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Jun 30
Clean Harbors Q2 2025 Earnings Report
Clean Harbors announced its second-quarter 2025 financial results, reporting flat revenue year-over-year, a decrease in net income and EPS, but achieved record Q2 Adjusted EBITDA and an increase in Adjusted EBITDA margin.
Key Takeaways
Clean Harbors reported Q2 2025 revenue of $1.55 billion, flat compared to the prior year. Net income was $126.9 million, or $2.36 per diluted share, down from $133.3 million and $2.46 per diluted share in Q2 2024. Despite this, the company achieved a record Q2 Adjusted EBITDA of $336.2 million, an increase from $327.8 million in the same period last year, with the Adjusted EBITDA margin improving by 60 basis points to 21.7%. The Environmental Services segment showed consistent profitable growth, while the Safety-Kleen Sustainability Solutions segment performed ahead of expectations.
Revenue remained flat at $1.55 billion compared to Q2 2024.
Net income decreased to $126.9 million, resulting in an EPS of $2.36.
Achieved a record Q2 Adjusted EBITDA of $336.2 million, with a 60 basis point improvement in Adjusted EBITDA margin to 21.7%.
Environmental Services segment revenue grew 3% and Adjusted EBITDA grew 5%, marking its 13th consecutive quarter of year-over-year Adjusted EBITDA margin improvement.
Clean Harbors
Clean Harbors
Clean Harbors Revenue by Segment
Revenue by Segment
Environmental Services Revenue
CapyFin.comSafety-Kleen Sustainability Solutions Revenue
CapyFin.comCorporate Revenue
CapyFin.com Forward Guidance
Clean Harbors anticipates a strong second half of 2025, driven by core market momentum, a promising North American economic outlook, and continued execution of pricing strategies and operational efficiencies. The company reiterated its full-year 2025 Adjusted EBITDA and Adjusted Free Cash Flow guidance.
Positive Outlook
- Strong momentum across core markets and promising North American economic outlook.
- Tangible benefits expected from recent tax bill and incentives for American manufacturing.
- Healthy overall demand from ES segment customers, leading to a substantial project pipeline.
- Anticipated progression of remediation projects supporting disposal and recycling network.
- Continued ramp-up of the new Kimball incinerator with a broader mix of waste streams in H2 2025.
Challenges Ahead
- Tariff uncertainty has impacted some customers in the short-term.
- SKSS segment's focus remains on actively managing collection rates and cost structure, indicating ongoing challenges.
- Volatility in the SKSS business in recent years, though efforts are being made to reduce it.
- No specific negative financial guidance provided, but the flat revenue growth in Q2 suggests a challenging environment for top-line expansion.
- The guidance for Adjusted EBITDA growth of 6% year over year for the full year implies a slower growth rate than the Q3 projection, suggesting potential moderation in the latter part of the year.