10-Q · May 6, 2026
Clean Harbors reported strong Q1 2026 results, with revenues of $1.46 billion, up from $1.43 billion in Q1 2025, and exceeded EPS estimates by delivering $1.19 compared to $1.15 expected. Growth was driven by the…
Earnings analysis · 10-Q
CLH earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
Clean Harbors delivered a strong Q2, with $1.735 billion of revenue and $3.22 diluted EPS, exceeding the supplied consensus estimates of $1.620 billion and $2.67. Both segments grew, while SKSS pricing and feedstock…
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Clean Harbors delivered a strong Q2, with $1.735 billion of revenue and $3.22 diluted EPS, exceeding the supplied consensus estimates of $1.620 billion and $2.67. Both segments grew, while SKSS pricing and feedstock economics drove the largest margin improvement; company adjusted EBITDA margin increased 190 basis points to 23.6%. Cash generation improved, though acquisitions and elevated capital spending drove $560.5 million of six-month investing outflows and raise execution and capital-allocation considerations.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.22
What stood out
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Revenue accelerated sequentially and year over year
Q2 direct revenue rose $185.2 million, or 11.9%, year over year to $1.735 billion. This was also up $275.0 million, or 18.8%, from $1.460 billion in Q1 2026.
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EPS and net income rose sharply
Diluted EPS was $3.22, up $0.86, or 36.4%, from $2.36 a year ago and up $2.03 from $1.19 in Q1 2026. Net income increased 34.3% to $170.5 million.
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Margins expanded materially
Gross margin was 35.1%, up 180 basis points year over year from 33.3% and 460 basis points sequentially from 30.5%. Operating margin reached 15.5%, up 190 basis points year over year and 730 basis points sequentially.
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SKSS drove the profit inflection
SKSS revenue grew 40.8% to $278.4 million and adjusted EBITDA rose $54.7 million to $93.0 million; its adjusted EBITDA margin expanded 14.0 points to 33.4%. Higher base-oil pricing added $37.2 million of revenue.
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Environmental Services maintained broad growth
Environmental Services revenue increased 7.7% to $1.457 billion, supported by an $81.5 million Technical Services increase and $29.4 million growth in Safety-Kleen core services. Incinerator utilization rose to 91% from 86%.
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Operating cash generation and liquidity improved
Six-month operating cash flow increased $35.8 million to $245.5 million, while adjusted free cash flow improved $42.4 million to $59.8 million. Available revolver capacity was $460.8 million at June 30.
What to watch
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Acquisitions lifted investing cash use
Investment cash outflow reached $560.5 million in the first six months, including $357.6 million for acquisitions. This exceeded the $245.5 million of operating cash flow and reflects a sizable deployment and integration burden.
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Capital intensity is rising
Capital expenditures were $224.6 million in the first six months, equal to 91.5% of operating cash flow, and management increased full-year spending expectations to $490.0 million-$550.0 million. Strategic projects include $85 million of 2026 expected SDA spending.
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Industrial Services demand remains soft
Industrial Services revenue declined $22.3 million in the first half, largely concentrated in Q1, due to lower demand for industrial maintenance and turnaround services. This partly offset growth in other Environmental Services offerings.
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Environmental obligations remain material
The filing reports no material changes to risk factors versus the 2025 Form 10-K. However, $139.2 million of letters of credit remain outstanding and environmental liabilities total $230.8 million.
Management's outlook
The 10-Q does not provide numeric revenue or EPS guidance. Management raised 2026 net capital-spending expectations to $490.0 million-$550.0 million for additional key-market investments; it expects Corporate SG&A to be slightly higher year over year but flat as a percentage of revenue, and expects net interest expense to remain below the prior year assuming current rates and debt portfolio.
Earlier filings 4
10-K · February 18, 2026
Clean Harbors describes a scale-driven strategy centered on cross-selling a broad suite of environmental services, expanding asset capacity (notably incineration) and technology-enabled efficiency. For fiscal 2025 total…
10-Q · April 30, 2025
Clean Harbors reported total direct revenues of $1,431,950,000 for Q1 2025, up $55,255,000 or 4.0% year-over-year, driven by Environmental Services and SKSS acquisitive and organic growth. Adjusted EBITDA rose modestly…
10-Q · October 30, 2024
Clean Harbors reported strong Q3 operational results with total direct revenues of $1,529,422,000 (up $163,726,000 or 12.0% YoY) and income from operations of $192.3 million (up 24.6% YoY). Adjusted EBITDA improved to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.