Clean Harbors Q3 Net Income Rises 3.11% on Service Revenue Growth

Ticker: CLH · Form: 10-Q · Filed: 2025-10-29T00:00:00.000Z

Sentiment: mixed

Topics: Environmental Services, Waste Management, Q3 Earnings, Revenue Growth, Net Income, Tax Legislation, Share Repurchases

Related Tickers: CLH

TL;DR

**CLH's Q3 net income uptick is a green flag, but watch those declining product revenues – service strength is key.**

AI Summary

CLEAN HARBORS INC reported a net income of $118.799 million for the three months ended September 30, 2025, a 3.11% increase from $115.213 million in the prior year period. Total revenues for the quarter increased by 1.30% to $1,549.337 million, up from $1,529.422 million. Service revenues grew by 3.35% to $1,321.865 million, while product revenues decreased by 9.18% to $227.472 million. For the nine months ended September 30, 2025, net income was $304.384 million, a 4.38% decrease from $318.325 million in the same period of 2024. Total revenues for the nine months increased by 1.62% to $4,531.141 million. The company's cash and cash equivalents increased to $759.197 million as of September 30, 2025, from $687.192 million at December 31, 2024. Key risks include the impact of new tax legislation, specifically the One Big Beautiful Bill Act, which the company is still assessing but does not expect to have a material impact. Strategic outlook involves evaluating new accounting pronouncements like ASU No. 2025-06 for internal-use software, which could modernize accounting practices.

Why It Matters

This filing shows Clean Harbors maintaining profitability with a slight increase in net income, primarily driven by service revenue growth, which is crucial for investors seeking stable operational performance in the environmental services sector. The decrease in product revenues, however, warrants attention as it could signal shifts in market demand or competitive pressures. For employees, consistent revenue and income suggest job stability and potential for growth. Customers benefit from the company's continued investment in services, as evidenced by the increase in property, plant, and equipment. The broader market sees a resilient player in the environmental and industrial services space, navigating economic shifts and regulatory changes like the One Big Beautiful Bill Act.

Risk Assessment

Risk Level: medium — The risk level is medium due to the decrease in net income for the nine months ended September 30, 2025, by 4.38% to $304.384 million, despite an increase in total revenues. Additionally, the company is still assessing the full impact of the One Big Beautiful Bill Act, which introduces uncertainty regarding future tax liabilities and cash flows, even if currently not expected to be material.

Analyst Insight

Investors should monitor Clean Harbors' upcoming earnings calls for further details on the decline in product revenues and the long-term impact of the One Big Beautiful Bill Act. Consider holding CLH given the stable service revenue growth and increased cash position, but be prepared for potential volatility if the tax act's impact proves more significant than currently anticipated.

Financial Highlights

revenue
$1,549.337M
net Income
$118.799M
cash Position
$759.197M
revenue Growth
+1.30%

Revenue Breakdown

SegmentRevenueGrowth
Service Revenues$1,321.865M+3.35%
Product Revenues$227.472M-9.18%

Key Numbers

Key Players & Entities

FAQ

What were Clean Harbors' key financial results for the third quarter of 2025?

Clean Harbors reported net income of $118.799 million for the three months ended September 30, 2025, a 3.11% increase from $115.213 million in the prior year. Total revenues for the quarter were $1,549.337 million, up 1.30% from $1,529.422 million.

How did Clean Harbors' service and product revenues perform in Q3 2025?

Service revenues for Clean Harbors increased by 3.35% to $1,321.865 million in Q3 2025, up from $1,278.955 million. Conversely, product revenues decreased by 9.18% to $227.472 million, down from $250.467 million in the same period last year.

What was Clean Harbors' net income for the nine months ended September 30, 2025?

For the nine months ended September 30, 2025, Clean Harbors' net income was $304.384 million. This represents a 4.38% decrease compared to $318.325 million for the same period in 2024.

What is the impact of the One Big Beautiful Bill Act on Clean Harbors?

The One Big Beautiful Bill Act, signed into law on July 4, 2025, includes provisions like 100% bonus depreciation and domestic research cost expensing. Clean Harbors is still assessing its full impact but currently does not expect it to have a material effect on its financial position, results of operations, or cash flows.

How much cash and cash equivalents did Clean Harbors have as of September 30, 2025?

As of September 30, 2025, Clean Harbors reported cash and cash equivalents of $759.197 million. This is an increase from $687.192 million reported at December 31, 2024.

What were Clean Harbors' share repurchase activities in the nine months ended September 30, 2025?

Clean Harbors repurchased common stock totaling $117.001 million in the nine months ended September 30, 2025. This is a significant increase from the $30.215 million in repurchases during the same period in 2024.

What new accounting pronouncements is Clean Harbors evaluating?

Clean Harbors is evaluating ASU No. 2023-09, which enhances income tax disclosures, and ASU No. 2024-03, requiring disaggregated income statement expense disclosures. They are also assessing ASU No. 2025-06, which modernizes accounting for internal-use software costs.

Did Clean Harbors make any acquisitions in the nine months ended September 30, 2025?

No, Clean Harbors reported no acquisitions, net of cash acquired, for the nine months ended September 30, 2025. This contrasts with $474.011 million in acquisitions during the same period in 2024.

What are the primary sources of revenue for Clean Harbors' Environmental Services segment?

The Environmental Services segment generates revenue from Technical Services, including waste material management and disposal, and Industrial Services, which involve in-plant cleaning and maintenance for industrial customers. Field and Emergency Response Services also contribute to this segment.

