Clean Harbors, Inc. (CLH): Business Model Canvas [Dec-2025 Updated]

You're looking for the definitive, up-to-the-minute blueprint of how Clean Harbors, Inc. is actually making money right now, late in 2025, and that requires looking past the headlines. Honestly, the story is about the dual focus: aggressively deploying their Total PFAS Solution while solidifying the Safety-Kleen Sustainability Solutions segment. We see the results in the numbers: hazardous waste incineration utilization hit a rock-solid 92% in Q3 2025, underpinning a full-year Adjusted EBITDA expectation between $1.155 billion and $1.175 billion, all while sitting on $850 million in cash. This isn't just a waste hauler anymore; it's a scaled infrastructure player. Keep reading to see the precise map of the nine building blocks that define their current, highly actionable business model.

Clean Harbors, Inc. (CLH) - Canvas Business Model: Key Partnerships

You're looking at how Clean Harbors, Inc. structures its external relationships to execute its complex environmental and industrial service model as of late 2025. These partnerships are critical because they often unlock access to specialized government work, secure key supply chains, or stabilize revenue in volatile segments like lubricants.

The collaboration with V2X on the PFAS water filtration front is a prime example of this strategy in action. Clean Harbors, Inc. secured contracts totaling $110 million over the next three years for its work at Joint Base Pearl Harbor-Hickam in Hawaii, working directly with the logistics supplier V2X and the Naval Facilities Engineering Systems Command (NAVFAC). This partnership is about scale and logistics; Clean Harbors is responsible for filtering approximately 4.2 million gallons of water daily using its regenerative carbon filtration and resin units.

For the Safety-Kleen Sustainability Solutions (SKSS) segment, which has faced pricing headwinds in the base oil market, strategic alliances are key to stabilization. The ongoing Castrol partnership is one such initiative management is advancing to help stabilize the segment. This effort, combined with a shift to higher Charge-for-Oil (CFO) pricing and the integration of the 2024 acquisition of Noble Oil, helped the segment meet production goals, evidenced by gathering 64 million gallons of waste oil in the second quarter of 2025.

Government agencies represent a significant channel for large-scale remediation and emergency response work. Clean Harbors, Inc. serves numerous government agencies, and the tightening of PFAS disposal rules is driving growth, with the PFAS treatment business seeing 20% to 25% quarter-over-quarter growth in 2025. Specific federal engagements include:

• An Indefinite Delivery Contract (IDC) with DLA Disposition Services [DoD - DLA] awarded in July 2025, carrying a total ceiling of $24,583,415.
• A maximum $10,651,365 firm-fixed-price contract with DLA Disposition Services for hazardous waste removal, transportation, and disposal services.
• A 2025 contract with the Department of Veterans Affairs (VA) for waste treatment/storage services.
• A Call Order from the Environmental Protection Agency (EPA) for waste pickup and disposal, with an obligated amount of $80,000.00 as of August 15, 2025.

Securing the necessary specialized equipment and chemical reagents relies on strong upstream supplier relationships. Clean Harbors, Inc. leverages its subsidiary, Service Chemical LLC, to act as a single-source provider for a wide variety of solvents, industrial cleaners, and specialty solvents from the world's leading chemical manufacturers. The company emphasizes its vast equipment inventory and treatment/disposal facilities across North America to reduce reliance on multiple contractors. This supply chain includes providing a full line of active solvents, alcohols, ketones, and inorganic acids, bases, and plating chemicals in a variety of grades.

For non-core or supplementary industrial and field services work, the strategy has leaned toward strategic acquisition, as seen with the 2024 acquisition of HEPACO, which added $20 million in cost synergies and bolstered emergency response capacity. However, for certain federal contracts, like the DLA IDC, a Commercial Subcontract Plan is in place, aligning with the Department of Defense's overall small business subcontracting goal of 30%. The slight revenue decline in Industrial and Field Services in Q3 2025 was attributed to the absence of medium- to large-scale emergency response projects, suggesting a variable reliance on external support for those specific, large-ticket items.

Here's a quick look at how these operational strengths translate into the company's overall scale and performance metrics as of late 2025:

The company's market capitalization was reported around $12.21 billion to $12.4 billion in late 2025, reflecting the market's view of these operational strengths. Finance: draft 13-week cash view by Friday.

Clean Harbors, Inc. (CLH) - Canvas Business Model: Key Activities

Operating North America's largest network of permitted disposal facilities is a core activity for Clean Harbors, Inc. The company maintains an extensive footprint to service its diverse customer base.

