CLEAN HARBORS INC
For the period ended Jun 30, 2026. Filed Jul 29, 2026.
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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.
Jun 30, 2026 · Filed Jul 29, 2026
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 2026-03-31; filed 2026-05-06.
0000822818-26-000020
ITEM 2. : Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0000822818-26-000034
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 86 previous paragraphs and 96 current paragraphs.
47 unchanged; 39 reworded; 10 added; 0 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 16 previous and 16 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 (10)
Current report
Environmental Services direct revenues for the six months ended June 30, 2026 increased $147.9 million from the comparable period in 2025. Technical Services revenues for the six months ended June 30, 2026 increased $104.3 million. The PFAS-related filtration project referenced above contributed over $40 million in revenues during the six months ended June 30, 2026. The remaining increase in Technical Services revenues was attributable to incremental revenues from fuel surcharges, higher volumes of waste in our network from remediation projects and PFAS related work. Utilization at our incinerators was 85% in the first six months of 2026 as compared to 84% in the same period in 2025. Utilization rates at our incinerator facilities in each period include the impact of our second Kimball incinerator, which was placed in service in late 2024. Revenues from Safety-Kleen core service offerings for the six months ended June 30, 2026 grew by $47.1 million from the comparable period in 2025 due to greater volumes and pricing of our containerized waste, vacuum and parts washer services. Field and Emergency Response Services revenues increased $20.8 million for the six months ended June 30, 2026 from the comparable period in 2025 driven by incremental revenues from emergency response projects during the first six months of 2026, including a large-scale emergency response event. Partially offsetting the broad revenues growth across Environmental Services was a $22.3 million decrease in Industrial Services revenues, driven by lower demand for industrial maintenance and turnaround services as compared to 2025, with the impact concentrated largely in the first quarter of 2026.
Current report
In the six months ended June 30, 2026, SKSS direct revenues increased $65.0 million compared to the same period in 2025 reflecting higher market pricing of oil-based products. Revenues from the sale of base oil products increased $27.8 million due to higher pricing. Revenues from used oil collection services increased $23.5 million, attributable to higher pricing for these waste oil collection services. Blended oil product revenues grew $6.8 million due to higher pricing despite relatively flat volumes sold. Additionally, revenue from the sale of vacuum gas oil and specialty refinery products increased $4.5 million from the same period in 2025.
Current report
Environmental Services cost of revenues for the three months ended June 30, 2026 increased $62.9 million from the comparable period in 2025, but were lower as a percentage of revenues. Due to higher market-based fuel pricing, transportation and fuel related costs increased $30.9 million during the three months ended June 30, 2026 compared to the same period in 2025. Additionally, commensurate with the revenue growth in the business discussed above, labor and benefit related costs increased $20.5 million and equipment and supply costs increased $14.9 million for the three months ended June 30, 2026, as compared to the same period in 2025. These increases were partially offset by reductions in various other cost categories. Overall, Environmental Services revenues grew at a rate greater than cost of revenues and gross margins expanded in the quarter.
Current report
SKSS cost of revenues for the three months ended June 30, 2026 increased $22.1 million from the comparable period in 2025; however, these costs improved 12.7% as a percentage of revenues. The decrease as a percentage of revenues was driven by the higher market pricing for base and blended oil products discussed above and lower acquisition costs of used oil feedstock compared to the same quarter of 2025. The overall dollar increase was primarily driven by increased transportation and fuel costs due to higher market-based fuel pricing.
Current report
Environmental Services SG&A expenses for the three months ended June 30, 2026 increased $11.8 million from the comparable period in 2025. The increase in SG&A expenses in the three months ended June 30, 2026 was driven by increased labor and benefits related costs of $6.2 million, primarily driven by higher commission costs commensurate with the increase in revenues. The remaining increase was spread across various cost categories and was proportional with the increase in revenues for the period.
Current report
SKSS SG&A expenses for the six months ended June 30, 2026 increased $6.3 million as compared to the same period in 2025 primarily driven by the $3.2 million increase in a legal reserve as well as an increase in labor and benefits related costs, primarily driven by higher commissions costs commensurate with the increase in revenues discussed above. As a percentage of revenues, these costs remained relatively flat to the prior year period.
Current report
Corporate SG&A expenses for the six months ended June 30, 2026 increased $8.8 million as compared to the same period in the prior year, attributable to an $8.3 million increase in labor and benefits-related costs driven by higher incentive compensation. For the six months ended June 30, 2026, total integration costs related to acquisitions completed during the period and strategic projects for which we expect to derive long term benefits were $4.4 million. Additionally, severance costs, primarily due to acquisitions completed during the period, were $1.9 million. For the six months ended June 30, 2025, total severance and integration costs were $4.2 million. The remaining change was a decrease in Corporate SG&A expenses for the six months ended June 30, 2026 which was spread across various cost categories.
