CLEAN HARBORS INC
For the period ended Sep 30, 2025. Filed Oct 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 29, 2025
CLH$284.10+2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-30.
0000822818-25-000030
ITEM 2. : Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-29.
0000822818-25-000040
ITEM 2. : Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 96 previous paragraphs and 94 current paragraphs.
46 unchanged; 40 reworded; 7 added; 8 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 16 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Income from operations for the three and nine months ended September 30, 2025 was $193.0 million and $514.9 million, compared with $192.3 million and $533.3 million in the three and nine months ended September 30, 2024, respectively. Depreciation and amortization expense for the three and nine months ended September 30, 2025 was $14.7 million and $47.4 million higher, respectively, than the comparable period in 2024, which impacted comparative operating income. Net income for the three months ended September 30, 2025 was $118.8 million, an increase of $3.6 million, or 3.1%, as compared with net income of $115.2 million in the three months ended September 30, 2024. Net income for the nine months ended September 30, 2025 was $304.4 million, a decrease of $13.9 million, or 4.4%, as compared with net income of $318.3 million in the nine months ended September 30, 2024.
Current report
Environmental Services cost of revenues for the three months ended September 30, 2025 decreased $2.9 million from the comparable period in 2024, and improved 1.9% as a percentage of revenues. The decrease in cost of revenues for the three months ended September 30, 2025, compared to the same period in 2024, was primarily attributable to a $10.4 million reduction in third-party labor costs reflecting the benefits of our ongoing workforce management strategies as well as a $3.0 million reduction in equipment and supply costs. These cost savings were partially offset by a $10.9 million increase in transportation, vehicle and fuel costs resulting from volume growth associated with waste and remediation projects in the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.
Current report
SKSS cost of revenues for the three months ended September 30, 2025 decreased $12.6 million from the comparable period in 2024, and as a percentage of revenues, these costs improved 1.0%. The overall cost decreases were driven by lower acquisition costs of used oil feedstock and a $2.5 million decrease in labor costs due to strategic headcount management actions implemented in the second quarter of 2025. Additional savings were realized through the targeted plant idling initiatives carried out in late 2024 and early 2025 which further reduced production costs. Collectively, these cost management efforts along with the lower revenue noted above, contributed to the overall improvement as a percentage of revenue.
Current report
Environmental Services SG&A expenses for the three months ended September 30, 2025 increased $12.3 million from the comparable period in 2024, and as a percentage of revenue increased slightly. Overall, labor and benefits related costs, including the impact of higher healthcare costs, increased $9.6 million with the remaining increase spread across various cost categories.
Current report
We manage our Corporate SG&A expenses commensurate with the overall total Company performance and direct revenue levels. Corporate SG&A expenses for the three months ended September 30, 2025 decreased $2.4 million when compared to the same period in 2024 and decreased slightly as a percentage of total Company revenues. The decrease in Corporate SG&A expenses was driven by reductions across several cost categories including professional and legal fees and severance and integration costs. These reductions were partially offset by a $2.1 million increase in expenditures related to system investments.
Current report
Corporate SG&A expenses for the nine months ended September 30, 2025 decreased $5.7 million as compared to the same period in the prior year and decreased slightly as a percentage of total Company revenues. The reduction in Corporate SG&A expenses was primarily attributable to a $6.2 million decrease in environmental and legal reserve costs, reflecting higher costs incurred in the prior year related to changes in estimates for a remedial liability associated with a Superfund site. Additionally, severance and integration-related expenses were $6.1 million lower year-over-year. These reductions were partially offset by a $6.3 million increase in expenditures related to systems investments.
Current report
Financing arrangements are discussed in Note 11, “Financing Arrangements,” to our unaudited consolidated financial statements included in this report. As discussed therein, we refinanced a portion of our debt portfolio in October 2025 whereby we issued $745.0 million aggregate principal amount of 5.750% unsecured senior notes due 2033 and we entered into secured senior term loans with an aggregate principal amount equal to $1,260.0 million, due in 2032. The proceeds of these transactions, together with cash on hand, were used to refinance all existing $1.5 billion secured senior term loans due in 2028 on October 9, 2025, and will be used to redeem all of the $545.0 million aggregate principal amount of outstanding 2027 Notes on October 31, 2025. On October 1, 2025, we issued a redemption notice with a 30 day notice period, as required pursuant to the indenture governing the 2027 Notes, indicating our intent to redeem these notes in full on October 31, 2025. The only amounts due under these new financing arrangements prior to maturity will be interest payments, due monthly for the secured senior term loans and bi-annually for the unsecured senior notes, and annual principal payments of approximately $12.6 million for the secured senior term loans. We expect to fund these interest and principal payments with cash from operations. Subsequent to the October 2025 financing transactions, the earliest maturity of our debt portfolio is 2029. As noted above, we also maintain our $600.0 million revolving credit facility with no amounts owed as of September 30, 2025. We continue to monitor our debt instruments and evaluate opportunities where it may be beneficial to refinance or reallocate the portfolio.
Removed paragraphs (8)
Previous report
Income from operations for the three and six months ended June 30, 2025 was $210.3 million and $321.9 million, compared with $215.5 million and $341.0 million in the three and six months ended June 30, 2024, representing decreases of 2.4% and 5.6% respectively, primarily due to increased depreciation and amortization expense in 2025, as compared to the comparable periods in 2024. Net income for the three and six months ended June 30, 2025 was $126.9 million and $185.6 million, decreases of $6.4 million and $17.5 million, or 4.8% and 8.6% as compared with net income of $133.3 million and $203.1 million in the three and six months ended June 30, 2024, respectively.
Previous report
Environmental Services SG&A expenses for the three months ended June 30, 2025 remained relatively consistent with the comparable period in 2024, both in absolute dollars and as a percentage of revenues. Strategic headcount management actions implemented early in the second quarter of 2025 helped to partially offset rising costs, including inflation-driven increases in labor expenses.
Previous report
We manage our Corporate SG&A expenses commensurate with the overall total Company performance and direct revenue levels. Corporate SG&A expenses for the three months ended June 30, 2025 decreased $6.0 million when compared to the same period in the prior year and remained relatively consistent as a percentage of total Company revenues. The overall decrease in Corporate SG&A expenses for the three months ended June 30, 2025 when compared to the prior year was primarily driven by $5.2 million of lower environmental and legal reserve related costs, including a $2.9 million increase in a remedial liability for a Superfund site which occurred in the three months ended June 30, 2024 and did not recur in 2025. During the three months ended June 30, 2025 strategic headcount management actions implemented early in the second quarter of 2025 helped to partially offset rising costs, including inflation-driven increases in labor costs.
