NYSE:CLH
CLEAN HARBORS INC
A global leader in environmental services providing essential waste management and remediation solutions to municipalities and commercial entities worldwide.
Key Metrics
Investment Thesis
Bull Case
CLH offers a compelling defensive growth story backed by inelastic demand for environmental compliance services that persist even during economic contractions. The company's proprietary technology and massive scale provide pricing power and cost advantages that should support steady margin expansion as it continues to optimize its large workforce and asset base. With a growing dividend yield potential supported by strong free cash flow generation of $866.7M, the stock provides attractive income characteristics for long-term capital preservation.
Bear Case
The substantial debt load of $2.76B combined with recent aggressive buybacks creates significant financial leverage that limits flexibility during recessionary periods or rising interest rate environments. Recent net income stagnation around $390M suggests the company may be hitting revenue saturation points in mature markets without clear high-growth catalysts emerging soon. The heavy reliance on a single proprietary platform introduces operational concentration risk, where any major disruption could disproportionately impact earnings compared to more diversified competitors.
About CLEAN HARBORS INC
Clean Harbors Inc. (CLH) is a leading environmental services provider offering waste management, remediation, and industrial hygiene solutions to municipalities and commercial clients globally. The company operates primarily in the United States, Canada, Australia, and the United Kingdom through its proprietary CleanTech platform. With 2025 revenue reaching $6.03B and net income of $391M, CLH serves as a critical utility for hazardous waste disposal and environmental compliance.
Analysis
Management Discussion
Despite a slight sequential decline in net income from $402.3M in 2024 to $391.0M in 2025, revenue growth remained robust at $6.03B, reflecting resilient demand for environmental services. The company successfully managed significant capital outflows with investing cash flows of -$425.8M and financing outflows of -$309.3M, largely driven by debt repayments totaling $2.01B and share repurchases of $250M which reduced equity to $2.75B. Operating efficiency was maintained as operating expenses grew to $1.21B while maintaining a healthy operating profit margin of approximately 11% on total revenue.
Industry Overview
The environmental services industry is characterized by steady growth driven by increasing regulatory complexity and the expanding scope of climate-related waste management needs. Companies in this sector benefit from high barriers to entry due to specialized licensing requirements, proprietary technology, and the capital intensity required to build nationwide infrastructure. Market leaders with integrated platforms like Clean Harbors are well-positioned to capture value as government and corporate clients increasingly prioritize sustainability and compliance.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $5.17B | $5.41B | $5.89B | $6.03B |
| Cost of Revenue | $3.54B | $3.75B | $4.07B | $4.14B |
| Gross Profit | $1.62B | $1.66B | $1.82B | $1.89B |
| Operating Expenses | $987.9M | $1.05B | $1.15B | $1.21B |
| Operating Income | $634.7M | $612.4M | $670.2M | $673.4M |
| G&A | $627.4M | $671.2M | $739.6M | $752.5M |
| Stock-Based Comp | $26.8M | $20.7M | $28.0M | $32.7M |
| D&A | $347.6M | $365.8M | $400.9M | $446.0M |
| Amortization | $50.2M | $50.3M | $54.4M | $53.9M |
| Other OpEx | $360.5M | $379.4M | $414.4M | $460.3M |
| Non-Operating Income | $-96.7M | $-109.2M | $-136.8M | $-145.4M |
| Interest Income | $4.6M | $11.9M | $19.4M | $25.7M |
| Pre-Tax Income | $538.0M | $503.3M | $533.4M | $528.0M |
| Income Tax | $126.3M | $125.4M | $131.1M | $137.0M |
| Continuing Ops | $411.7M | $377.9M | $402.3M | $391.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $411.7M | $377.9M | $402.3M | $391.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $411.7M | $377.9M | $402.3M | $391.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $2.03B | $2.05B | $2.43B | $2.65B |