Current report
Depreciation and amortization for the six months ended June 30, 2026 increased by $9.3 million from the comparable period in 2025 due to incremental depreciation for assets placed in service to support the growth of the business and higher finance lease amortization. Incremental amortization of intangibles acquired in acquisitions completed during the first six months of 2026 comprised the majority of the increase in amortization of permits and other intangible assets for the six months ended June 30, 2026.
Current report
Interest expense, net of interest income for the three months ended June 30, 2026 was relatively consistent with the comparable period in 2025.
Current report
For the three months ended June 30, 2026, the provision for income taxes increased $16.0 million compared to the same period in 2025. This increase was driven by higher pre-tax income in the current year period.
Reworded paragraphs (39)
Previous wording
In addition to historical information, this Quarterly Report on Form 10-Q contains forward-looking statements, which are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans to,” “aims,” “will,” “seeks,” “should,” “estimates,” “projects,” “may,” “likely,” “potential” or similar expressions. Such statements may include, but are not limited to, statements about our future financial and operating results, plans, strategy, objectives and goals, cost management initiatives, pricing and productivity initiatives, contingent liabilities, liquidity, business, economic and market conditions, trends, customer demand, impacts of tariffs and new legislation, acquisitions, capital spending, growth opportunities, expectations, challenges and other statements that are not historical facts. Such statements are based upon the beliefs and expectations of our management as of the date of this report only and are subject to certain risks and uncertainties that could cause actual results, performance or achievements to differ materially, including, without limitation: operational and safety risks; risks relating to the failure of new or existing technologies; cybersecurity risks; the occurrence of natural disasters or other catastrophic events, as well as their residual macroeconomic effects; risks associated with retaining and hiring key personnel; environmental liability and product liability risks relating to hazardous waste management and other components of our business; negative economic, industry or other developments, including market volatility or economic downturns; risks associated with our assumptions relating to expansion of our landfills; reductions in the demand for emergency response services at industrial facilities or on roadways, railways or waterways, and other remedial projects and regulatory developments; reductions in the demand for oil products and automotive services and volatility in oil prices in the markets we serve; changes in statutory and regulatory requirements and risks relating to extensive environmental laws and regulations; risks associated with existing and potential litigation; risks associated with our identification and execution of strategic capital expenditures, acquisitions and divestitures and their related liabilities; risks relating to the availability and sufficiency of our insurance coverage, self-insurance, surety bonds, letters of credit and other forms of financial assurance; impact of new tax legislation or changes in tax regulations and interpretations; the imposition of trade sanctions or tariffs; fluctuations in interest rates and foreign currency exchange rates; risks relating to our indebtedness and covenants in our debt agreements; risks associated with certain anti-takeover provisions under the Massachusetts Business Corporation Act and our By-Laws; and those items discussed elsewhere in this report or identified as “Risk Factors” in our Annual Report on Form 10-K …
Excerpt shortened here; the source contains the full paragraph.
Current wording
In addition to historical information, this Quarterly Report on Form 10-Q contains forward-looking statements, which are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans to,” “aims,” “will,” “seeks,” “should,” “estimates,” “projects,” “may,” “likely,” “potential” or similar expressions. Such statements may include, but are not limited to, statements about our future financial and operating results, plans, strategy, objectives and goals, strategic initiatives, cost management initiatives, pricing and productivity initiatives, contingent liabilities, interest expense, liquidity, business, economic and market conditions, trends, customer demand, expectations regarding new customer contracts, impacts of tariffs and new legislation, acquisitions, capital spending, growth opportunities and investments, expectations, challenges and other statements that are not historical facts. Such statements are based upon the beliefs and expectations of our management as of the date of this report only and are subject to certain risks and uncertainties that could cause actual results, performance or achievements to differ materially, including, without limitation: operational and safety risks; risks relating to the failure of new or existing technologies; risks associated with the use of artificial intelligence; cybersecurity risks; the occurrence of natural disasters or other catastrophic events, as well as their residual macroeconomic effects; risks associated with retaining and hiring key personnel; environmental liability and product liability risks relating to hazardous waste management and other components of our business; negative economic, industry or other developments, including market volatility or economic downturns; risks associated with our assumptions relating to expansion of our landfills; reductions in the demand for emergency response services at industrial facilities or on roadways, railways or waterways, and other remedial projects and regulatory developments; reductions in the demand for oil products and automotive services and volatility in oil prices in the markets we serve; changes in statutory and regulatory requirements and risks relating to extensive environmental laws and regulations; risks associated with existing and potential litigation; risks associated with our identification and execution of strategic capital expenditures, acquisitions and divestitures and their related liabilities; risks relating to the availability and sufficiency of our insurance coverage, self-insurance, surety bonds, letters of credit and other forms of financial assurance; impact of new tax legislation or changes in tax regulations and interpretations; the imposition of trade sanctions or tariffs; fluctuations in interest rates and foreign currency exchange rates; risks relating to our indebtedness and covenants in our debt agreements; risks associated with certain anti-takeover provisions under the Massachuset…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
Total direct revenues for the three months ended March 31, 2026 were $1,459.5 million, compared with $1,432.0 million for the three months ended March 31, 2025. For the three months ended March 31, 2026, our Environmental Services segment direct revenues increased $43.4 million or 3.6% from the comparable period in 2025, driven by growth in Technical Services, Safety-Kleen core services and Field and Emergency Response Services, offset by lower contributions from our Industrial Services organization. For the three months ended March 31, 2026, our SKSS segment direct revenues decreased $15.7 million or 7.1%, from the comparable period in 2025, driven predominantly by lower pricing of base and blended oil products, partially offset by higher volumes of base oil sold and higher charge for oil revenue for the three months ended March 31, 2026.