Previous report
Corporate SG&A expenses for the six months ended June 30, 2025 decreased $3.3 million when compared to the same period in the prior year and remained consistent as a percentage of total Company revenues. The decrease in Corporate SG&A expenses was primarily driven by $5.3 million of lower environmental and legal reserve related cost, noted above, partially offset by increased spending on systems investments and severance and integration costs of $4.2 million as compared to $3.1 million in the same period in 2024. During the six months ended June 30, 2025 strategic headcount management actions implemented early in the second quarter of 2025 helped to partially offset rising costs, including inflation-driven increases in labor costs.
Previous report
Stock-based Compensation
Previous report
Stock-based compensation for the three and six months ended June 30, 2025 decreased $2.5 million and $1.2 million, respectively, due to higher expense in 2024 for the achievement of performance awards granted in prior periods coupled with a longer recognition period for performance awards granted in 2025 and higher forfeitures in 2025. These expense decreases were partially offset by higher expense for the ESPP which commenced in July 2024.
Previous report
As of June 30, 2025, our financing arrangements include (i) $545.0 million of 4.875% senior unsecured notes due 2027, (ii) $1.5 billion of senior secured term loans due 2028, (iii) $300.0 million of 5.125% senior unsecured notes due 2029 and (iv) $500.0 million of 6.375% senior unsecured notes due 2031. As noted above, we also maintain our $600.0 million revolving credit facility with no amounts owed as of June 30, 2025.
Previous report
The material terms of these arrangements are discussed further in Note 11, “Financing Arrangements,” to the accompanying unaudited consolidated financial statements.
Reworded paragraphs (40)
Previous wording
Performance of our segments is evaluated on several factors of which the primary financial measure is Adjusted EBITDA, a non-GAAP measure which is reconciled to our GAAP net income and described more fully below. The following is a discussion of how management evaluates its segments in regards to other factors, including key performance indicators that management uses to assess the segments’ results, as well as certain macroeconomic trends and influences that impact each reportable segment:
Current wording
Performance of our segments is evaluated on several factors of which the primary financial measure is Adjusted EBITDA, a non-GAAP measure that is reconciled to our GAAP net income and described more fully below. The following is a discussion of how management evaluates our segments in regards to other factors, including key performance indicators that management uses to assess the segments’ results, as well as certain macroeconomic trends and influences that impact each reportable segment:
Previous wording
•Environmental Services -The Environmental Services segment results are driven by the customer demand for our wide variety of services, the volume of waste managed and project work requiring responsible waste handling and disposal. Environmental Services results are also impacted by the demand for planned and unplanned industrial related cleaning and maintenance services at customer sites, environmental cleanup services on a scheduled or emergency basis, including response to large scale events such as major chemical spills, natural disasters, or other instances where immediate and specialized services are required. The Environmental Services segment results include the Safety-Kleen branches’ core environmental service offerings of containerized waste disposal, parts washer and vacuum services. These results are driven by the volumes of waste collected from these customers, the overall number of parts washers placed at customer sites, and the demand for and frequency of other offered services. The results and integration of the acquired operations of HEPACO, which we acquired in March 2024, also impact the overall segment results as we integrated this business into our Field Services operations. In managing the business and evaluating performance, management tracks the volumes and mix of waste handled and disposed of or recycled, generally through our incinerators, TSDFs and landfills, the utilization rates of our incinerators, equipment and workforce, including billable hours and the number of parts washer services performed, and pricing realized by our business and peer companies as well as other key metrics. Levels of activity and ultimate performance associated with this segment can be impacted by several factors including overall North American GDP, U.S. industrial production, economic conditions in the general manufacturing, chemical and automotive markets, including efforts and economic incentives to increase domestic operations, available capacity at waste disposal outlets, demand for industrial cleaning and related industrial services, weather conditions, efficiency of our operations, technology, changing regulations, competition, market pricing of our services, costs incurred to deliver our services and the management of our related operating costs.
Current wording
•Environmental Services -The Environmental Services segment results are driven by the customer demand for our wide variety of services, the volume, pricing and mix of waste managed and project work requiring responsible waste handling and disposal. Environmental Services results are also impacted by the demand for planned and unplanned industrial related cleaning and maintenance services at customer sites and environmental cleanup services on a scheduled or emergency basis, including response to large scale events such as major chemical spills, natural disasters, or other instances where immediate and specialized services are required. The Environmental Services segment results include the Safety-Kleen branches’ core environmental service offerings of containerized waste disposal, parts washer and vacuum services. These results are driven by the volumes of waste collected from these customers, the overall number of parts washers placed at customer sites, and the demand for and frequency of other offered services. The results and integration of the acquired operations of HEPACO, which we acquired in March 2024, also impact the overall segment results as we integrated this business into our Field Services operations. In managing the business and evaluating performance, management tracks the volumes and mix of waste handled and disposed of or recycled, generally through our incinerators, TSDFs and landfills, the utilization rates of our incinerators, equipment and workforce, including billable hours and the number of parts washer services performed, and pricing realized by our business and peer companies as well as other key metrics. Levels of activity and ultimate performance associated with this segment can be impacted by several factors including overall North American GDP, U.S. industrial production, economic conditions in the general manufacturing, chemical and automotive markets, including efforts and economic incentives to increase domestic operations, available capacity at waste disposal outlets, demand for industrial cleaning and related industrial services, weather conditions, efficiency of our operations, technology, changing regulations, competition, market pricing of our services, costs incurred to deliver our services and the management of our related operating costs.
Previous wording
Total direct revenues for the three and six months ended June 30, 2025 were $1,549.9 million and $2,981.8 million, compared with $1,552.7 million and $2,929.4 million for the three and six months ended June 30, 2024, respectively. For the three months ended June 30, 2025, our Environmental Services segment direct revenues increased $42.7 million or 3.3% from the comparable period in 2024, driven by strong growth in Safety-Kleen core services and Technical Services, offset by fewer large scale emergency response events for our Field and Emergency Response Services operations. For the six months ended June 30, 2025, our Environmental Services segment direct revenues increased $79.3 million or 3.2% from the comparable period in 2024, driven by growth in Field and Emergency Response Services, specifically incremental contributions from the acquisition of HEPACO, as well as growth in our Technical Services and Safety-Kleen core services, offset by lower contributions from the Industrial Services organization. For the three and six months ended June 30, 2025, our SKSS segment direct revenues decreased $45.5 million and $26.9 million or 18.7% and 6.0%, respectively, from the comparable periods in 2024, driven by lower sales of base and blended oil products. These decreases were partially offset by higher charge for oil revenue and incremental contributions from Noble. Foreign currency translation of our Canadian operations negatively impacted our consolidated direct revenues by $1.8 million and $10.0 million in the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024.
