CLH · Clean Harbors, Inc.

Safety-Kleen Core Services Growth

Revenues from Safety-Kleen core service offerings for the three months ended March 31, 2026 grew due to improved pricing and volumes for containerized waste, vacuum, and parts washer services. This dynamic reflects how results are driven by the volumes of waste collected, the number of parts washers placed at customer sites, and demand for related services — all governed by purchase orders or agreements that price services based on units of volume, material, personnel, transportation, and other fees.

Margin Expansion and Cost Discipline

Gross profit increased 8.6% year-over-year to $445.4M, and gross margin strengthened to 30.5%. Operating income rose 6.6% to $118.9M, with operating margin reaching 8.1%. These improvements occurred amid ongoing inflationary pressures, and management explicitly cites disciplined cost monitoring, efforts to lower employee turnover, and customer pricing strategies as central to protecting margins. The company views disciplined management of operating costs as vital to remaining price competitive — a principle directly reflected in the quarter’s margin outcomes.

Capital Allocation and Strategic Investment

Financial Resilience and Outlook Context

Net income increased 7.7% to $63.2M, and diluted EPS rose 9.2% to $1.19 — indicating effective earnings leverage from top-line growth and margin gains. Management reiterates that primary ongoing cash requirements include operations, capital expenditures, interest payments, and strategic investments — all aligned with the business strategy in place as of the filing date. Oil and oil-related inventory decreased from December 31, 2025, reflecting lower on-hand volumes, though segment performance remains subject to market pricing, overall demand, and oil product sales mix — factors management continues to monitor closely as part of its resource allocation process.