Current wording
Total direct revenues for the three and six months ended June 30, 2026 were $1,735.0 million and $3,194.5 million, compared with $1,549.9 million and $2,981.8 million for the three and six months ended June 30, 2025, respectively. For the three and six months ended June 30, 2026, our Environmental Services segment direct revenues increased $104.5 million, or 7.7%, and increased $147.9 million, or 5.8%, respectively, from the comparable periods in 2025, driven by growth in Technical Services, Safety-Kleen core services and Field and Emergency Response Services. For the three and six months ended June 30, 2026, our SKSS segment direct revenues increased $80.7 million or 40.8% and increased $65.0 million or 15.5%, respectively, from the comparable periods in 2025, driven primarily by higher pricing of base and blended oil products and specialty refinery products, as well as incremental revenues from higher pricing of waste oil collection services.
Previous wording
Income from operations for the three months ended March 31, 2026 was $118.9 million, compared with $111.6 million in the three months ended March 31, 2025. Depreciation and amortization expense for the three months ended March 31, 2026 was $3.8 million higher than the comparable period in 2025. Net income for the three months ended March 31, 2026 was $63.2 million, an increase of $4.5 million, or 7.7%, as compared with net income of $58.7 million in the three months ended March 31, 2025.
Current wording
Income from operations for the three and six months ended June 30, 2026 was $268.9 million and $387.8 million, as compared with income from operations of $210.3 million and $321.9 million in the three and six months ended June 30, 2025, respectively. Net income for the three and six months ended June 30, 2026 was $170.5 million and $233.7 million, increases of 34.3% and 25.9% as compared with net income of $126.9 million and $185.6 million in the three and six months ended June 30, 2025, respectively.
Previous wording
Adjusted EBITDA, which is the primary financial measure by which we evaluate the operating performance of our segments, increased $13.0 million, or 5.5%, from $234.9 million in the three months ended March 31, 2025 to $247.9 million in the three months ended March 31, 2026. 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.”Growth in Adjusted EBITDA versus the comparable period in 2025 was driven by a $15.8 million increase in the Environmental Services segment’s Adjusted EBITDA as well as a $4.7 million increase in the SKSS segment’s Adjusted EBITDA. As a result of the growth discussed above, Adjusted EBITDA Margin for the Environmental Services and SKSS segments increased 50 basis points and 320 basis points respectively, which drove a 60 basis point increase in total Company Adjusted EBITDA Margin.
Current wording
Adjusted EBITDA, which is the primary financial measure by which we evaluate the operating performance of our segments, increased $72.8 million, or 21.6%, from $336.2 million in the three months ended June 30, 2025 to $409.0 million in the three months ended June 30, 2026. Growth in Adjusted EBITDA versus the comparable period in 2025 was driven by a $54.7 million increase in SKSS segment Adjusted EBITDA and a $29.9 million increase in Environmental Services segment Adjusted EBITDA. For the six months ended June 30, 2026, Adjusted EBITDA increased $85.8 million, or 15.0%, from $571.1 million for the six months ended June 30, 2025 to $656.9 million for the six months ended June 30, 2026, led by a $59.4 million increase in SKSS segment Adjusted EBITDA and a $45.7 million increase in Environmental Services segment Adjusted EBITDA. Continued margin expansion in our operating segments led to a 190 basis point and 140 basis point increase in Adjusted EBITDA Margin for the Company (calculated as a percentage of direct revenues) for the three and six months ended June 30, 2026, respectively. Additional information regarding Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP measures, including a reconciliation of net income to Adjusted EBITDA, appears below under“Adjusted EBITDA.”