• Operates over 100 hazardous waste disposal facilities, including incinerators and landfills, positioning it as the largest network in North America.
• Maintains 870 operating locations across 630 properties in North America and India.
• Maintains over 50 company-owned and operated waste-management facilities in the U.S. and Canada.

Hazardous waste incineration is a high-value disposal activity, with utilization rates reflecting strong demand for permitted capacity.

Used oil collection, re-refining, and lubricant sales, primarily through the Safety-Kleen Sustainability Solutions segment, form another critical operational pillar.

• Gathered 64 million gallons of waste oil in Q3 2025.
• Incrementally increased direct lubricant gallons sold to 9% of total volume in Q3 2025.
• Managed nearly 400 million combined gallons of used oil, solvents and wastewater for customers in 2024.
• Safety-Kleen Sustainability Solutions segment revenue was $675.2 million in Q3 2025.

Emergency spill response and industrial field services provide critical, often immediate, support to industrial clients.

The Industrial and Field Services revenue saw slight declines in Q3 2025 due to fewer large projects. Still, Clean Harbors expanded its footprint in this area.

• Responded to more than 20,000 emergency customer events in 2024.
• Opened 13 more field service branches in 2025.
• The HEPACO acquisition in 2024 expanded emergency response services.

Developing and deploying the Total PFAS Solution technology represents a key growth activity, driven by regulatory mandates.

The company's PFAS treatment business showed significant growth momentum.

• PFAS treatment business grew 20% to 25% quarter over quarter in Q3 2025.
• Clean Harbors expects to generate $100 million to $120 million in revenue managing PFAS material in 2025.
• The high-temperature incineration process destroys PFAS over 99.9999% effectively.
• Stack emissions from the tested process were two to eight orders of magnitude safer than federal or state air guidelines.

Clean Harbors, Inc. (CLH) - Canvas Business Model: Key Resources

You're looking at the hard assets and core capabilities that make Clean Harbors, Inc. a leader in environmental services. These aren't just line items; they are the physical and human infrastructure that allows them to handle some of the toughest waste streams in North America. Honestly, the scale of this network is what drives their pricing power.

The foundation of the Key Resources is the physical footprint. Clean Harbors, Inc. maintains a network that includes the 50+ permitted disposal facilities you mentioned, which is actually more like over 100 waste disposal facilities across the United States. This network includes critical, high-barrier-to-entry assets like incinerators and landfills. For instance, in Q3 2025, their incineration utilization hit 92% when excluding the ramping Kimball facility, showing strong demand for their thermal treatment capacity. Landfill volumes were also strong, up approximately 40% year-over-year in that same quarter.

The company backs this network with significant capital and proprietary technology development. They announced a major investment in proprietary technology: the Solvent De-Asphalting (SDA) Unit, a new advanced processing plant. The total capital expenditure for this project is between $210 million and $220 million, with a commercial launch anticipated in 2028. This investment is projected to generate annual EBITDA in the range of $30 million to $40 million.

Financially, the balance sheet provides the flexibility to fund these long-term projects and weather market fluctuations. As of the end of Q3 2025, Clean Harbors, Inc. reported $850 million in cash and short-term marketable securities. This strong liquidity supports ongoing operations and strategic moves, like the $50 million in share repurchases executed during Q3 2025.

While specific fleet and personnel counts aren't always public, the quality of the field service personnel is evidenced by their safety performance. The year-to-date Total Recordable Incident Rate (TRIR) through September 30, 2025, was 0.49, which puts them on track for a record safety year. This speaks directly to the training and operational discipline of their technical and field service teams.

Here's a quick look at the quantifiable assets underpinning the business:

The specialized fleet of trucks and railcars is essential for feeding this network, though specific counts aren't readily available in the latest filings. What is clear is that the company is actively expanding its field service footprint, having opened 13 more field service branches in the year leading up to Q2 2025.

You can see the operational leverage in the margins; the consolidated Adjusted EBITDA margin reached 20.7% in Q3 2025, a 100 basis point increase year-over-year, which is a direct result of maximizing the use of these fixed resources.

