Description
Largest re-refiner of used motor oil (Safety-Kleen); solvent recycling; some waste-to-energy incineration.
Created
Mar 26, 2025 6:43 PM
URL
Circular Economy Involvement
Company Name
Clean Harbors
Cover Image
Industry/Subsector
Environmental Services – Hazardous Waste Mgmt & Recycling
Investment Thesis
Essential regulated niche; monetizing hazardous waste streams; consistent growth; synergy with sustainability regulations.
Market CapitalizationMarket Capitalization
Multi-selectMarket Capitalization
~$10.8 billion
Recent Financial Performance
~$5.89B revenue, ~$378M net income, ~6–7% net margin, ROE ~16%, debt/equity ~1.1
Stock
Ticker
CLH
- Industry/Subsector: Environmental Services – Hazardous Waste Management & Recycling
- Market Capitalization: ~$10.8 billion
- Circular Economy Involvement: Clean Harbors is a leading provider of environmental and industrial waste management services. Through its Safety-Kleen subsidiary, Clean Harbors plays a major circular role by collecting used motor oil, industrial solvents, and other hazardous materials and re-refining or recycling them into usable products. Notably, Safety-Kleen is the largest re-refiner of used oil in North America, re-refining over 150 million gallons of used motor oil each year into new base lubricating oil. This closed-loop process prevents waste oil from being burned or discarded and reduces the need for new oil drilling. Clean Harbors also operates solvent recycling services, parts washer fluids recovery, and fuel blending – all of which take waste and turn it back into resources. Additionally, the company’s hazardous waste incinerators contribute to energy recovery (waste-to-energy) where possible.
- Recent Financial Performance: Clean Harbors has delivered strong growth in recent years. In 2024, revenues reached $5.89 billion (up 9% from 2023), driven by high demand in its environmental services segment. 2023 net income was $378 million (roughly 7% net margin), a slight decline from an exceptionally strong 2022, while 2024 net income was on par (margins roughly steady mid-single-digits). ROE has been in the mid-teens (16% trailing), reflecting improved profitability after a series of acquisitions and efficiency initiatives. The company has a moderately leveraged balance sheet (debt/equity ~1.1), which is typical for its capital-intensive industry, but it generates ample EBITDA to service debt (2024 EBITDA over $1.08B).
- Investment Thesis: Clean Harbors is positioned at the nexus of environmental regulation and resource recovery. As industries face stricter rules on hazardous waste disposal and as sustainability commitments grow, demand for Clean Harbors’ services should rise. The company’s ability to monetize waste streams (through oil re-refining and recycled products) gives it a profitable edge and buffers it against purely volume-driven waste disposal margins. Management has shown a commitment to growth (both organic and via acquisitions like HydroChem and used oil assets) while expanding operating margins. The long-term thesis is bolstered by macro trends: increased oil recycling (benefiting Safety-Kleen), the need for environmental remediation, and potential growth in waste-to-energy. For investors, Clean Harbors offers a unique combination of defensive, recurring revenues (waste disposal is often non-discretionary) and growth via circular innovation. It’s a way to invest in environmental sustainability infrastructure with a company that consistently “turns waste liabilities into profit centers.”