Previous wording
Net cash from operating activities for the three months ended March 31, 2026 increased $4.7 million from $1.6 million in 2025 to $6.3 million in 2026 primarily due to lower cash paid for interest partially offset by higher working capital impacts in 2026 as compared to the prior year period. Adjusted free cash flow, which management uses to measure our financial strength and ability to generate cash, was an outflow of $75.8 million in the three months ended March 31, 2026, as compared to an outflow of $115.7 million in the comparable period of 2025, an improvement of $39.9 million, primarily driven by 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 six months ended June 30, 2026 increased $35.8 million from $209.6 million in 2025 to $245.5 million in 2026, primarily due to higher operating income partially offset by higher working capital impacts in 2026 as compared to the prior year period. Adjusted free cash flow, which management uses to measure our financial strength and ability to generate cash, was $59.8 million in the six months ended June 30, 2026, compared to $17.4 million in the same period in 2025, an improvement of $42.4 million, primarily driven by higher cash flows from operating activities. 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
(1)Direct revenue is revenue allocated to the segment performing the provided service or selling the product.
Current wording
(1)Direct revenues are revenues allocated to the segment performing the provided service or selling the product.
Previous wording
(3)Selling, general and administrative or SG&A expenses is shown exclusive of stock-based compensation, which is presented in SG&A expenses on our Consolidated Statements of Operations, but is not included in our 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 or SG&A expenses are shown exclusive of stock-based compensation, which is presented in SG&A expenses on our Consolidated Statements of Operations, but are not included in our measurement of Adjusted EBITDA. See Adjusted EBITDA section below for a reconciliation of net income to Adjusted EBITDA.
Previous wording
(4)Calculated as a percentage of individual segment direct revenue.
Current wording
(4)Calculated as a percentage of individual segment direct revenues.
Previous wording
(5)Calculated as a percentage of our total direct revenue.
Current wording
(5)Calculated as a percentage of our total direct revenues.
Previous wording
There are many factors that can impact our revenues including, but not limited to, macroeconomic conditions, overall levels of industrial activity and economic growth in North America, competitive industry pricing, commodity pricing, overall market incineration capacity including captive incineration closures, changes in the regulatory environment including those related to per- and polyfluoroalkyl substances, or 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, macroeconomic conditions; overall levels of industrial activity and economic growth in North America; competitive industry pricing; commodity pricing; overall market incineration capacity, including captive incineration closures; changes in the regulatory environment, including those related to per- and polyfluoroalkyl substances, or 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 and the related project pipeline; 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 regulations can impact our revenues.
Previous wording
Environmental Services direct revenues for the three months ended March 31, 2026 increased $43.4 million from the comparable period in 2025. Technical Services revenues increased $22.1 million from the comparable prior year period driven primarily by stronger volumes at our landfill facilities and higher revenues from remediation projects. Revenues from Safety-Kleen core service offerings for the three months ended March 31, 2026 grew by $17.4 million from the comparable period in 2025 due to improved pricing and volumes for our containerized waste, vacuum and parts washer services. Utilization at our incinerators was 80% in the first three months of 2026 as compared to 81% in the same period in 2025. Utilization rates at our incinerator facilities in each period include the impact of our Kimball incinerator, which was placed in service in late 2024. Field and Emergency Response Services revenues increased $15.7 million for the three months ended March 31, 2026 from the comparable period in 2025 driven by incremental revenues from emergency response projects during the current period, including a large scale emergency response event. Partially offsetting this growth from prior year is a $19.8 million reduction in revenues from our Industrial Services operations due to lower demand for industrial maintenance and turnaround services as compared to 2025.
Current wording
Environmental Services direct revenues for the three months ended June 30, 2026 increased $104.5 million from the comparable period in 2025. Technical Services revenues increased $81.5 million. A PFAS-related filtration project associated with a large emergency response event earlier in the year contributed more than $30 million of revenues during the three months ended June 30, 2026. Additional growth in Technical Services revenues was driven by fuel surcharges and higher volumes across our disposal network, including volumes generated from remediation projects and PFAS-related work. Utilization at our incinerators was 91% in the three months ended June 30, 2026, as compared to 86% in the same period in 2025. Utilization rates at our incinerator facilities in each period include the impact of our second Kimball incinerator, which was placed in service in late 2024. Revenues from Safety-Kleen core service offerings for the three months ended June 30, 2026 grew by $29.4 million from the comparable period in 2025 due to greater volumes and pricing of our containerized waste, vacuum and parts washer services. Field and Emergency Response Services revenues increased $6.2 million for the three months ended June 30, 2026 from the comparable period in 2025.