Current wording
Total direct revenues for the three and nine months ended September 30, 2025 were $1,549.3 million and $4,531.1 million, compared with $1,529.4 million and $4,458.8 million for the three and nine months ended September 30, 2024, respectively. For the three months ended September 30, 2025, our Environmental Services segment direct revenues increased $34.1 million or 2.6% from the comparable period in 2024, driven by strong demand for our waste disposal services within Technical Services and Safety-Kleen core services, offset by lower contributions from our Field and Emergency Response Services operations and our Industrial Services organization. For the nine months ended September 30, 2025, our Environmental Services segment direct revenues increased $113.4 million or 3.0% from the comparable period in 2024, driven by growth in Technical Services, Safety-Kleen core services and Field and Emergency Response Services, specifically incremental contributions from the acquisition of HEPACO, offset by lower contributions from our Industrial Services organization. For the three and nine months ended September 30, 2025, our SKSS segment direct revenues decreased $14.1 million and $41.0 million or 6.1% and 6.0%, respectively, from the comparable periods in 2024, driven predominantly by lower pricing of base and blended oil products. These decreases were partially offset by higher charge for oil revenue for the three and nine months ended September 30, 2025 and incremental contributions from Noble for the nine months ended September 30, 2025. Foreign currency translation of our Canadian operations negatively impacted our consolidated direct revenues by $1.6 million and $11.7 million in the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024.
Previous wording
Adjusted EBITDA, which is the primary financial measure by which we evaluate the operating performance of our segments, increased $8.4 million and $13.2 million or 2.6% and 2.4%, from $327.8 million and $557.9 million in the three and six months ended June 30, 2024 to $336.2 million and $571.1 million in the three and six months ended June 30, 2025. Additional information regarding Adjusted EBITDA, which is a non-GAAP measure, including a reconciliation of net income to Adjusted EBITDA, appears below under“Adjusted EBITDA.”
Current wording
Adjusted EBITDA, which is the primary financial measure by which we evaluate the operating performance of our segments, increased $18.3 million and $31.5 million or 6.1% and 3.7%, from $301.8 million and $859.7 million in the three and nine months ended September 30, 2024 to $320.2 million and $891.3 million in the three and nine months ended September 30, 2025, respectively. Additional information regarding Adjusted EBITDA, which is a non-GAAP measure, including a reconciliation of net income to Adjusted EBITDA, appears below under“Adjusted EBITDA.”
Previous wording
Net cash from operating activities for the six months ended June 30, 2025 decreased $24.9 million from $234.6 million in 2024 to $209.6 million in 2025 primarily due to increased working capital balances. Adjusted free cash flow, which management uses to measure our financial strength and ability to generate cash, was an inflow of $17.4 million in the six months ended June 30, 2025 as compared to an outflow of $34.1 million in the comparable period of 2024, mainly due to lower cash paid for additions to property, plant and equipment. Additional information regarding adjusted free cash flow, which is a non-GAAP measure, including a reconciliation of net cash from operating activities to adjusted free cash flow, appears below under“Adjusted Free Cash Flow.”
Current wording
Net cash from operating activities for the nine months ended September 30, 2025 increased $37.8 million from $473.8 million in 2024 to $511.6 million primarily due to the impact of improved working capital in 2025 as compared to the prior year period, lower environmental expenditures and lower cash paid for taxes. Adjusted free cash flow, which management uses to measure our financial strength and ability to generate cash, was $248.1 million in the nine months ended September 30, 2025 as compared to $110.4 million in the comparable period of 2024, mainly due to higher cash flow from operating activities and lower cash paid for additions to property, plant and equipment net of proceeds from the sale of fixed assets. Additional information regarding adjusted free cash flow, which is a non-GAAP measure, including a reconciliation of net cash from operating activities to adjusted free cash flow, appears below under“Adjusted Free Cash Flow.”
Previous wording
(3)Selling, general and administrative expenses are shown exclusive of stock-based compensation which is presented in Selling, general and administrative expenses on the Company’s Consolidated Statements of Operations but is not included in the Company’s measurement of Adjusted EBITDA. See Adjusted EBITDA section below for a reconciliation of net income to Adjusted EBITDA.
Current wording
(3)Selling, general and administrative expenses in this table are shown exclusive of stock-based compensation which is presented in Selling, general and administrative expenses on the Company’s Consolidated Statements of Operations, but is not included in the Company’s measurement of Adjusted EBITDA. See “Adjusted EBITDA” section below for a reconciliation of net income to Adjusted EBITDA.
Previous wording
There are many factors which can impact our revenues including, but not limited to: overall levels of industrial activity and economic growth in North America, competitive industry pricing, overall market incineration capacity including captive incineration closures, changes in the regulatory environment including those related to per- and polyfluoroalkyl substances (“PFAS”), impacts of acquisitions and divestitures, the level of emergency response services, government infrastructure investment, reshoring of domestic manufacturing, existence or non-existence of large scale environmental waste and remediation projects, weather related events, the number of parts washers placed at customer sites, miles driven and related lubricant demand, base and blended oil pricing, market supply for base oil products, market changes relative to the collection of used oil and foreign currency fluctuations. In addition, customer efforts to minimize hazardous waste and changes in regulation can impact our revenues.
Current wording
There are many factors that can impact our revenues including, but not limited to: overall levels of industrial activity and economic growth in North America, competitive industry pricing, overall market incineration capacity including captive incineration closures, changes in the regulatory environment including those related to per- and polyfluoroalkyl substances (“PFAS”), impacts of acquisitions and divestitures, the level of emergency response services, government infrastructure investment, reshoring of domestic manufacturing, existence or non-existence of large scale environmental waste and remediation projects, weather related events, the number of parts washers placed at customer sites, miles driven and related lubricant demand, base and blended oil pricing, market supply for base oil products, market changes relative to the collection of used oil and foreign currency fluctuations. In addition, customer efforts to minimize hazardous waste and changes in regulation can impact our revenues.
Previous wording
Environmental Services direct revenues for the three months ended June 30, 2025 increased $42.7 million from the comparable period in 2024, driven by contributions across our service lines. Revenues for Safety-Kleen core service offerings for the three months ended June 30, 2025 grew by $21.0 million from the comparable period in 2024 due to improved overall pricing and demand for our containerized waste, vacuum and parts washer services. Technical services revenue increased $19.8 million from the comparable period in the prior year with contributions across our portfolio of waste disposal services, including increased volumes at our incinerator facilities. On a comparative basis and excluding the impacts of the new incinerator in Kimball, Nebraska, which is not expected to be running at full utilization until 2026, utilization at our incinerators was 89% in the three months ended June 30, 2025 as compared to 88% in the same period in 2024. Including the new Kimball incinerator, utilization at our incinerators was 86% during the three months ended June 30, 2025. Field and emergency response service revenues decreased $10.1 million driven by fewer large-scale emergency response events in the three months ended June 30, 2025 as compared to the same period in 2024. Direct revenues for Canadian operations of the Environmental Services segment decreased by $1.5 million due to foreign currency translation.
