating activities in the range of $890 million to $1,010 million.
What drove it
- Environmental Services benefited from healthy volumes into the disposal and recycling network, remediation projects, PFAS-related work, and strategic pricing initiatives to offset inflation and fuel costs.
- Technical Services revenue grew 18% on strong demand for disposal and recycling services.
- Safety-Kleen Environmental Services revenue increased 11%, driven by pricing and growth in containerized waste collection and vacuum services.
- SKSS revenue increased 41% as market pricing for re-refined products rose amid major global supply disruptions of refined products.
- SKSS also benefited from producing Group III gallons, selling more blended volume, and managing waste-oil collection volumes and costs.
- The Company won a ten-year disposal contract with estimated value of $600 million over the life of the contract, with options to expand in scope.
- Clean Harbors entered into an agreement to acquire ES&H for $305 million in cash.
Concerns
- Field Services revenue grew 3% year-over-year despite a difficult comparison with large emergency response projects in the prior period.
- SKSS profitability reflected market conditions resulting from major global supply disruptions of refined products.
- The ES&H acquisition is expected to close in the second half of 2026 subject to regulatory approval and other customary closing conditions.
- The ten-year disposal contract is expected to reach full capacity in 2030 based on the ramp-up of multiple manufacturing sites by the customer.
What to watch
- Third-quarter Adjusted EBITDA growth guidance of 24% to 28% year over year.
- Whether favorable SKSS supply conditions extend into the third quarter as expected.
- Growth from multiple large emergency response events in Field Services during the third quarter.
- The fourth-quarter commencement of the new disposal contract.
- Closing of the ES&H acquisition in the second half of 2026 and realization of approximately $5 million of cost synergies after the first full year of operations.
- PFAS pipeline development in the U.S. and Canada and the new Industrial Services offering for data centers.
Analysis
Clean Harbors reported a record second quarter, with revenues of $1.74 billion, up 12% from $1.55 billion. Income from operations increased 28% to $268.9 million, while net income rose 34% to $170.5 million and diluted EPS was $3.22. The faster growth in income from operations and net income than revenue points to improved operating profitability in the reported period.
Adjusted EBITDA increased 22% to $409.0 million and Adjusted EBITDA Margin expanded 190 Basis Points to 23.6%. Environmental Services delivered its 17th consecutive quarter of year-over-year Adjusted EBITDA margin expansion, reaching 27.9%. Technical Services revenue growth of 18%, Safety-Kleen Environmental Services revenue growth of 11%, 91% incineration utilization, and a 7% increase in landfill volumes indicate continued activity across the disposal network.
SKSS was a major contributor to growth, with segment revenue up 41% and Adjusted EBITDA 143% higher. Management attributed the performance to higher market pricing for re-refined products amid global supply disruptions, as well as Group III production, blended-volume sales, and waste-oil collection management. The segment gathered 61 million gallons of waste oil. The Company expects favorable SKSS supply conditions to extend into the third quarter, making the persistence of those market conditions important to the second-half result.
The Company added long-duration commercial visibility through a ten-year disposal contract with estimated value of $600 million, scheduled to commence in the fourth quarter and expected to reach full capacity in 2030. It also agreed to acquire ES&H for $305 million in cash, with annual base revenues of approximately $90 million, annual Adjusted EBITDA of approximately $30 million, and expected cost synergies of approximately $5 million after the first full year of operations. The transaction remains subject to regulatory approval and customary closing conditions.
Management raised the midpoint of 2026 Adjusted EBITDA guidance by $110 million and the midpoint of adjusted free cash flow guidance by $30 million. Full-year Adjusted EBITDA guidance is now $1.35 billion to $1.41 billion, while adjusted free cash flow guidance is $520 million to $580 million. The third-quarter outlook calls for Adjusted EBITDA growth of 24% to 28% year over year, supported by positive demand trends in both operating segments, emergency response work, PFAS opportunities, reshoring-related activity, and the current SKSS environment.
Management, verbatim
Our record second-quarter results demonstrate the substantial momentum we achieved in both of our operating segments.
Mike Battles, Co-Chief Executive Officer
Our ES segment delivered its 17th consecutive quarter of year-over-year Adjusted EBITDA margin expansion with a margin of 27.9%.
Eric Gerstenberg, Co-Chief Executive Officer
SKSS segment revenue increased 41% in Q2 and Adjusted EBITDA was 143% higher, with segment margin up more than 70% from the year ago period.
Mike Battles, Co-Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter revenue, income from operations, net income, diluted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin
- GAAP gross profit and gross margin
- Operating expenses
- Detailed absolute revenue for the Environmental Services and Safety-Kleen Sustainability Solutions segments
- Absolute revenue for Technical Services, Safety-Kleen Environmental Services, and Field Services
- Absolute Adjusted EBITDA and Adjusted EBITDA Margin for the Safety-Kleen Sustainability Solutions segment
- Actual second-quarter operating cash flow, capital expenditures, proceeds from sale and disposal of fixed assets, and adjusted free cash flow, because the adjusted free cash flow reconciliation is truncated
- Cash balance, debt balance, and net debt
- Share repurchases, dividends, and other capital-return activity
- Revenue, gross margin, operating expenses, and tax-rate guidance
- Previous-period guidance for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The 8-K (Item 2.02) includes a Q2 2026 earnings release plus disclosures on a new ten-year disposal contract and a definitive agreement to acquire ES&H.
Ticker impact
Clean Harbors reports Q2 2026 results with record $1.74B revenue, +34% net income, and raises 2026 guidance, plus a $600M ten-year disposal contract and a $305M ES&H acquisition agreement.
Likely positive reaction and follow-through if investors view the contract and acquisition as de-risking 2H/2027 earnings and cash flow; watch for integration and regulatory-approval risk around the ES&H deal.
The filing is a primary 8-K with quantified Q2 financials, explicit contract award value ($600M over ten years), and a signed acquisition price ($305M) with timing (close in 2H 2026, subject to regulatory approval). These are concrete, decision-relevant catalysts rather than commentary.
Market effects
Supports the environmental and industrial services theme via evidence of demand strength (disposal/recycling, PFAS work) and pricing power in re-refined products.
Highlights Gulf-region field services expansion via the ES&H acquisition, potentially increasing competitive intensity in maritime and emergency response services.
Mentions global refined-product supply disruptions as a driver for SKSS profitability, implying continued tailwinds if disruptions persist into Q3.
Counterpoint
The SKSS profitability tailwind is tied to supply disruptions that may normalize, and the ES&H acquisition is contingent on regulatory approval, which can delay or alter expected returns.
Key entities
- companyClean Harbors, Inc.
NYSE-listed environmental and industrial services provider reporting Q2 2026 results, a new ten-year disposal contract, and an ES&H acquisition agreement.
- companyES&H
Gulf-region environmental and emergency response services provider Clean Harbors agreed to acquire for $305M cash, expected to close in 2H 2026 subject to approvals.