| Marketable Securities | $62.0M | $106.1M | $102.6M | $127.4M |
| Accounts Receivable | $964.6M | $983.1M | $1.02B | $1.04B |
| Inventory | $325.0M | $327.5M | $384.7M | $372.1M |
| Prepaid Expenses | — | $82.9M | $81.7M | $116.5M |
| Other Current Assets | $682.1M | $552.6M | $849.4M | $987.2M |
| Long-Term Assets | $4.10B | $4.33B | $4.94B | $4.98B |
| Intangibles | $620.8M | $602.8M | $702.0M | $653.0M |
| Goodwill | $1.25B | $1.29B | $1.48B | $1.48B |
| Operating Leases | $166.2M | $187.1M | $250.9M | $255.1M |
| Other LT Assets | $2.06B | $2.25B | $2.51B | $2.59B |
| Total Assets | $6.13B | $6.38B | $7.38B | $7.62B |
| Current Liabilities | $1.02B | $1.04B | $1.10B | $1.14B |
| Accounts Payable | $446.6M | $451.8M | $487.3M | $506.6M |
| Current Debt | $10.0M | $10.0M | $15.1M | $12.6M |
| Current Leases | $49.5M | $56.4M | $71.7M | $75.2M |
| Deferred Revenue | $94.1M | $95.2M | $88.5M | $81.5M |
| Other Current Liab | $23.1M | $26.9M | $20.6M | $19.1M |
| Long-Term Liabilities | $3.19B | $3.10B | $3.70B | $3.74B |
| Long-Term Debt | $2.41B | $2.29B | $2.77B | $2.76B |
| LT Operating Leases | $119.3M | $131.7M | $182.9M | $184.3M |
| Other LT Liab | $653.2M | $674.4M | $747.1M | $793.7M |
| Total Liabilities | $4.21B | $4.14B | $4.80B | $4.88B |
| Shareholders' Equity | $1.92B | $2.25B | $2.57B | $2.75B |
| Retained Earnings | $1.58B | $1.96B | $2.36B | $2.76B |
| AOCI | $-167.2M | $-175.3M | $-213.6M | $-204.6M |
| Total L&E | $6.13B | $6.38B | $7.38B | $7.62B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $411.7M | $377.9M | $402.3M | $391.0M |
| Non-Cash Adjustments | $-184.0M | $348.7M | $183.9M | $382.2M |
| Working Capital Changes | $398.5M | $7.9M | $191.6M | $93.5M |
| Cash from Operations | $626.2M | $734.6M | $777.8M | $866.7M |
| Capital Expenditures | $345.1M | $422.3M | $432.2M | $424.9M |
| Cash from Investing | $-388.9M | $-575.0M | $-903.7M | $-425.8M |
| Debt Repayments | $115.7M | $624.0M | $15.1M | $2.01B |
| Share Buybacks | $50.2M | $51.2M | $55.2M | $250.0M |
| Cash from Financing | $-187.3M | $-208.9M | $377.0M | $-309.3M |
| FX Effect | $-9.9M | $1.5M | $-8.6M | $7.5M |
| Net Change in Cash | $40.0M | $-47.9M | $242.5M | $139.1M |
| Beginning Cash | $452.6M | $492.6M | $444.7M | $687.2M |
| Ending Cash | $492.6M | $444.7M | $687.2M | $826.3M |
Frequently Asked Questions
How does CLEAN HARBORS INC make money?
The company's revenue is driven by its proprietary CleanTech platform which includes four primary verticals: industrial hygiene services, remediation services, waste services, and specialized equipment rental. These segments collectively address complex environmental needs ranging from hazardous waste disposal and water treatment to site remediation and air quality monitoring across North America and international markets.
What are the main risks for CLH?
The company faces exposure to volatile input costs including fuel prices, labor rates, and regulatory changes that could impact operating margins significantly. A heavy reliance on its proprietary technology platform creates concentration risk where any operational disruption or cyber threat could impair core service delivery. Regulatory shifts in environmental compliance standards across different jurisdictions may increase capital expenditure requirements or alter the scope of permitted services. High levels of long-term debt ($2.76B) combined with substantial interest rate sensitivity pose leverage risks during periods of economic downturn or rising borrowing costs.
What is CLH's competitive advantage?
Clean Harbors possesses a significant first-mover advantage with a proprietary CleanTech platform that includes extensive intellectual property and trade secrets, creating high barriers to entry for competitors. Its massive scale allows for superior cost efficiencies in waste processing and a dominant geographic footprint that ensures consistent demand regardless of local economic cycles. The company's diversified service portfolio across multiple verticals provides revenue stability and cross-selling opportunities that single-segment peers cannot match.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.