Current wording
Environmental Services direct revenues for the three months ended September 30, 2025 increased $34.1 million from the comparable period in 2024. Technical Services revenue increased $53.6 million from the comparable period in the prior year with contributions across our portfolio of waste disposal services, including stronger volumes at our incinerator and landfill facilities as well as higher revenues from waste and remediation projects. On a comparative basis and excluding the impacts of the new incinerator in Kimball, Nebraska which is not expected to be running at full utilization until 2026, utilization at our incinerators was 92% in the three months ended September 30, 2025 as compared to 89% in the same period in 2024. Including the new Kimball incinerator, utilization at our incinerators was 88% during the three months ended September 30, 2025. Revenues for Safety-Kleen core service offerings for the three months ended September 30, 2025 grew by $18.8 million from the comparable period in 2024 due to improved overall pricing and demand for our containerized waste, vacuum and parts washer services. Field and Emergency Response service revenues decreased $27.9 million driven by fewer emergency response events in the three months ended September 30, 2025 as compared to the same period in 2024. Revenue from our Industrial Services operations also decreased $13.5 million due to lower turnaround activity and related high-value services as compared to 2024. Direct revenues for Canadian operations of the Environmental Services segment decreased by $1.3 million due to foreign currency translation.
Previous wording
Environmental Services direct revenues for the six months ended June 30, 2025 increased $79.3 million from the comparable period in 2024 driven by acquisitive growth and incremental revenues from our legacy operations. Field and emergency response service revenues for the six months ended June 30, 2025 increased $42.1 million from the comparable period in 2024 driven by incremental revenue from the acquisition of HEPACO in late March 2024, partially offset by fewer large-scale emergency response events in the current year period. Technical services revenue increased $38.5 million from the comparable prior year period driven primarily by higher incineration volumes. On a comparative basis and excluding the impacts of the new incinerator in Kimball, Nebraska, utilization at our incinerators was 89% in the first six months of 2025 as compared to 83% in the same period in 2024. Including the new Kimball incinerator, utilization at our incinerators was 84% during the six months ended June 30, 2025. Revenues from Safety-Kleen core services for the six months ended June 30, 2025 grew by $32.9 million from the comparable period in 2024 due to improved pricing for our containerized waste, vacuum and parts washer services. Revenue from our industrial services operations declined $34.9 million due to lower turnaround activity and related high-value services, predominately early in 2025 when compared to 2024. Direct revenues for Canadian operations of the Environmental Services segment decreased by $8.0 million due to foreign currency translation.
Current wording
Environmental Services direct revenues for the nine months ended September 30, 2025 increased $113.4 million from the comparable period in 2024 driven by incremental revenues from our legacy operations and acquisitive growth. Technical Services revenue increased $92.1 million from the comparable prior year period driven primarily by higher incineration and landfill volumes. On a comparative basis and excluding the impacts of the new incinerator in Kimball, Nebraska, utilization at our incinerators was 90% in the first nine months of 2025 as compared to 85% in the same period in 2024. Including the new Kimball incinerator, utilization at our incinerators was 85% during the nine months ended September 30, 2025. Revenues from Safety-Kleen core service offerings for the nine months ended September 30, 2025 grew by $51.6 million from the comparable period in 2024 due to improved pricing for our containerized waste, vacuum and parts washer services. Field and Emergency Response Services revenues for the nine months ended September 30, 2025 increased $14.2 million from the comparable period in 2024 driven by incremental revenue from the acquisition of HEPACO in late March 2024, partially offset by lower revenues from emergency response events in the second and third quarters. Revenue from our Industrial Services operations decreased $48.4 million due to lower turnaround activity and related high-value services as compared to 2024. Direct revenues for Canadian operations of the Environmental Services segment decreased by $9.4 million due to foreign currency translation.
Previous wording
In the three months ended June 30, 2025, SKSS direct revenues decreased $45.5 million compared to the same period in 2024. Revenues from the sale of base and blended oil products decreased $32.7 million and $15.5 million, respectively, resulting from lower volumes sold and, to a lesser extent, lower pricing, and revenues from contract packaging services decreased $6.5 million from the same period in 2024. These decreases were partially offset by a $10.8 million increase in revenue from the collection of used oil as we increased the price we charge for these collection services starting in late 2024 and throughout 2025.
Current wording
In the three months ended September 30, 2025, SKSS direct revenues decreased $14.1 million compared to the same period in 2024. Revenues from the sale of base oil products decreased $18.1 million, resulting from lower pricing despite higher volumes sold. Revenues from the sale of blended oil products decreased $8.5 million, due to lower volumes sold and, to a lesser extent, lower pricing. These decreases were partially offset by a $12.2 million increase in revenue from the collection of used oil as we increased the pricing for these collection services starting in late 2024 and throughout 2025.
Previous wording
In the six months ended June 30, 2025, SKSS direct revenues decreased $26.9 million compared to the same period in 2024. Revenues from the sale of base and blended oil products decreased $38.6 million and $19.2 million, respectively, resulting from lower volumes sold and, to a lesser extent, lower pricing, and revenues from contract packaging services decreased $10.3 million from the same period in 2024. These decreases were partially offset by a $19.3 million increase in revenues from vacuum gas oil and specialty refinery products, driven by the acquisition of Noble in March 2024, and a $16.7 million increase in revenue from the collection of used oil attributed to the higher pricing for these collection services noted above. Direct revenues for Canadian operations of the SKSS segment decreased by $1.9 million due to foreign currency translation.
Current wording
In the nine months ended September 30, 2025, SKSS direct revenues decreased $41.0 million compared to the same period in 2024. Revenues from the sale of base and blended oil products decreased $56.6 million and $27.8 million, respectively, resulting from lower pricing and lower volumes sold. Revenues from contract packaging services decreased $12.4 million from the same period in 2024. These decreases were partially offset by a $28.9 million increase in revenue from the collection of used oil attributed to the higher pricing for these collection services noted above and a $20.8 million increase in revenues from vacuum gas oil and specialty refinery products, driven by the acquisition of Noble in March 2024. Direct revenues for Canadian operations of the SKSS segment decreased by $2.3 million due to foreign currency translation.
Previous wording
We believe that management of operating costs is vital to our ability to remain price competitive. We continue to experience inflationary pressures across several cost categories, but most notably related to internal and external labor, transportation, maintenance and energy related costs. We are also subject to uncertainties and cost increases due to the changing regulatory landscape, including trade restrictions and tariffs. We aim to manage these increases through constant cost monitoring and a focus on cost savings areas, including lowering employee turnover, as well as our overall customer pricing strategies designed to offset the inflationary impacts on our margins.
