Clean Harbors Posts Record $1.87 Billion Q3 Revenue, Raises Outlook and Names Gerstenberg Sole CEO

Clean Harbors raised its 2026 outlook after a record third quarter in which a single large emergency response job and high prices for re-refined oil pushed net income up 75%, and the company said Co-CEO Mike Battles will retire at year-end.

The Norwell, Massachusetts, environmental and industrial services company reported revenue of $1.87 billion for the quarter ended Sept. 30, up 21% from $1.55 billion a year earlier, according to the earnings release it filed with an 8-K on Wednesday. Net income rose to $208.1 million, or $3.93 a diluted share, from $118.8 million, or $2.21.

Guidance moves higher

Adjusted EBITDA grew 42% to $456.1 million, and the adjusted EBITDA margin expanded 370 basis points to a record 24.4%. Adjusted free cash flow reached a record $323 million.

Clean Harbors lifted the midpoint of both its full-year adjusted EBITDA and adjusted free cash flow guidance by $80 million. It now expects:

• Adjusted EBITDA of $1.44 billion to $1.48 billion
• Adjusted free cash flow of $600 million to $660 million
• GAAP net income of $528 million to $563 million

For the fourth quarter, the company expects adjusted EBITDA to grow 23% to 26% from a year earlier.

One big job, and pricey oil

Field Services revenue rose more than 70%, driven by emergency response work that included "one substantial event that generated approximately $120 million of revenue at emergency response rates," Co-CEO Eric Gerstenberg said. The Environmental Services segment posted a 27.4% adjusted EBITDA margin, its 18th straight quarter of year-over-year margin expansion.

The Safety-Kleen Sustainability Solutions segment grew revenue 46%, and its adjusted EBITDA rose 209%. Battles said "global supply disruptions" were supporting higher prices for refined products such as base oil and lubricants, and the company collected 62 million gallons of waste oil in the quarter.

Gerstenberg said the company has now completed five acquisitions this year, including ES&H and EnviroServe, and is investing $55 million in a Los Angeles site to bring its Hub concept to the West Coast.

Leadership change

In a separate release furnished with the same 8-K, Clean Harbors said Gerstenberg will become sole chief executive on Jan. 1, 2027. Battles has decided to retire as co-CEO and as a director on Dec. 31, 2026, and will serve in a strategic advisory role in 2027.

Gerstenberg joined the company in 1989 and was named co-CEO in March 2023. Battles joined in 2013 and served seven years as chief financial officer before becoming co-CEO. Chairman Rob Willett said the transition is endorsed by both co-CEOs and the board.

Looking to 2027

"We expect to enter 2027 with momentum across both operating segments," Battles said, citing strong collection volumes, a 10-year contract that began in the fourth quarter and a "robust" pipeline of PFAS-related work. He said the company sees "a clear path to achieve record results for 2026."

Sources

1. Clean Harbors Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1) and executive leadership change release (Exhibit 99.2), filed Oct. 28, 2026 (accession 0000822818-26-000045)

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.