Clean Harbors, Inc. Q4 FY2025 earnings call

• Safety: 2025 was a record year for safety with a total recordable incident rate of 0.49. • Financial results: 2025 saw record revenue, adjusted EBITDA, adjusted free cash flow, and adjusted EBITDA margin increase by 40 basis points. Q4 exceeded guidance. • Operational milestones: Successful first-year ramp up of new Kimball incinerator, creation of Phoenix hub, handled nearly 22,000 emergency response events, issued PFAS incineration study with EPA, reduced voluntary turnover by 150 basis points. • PFAS momentum: PFAS incineration study with EPA and DoW released, spoke at Senate hearing on PFAS, announced $110,000,000 contract for PFAS water filtration at Pearl Harbor, Pentagon included language on PFAS removal and destruction in military installations. • Capital allocation: Announced acquisition of environmental businesses from Depot Connect International for ~$130,000,000, targeted expansion of vacuum truck fleet, repurchased shares, refinanced debt.

Environmental Services: Q4 revenue grew 6%, adjusted EBITDA up 8% with margin up 50 basis points. Full year 2025 revenues topped $6,000,000,000, adjusted EBITDA up 5%, adjusted free cash flow a record $509,000,000. PFAS business expected to grow 20% in 2026. Safety-Kleen Environmental (SKSS): Q4 segment revenue slightly down, adjusted EBITDA $30,000,000 (22% increase from 2024), full year adjusted EBITDA $137,000,000. Base oil pricing environment weak in Q4, but margins improved due to pricing and volume efforts.

• 2026 adjusted EBITDA range: $1,200,000,000 to $1,260,000,000, midpoint $1,230,000,000 (5% growth vs 2025). • Q1 adjusted EBITDA: Environmental Services segment expected to grow 4%-7% year over year, consolidated basis 1%-3%. • Capital spend: 2026 net CapEx expected $340,000,000 to $400,000,000, midpoint $370,000,000. • Environmental Services: Expected to grow just over 5% in 2026, supported by PFAS and remediation projects. • SKSS: Guided to ~$135,000,000 of adjusted EBITDA. • Corporate: Expected negative adjusted EBITDA to increase 2%-4% compared to 2025. • Adjusted free cash flow: 2026 range $480,000,000 to $540,000,000, midpoint $510,000,000.

Q: Curious on captive conversations and incineration pricing trends; A: Captive market active with discussions ongoing, expect incineration pricing to improve mid to upper single digits.

Q: Commentary on Industrial Services; A: Modest expectations in guide, but seeing positive indicators in turnaround work.

Q: Vac truck and field investments; A: Vac services growing, building trucks internally to keep pace with growth.

Q: M&A pipeline; A: Active in Environmental Services, similar to DCI acquisition.

Q: 1Q guide drivers; A: Base oil pricing challenges, weather impact, and Corporate incentives.

Q: Core Field Services emergency response work; A: $30,000,000 in Q4 from large-scale events, over 22,000 events in 2025, and growth due to network presence.

Q: PFAS inflection point; A: Closer to inflection with regulatory and operational momentum, but revenue growth expected to continue.

Q: SKSS pricing and refinery utilization; A: UMO pricing north of $0.50, no need to close refineries yet, Castrol partnership has had some wins but not major.

Q: Industrial economy impact; A: Tough to predict, but Environmental Services would benefit, with ES revenue growth possible in good industrial years.

Q: PFAS catalyst; A: Regulatory framework around PFAS thresholds would be greatest catalyst.