Current wording
We believe that management of operating costs is vital to our ability to remain price competitive. We continue to experience inflationary pressures across several cost categories, but most notably related to internal and external labor, healthcare, transportation, maintenance and energy related costs. We are also subject to uncertainties and cost increases due to the changing regulatory landscape, including trade restrictions and tariffs. We aim to manage these increases through constant cost monitoring and a focus on cost savings areas, including lowering employee turnover, as well as our overall customer pricing strategies designed to offset the inflationary impacts on our margins.
Previous wording
We continue to upgrade the quality and efficiency of our services through the development of new technology and continued modifications and expansion at our facilities while also leveraging certain fixed costs of our operating infrastructure. We invest in new business opportunities and aggressively implement strategic sourcing and logistics solutions, while also continuing to optimize our management and operating structure in an effort to manage our operating margins.
Current wording
We continue to upgrade the quality and efficiency of our services through the development of new technology and continued modifications and expansion at our facilities while also leveraging certain fixed costs of our operating infrastructure. We invest in new business opportunities and aggressively implement strategic sourcing and logistics solutions, while also continuing to optimize our workforce and operating structure in an effort to manage our operating margins.
Previous wording
Environmental Services cost of revenues for the six months ended June 30, 2025 increased $54.2 million from the comparable period in 2024, and remained consistent as a percentage of revenues. Commensurate with the revenue growth in the business and the acquisition of HEPACO discussed above, labor and benefit related costs increased $34.8 million and equipment and supply costs increased $11.7 million for the six months ended June 30, 2025 when compared to the six months ended June 30, 2024. The remaining cost increase was spread across various cost categories and was largely driven by the HEPACO acquisition. Partially offsetting these cost increases was a decrease of $12.2 million in third-party labor costs due to labor internalization efforts.
Current wording
Environmental Services cost of revenues for the nine months ended September 30, 2025 increased $51.3 million from the comparable period in 2024, but slightly declined as a percentage of revenues. Commensurate with the revenue growth in the business and the acquisition of HEPACO discussed above, labor and benefits related costs increased $31.4 million, transportation, vehicle and fuel costs increased $12.7 million and equipment and supply costs increased $9.0 million for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The remaining cost increase was spread across various cost categories and was driven by the incremental operations of the HEPACO acquisition. Partially offsetting these cost increases was a decrease of $22.6 million in third-party labor costs due to labor internalization efforts.
Previous wording
SKSS cost of revenues for the six months ended June 30, 2025 decreased $7.3 million from the comparable period in 2024 but increased 2.9% as a percentage of revenues. The overall cost decrease was driven by the lower sales volumes, discussed above, and by lower acquisition costs of used oil feedstock in the six months ended June 30, 2025 compared to the prior period. These decreases were partially offset by incremental expenses from the Noble acquisition. As a percentage of revenues, these costs increased primarily due to market-related volume and pricing decreases discussed above in the SKSS direct revenues section and the overall mix of products sold during the six months ended June 30, 2025 as compared to the same period in the prior year.
Current wording
SKSS cost of revenues for the nine months ended September 30, 2025 decreased $19.9 million from the comparable period in 2024, but increased 1.5% as a percentage of revenues. The overall cost decrease was driven by the lower sales volumes, discussed above, lower acquisition costs of used oil feedstock in the nine months ended September 30, 2025 compared to the prior period and a $2.8 million decrease in labor costs due to strategic headcount management actions implemented in the second quarter of 2025. These decreases were partially offset by incremental expenses from the Noble acquisition. As a percentage of revenues, these costs increased primarily due to market-related volume and pricing decreases discussed above in the SKSS direct revenues section and the overall mix of products sold during the nine months ended September 30, 2025 as compared to the same period in the prior year.
Previous wording
The SG&A expenses set forth below exclude stock-based compensation expense, which is presented in SG&A on the Company’s Consolidated Statement of Operations but is not included in the Company’s measurement of Adjusted EBITDA. For a discussion of significant changes in consolidated stock-based compensation expense, please refer to the separate section below.
Current wording
The SG&A expenses set forth below exclude stock-based compensation expense, which is presented in SG&A on the Company’s Consolidated Statement of Operations, but is not included in the Company’s measurement of Adjusted EBITDA.
Previous wording
Environmental Services SG&A expenses for the six months ended June 30, 2025 decreased $1.4 million from the comparable period in 2024, and remained relatively consistent as a percentage of revenues. The results for the six months ended June 30, 2025 include the impact of reducing the estimated costs to remediate a site by approximately $10 million in the first quarter of 2025 to reflect our conclusion that a loss was no longer probable based on recent evaluation of available evidence. This benefit was partially offset by higher labor and benefits related costs of $11.7 million as a result of the HEPACO acquisition and other investments in our employees.
Current wording
Environmental Services SG&A expenses for the nine months ended September 30, 2025 increased $11.0 million from the comparable period in 2024, remaining relatively consistent as a percentage of revenue. Overall, labor and benefits related costs increased $21.3 million compared to the same period in 2024, including higher employee healthcare costs and incremental costs related to the acquired HEPACO operations. The results for the nine months ended September 30, 2025 include the impact of reducing the estimated costs to remediate a site by approximately $10 million in the first quarter of 2025 to reflect our conclusion that loss was no longer probable based on the evaluation of available evidence.
Previous wording
SKSS SG&A expenses for the three months ended June 30, 2025 decreased $2.5 million and, despite the revenue decreases noted above, remained relatively consistent, as a percentage of revenues, when compared to the same period in 2024. Labor and benefit related costs decreased $2.6 million in the three months ended June 30, 2025 when compared to the same period in 2024, mainly driven by cost reduction initiatives that were executed late in 2024 and strategic headcount management actions implemented early in the second quarter of 2025.
Current wording
SKSS SG&A expenses for the three months ended September 30, 2025 decreased $1.2 million due to lower labor and benefit related costs. Despite the revenue decreases noted above, SKSS SG&A expenses as a percentage of revenue remained consistent, primarily driven by cost reduction initiatives that were executed late in 2024 and strategic headcount management actions implemented in the second quarter of 2025.
Previous wording
SKSS SG&A expenses for the six months ended June 30, 2025 decreased $4.9 million and, despite the revenue decreases noted above, remained relatively consistent, as a percentage of revenues, when compared to the same period in 2024. Labor and benefit related costs decreased $4.2 million in the six months ended June 30, 2025 when compared to the same period in 2024, mainly driven by the cost reduction initiatives noted above.