Clean Harbors, Inc. (CLH) - Canvas Business Model: Value Propositions

End-to-end hazardous waste management and compliance assurance

You're looking for a partner that handles the entire lifecycle of your hazardous waste, from the moment it's generated until final, compliant disposal. Clean Harbors, Inc. positions itself as North America's leading provider of these environmental and industrial services, covering a broad spectrum that includes hazardous waste management, industrial cleaning, and recycling services for a diverse customer base, including a majority of Fortune 500 companies. The company's commitment to safety underpins this assurance; for instance, the year-to-date Total Recordable Incident Rate (TRIR) at quarter end in Q3 2025 was just 0.49. This comprehensive approach helps you focus on your core business while navigating complex regulatory environments. The Environmental Services (ES) segment achieved its 14th consecutive quarter of year-over-year improvement in Adjusted EBITDA margin, reaching 26.8% in Q3 2025.

North American scale and guaranteed disposal capacity for complex waste

The sheer size of Clean Harbors, Inc.'s infrastructure is a core value proposition, offering disposal capacity that competitors find hard to match. The company operates over 100 hazardous waste disposal facilities across North America, including landfills and incinerators. This scale supports guaranteed disposal, especially for complex waste streams. For example, the new Kimball, Nebraska, incinerator, which came online in December 2024, is projected to process 28,000 tons or more of material in 2025, contributing an estimated $10 million in EBITDA for the year. Incinerator utilization stood at 89% in Q2 2025, excluding the ramping-up Kimball plant, signaling tight capacity in the market. The company's Q1 2025 revenue reached $1.43 billion, demonstrating the volume of services flowing through this extensive network.

Here are some key operational metrics that define this scale:

Total PFAS Solution offering thermal destruction at commercial scale

Clean Harbors, Inc. offers what it calls the Total PFAS Solution, which is touted as the industry's only single-source provider for these persistent contaminants. A key component is thermal destruction, proven effective at a commercial scale. A study conducted in November 2024, with results reviewed in September 2025, confirmed that their RCRA-permitted, high-temperature incineration destroys greater than 99.9999% of PFAS compounds, including PFOA and PFOS, meeting the EPA's strictest standards. This capability is driving significant business; Clean Harbors secured contracts worth $110 million over the next three years for PFAS water filtration work in Hawaii alone. Annual revenue from PFAS solutions is currently between $80 million and $100 million, with expectations for 10% to 20% growth this year.

Used oil re-refining into high-quality Group II/III base oil

Through its Safety-Kleen Sustainability Solutions (SKSS) subsidiary, Clean Harbors, Inc. is North America's largest re-refiner and recycler of used oil, gathering approximately one out of every five gallons of waste oil in the region and serving over 100,000 customers annually. To enhance this value proposition, the company announced a $210 million to $220 million investment in a new facility utilizing Solvent De-Asphalting (SDA) technology, which is slated to launch in 2028. This investment is expected to upgrade re-refinery byproducts into high-value base oils, generating an estimated $30 million to $40 million in incremental annual EBITDA. The SKSS segment saw its Adjusted EBITDA decrease year-over-year in Q3 2025 to approximately $38 million, but management expects sequential improvement as pricing strategies take hold.

Rapid, comprehensive emergency response capabilities

When incidents happen, speed and comprehensive support matter. Clean Harbors, Inc. maintains the manpower and equipment to manage environmental emergencies on land or water across the United States, Canada, and Puerto Rico, deploying experienced, fully certified workers rapidly. The company responds to more than 13,000 emergencies each year, supported by over 100 response locations. In the first quarter of 2025, the Field Services segment, which includes emergency response, conducted approximately 5,000 emergency response services. The Field Services revenue saw a 47% year-over-year increase in Q4 2024, partly due to the HEPACO acquisition, which bolstered these capabilities.

You can count on their rapid deployment, which includes:

• Level C through Level A response capability.
• On-site health and safety managers.
• Full ICS/NIMS support team.
• Resource recovery for spilled product.
• Vacuum truck services for spill cleanups.

Finance: draft 13-week cash view by Friday.

Clean Harbors, Inc. (CLH) - Canvas Business Model: Customer Relationships

You're looking at how Clean Harbors, Inc. manages its relationships with its diverse customer base, which includes a majority of Fortune 500 companies and numerous government agencies. The relationship structure varies significantly based on the customer's size and the complexity of the environmental challenge they face.

Dedicated account management for Fortune 500 and government clients

For your largest industrial clients, like those in the chemical, manufacturing, and refining sectors, the relationship is deeply embedded. The Industrial Services business, which serves many of these large customers, represents about $1.3 billion in size. A significant portion, roughly 50% of this Industrial Services business, involves day-to-day maintenance where Clean Harbors employees are present at the customer locations daily, sharing a lunchroom, which is a defintely high-touch approach. Furthermore, Clean Harbors actively engages the public sector through partnerships, such as the one with OMNIA Partners, to provide services across K-12 Education, Higher Education, and State & Local Government entities. In 2025, the company expanded its service footprint by opening 13 more field service branches to support its growing emergency response business.