Previous wording
In the three months ended March 31, 2026, SKSS direct revenues decreased $15.7 million compared to the same period in 2025. Revenues from the sale of blended oil products decreased $12.3 million due to lower volumes sold. Revenues from the sale of base oil products decreased $9.3 million as lower pricing was partially offset by higher volumes sold. Additionally, revenues from the sale of vacuum gas oil and specialty refinery products decreased $6.1 million from the same period in 2025. These decreases were partially offset by a $13.9 million increase in revenues from the collection of used oil attributed to the higher pricing for these waste oil collection services.
Current wording
In the three months ended June 30, 2026, SKSS direct revenues increased $80.7 million compared to the same period in 2025, primarily driven by higher market pricing of oil-based products. Revenues from the sale of base oil products increased $37.2 million due to higher pricing, and blended oil product revenues grew $19.1 million due to improved pricing and greater volumes sold. Revenues from the sale of vacuum gas oil and specialty refinery products increased $10.5 million compared to the same period in 2025. Additionally, revenues from used oil collection services increased $9.5 million, attributable to higher pricing for these waste oil collection services.
Previous wording
We believe disciplined management of operating costs is vital to our ability to remain price competitive. We experience cost pressures across several categories, most notably internal and external labor and benefits, insurance, transportation, maintenance, fuel and other energy related costs. In addition, we are subject to uncertainty and potential cost increases arising from evolving regulatory and macroeconomic conditions. 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 disciplined management of operating costs is vital to our ability to remain price competitive. We experience cost pressures across several categories, most notably internal and external labor and benefits, insurance, transportation, maintenance, fuel and other energy-related costs. In addition, we are subject to uncertainty and potential cost increases arising from evolving regulatory and macroeconomic conditions. We aim to manage these increases through constant cost monitoring and a focus on cost savings, including lowering employee turnover, as well as our overall customer pricing strategies, which are 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, including through the increased use of artificial intelligence, 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.
Current wording
We continue to upgrade the quality and efficiency of our services through the development or adoption of new technology, including through the increased use of artificial intelligence, 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 three months ended March 31, 2026 increased $12.4 million from the comparable period in 2025, but improved as a percentage of revenues as we attained greater leverage of our fixed costs while growing total revenue. Commensurate with the revenue growth in the business discussed above, labor and benefit related costs increased $6.9 million and equipment and supply costs increased $4.6 million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025.
Current wording
Environmental Services cost of revenues for the six months ended June 30, 2026 increased $75.3 million from the comparable period in 2025, but were lower as a percentage of revenues. Due to higher market-based fuel pricing, transportation and fuel-related costs increased $31.1 million during the six months ended June 30, 2026 compared to the same period in 2025. Commensurate with the revenue growth in the business discussed above, labor and benefit related costs increased $27.4 million and equipment and supply costs increased $20.3 million for the six months ended June 30, 2026, as compared to the same period in 2025. Revenue growth also outpaced cost of revenues growth for the six-month period and gross margins increased.
Previous wording
SKSS cost of revenues for the three months ended March 31, 2026 decreased $22.8 million from the comparable period in 2025, and improved 5.0% as a percentage of revenues. The decrease both in dollars and as a percentage of revenue was primarily driven by lower acquisition costs of used oil feedstock and lower labor and benefit related costs of $2.5 million due to strategic headcount management actions executed in the second quarter of 2025.
Current wording
SKSS cost of revenues for the six months ended June 30, 2026 remained relatively consistent with the comparable period in 2025 and improved 10.2% as a percentage of revenues. The decrease as a percentage of revenues was primarily driven by higher market pricing for base and blended oil products discussed above, lower acquisition costs of used oil feedstock and a reduction in labor and benefit related costs, partially offset by higher transportation and fuel costs due to higher market-based fuel pricing.
Previous wording
We aim to manage our SG&A expenses in line with the overall performance of our segments and corresponding revenue levels. Our goal is to achieve this through efficient use of labor resources, enhanced technology, including the increased use of artificial intelligence, process improvements and strategic expense management. Expanding our support functions globally has led to both profitability and productivity improvements. We believe our ability to properly align these costs with business performance is reflective of our strong management of the businesses and further promotes our ability to remain competitive in the marketplace.
Current wording
We aim to manage our SG&A expenses in line with the overall performance of our segments and corresponding revenue levels. Our goal is to achieve this through efficient use of labor resources, enhanced technology, including the increased use of artificial intelligence, process improvements and strategic expense management. Expanding our support functions globally has led to both profitability and productivity improvements. We believe our ability to properly align these costs with business performance is reflective of our strong management of the business and further promotes our ability to remain competitive in the marketplace.
Previous wording
The SG&A expenses set forth below exclude stock-based compensation expense, which is presented in SG&A on our Consolidated Statement of Operations, but is not included in our measurement of Adjusted EBITDA.
Current wording
The SG&A expenses set forth below exclude stock-based compensation expense, which is presented in SG&A on our Consolidated Statement of Operations, but are not included in our measurement of Adjusted EBITDA.