Current wording
SKSS SG&A expenses for the nine months ended September 30, 2025 decreased $6.2 million and, despite the revenue decreases noted above, remained relatively consistent, as a percentage of revenues, as compared to the same period in 2024. Labor and benefit related costs decreased $5.4 million in the nine months ended September 30, 2025 as compared to the same period in 2024, mainly driven by the cost reduction initiatives noted above.
Previous wording
Management considers Adjusted EBITDA to be a measurement of performance which provides useful information to both management and investors. Adjusted EBITDA should not be considered an alternative to net income or other measurements under generally accepted accounting principles (“GAAP”). As reflected in the reconciliation below, we define Adjusted EBITDA as net income plus accretion of environmental liabilities, stock-based compensation, depreciation and amortization, net other expense, net interest expense and provision for income taxes. Adjusted EBITDA is not calculated identically by all companies, and therefore our measurements of Adjusted EBITDA, while defined consistently and in accordance with our existing credit agreement, may not be comparable to similarly titled measures reported by other companies.
Current wording
Management considers Adjusted EBITDA to be a measurement of performance that provides useful information to both management and investors. Adjusted EBITDA should not be considered an alternative to net income or other measurements under generally accepted accounting principles (“GAAP”). As reflected in the reconciliation below, we define Adjusted EBITDA as net income plus accretion of environmental liabilities, stock-based compensation, depreciation and amortization, net other expense, net interest expense and provision for income taxes. Adjusted EBITDA is not calculated identically by all companies, and therefore our measurements of Adjusted EBITDA, while defined consistently and in accordance with our existing credit agreement, may not be comparable to similarly titled measures reported by other companies.
Previous wording
Depreciation and amortization for the three months ended June 30, 2025 increased by $15.8 million from the comparable period in 2024 due to depreciation for the Kimball incinerator, which was placed in service in December 2024, incremental depreciation for assets placed in service to support the growth of the business, higher amortization of landfill assets due to increased volumes and incremental finance lease amortization.
Current wording
Depreciation and amortization for the three months ended September 30, 2025 increased by $14.7 million from the comparable period in 2024 due to higher amortization of landfill assets due to increased volumes, depreciation for the new Kimball incinerator, which was placed in service in December 2024, incremental depreciation for assets placed in service to support the growth of the business and higher finance lease amortization.
Previous wording
Depreciation and amortization for the six months ended June 30, 2025 increased by $32.7 million from the comparable period in 2024 due to depreciation of fixed assets and amortization of intangible assets acquired from the March 2024 HEPACO and Noble acquisitions, depreciation for the Kimball incinerator, which was placed in service in December 2024, incremental depreciation for assets placed in service to support the growth of the business, higher amortization of landfill assets due to increased volumes and incremental finance lease amortization.
Current wording
Depreciation and amortization for the nine months ended September 30, 2025 increased by $47.4 million from the comparable period in 2024 due to depreciation of fixed assets and amortization of intangible assets acquired from the March 2024 HEPACO and Noble acquisitions, higher amortization of landfill assets due to increased volumes, depreciation for the new Kimball incinerator, which was placed in service in December 2024, incremental depreciation for assets placed in service to support the growth of the business, and higher finance lease amortization.
Previous wording
Interest expense, net of interest income for the six months ended June 30, 2025 increased $8.2 million from the comparable period in 2024 primarily due to higher levels of outstanding debt during the period resulting from the issuance of incremental debt on March 22, 2024. Interest expense was partially offset by a $2.8 million increase in interest income in the six months ended June 30, 2025 compared to the same period in 2024.
Current wording
Interest expense, net of interest income for the nine months ended September 30, 2025 increased $8.1 million from the comparable period in 2024 primarily due to higher levels of outstanding debt during the period resulting from the issuance of incremental debt on March 22, 2024. Interest expense was partially offset by a $4.0 million increase in interest income in the nine months ended September 30, 2025 compared to the same period in 2024.
Previous wording
As of June 30, 2025, the effective interest rate on our debt was 5.3%. For the remainder of 2025, we expect interest expense, net of interest income to remain relatively consistent with the prior year. For additional information regarding our current portfolio of long-term debt, see Note 11, “Financing Arrangements,” to the accompanying unaudited consolidated financial statements.
Current wording
As of September 30, 2025, the effective interest rate on our debt was 5.3%. For the remainder of 2025, and including the impact of the refinancing transactions that occurred in October 2025, we expect interest expense, net of interest income to remain relatively consistent with the prior year. For additional information regarding our current portfolio of long-term debt, see Note 11, “Financing Arrangements,” to the accompanying unaudited consolidated financial statements.
Previous wording
For the three months ended June 30, 2025, the provision for income taxes and our effective tax rate were relatively consistent with the same period in 2024.
Current wording
For the three months ended September 30, 2025, the increase in the provision for income taxes is consistent with the increase in pre-tax income, while our effective tax rate was relatively consistent with the same period in 2024.
Previous wording
For the six months ended June 30, 2025, the provision for income taxes decreased $9.9 million compared to the same period in 2024. This decrease was driven by both lower pre-tax income as well as a reduced effective tax rate in 2025. The decrease in our effective tax rate in the six months ended June 30, 2025 was driven by the write-off of a deferred tax asset with a full valuation allowance associated with the remedial liability change in estimate discussed above, which occurred in the first quarter of 2025.
Current wording
For the nine months ended September 30, 2025, the provision for income taxes decreased $8.1 million compared to the same period in 2024. This decrease was driven by both lower pre-tax income as well as a slightly lower effective tax rate in 2025. The decrease in our effective tax rate for the nine months ended September 30, 2025 was driven by the write-off of a deferred tax asset with a full valuation allowance associated with the remedial liability change in estimate discussed above, which occurred in the first quarter of 2025.
Previous wording
Net cash from operating activities for the six months ended June 30, 2025 was $209.6 million as compared to $234.6 million in the same period of 2024. This $24.9 million decrease in operating cash flows was attributable to an increase in working capital balances for the six months ended June 30, 2025 compared to the same period in 2024, partially offset by lower cash payments for income taxes.
Current wording
Net cash from operating activities for the nine months ended September 30, 2025 was $511.6 million as compared to $473.8 million in the same period of 2024. This $37.8 million increase in operating cash flows was primarily due to improvement in working capital balances as compared to the prior year period, lower environmental expenditures and lower cash paid for taxes for the nine months ended September 30, 2025 compared to the same period in 2024.
Previous wording
Net cash used in investing activities for the six months ended June 30, 2025 was $200.7 million, a decrease of $529.9 million from the comparable period in 2024. In the six months ended June 30, 2024, we paid $477.2 million for acquisitions, including the purchase of HEPACO and Noble. Additions to property, plant and equipment decreased $64.3 million, primarily due to notable project spend of $40.4 million on the Kimball incinerator strategic project in the six months ended June 30, 2024. Partially offsetting these lower cash outflows was an $11.7 million lower cash inflow due to the timing of transactions within our wholly owned captive insurance company.
