Clean Harbors, Inc. (NYSE: CLH) has announced its financial results for the third quarter ending September 30, 2025. The company reported revenue of $1.55 billion, a slight increase from $1.53 billion in the same period of 2024. The net income for the third quarter of 2025 stood at $118.8 million, or $2.21 per diluted share, compared to $115.2 million, or $2.12 per diluted share, for the same period in 2024.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a noteworthy increase of 6% to $320.2 million from $301.8 million for the same period in 2024. The adjusted EBITDA margin also rose by 100 basis points compared to the prior year period, reaching 20.7%.
Clean Harbors also provided a segment review, indicating that its Environmental Services segment achieved its 14th consecutive quarter of year-over-year improvement in adjusted EBITDA margin, which increased by 120 basis points to 26.8%. The Technical Services segment saw a 12% growth, while the Safety-Kleen Environmental Services segment reported an 8% rise in revenue.
Looking ahead, Clean Harbors revised its full-year 2025 adjusted EBITDA to reflect the third-quarter performance and raised its adjusted free cash flow guidance. The company now expects adjusted EBITDA in the range of $1.155 billion to $1.175 billion, representing a 4% growth year over year. Adjusted free cash flow is anticipated to be in the range of $455 million to $495 million, representing more than a 30% increase from the prior year.
A notable strategic move includes the company's announcement of plans to build a state-of-the-art processing plant to convert a re-refining byproduct into a high-value 600N base oil, with a total investment of $210 million to $220 million and a commercial launch anticipated in 2028.
Clean Harbors also expressed optimism about the future, expecting a strong fourth-quarter performance with adjusted EBITDA growth in the range of six to eight percent compared with a year ago. The company remains on track to deliver a record level of annual adjusted EBITDA and adjusted free cash flow in 2025.
This financial performance indicates the company's ability to navigate through market challenges and capitalize on growth opportunities, demonstrating the resilience of its business model and its strategic initiatives.
The company's focus on managing costs, driving operating efficiencies, and increasing waste volumes handled through its disposal and recycling network has evidently contributed to its improved financial performance. The investments in innovative technology and strategic shifts toward higher charge-for-oil pricing also reflect the company's commitment to unlocking incremental value and driving long-term profitability.
Clean Harbors' proactive approach to addressing market conditions and its efforts to capitalize on emerging opportunities position the company for sustained growth and profitability in the coming periods. Following these announcements, the company's shares moved 1.64%, and are now trading at a price of $246.19. If you want to know more, read the company's complete 8-K report here.
