Clean Harbors (CLH) investor relations material

Margin expansion and business drivers

• Margins in environmental services have expanded by about 500 basis points over five years, driven by increased volumes, strategic partnerships, and disciplined pricing, especially during inflationary periods.

• Current environmental services margins are just over 26%, with a long-term goal to reach 30% or higher, supported by volume growth, pricing, reshoring, infrastructure build-out, and PFAS opportunities.

• Cost-cutting, internalization, and workforce management improvements are ongoing to support margin growth.

Incineration segment developments

• The Kimball incinerator, opened a year ago, is exceeding throughput goals and is on track for $10 million incremental EBITDA this year, with a $40 million run rate expected by 2027.

• New capacity has helped alleviate network bottlenecks and reduce transportation costs, with incremental volumes coming from both existing and new customers.

• Utilization rates for incinerators are expected to remain in the high 80s to low 90s, with PFAS waste as a potential catalyst for higher rates.

• The trend of captive incinerator closures continues, shifting more waste to commercial facilities and potentially increasing the value of incoming waste streams.

• Pricing is expected to remain strong, with strategies focused on delivering value and outpacing inflation.

Industrial services and operational efficiency

• Industrial services represent about $1.3 billion, with 50% recurring maintenance, 30% specialty services, and 20% turnaround-related work.

• Turnaround work has slowed due to customer cost pressures, but deferred maintenance is expected to return, likely by 2026.

• Labor management and internalization initiatives have reduced labor as a percentage of revenue, positioning the business for higher mid-cycle margins.

• Pricing power is less than in technical services but is expected to remain above inflation due to service quality and bundled offerings.