Clean Harbors reported record third-quarter revenue and sharply higher earnings, citing growth in both its Environmental Services and Safety-Kleen Sustainability Solutions businesses. The company also raised its 2026 outlook for adjusted EBITDA and adjusted free cash flow, and announced that co-CEO Eric Gerstenberg will become sole CEO on Jan. 1, 2027.
Third-quarter results
- Revenue rose 21% from a year earlier to a record $1.87 billion. Income from operations increased 65% to $318.1 million.
- Net income climbed 75% to $208.1 million, or $3.93 per diluted share, compared with $118.8 million, or $2.21 per share, a year earlier.
- Adjusted EBITDA increased 42% to $456.1 million. Its margin widened 3.7 percentage points to 24.4%.
- Adjusted free cash flow reached a record $323 million for the quarter.
- Management attributed the results to strong demand for environmental services, including PFAS-related work and waste volumes, as well as pricing initiatives to offset inflation and higher fuel costs. Safety-Kleen Sustainability Solutions also benefited from high market prices for re-refined products amid global shortages.
Segment performance
- Environmental Services: The segment posted a 27.4% adjusted EBITDA margin, its 18th consecutive quarter of year-over-year margin expansion.
- Field Services: Revenue grew more than 70%, supported by emergency response work. One large event generated about $120 million in revenue at emergency-response rates, reflecting the scale and expedited timing of the work.
- Technical Services: Revenue increased 3%, while incineration utilization was 87%. Deferred revenue rose 20%, with the company citing a backlog of waste and a growing sales pipeline.
- Safety-Kleen Environmental Services: Revenue rose 11%, supported by pricing and continued momentum in core offerings.
- Industrial Services: The business recorded modest growth despite continued weakness in refinery turnaround activity.
Outlook and leadership
- Clean Harbors raised its 2026 guidance for adjusted EBITDA and adjusted free cash flow. The announcement did not provide revised target figures.
- Gerstenberg is set to become sole CEO on Jan. 1, 2027. Co-CEO Mike Battles will retire at year-end from both the co-CEO role and the board.
The quarter’s results included a roughly $120 million emergency-response contribution, while the company also cited broader demand and pricing strength across its businesses. The leadership change will end the co-CEO arrangement, with Gerstenberg taking sole responsibility for the chief executive role.