How has Clean Harbors' total stockholders' equity changed?

Clean Harbors' total stockholders' equity increased to $2,775,840 million as of September 30, 2025, from $2,573,529 million at December 31, 2024. This increase is primarily driven by retained earnings growth.

Risk Factors

Industry Context

Clean Harbors operates in the environmental and industrial services sector, which is influenced by regulatory compliance, waste management needs, and industrial activity. The sector is generally characterized by a need for significant capital investment in specialized equipment and facilities.

Regulatory Implications

The company faces ongoing regulatory scrutiny related to environmental protection and waste disposal. Changes in tax legislation, such as the 'One Big Beautiful Bill Act', could also introduce new compliance requirements or financial impacts.

What Investors Should Do

  1. Monitor the impact of declining product revenues on overall profitability and explore strategies to reverse this trend.
  2. Track the company's assessment and potential adoption of new accounting pronouncements like ASU No. 2025-06 for their impact on financial reporting.
  3. Evaluate the company's cash flow generation and deployment, particularly in light of increased share repurchases and decreased capital expenditures.

Glossary

ASU No. 2025-06
An Accounting Standards Update issued by the Financial Accounting Standards Board (FASB) that provides guidance on accounting for internal-use software. (This pronouncement could affect how Clean Harbors accounts for its internal-use software, potentially impacting reported expenses and assets.)
One Big Beautiful Bill Act
A hypothetical new tax legislation that the company is currently assessing for its financial impact. (Changes in tax laws can affect a company's net income and overall financial strategy.)

Year-Over-Year Comparison

For the third quarter of 2025, Clean Harbors Inc. saw a modest 1.30% increase in total revenues to $1,549.337 million, driven by a 3.35% rise in service revenues, which offset a 9.18% decline in product revenues. Net income for the quarter grew by 3.11% to $118.799 million. However, year-to-date net income decreased by 4.38% to $304.384 million, indicating some pressure on profitability over the longer term. The company's cash position strengthened, and share repurchases significantly increased compared to the prior year period, while capital expenditures saw a decrease.

Filing Stats: 4,514 words · 18 min read · ~15 pages · Grade level 18.1 · Accepted 2025-10-29 10:58:07

Key Financial Figures

Filing Documents

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

: Unaudited Consolidated Financial Statements

ITEM 1: Unaudited Consolidated Financial Statements Consolidated Balance Sheets 1 Unaudited Consolidated Statements of Operations 2 Unaudited Consolidated Statements of Comprehensive Income 3 Unaudited Consolidated Statements of Cash Flows 4 Unaudited Consolidated Statements of Stockholders' Equity 5 Notes to Unaudited Consolidated Financial Statements 7

: Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2: Management's Discussion and Analysis of Financial Condition and Results of Operations 24

: Quantitative and Qualitative Disclosures About Market Risk

ITEM 3: Quantitative and Qualitative Disclosures About Market Risk 36

: Controls and Procedures

ITEM 4: Controls and Procedures 36

: OTHER INFORMATION

PART II: OTHER INFORMATION

: Legal Proceedings

ITEM 1: Legal Proceedings 38

: Risk Factors

ITEM 1A: Risk Factors 38

: Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2: Unregistered Sales of Equity Securities and Use of Proceeds 38

: Defaults Upon Senior Securities

ITEM 3: Defaults Upon Senior Securities 38

: Mine Safety Disclosures

ITEM 4: Mine Safety Disclosures 38

: Other Information

ITEM 5: Other Information 38

: Exhibits

ITEM 6: Exhibits 39

Signatures

Signatures 40 Table of Contents CLEAN HARBORS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands) September 30, 2025 December 31, 2024 ASSETS (unaudited) Current assets: Cash and cash equivalents $ 759,197 $ 687,192 Short-term marketable securities 91,176 102,634 Accounts receivable, net of allowances aggregating $ 43,778 and $ 47,242 , respectively 1,104,805 1,015,357 Unbilled accounts receivable 182,059 162,215 Inventories and supplies 377,308 384,657 Prepaid expenses and other current assets 93,716 81,741 Total current assets 2,608,261 2,433,796 Property, plant and equipment, net 2,497,600 2,447,941 Other assets: Operating lease right-of-use assets 241,048 250,853 Goodwill 1,478,831 1,477,199 Permits and other intangibles, net 663,965 701,987 Other long-term assets 50,594 65,502 Total other assets 2,434,438 2,495,541 Total assets $ 7,540,299 $ 7,377,278 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 15,102 $ 15,102 Accounts payable 444,119 487,286 Deferred revenue 91,966 88,545 Accrued expenses and other current liabilities 415,170 419,445 Current portion of closure, post-closure and remedial liabilities 28,814 20,625 Current portion of operating lease liabilities 72,241 71,663 Total current liabilities 1,067,412 1,102,666 Other liabilities: Closure and post-closure liabilities, less current portion of $ 16,796 and $ 10,304 , respectively 122,546 119,484 Remedial liabilities, less current portion of $ 12,018 and $ 10,321 , respectively 85,299 101,424 Long-term debt, less current portion 2,764,231 2,771,117 Operating lease liabilities, less current portion 173,137 182,883 Deferred tax liabilities 358,597 363,623 Other long-term liabilities 193,237 162,552 Total other liabilities 3,697,047 3,701,083 Commitments and contingent liabilities (See Note 15) Stockholders' equity: Common stock, $ 0.01 par value: Authorized 80,000,000 shares; issued and outstandin

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