Clean Harbors Reports Strong First-Quarter 2026 Financial Performance
Clean Harbors, a leading North American provider of environmental and industrial services, announced strong financial results for the first quarter ended March 31, 2026, highlighting growth in revenue, profitability, and operational efficiency across its major business segments. The company also raised its full-year financial guidance, reflecting confidence in market demand and long-term growth opportunities.
Strong Start to 2026
Clean Harbors began 2026 with better-than-expected first-quarter performance. Company leadership credited the results to improved profitability in both the Environmental Services (ES) and Safety-Kleen Sustainability Solutions (SKSS) segments, despite difficult weather conditions during the quarter.
Eric Gerstenberg, Co-Chief Executive Officer, said the Environmental Services division achieved its 16th consecutive quarter of year-over-year Adjusted EBITDA margin improvement. He noted that the company successfully managed operational challenges while continuing to expand revenue and improve efficiency. Gerstenberg also praised the company’s safety performance, reporting the lowest quarterly Total Recordable Incident Rate in Clean Harbors’ history at 0.39.
Financial Highlights
For the first quarter of 2026, Clean Harbors generated revenue of $1.46 billion, up from $1.43 billion during the same period in 2025. Income from operations increased 7% to $118.9 million compared with $111.6 million a year earlier.
Net income rose to $63.2 million, or $1.19 per diluted share, compared with $58.7 million, or $1.09 per diluted share, in the first quarter of 2025. The company also reported Adjusted EBITDA of $247.9 million, representing a 6% increase from $234.9 million in the prior-year period.
Adjusted EBITDA margin improved to 17.0%, compared with 16.4% in the same quarter last year, demonstrating the company’s ability to increase profitability while managing costs effectively.
Environmental Services Segment Performance
The Environmental Services segment delivered solid results, supported by revenue growth, operational efficiencies, and strong customer demand. Gerstenberg said the segment achieved a 50-basis-point improvement in Adjusted EBITDA margin by leveraging top-line growth and maintaining disciplined cost management.
Within the segment, Technical Services revenue increased 5% due to strong demand for disposal and recycling services. Growth was driven by higher project-related work, increased PFAS-related activity, and greater waste collection volumes. PFAS, often referred to as “forever chemicals,” continues to create significant opportunities for environmental cleanup and disposal services across North America.
Safety-Kleen Environmental Services, another division within the segment, posted a 7% revenue increase. The growth was fueled by pricing improvements and continued expansion of core service offerings.
Incineration utilization, including operations at the new Kimball incinerator, reached 80% during the quarter. Although weather disruptions and planned maintenance affected utilization rates, the company said results remained in line with expectations.
Landfill volumes increased significantly, rising 34% because of major project activity. In addition, Field Services revenue grew 7%, supported by emergency response work across the United States. One large-scale project alone contributed approximately $10 million in revenue during the quarter.
Despite ongoing weakness in parts of the Industrial Services market, the Environmental Services segment ended the quarter with strong momentum following a robust March performance.
SKSS Segment Delivers Higher Profitability
The Safety-Kleen Sustainability Solutions segment also exceeded expectations during the quarter. According to Co-Chief Executive Officer Mike Battles, the company benefited from an improving pricing environment for base oil and related products, along with its ongoing charge-for-oil pricing strategy.
The SKSS segment increased Adjusted EBITDA by 17% year over year while improving Adjusted EBITDA margin by 320 basis points. The company collected 53 million gallons of waste oil during the quarter and continued to generate higher revenues from oil collection services.
Battles said Clean Harbors also made progress on several profitability-focused initiatives, including expanding Group III base oil production and increasing direct lubricant sales. These initiatives are expected to strengthen margins and support long-term growth within the segment.
Positive Outlook for 2026
Company leadership expressed optimism about market conditions and demand trends heading into the remainder of 2026. Gerstenberg stated that an improving U.S. economic environment is creating opportunities across Clean Harbors’ core businesses.
The company expects continued growth in disposal and recycling services, driven by industrial reshoring, PFAS-related projects, and increased demand for environmental solutions. Safety-Kleen Environmental Services is also expected to deliver another year of profitable growth.
Clean Harbors continues to invest in branch expansion and operational improvements within its Field Services business, reinforcing its position as a leading provider of emergency environmental response services.
Although Industrial Services remains challenged in some regions, management said strategic initiatives underway today are intended to position the business for future growth once market conditions improve.
Within the SKSS segment, the company expects rising demand and stronger pricing conditions to continue supporting profitability improvements and stronger customer relationships.
Increased Financial Guidance
Based on first-quarter performance and favorable market conditions, Clean Harbors raised the midpoint of its 2026 Adjusted EBITDA guidance by $40 million and increased adjusted free cash flow guidance by $10 million.
For the full year 2026, the company now expects:
- Adjusted EBITDA between $1.24 billion and $1.30 billion, with a midpoint of $1.27 billion.
- GAAP net income between $421 million and $472 million.
- Adjusted free cash flow between $490 million and $550 million, with a midpoint of $520 million.
- Net cash from operating activities between $840 million and $960 million.
The company also projected capital expenditures ranging from $475 million to $535 million during the year, including investments in strategic growth projects expected to generate long-term benefits.
Understanding Adjusted EBITDA
Clean Harbors uses Adjusted EBITDA as a key non-GAAP financial metric to evaluate operational performance. The company believes the measure provides investors with additional insight into business trends and profitability.
For the first quarter of 2026, Adjusted EBITDA totaled approximately $247.9 million. This figure included adjustments for depreciation and amortization, stock-based compensation, environmental liability accretion, interest expense, and income taxes.
Depreciation and amortization represented the largest adjustment at approximately $115.8 million. Stock-based compensation totaled $9.6 million, while interest expense reached $33.9 million.
Free Cash Flow Performance
Clean Harbors reported adjusted free cash flow of negative $75.8 million during the first quarter of 2026, an improvement from negative $115.7 million during the same period in 2025.
The company generated $6.3 million in net cash from operating activities during the quarter. Capital expenditures totaled approximately $98.4 million, while strategic growth investments added another $14.8 million. Proceeds from the sale and disposal of fixed assets contributed $1.5 million.
Management emphasized that strategic investments made during the quarter are intended to support future revenue growth and operational expansion.
Conference Call and Company Overview
Clean Harbors scheduled a conference call for investors at 9:00 a.m. Eastern Time to discuss quarterly financial results, growth strategies, and business outlook. Investors can access the webcast and supporting materials through the company’s investor relations website.
Founded in 1980 and headquartered in Massachusetts, Clean Harbors operates throughout the United States, Canada, Mexico, Puerto Rico, and India. The company serves a wide range of industries, including manufacturing, chemical processing, refining, and government agencies.
Through its Safety-Kleen subsidiary, Clean Harbors is also North America’s largest re-refiner and recycler of used oil. The company provides hazardous waste management, emergency spill response, industrial cleaning, recycling, and environmental services to thousands of commercial and industrial customers, including many Fortune 500 companies.
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