Clean Harbors (CLH) investor relations material

Executive summary

• Q2 2026 revenue reached a record $1.74 billion, up 12% year-over-year, with strong growth in both Environmental Services (ES) and Safety-Kleen Sustainability Solutions (SKSS) segments.

• Net income increased 34% to $170.5 million, with diluted EPS of $3.22.

• Adjusted EBITDA grew 22% to $409 million, with margin expanding 190 basis points to 23.6%.

• Announced a ten-year, $600 million disposal contract and a $305 million acquisition of ES&H to expand field services and emergency response capabilities in the Gulf region.

• Safety performance remained a competitive differentiator, with a year-to-date total recordable incident rate of 0.46, outperforming industry benchmarks.

Financial highlights

• Gross profit rose to $608.8 million, with gross margin expanding to 35.1%.

• Income from operations increased 28% to $268.9 million.

• Cash from operations was $239 million, up 15% year-over-year; adjusted free cash flow was $135.7 million.

• Capital expenditures were $124 million in Q2.

• Share repurchases totaled $52.1 million in the first half of 2026.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance raised to $1.35–$1.41 billion, midpoint $1.38 billion, up $110 million from prior guidance.

• Adjusted free cash flow guidance for 2026 increased to $520–$580 million.

• Q3 2026 adjusted EBITDA expected to grow 24–28% year-over-year.

• SKSS segment expected to deliver $275 million adjusted EBITDA in 2026, double 2025 levels.

• Management anticipates continued margin expansion and strong cash flow generation, with sufficient liquidity to fund operations and growth initiatives.