Previous wording
Environmental Services SG&A expenses for the three months ended March 31, 2026 increased $15.2 million from the comparable period in 2025 and remained relatively consistent as a percentage of revenue. The results for the three months ended March 31, 2025 include the impact of reducing the estimated costs to remediate a site by approximately $10 million in the first quarter of 2025. Absent this benefit in 2025, which accounted for 80 basis points as a percentage of revenues, the remaining $5.1 million increase was spread across various cost categories and the costs as a percentage of revenues were flat.
Current wording
Environmental Services SG&A expenses for the six months ended June 30, 2026 increased $26.9 million from the comparable period in 2025. 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. Absent this benefit in 2025, the remaining $16.9 million increase was primarily driven by an $8.0 million increase in labor and benefits related costs, driven by higher commission costs commensurate with the increase in revenues, with the remaining increase spread across various cost categories.
Previous wording
SKSS SG&A expenses for the three months ended March 31, 2026 increased $2.3 million as compared to the same period in 2025 primarily driven by a $1.2 million increase in labor and benefit related costs, mainly resulting from higher incentive compensation. As a percentage of revenues, these costs increased 1.7% both due to the increase in labor and benefit related costs and the overall decline in segment revenues discussed above.
Current wording
SKSS SG&A expenses for the three months ended June 30, 2026 increased $4.0 million as compared to the same period in 2025 primarily driven by a $3.2 million increase in a legal reserve and increased commissions costs commensurate with the increase in revenues discussed above. As a percentage of revenues, these costs improved 1.3% due to the overall increase in segment revenues discussed above.
Previous wording
We manage our Corporate SG&A expenses commensurate with our overall total performance and direct revenue levels. Corporate SG&A expenses for the three months ended March 31, 2026 increased $4.8 million as compared to the same period in the prior year and remained relatively consistent as a percentage of our total revenues. The increase in Corporate SG&A expenses was primarily attributable to a $5.9 million increase in labor and benefits related costs driven by higher incentive compensation partially offset by lower salary costs. For the year, we anticipate that the Corporate SG&A expenses will trend slightly higher than the prior year but will remain flat as a percentage of revenue.
Current wording
We manage our Corporate SG&A expenses commensurate with our overall total performance and direct revenues levels. Corporate SG&A expenses for the three months ended June 30, 2026 increased $3.9 million as compared to the same period in the prior year. The increase in Corporate SG&A expenses was primarily attributable to a $3.2 million increase in labor and benefits related costs driven by higher incentive compensation. For the year, we anticipate that these Corporate SG&A expenses will trend slightly higher than the prior year but will remain flat as a percentage of revenues.
Previous wording
Depreciation and amortization for the three months ended March 31, 2026 increased by $3.8 million from the comparable period in 2025 due to incremental depreciation for assets placed in service to support the growth of the business and higher finance lease amortization.
Current wording
Depreciation and amortization for the three months ended June 30, 2026 increased by $5.5 million from the comparable period in 2025 due to incremental depreciation for assets placed in service to support the growth of the business and higher finance lease amortization. Incremental amortization of intangibles acquired in acquisitions completed during the first six months of 2026 comprised the majority of the increase in amortization of permits and other intangible assets for the three months ended June 30, 2026.
Previous wording
Interest expense, net of interest income for the three months ended March 31, 2026 decreased $2.2 million from the comparable period in 2025 primarily due to lower interest rates on outstanding debt during the period resulting from the debt refinancing transactions executed in October 2025 and lower variable interest rates on our SOFR-based debt.
Current wording
Interest expense, net of interest income for the six months ended June 30, 2026 decreased $2.1 million from the comparable period in 2025 primarily due to lower interest rates on our SOFR-based debt partially offset by lower interest income.
Previous wording
For the three months ended March 31, 2026, the provision for income taxes increased $5.2 million compared to the same period in 2025. This increase was driven by both higher pre-tax income as well as a higher effective tax rate in 2026. In the first quarter of 2025, our effective tax rate was favorably impacted by a one-time tax benefit related to a change in estimate for a remedial liability.
Current wording
For the six months ended June 30, 2026, the provision for income taxes increased $21.2 million compared to the same period in 2025. This increase was driven by both higher pre-tax income as well as a higher effective tax rate in 2026. In the first quarter of 2025, our effective tax rate was favorably impacted by a one-time tax benefit related to a change in estimate for a remedial liability.
Previous wording
Net cash from operating activities for the three months ended March 31, 2026 was $6.3 million as compared to $1.6 million in the same period of 2025. This $4.7 million increase in operating cash flows was primarily driven by lower cash paid for interest partially offset by higher working capital balances for the three months ended March 31, 2026 compared to the same period in 2025.
