Clean Harbors Posts Record Q3 2026 Results, Lifts FY Guidance & Announces CEO Transition

Executive Overview

Clean Harbors, Inc. (NYSE: CLH) filed a Form 8-K on October 28, 2026, disclosing strong third-quarter 2026 financial results, an upward revision to its full-year 2026 outlook, and a key leadership transition.

Third-Quarter 2026 Financial Highlights

• Revenue: Reached a record $1.87 billion, up 21% from $1.55 billion in Q3 2025, driven by double-digit growth across both core operating segments.
• Operating Income: Increased 65% year-over-year to $318.1 million compared to $193.0 million in Q3 2025.
• Net Income & EPS: Net income expanded 75% to $208.1 million ($3.93 per diluted share), compared to $118.8 million ($2.21 per diluted share) in Q3 2025.
• Adjusted EBITDA: Grew 42% year-over-year to $456.1 million (from $320.2 million), achieving a record Adjusted EBITDA margin of 24.4% (up 370 bps YoY).
• Cash Flow: Generated $419.2 million in operating cash flow and record adjusted free cash flow of $323.1 million (up from $230.6 million in Q3 2025).

Segment Performance & Drivers

• Environmental Services (ES): Generated an Adjusted EBITDA margin of 27.4% (18th consecutive quarter of YoY expansion). Field Services grew revenue >70%, boosted by a major emergency response project contributing approximately $120 million at emergency rates. Technical Services revenue rose 3% with incineration utilization at 87%. Safety-Kleen Environmental Services revenue increased 11%.
• Safety-Kleen Sustainability Solutions (SKSS): Revenue rose 46% and Adjusted EBITDA surged 209% YoY due to global supply disruptions elevating prices for base oil and lubricants, higher Group III production (+20%), and strong feedstock cost discipline (62 million gallons collected at net charge-for-oil).

Increased Full-Year 2026 Guidance

Clean Harbors raised the midpoint of its full-year 2026 guidance metrics by $80 million:

• Adjusted EBITDA: Now projected between $1.44 billion and $1.48 billion (midpoint $1.46 billion), corresponding to GAAP net income of $528 million to $563 million.
• Adjusted Free Cash Flow: Now projected between $600 million and $660 million (midpoint $630 million), supported by projected operating cash flow of $970 million to $1.09 billion.
• Q4 2026 Outlook: Adjusted EBITDA is projected to grow 23% to 26% year-over-year.

Executive Leadership Succession

• Eric Gerstenberg, currently Co-CEO, will become sole Chief Executive Officer effective January 1, 2027.
• Mike Battles, currently Co-CEO, will retire as Co-CEO and step down from the Board of Directors at year-end 2026.