Current wording
Net cash used in investing activities for the nine months ended September 30, 2025 was $276.6 million, a decrease of $536.4 million from the comparable period in 2024. In the nine months ended September 30, 2024, we paid $474.0 million for acquisitions, including the purchase of HEPACO and Noble. Additions to property, plant and equipment, net of proceeds from sale and disposal of fixed assets, decreased $75.6 million, primarily due to notable project spend of $63.3 million on the Kimball incinerator strategic project in the nine months ended September 30, 2024. Partially offsetting these lower cash outflows was a $13.5 million lower cash inflow due to the timing of transactions within our wholly owned captive insurance company.
Previous wording
Net cash used in financing activities for the six months ended June 30, 2025 was $101.2 million, as compared to net cash from financing activities of $455.5 million for the six months ended June 30, 2024. The primary difference in financing activities was the incurrence of term loans net of discount and deferred financing costs of $491.2 million in 2024 to fund the acquisitions executed during the period. Additionally, in 2025, the Company paid $56.8 million more for repurchases of common stock, $5.9 million for tax payments on withholdings of vested restricted stock and $5.3 million more in finance lease payments. Partially offsetting these incremental financing cash outflows in 2025 was the receipt of $3.4 million in proceeds from the ESPP.
Current wording
Net cash used in financing activities for the nine months ended September 30, 2025 was $166.5 million, as compared to net cash from financing activities of $408.6 million for the nine months ended September 30, 2024. The primary difference in financing activities was the incurrence of term loans net of discount and deferred financing costs of $491.1 million in 2024 to fund the acquisitions executed during the period. Additionally, in 2025, the Company paid $86.8 million more for repurchases of common stock while also receiving an additional $3.4 million in proceeds from the ESPP.
Previous wording
Management considers adjusted free cash flow, a non-GAAP measure, to be a measure of liquidity which provides useful information to management, creditors and investors about our financial strength and our ability to generate cash. Additionally, adjusted free cash flow is a metric on which a portion of management incentive compensation is based. We define adjusted free cash flow as net cash from operating activities, less additions to property, plant and equipment, plus proceeds from sales or disposals of fixed assets. When necessary, management adjusts for the cash impact of items derived from non-operating activities. Additionally, adjusted free cash flow excludes significant one-time growth investments, as they are not indicative of free cash flow generation for the current period. For 2025, these significant one-time growth investments include the build out of a hub facility in Phoenix Arizona which is expected to cost approximately $15 million in 2025 and, from which we expect to realize future long-term benefits. Adjusted free cash flow should not be considered an alternative to net cash from operating activities or other measurements under GAAP. Adjusted free cash flow is not calculated identically by all companies, and therefore our measurements of adjusted free cash flow may not be comparable to similarly titled measures reported by other companies.
Current wording
Management considers adjusted free cash flow, a non-GAAP measure, to be a measure of liquidity that provides useful information to management, creditors and investors about our financial strength and our ability to generate cash. Additionally, adjusted free cash flow is a metric on which a portion of management incentive compensation is based. We define adjusted free cash flow as net cash from operating activities, less additions to property, plant and equipment, plus proceeds from sales or disposals of fixed assets. When necessary, management adjusts for the cash impact of items derived from non-operating activities. Additionally, adjusted free cash flow excludes significant one-time growth investments, as they are not indicative of free cash flow generation for the current period. For 2025, these significant one-time growth investments include the early stages of construction of a solvent de-asphalting unit (“SDA”) and the build out of a hub facility in Phoenix, Arizona (“Phoenix Hub”). We expect to spend approximately $30 million and $15 million, respectively, in 2025 for these projects from which we expect to realize future long-term benefits. Adjusted free cash flow should not be considered an alternative to net cash from operating activities or other measurements under GAAP. Adjusted free cash flow is not calculated identically by all companies, and therefore our measurements of adjusted free cash flow may not be comparable to similarly titled measures reported by other companies.
Previous wording
At June 30, 2025, cash and cash equivalents and marketable securities totaled $699.1 million, compared to $789.8 million at December 31, 2024. At June 30, 2025, cash and cash equivalents held by our Canadian subsidiaries totaled $91.6 million. The cash and cash equivalents and marketable securities balance for our U.S. operations was $607.5 million at June 30, 2025. Our U.S. operations had net operating cash inflows of $223.1 million for the six months ended June 30, 2025.
Current wording
At September 30, 2025, cash and cash equivalents and marketable securities totaled $850.4 million, compared to $789.8 million at December 31, 2024. At September 30, 2025, cash and cash equivalents held by our Canadian subsidiaries totaled $94.9 million. The cash and cash equivalents and marketable securities balance for our U.S. operations was $755.5 million at September 30, 2025. Our U.S. operations had net operating cash inflows of $511.5 million for the nine months ended September 30, 2025.
Previous wording
We maintain a $600.0 million revolving credit facility of which, as of June 30, 2025, approximately $452.1 million was available to borrow under the facility, with letters of credit of $147.9 million outstanding.
Current wording
We maintain a $600.0 million revolving credit facility of which, as of September 30, 2025, approximately $473.3 million was available to borrow under the facility, with letters of credit of $126.7 million outstanding.
Previous wording
Capital expenditures during the first six months of 2025 were $208.7 million as compared to $273.0 million during the first six months of 2024. Notable project spend in 2024 included investments of $40.4 million in our Kimball incinerator facility and $15.4 million in our Baltimore, Maryland facility. In 2025, notable project spend includes $12.4 million spent for the purchase of a building for our Phoenix hub project. The remaining decrease in capital expenditures in the six months ended June 30, 2025 as compared to June 30, 2024 is due to the timing of expenditures. Overall, we expect that 2025 capital spending, net of disposals, will be in the range of $360.0 million to $390.0 million including the long-term growth investment of approximately $15 million for the Phoenix hub.
Current wording
Capital expenditures during the first nine months of 2025 were $303.2 million as compared to $369.8 million during the first nine months of 2024. Notable project spend in 2024 included investments of $63.3 million in our Kimball incinerator facility and $15.8 million in our Baltimore, Maryland facility. In 2025, notable project spend includes $11.8 million spent on the SDA and $12.5 million spent for the purchase of a building for our Phoenix Hub. The remaining decrease in capital expenditures in the nine months ended September 30, 2025 as compared to September 30, 2024 is due to the timing of expenditures.
