Clean Harbors to Acquire Depot Connect Businesses for $130M; Reports Strong FY25 Adjusted EBITDA

summarizeSummary

Clean Harbors' annual report details a new $130 million acquisition to expand environmental services, alongside strong full-year 2025 Adjusted EBITDA and cash flow, and a reduction in environmental liabilities.

check_boxKey Events

• New Acquisition Announced

  Clean Harbors signed an agreement on February 17, 2026, to acquire certain environmental businesses of Depot Connect International for approximately $130 million in an all-cash transaction, expected to close in the first half of 2026. This acquisition will expand the Environmental Services segment's technical and field services operations.

• Strong Full-Year 2025 Financial Performance

  Reported full-year 2025 Adjusted EBITDA of $1.17 billion, a 4.7% increase from 2024, and adjusted free cash flow of $509.3 million, representing a 42% increase year-over-year. Total direct revenues increased 2.4% to $6.03 billion.

• Reduction in Environmental Liabilities

  Total environmental liabilities decreased by $10.8 million to $230.7 million as of December 31, 2025, primarily due to a $10 million decrease in remedial liability for a site where loss was no longer probable.

• Share Repurchase Program Expansion

  The Board of Directors authorized a $350 million expansion of the existing share repurchase program on February 18, 2026, which was also announced in a concurrent 8-K filing.

auto_awesomeAnalysis

Clean Harbors' annual report provides comprehensive financial results for 2025, highlighting strong operational performance with a 4.7% increase in Adjusted EBITDA to $1.17 billion and a 42% rise in adjusted free cash flow to $509.3 million. The filing also discloses a new strategic acquisition of Depot Connect International's environmental businesses for $130 million, which is expected to expand the company's technical and field services. Additionally, the company reported a $10 million reduction in remedial environmental liabilities. While net income saw a slight decrease, the overall financial health and strategic growth initiatives outlined in the report are positive, reinforcing the company's market position.