High-touch, consultative sales for complex Technical Services projects

Complex projects, especially those involving emerging contaminants like PFAS, require a consultative sales process. Clean Harbors, Inc. positions itself as the only company that can deliver comprehensive end-to-end PFAS solutions at commercial scale, including safe thermal destruction. This specialized work is driving significant growth; the pipeline for the Total PFAS Solution saw 15-20% quarterly growth. The revenue generated from this specialized PFAS work is estimated to be between $100 million to $120 million in 2025. The performance of the Technical Services line reflects this project strength:

Automated, recurring service routes for Safety-Kleen small quantity generators

For smaller, commercial, industrial, and automotive customers utilizing the Safety-Kleen subsidiary for used oil collection and parts washers, the relationship leans on efficiency and routine. The Safety-Kleen Environmental Services portion of the business has shown consistent top-line growth in 2025:

• Safety-Kleen Environmental Services revenue increase in Q1 2025: 5%.
• Safety-Kleen Environmental Services revenue growth in Q2 2025: 9% through pricing and core offerings.
• Safety-Kleen Environmental Services revenue rise in Q3 2025: 8% from price and steady volume.

Executives noted that the Safety-Kleen Sustainability Solutions (SKSS) segment has turned a corner, partly due to competitors adopting the charge-for-oil (CFO) model, which Clean Harbors, Inc. implemented in mid-November 2024. The company expects to meet its profitability target for this business in 2025.

Long-term contracts driven by regulatory compliance needs

Regulatory mandates are a core driver that locks in long-term customer commitment. For Technical Services, revenue is primarily generated from short-term projects that are governed by master service agreements that are long-term in nature, which outline the pricing and legal frameworks. Stricter environmental regulations, particularly around PFAS, are pushing industrial customers toward compliant disposal, which is a major tailwind. This regulatory environment is securing multi-year commitments; for example, Clean Harbors, Inc. was awarded contracts worth $110 million over the next three years related to PFAS water filtration work with the U.S. War Department. The company's incineration facilities, excluding the new Kimball incinerator, achieved 92% utilization rates in Q3 2025, showing strong demand for disposal capabilities driven by these compliance needs.

Finance: draft 13-week cash view by Friday.

Clean Harbors, Inc. (CLH) - Canvas Business Model: Channels

You're looking at how Clean Harbors, Inc. gets its essential environmental and industrial services to its diverse, large-scale customer base. The channel strategy is built on massive physical presence and direct, embedded relationships.

Direct sales force targeting large industrial and governmental entities is the foundation for securing high-value, complex service contracts. Clean Harbors, Inc. serves a customer base that includes a majority of Fortune 500 companies and numerous government agencies. This direct approach is supported by a significant human capital investment; in 2025, Clean Harbors, Inc. employed 14,400 people across its operations. For Industrial Services revenue, a unique channel component is the use of insight teams, which are Clean Harbors, Inc. employees embedded at customer locations daily, sharing lunchrooms and building deep, day-to-day operational knowledge, which helps secure recurring maintenance revenue. This direct engagement is critical for managing complex, regulated waste streams.

The physical reach of Clean Harbors, Inc. is vast, far exceeding the 400+ service center expectation. This extensive network is the backbone for collection, transportation, and disposal. The company operates an immense physical footprint to ensure proximity to industrial hubs and rapid emergency response capabilities.

• The company maintains 870 operating locations across 630 properties in the U.S. and Canada as of late 2025.
• This network includes a system of over 100 waste disposal facilities.
• Disposal assets include seven hazardous waste landfills and two non-hazardous waste landfills.
• The Environmental Services (ES) segment achieved 89% utilization at its incineration facilities (excluding the new Kimball incinerator) in Q2 2025, reflecting strong demand channeled through this network.

Company-owned transportation fleet for secure waste logistics is non-negotiable in this industry, as it allows Clean Harbors, Inc. to control the waste chain from collection through final disposal, a key differentiator for regulatory compliance and security. This vertical integration requires a substantial, specialized fleet to handle hazardous and non-hazardous materials securely across North America. While the exact fleet size isn't public, the scale of operations-handling waste for industries like chemical (15% of 2024 revenue) and refining (13% of 2024 revenue)-necessitates a massive, company-controlled logistics apparatus.