Previous wording
We anticipate that the remaining 2025 capital spending will be funded by cash from our operations. Unanticipated changes in environmental regulations could require us to make significant capital expenditures for our facilities and adversely affect our results of operations and cash flow.
Current wording
We anticipate that the remaining 2025 capital spending and future spending on the SDA will be funded by cash from our operations. Unanticipated changes in environmental regulations could require us to make significant capital expenditures for our facilities and adversely affect our results of operations and cash flow.
Previous wording
The Company’s board of directors approved a plan to repurchase up to $1.1 billion of the Company’s common stock. During the three and six months ended June 30, 2025, the Company repurchased and retired 61,657 and 318,130 shares, respectively, of the Company’s common stock for total expenditures of $11.8 million and $66.8 million, respectively. During the three and six months ended June 30, 2024, the Company repurchased and retired 23,397 and 50,662 shares, respectively, of the Company’s common stock for total expenditures of $5.0 million and $10.0 million, respectively.
Current wording
The Company’s board of directors approved a plan to repurchase up to $1.1 billion of the Company’s common stock. During the three and nine months ended September 30, 2025, the Company repurchased and retired 208,206 and 526,336 shares, respectively, of the Company’s common stock for total expenditures of $50.0 million and $116.8 million, respectively. During the three and nine months ended September 30, 2024, the Company repurchased and retired 84,910 and 135,572 shares, respectively, of the Company’s common stock for total expenditures of $20.0 million and $30.0 million, respectively.
Previous wording
From the board’s approval of the repurchase plan through June 30, 2025, the Company has repurchased and retired a total of approximately 9.1 million shares of its common stock for $667.6 million under the board-approved plan, and, as of June 30, 2025, an additional $432.4 million remained available for the repurchase of shares.
Current wording
From the board’s approval of the repurchase plan through September 30, 2025, the Company has repurchased and retired a total of approximately 9.3 million shares of its common stock for $717.6 million under the board-approved plan, and, as of September 30, 2025, an additional $382.4 million remained available for the repurchase of shares.
Previous wording
Total environmental liabilities as of June 30, 2025 were $236.2 million, a decrease of $5.3 million compared to December 31, 2024. During the six months ended June 30, 2025, the environmental liability balance decreased due to reductions in environmental liability estimates of $8.0 million and expenditures of $7.1 million. The reduction in environmental liability estimates was primarily driven by a decrease of approximately $10 million in the remedial liability for a site based on our conclusion that loss was no longer probable based on recent evaluation of available evidence. This change was recorded in the first quarter of 2025.These decreases were partially offset by accretion of $7.2 million and new environmental liabilities, including those recognized as a result of recent acquisitions, of $2.1 million.
Current wording
Total environmental liabilities as of September 30, 2025 were $236.7 million, a decrease of $4.9 million compared to December 31, 2024. During the nine months ended September 30, 2025, the environmental liability balance decreased due to expenditures of $11.0 million and reductions in environmental liability estimates of $8.0 million. The reductions in environmental liability estimates were primarily driven by a decrease of approximately $10 million in the remedial liability for a site based on our conclusion that loss was no longer probable based on evaluation of available evidence. This change was recorded in the first quarter of 2025. These decreases were partially offset by accretion of $10.7 million and new environmental liabilities, including those recognized as a result of recent acquisitions, of $3.2 million.
Previous wording
Events not anticipated (such as future changes in environmental laws and regulations) could require that payments to satisfy our environmental liabilities be made earlier or in greater amounts than currently anticipated, which could adversely affect our results of operations, cash flow and financial condition. Conversely, the development of new treatment technologies or other circumstances may arise in the future which may reduce amounts ultimately paid.
Current wording
Events not anticipated (such as future changes in environmental laws and regulations) could require that payments to satisfy our environmental liabilities be made earlier or in greater amounts than currently anticipated, which could adversely affect our results of operations, cash flow and financial condition. Conversely, the development of new treatment technologies or other circumstances may arise in the future that may reduce amounts ultimately paid.
Previous wording
We obtain standby letters of credit as security for financial assurances we have been required to provide to regulatory bodies for our hazardous waste facilities and which would be called only in the event that we fail to satisfy closure, post-closure and other obligations under the permits issued by those regulatory bodies for such licensed facilities. As of June 30, 2025, there were $147.9 million outstanding letters of credit. See Note 11, “Financing Arrangements,” to the accompanying unaudited consolidated financial statements.
Current wording
We obtain standby letters of credit as security for financial assurances we have been required to provide to regulatory bodies for our hazardous waste facilities and which would be called only in the event that we fail to satisfy closure, post-closure and other obligations under the permits issued by those regulatory bodies for such licensed facilities. As of September 30, 2025, there were $126.7 million outstanding letters of credit. See Note 11, “Financing Arrangements,” to the accompanying unaudited consolidated financial statements.
Previous wording
In the first six months of 2025, there were no material changes to the information provided under the heading “Critical Accounting Estimates” included in our Annual Report on Form 10-K for the year ended December 31, 2024. For more information regarding our accounting policies, please refer to Note 2, “Significant Accounting Policies” to the accompanying unaudited consolidated financial statements.
Current wording
In the first nine months of 2025, there were no material changes to the information provided under the heading “Critical Accounting Estimates” included in our Annual Report on Form 10-K for the year ended December 31, 2024. For more information regarding our accounting policies, please refer to Note 2, “Significant Accounting Policies” to the accompanying unaudited consolidated financial statements.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Overall, we expect that 2025 capital spending, net of disposals, will be in the range of $385.0 million to $415.0 million including the long-term growth investment of approximately $30 million for the SDA and $15 million for the Phoenix Hub. The total anticipated spending on the SDA project is expected to be in the range of $210.0 to $220.0 million and we expect that the project will be completed in 2028.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Environmental Services cost of revenues for the three months ended June 30, 2025 increased $27.2 million from the comparable period in 2024, and remained consistent as a percentage of revenues. Commensurate with the revenue growth in the business, equipment and supply costs increased $9.1 million and labor and benefit related costs increased $8.9 million for the three months ended June 30, 2025 when compared to the three months ended June 30, 2024. The remaining cost increase was spread across various cost categories. Partially offsetting these cost increases was a decrease of $4.3 million in third-party labor costs for the three months ended June 30, 2025 when compared to the three months ended June 30, 2024 due to labor internalization efforts.
Previous report — wording carried elsewhere
SKSS cost of revenues for the three months ended June 30, 2025 decreased $29.9 million from the comparable period in 2024. The overall cost decreases were driven by the lower sales volumes, discussed above, and by lower acquisition costs of used oil feedstock in the three months ended June 30, 2025 compared to the prior period. As a percentage of revenues, these costs increased 1.0%, primarily due to market-related volume and pricing decreases discussed above in the SKSS direct revenues section.