Current wording
Net cash from operating activities for the six months ended June 30, 2026 was $245.5 million as compared to $209.6 million in the same period of 2025. This $35.8 million increase in operating cash flows was primarily driven by higher operating income, which was partially offset by higher working capital balances for the six months ended June 30, 2026 compared to the same period in 2025, reflecting the strong revenue growth and timing of collections.
Previous wording
Net cash used in investing activities for the three months ended March 31, 2026 was $222.7 million, an increase of $102.4 million from the comparable period in 2025. This increase was driven by $131.8 million of cash paid in 2026 to acquire certain businesses from Depot Connect International. This higher cash outflow was partially offset by a $20.4 million decrease in additions to property, plant and equipment, net of proceeds from sale and disposal of fixed assets and $6.2 million net sale of marketable securities for the three months ended March 31, 2026, as compared to a $2.7 net purchase of marketable securities in the comparable period in 2025.
Current wording
Net cash used in investing activities for the six months ended June 30, 2026 was $560.5 million, an increase of $359.8 million from the comparable period in 2025. This increase was driven by $357.6 million of cash paid in 2026 to acquire certain businesses from Depot Connect International and the acquisition of Terra Nova Solutions as well as a $16.3 million increase in additions to property, plant and equipment, net of proceeds from sale and disposal of fixed assets. Partially offsetting these higher cash outflows was a $14.3 million increase in net cash inflows due to the timing of transactions within our wholly-owned captive insurance company for the six months ended June 30, 2026 compared to the same period in 2025.
Previous wording
Net cash used in financing activities for the three months ended March 31, 2026 was $58.3 million, as compared to $79.3 million for the three months ended March 31, 2025. This decrease compared to the prior period was primarily due to a decrease in repurchases of common stock of $30.0 million. The reduction in cash outflows was partially offset by an incremental outflow of $5.8 million from the change in uncashed checks and an increase in payments on finance lease liabilities of $2.5 million.
Current wording
Net cash used in financing activities for the six months ended June 30, 2026 was $98.2 million, as compared to $101.2 million for the six months ended June 30, 2025, a decrease of $2.9 million. This decrease compared to the prior year period was primarily due to $14.9 million less in cash paid for repurchases of common stock partially offset by an $8.7 million increase in payments on finance lease liabilities.
Previous 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 2026, these significant strategic growth investments include current year spend on the multi-year construction of a Solvent De-Asphalting unit, or SDA, adjacent to our East Chicago, Indiana re-refinery and current year spend on our multi-year vacuum truck fleet expansion project. We expect to spend approximately $85 million and $25 million, respectively, in 2026 for these projects from which we expect to realize future long-term benefits. In 2025, significant strategic growth investments included spend on the SDA project and the acquisition and build out of a hub facility in Phoenix, Arizona, which we refer to as our Phoenix Hub. No amounts were spent on these projects in the first quarter of 2025, but spending did occur later in 2025. 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 2026, these significant strategic growth investments include current year spend on (i) the multi-year construction of a Solvent De-Asphalting unit, or SDA, adjacent to our East Chicago, Indiana re-refinery, (ii) our multi-year vacuum truck fleet expansion project and (iii) our multi-year investment in specialty assets to support our data center market offering. We expect to spend approximately $85 million, $25 million and $10 million, respectively, in 2026 for these projects from which we expect to realize future long-term benefits. In 2025, significant strategic growth investments included spend on the SDA project and the acquisition and build out of a hub facility in Phoenix, Arizona, which we refer to as our Phoenix Hub. 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
(1) Includes $12.4 million and $2.4 million of capital investments in the SDA unit and fleet expansion project, respectively, during the three months ended March 31, 2026.
Current wording
(1) Includes $17.8 million and $17.5 million of capital investments in the SDA unit and fleet expansion project, respectively, during the six months ended June 30, 2026, and $12.4 million of capital investments in the Phoenix Hub during the six months ended June 30, 2025.
Previous wording
At March 31, 2026, cash and cash equivalents and marketable securities totaled $669.0 million, compared to $953.7 million at December 31, 2025. At March 31, 2026, cash and cash equivalents held by our Canadian subsidiaries totaled $207.7 million. The cash and cash equivalents and marketable securities balance for our U.S. operations was $461.3 million at March 31, 2026. Our U.S. operations had net operating cash inflows of $14.3 million for the three months ended March 31, 2026.
Current wording
At June 30, 2026, cash and cash equivalents and marketable securities totaled $516.7 million, which includes cash and cash equivalents held by our U.S. operations of $402.0 million in addition to $114.7 million held by our Canadian subsidiaries. Our U.S. operations had net operating cash flows of $261.0 million for the six months ended June 30, 2026.
