Clean Harbors to Acquire Depot Connect Businesses for $130M; Reports Strong FY25 Adjusted EBITDA
Summary
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.
Key Events
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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.
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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.
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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.
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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.
Analysis
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.
At the time of this filing, CLH was trading at $280.04 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $15B. The 52-week trading range was $178.29 to $286.45. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.