Digital platforms for service scheduling and compliance documentation support the field operations, streamlining the administrative burden for large industrial clients. While specific usage statistics aren't public, the need for compliance documentation is paramount, especially given the focus on complex remediation like PFAS projects, which saw quarterly growth of 15-20%. These digital tools help manage the flow of information related to the services that generated $1.55 billion in revenue in Q3 2025.

Here's a quick look at the scale of the business that these channels support, based on the latest reported figures:

The company is actively investing in future channels, such as a planned $210 million to $220 million investment in a new facility using solvent de-asphalting (SDA) technology, expected to generate an estimated $30 million to $40 million in incremental annual EBITDA once it launches in 2028.

Clean Harbors, Inc. (CLH) - Canvas Business Model: Customer Segments

Clean Harbors, Inc. serves an overwhelmingly business-to-business (B2B) clientele, focusing on entities that generate substantial volumes of hazardous and non-hazardous waste, or require complex environmental and industrial services. The company's customer base includes a majority of Fortune 500 companies.

The core customer segments, based on 2024 revenue contribution, show a heavy reliance on the industrial and chemical sectors. You'll see that the largest single segment is the chemical industry, but manufacturing and refining are close behind, making up the bulk of the Environmental Services (ES) segment's work.

The Safety-Kleen subsidiary specifically targets smaller generators through its parts washing and containerized waste collection services. This segment's focus on used oil collection was significant in 2025; for instance, in 2024, Safety-Kleen Sustainability Solutions (SKSS) collected 253 million gallons of used oil, which was re-refined into 249 million gallons of new base oils and lubricants.

Governmental entities represent another critical segment, securing contracts for emergency response, site remediation, and waste management. This crucial segment is estimated to account for 15-20% of the Clean Harbors customer base, encompassing federal, state, provincial, and local agencies.

The company tailors its service delivery to these distinct groups, recognizing that decision-makers prioritize safety and reliability. This focus is reflected in their safety metrics, such as achieving a Total Recordable Incident Rate (TRIR) of 0.65 in 2024.

Key characteristics of the customer base include:

• Clientele includes a substantial number of Fortune 500 corporations.
• The Automotive industry accounted for 8% of 2024 revenue.
• The company serves over 200,000 customer locations through the Safety-Kleen network historically.
• Services are tailored to meet specific regulatory compliance requirements for each vertical.
• The average contract value has seen a year-over-year increase of 6.5% due to personalized service focus.

Clean Harbors, Inc. (CLH) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep Clean Harbors, Inc.'s complex network of environmental and industrial services running. The cost structure is heavily weighted toward assets and specialized people, which is typical for this industry.

High fixed costs from owning and maintaining permitted disposal assets are a major component. These assets require significant ongoing investment to maintain compliance and capacity. For instance, Depreciation and amortization for Q3 2025 was approximately $115 million. Clean Harbors, Inc. subsequently raised its full-year 2025 depreciation and amortization guidance to a range of $445 million to $455 million, partly due to strong landfill performance.

The utilization of these fixed assets directly impacts the cost absorption. Incinerator utilization stood at 89% in Q2 2025, excluding the Kimball, Nebraska, plant which was ramping up. By Q3 2025, overall incineration utilization reached 92%, and landfill volumes were up by 40% year-over-year, helping to leverage fixed costs.

Significant labor costs for specialized technical and field personnel are another large bucket. While specific total labor cost figures aren't immediately available for 2025, management has been focused on labor management, with reports suggesting they are 'reducing labor as a percent of revenue over time.' This focus on workforce management improvements is part of the drive to expand margins.

Capital expenditures for growth projects like the Kimball incinerator ramp-up represent substantial upfront costs. The Kimball incinerator, which came online in late 2024, was an investment of about $180 million. For 2025, Clean Harbors, Inc. anticipated total capital expenditures in the range of $345 million to $375 million, excluding roughly $15 million for the Phoenix hub project. Another filing suggested a range of $360 million to $390 million for 2025 CapEx, including the $15 million for Phoenix. The Kimball facility is projected to contribute $10 million in EBITDA in 2025 and is on track for a $40 million incremental EBITDA run rate by the end of 2026.

The company also announced a major future investment in a Solvent De-Asphalting (SDA) unit, with a total spend expected to be $210 million to $220 million, anticipating commercial launch in 2028. For 2025, approximately $12 million was spent on this project year to date, with a total of about $30 million expected for the full year.

Operating expenses, including fuel and increased healthcare costs (Q3 2025 headwind), present near-term pressures. Specifically, Q3 2025 results noted that lower-than-expected Adjusted EBITDA was partly due to higher healthcare claims. The company is actively managing other variable costs through pricing strategies designed to offset inflationary impacts.