Previous wording
We maintain a $600.0 million revolving credit facility, of which, as of March 31, 2026, approximately $454.7 million was available to borrow under the facility, with letters of credit of $145.3 million outstanding.
Current wording
In addition to our cash balances, we maintain a $600.0 million revolving credit facility, of which, as of June 30, 2026, approximately $460.8 million was available to borrow under the facility, with letters of credit of $139.2 million outstanding.
Previous wording
Capital expenditures during the first three months of 2026 were $98.4 million, including the investments in strategic growth investments outlined in the table below. We anticipate 2026 capital spending, net of disposals, will be in the range of $460.0 million to $520.0 million. This range also includes the strategic growth investment spend in 2026 outlined in the table below.
Current wording
Capital expenditures during the first six months of 2026 were $224.6 million. We anticipate 2026 capital spending, net of disposals, will be in the range of $490.0 million to $550.0 million, including the strategic growth investment spend in 2026 outlined in the table below. We’ve increased this range during the second quarter of 2026 to account for additional investments for key market opportunities.
Previous wording
The following table summarizes our key strategic growth investments, including 2025 and 2026 expenditures through March 31, 2025 and March 31, 2026, respectively:
Current wording
The following table summarizes our current key strategic growth investments, including: 2025 full-year expenditures, 2026 expenditures through June 30, 2026, total 2026 expected expenditures, expected full project cost and expected completion date:
Previous wording
The two strategic growth investments outlined in the table above are considered projects from which we expect to realize future long-term benefits once placed in service. These are incremental to the capital expenditures needed to maintain current operations.
Current wording
The three strategic growth investments outlined in the table above are considered projects from which we expect to realize future long-term benefits once placed in service. These are incremental to the capital expenditures needed to maintain current operations.
Previous wording
As of March 31, 2026, our financing arrangements included (i) $1.3 billion of secured senior term loans due 2032, (ii) $300.0 million of 5.125% unsecured senior notes due 2029, (iii) $500.0 million of 6.375% unsecured senior notes due 2031, and (iv) $745.0 million of 5.750% unsecured senior notes due 2033. As noted above, we also maintain our $600.0 million revolving credit facility with no amounts owed as of March 31, 2026.
Current wording
As of June 30, 2026, our financing arrangements included (i) $1.3 billion of secured senior term loans due 2032, (ii) $300.0 million of 5.125% unsecured senior notes due 2029, (iii) $500.0 million of 6.375% unsecured senior notes due 2031, and (iv) $745.0 million of 5.750% unsecured senior notes due 2033. As noted above, we also maintain our $600.0 million revolving credit facility with no loans outstanding as of June 30, 2026.
Previous wording
During the three months ended March 31, 2026 and March 31, 2025, we repurchased and retired 87,166 and 256,473 shares, respectively, of our common stock for total expenditures of $25.0 million and $55.0 million, respectively. On February 18, 2026, our Board of Directors authorized a $350.0 million expansion of our share repurchase program. As of March 31, 2026, an additional $574.4 million remained available for the repurchase of shares.
Current wording
During the three and six months ended June 30, 2026, we repurchased and retired 84,023 and 171,189 shares, respectively, of our common stock for total expenditures of $25.0 million and $50.0 million, respectively. During the three and six months ended June 30, 2025, we repurchased and retired 61,657 and 318,130 shares, respectively, of our common stock for total expenditures of $11.8 million and $66.8 million, respectively. On February 18, 2026, our Board of Directors authorized a $350.0 million expansion of our share repurchase program. As of June 30, 2026, $549.4 million remained available for the repurchase of shares.
Previous wording
Total environmental liabilities as of March 31, 2026 were $229.5 million, a decrease of $1.2 million compared to December 31, 2025. During the three months ended March 31, 2026, the environmental liability balance decreased due to expenditures of $4.1 million and reductions in environmental liability estimates of $1.4 million. These decreases were partially offset by accretion of $3.5 million and new environmental liabilities of $0.9 million.
Current wording
Total environmental liabilities as of June 30, 2026 were $230.8 million, relatively flat to the balance as of December 31, 2025. Despite remaining relatively consistent, the environmental liability balance increased $7.0 million from accretion and $2.1 million from new environmental liabilities and decreased due to expenditures of $7.1 million and reductions in environmental liability estimates of $1.7 million.
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 March 31, 2026, there were $145.3 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 June 30, 2026, we had outstanding letters of credit totaling $139.2 million. See Note 11, “Financing Arrangements,” to the accompanying unaudited consolidated financial statements.
Previous wording
In the first three months of 2026, 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, 2025. 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 six months of 2026, 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, 2025. For more information regarding our accounting policies, please refer to Note 2, “Significant Accounting Policies” to the accompanying unaudited consolidated financial statements.