The cost-focused strategy to lower SG&A and drive operating efficiencies is clearly visible in margin performance. Clean Harbors, Inc. improved its consolidated Adjusted EBITDA margin by 60 basis points in Q2 2025 through a sharp focus on SG&A spend. In Q3 2025, the consolidated margin was 20.7%, a 100 basis points increase from the prior year period, driven by cost management and efficiencies. The Environmental Services segment saw its Adjusted EBITDA margin increase by 120 basis points to 26.8% in Q3 2025.

Here's a look at key financial metrics that reflect the cost structure's impact on profitability through Q3 2025:

The company is also actively managing its capital structure, having repurchased $50 million of stock in Q3 2025 with roughly $380 million remaining under the authorization.

Clean Harbors, Inc. (CLH) - Canvas Business Model: Revenue Streams

You're looking at how Clean Harbors, Inc. actually brings in the money, which is really the core of their business engine. It's a mix of recurring service fees and high-value project work, split across two main operational segments.

For the full-year 2025 outlook, Clean Harbors, Inc. is now expecting its Adjusted EBITDA to land in the range of $1.155 billion to $1.175 billion, based on the latest guidance provided after the third quarter. This revised range reflects a midpoint of $1.165 billion.

Environmental Services (ES) Fees for Disposal, Treatment, and Technical Services

The Environmental Services (ES) segment drives revenue primarily through fees for managing and disposing of hazardous and non-hazardous waste. This includes the steady income from their disposal network, which saw strong utilization metrics in the third quarter of 2025. Incineration utilization, excluding the new Kimball incinerator, was reported at 92% for Q3 2025, and landfill volumes were up about 40% year-over-year, signaling strong demand for disposal capacity.

Technical Services, a key part of the ES revenue stream, showed particular strength, with revenue growing 12% in the third quarter of 2025. Furthermore, the emerging PFAS market is a specific growth area, with PFAS-related revenue expected to be between $100 million and $120 million for the full year 2025.

Project-Based Revenue from Large-Scale Remediation and Emergency Response

Project-based work, which covers large-scale remediation efforts and emergency response services, adds a less predictable but often high-margin component to the ES revenue. Field Services revenue, which includes emergency response bolstered by the HEPACO acquisition, saw a significant jump of 32% in the first quarter of 2025. While Field Services revenue declined in Q3 2025 due to the absence of medium- to large-scale emergency projects in that specific quarter, the overall project pipeline remains substantial, supported by expected remediation projects moving forward.

Safety-Kleen Sustainability Solutions (SKSS) Revenue from Used Oil and Parts Cleaning

The Safety-Kleen Sustainability Solutions (SKSS) segment generates revenue from collecting used oil and providing parts cleaning services. This business has been navigating market shifts, including a strategic move to a charge-for-oil (CFO) model starting in mid-November 2024. The Safety-Kleen Environmental Services portion of this segment saw revenue rise 8% in the third quarter of 2025, showing the effectiveness of pricing and volume management strategies. However, the broader SKSS segment faced headwinds, with Q2 2025 revenue declining 19% year-over-year. To counter this, the segment is focused on cost structure improvements and value-added initiatives.

Sales of Re-refined Base Oil and Lubricants from the SKSS Segment

A critical revenue component within SKSS is the sale of products made from recycled materials, specifically re-refined base oil and lubricants. Clean Harbors, Inc. is advancing this by investing heavily in recycling technology. They announced a $210 million to $220 million investment for an SDA unit to upgrade VTAE into 600N base oil, which is projected to generate an EBITDA run-rate of $30 million to $40 million when it launches in 2028. This shows a long-term revenue strategy focused on higher-value product sales from their recycling stream.

Here's a snapshot of how the segments performed recently, showing the revenue dynamics at play:

You can see the divergence; ES is showing consistent growth, while SKSS is more volatile but has a clear path for future revenue enhancement through base oil upgrades.

The revenue streams are supported by operational efficiency, which you see reflected in the margins.

• ES Segment Adjusted EBITDA Margin: 26.8% in Q3 2025.
• SKSS Segment Adjusted EBITDA Margin: Contracted to 19.4% in Q2 2025.
• Total Company Adjusted EBITDA Margin: 20.7% in Q3 2025.

The company is definitely leaning on its disposal and recycling network fees for the bulk of its current, stable revenue base. Finance: draft 13-week cash view by Friday.