Clean Harbors, Inc.

Greetings and welcome to the Clean Harbors First Quarter 2026 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow a formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Michael McDonald, General Counsel for Clean Harbors. Mr. McDonald, you may begin.

Thank you, Christine. Good morning, everyone. With me on today's call are our co-chief executive officers, Eric Gerstenberg and Mike Battles, our EVP and chief financial officer, Eric Dugas, and our SVP of investor relations, Jim Buckley. Slides for today's call are posted on our investor relations website. We invite you to follow along. Matters we are discussing today that are not historical facts are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Participants caution not to place undue reliance on these statements which reflect management's opinions only as of today, May 6th, 2026. Information on potential factors and risks that could affect our results is included in our SEC balance. The company undertakes no obligation to revise or publicly release the results of any revision to the statements made today, other than through filings made concerning this reporting period. Today's discussion includes references to non-GAAP measures. Clean Harvest believes that such information provides an additional measurement and consistent historical comparison of its performance. Reconciliations of these measures to the most directly comparable GAAP measures are available in today's news release, on our Investor Relations website, and in the appendix of today's presentation. Let me turn the call over to Eric Gerstenberg to start. Eric?

Good morning, everyone, and thank you for joining us. Before we move into the results, I want to recognize our General Counsel, Michael McDonald, who will be retiring next month. Michael has been a trusted colleague and an integral part of the Clean Harvest team for more than 25 years, and his judgment and perspective have been invaluable. We thank him for his many contributions and wish him good health and happiness in the years ahead. Thank you, Michael. Starting off with safety, our team delivered an extraordinary safety results in Q1 by achieving the lowest quarterly total recordable incident rate in our history at just 0.39. and company-wide programs to improve safety, you only get the type of results we are achieving with buy-in at the field level. We are continually setting a higher standard for our company and our industry. For any employees tuned in today, thank you for all that you do, and keep yourself safe and your colleagues safe. Turning to a summary of results on slide three, we kicked off 2026 with better-than-expected Q1 results, including higher profitability in both of our segments. Despite challenging weather conditions that impacted our collection and services business in February, we exceeded our EBITDA expectations and improved the company's adjusted EBITDA margin by 60 basis points from Q1 2025. Within the environmental services segment, we demonstrated our resiliency by delivering the segment's 16th consecutive quarter of year-over-year improvement in adjusted EBITDA margin and 18th straight quarter of EBITDA growth. At the same time, safety, clean, sustainable solution segment benefited from our continued focus around charge for oil services and from a late quarter surge in face oil pricing that lifted its profitability. Turning to the segments, beginning with ES on slide four, Q1 revenue in this segment increased by more than $40 million due to growth in project services, including PFAS-related opportunities and a considerable amount of emergency response work. We also continue to see healthy demand for our disposal and recycling services. Technical services revenue rose 5%, and safety clean environmental services revenue grew 7%, driven by pricing and higher volumes within its core offerings. Incineration utilization, including the new Kimbell incinerator, was 80%, versus 81% a year ago, reflecting scheduled maintenance days and weather-related impacts in both periods. Continuing the trend of the past several quarters, we generated a sizable increase in landfill volumes, which rose by 34% on strength of project work, including PFAS-related plans. Field service revenue grew 7% in the quarter, as we responded to a steady stream of customer emergency events across the U.S., including a large-scale event that generated approximately $10 million in revenue. We opened 18 field service branches during 2025 and plan to open 10 more in 2026. While these new locations will take some time to grow their revenue base, our investment speaks to the opportunities we see in field services, as well as our ability to cross-sell across other businesses. Adjusted EBITDA was up 6% in the quarter, with ES segment margin up 50 basis points due to pricing, higher volumes, workforce productivity, and cost control initiatives. Overall, our ES segment achieved positive Q1 results, despite certain market conditions in the quarter. including weather and regional softness in our industrial services business. We exited the quarter with considerable momentum for ES in March. Revenues were approximately 10% higher than the same month a year ago. Turning to slide five, we wanted to take a moment to highlight our PFAS management framework that we issued in early April. The purpose today is not to cover the individual details of the framework, but to reemphasize that we have an end-to-end cost-effective solution for PFAS and all of its forms and concentrations. Over the past several years, we've had many customers, government agencies, and even community leaders approach us for advice on how to best address PFAS. For example, they call on us when they want us to clean up contaminated water, remove stockpiles of AFFF firefighting foam, need someone to respond to emergency situations like fires or spills, or remediate a contaminated site. Customers have a lot of uncertainty around PFAS, and we believe our framework featured on this slide is beneficial to help them make smart economic decisions at all stages of the process. Our recommendations are based on years of institutional knowledge and the latest scientific data, including the PFAS incineration study we completed in conjunction with the EPA and the Pentagon. Our concentration-based framework provides the proper treatment and disposal pathway for a range of scenarios. This tiered approach provides the ideal way to address complex contaminants at reasonable costs. We are starting to see considerable regulatory movement around these forever chemicals. Both the Department of War in March and the U.S. EPA in April have issued PFAS guidance that included incineration, hazardous waste landfill, and water filtration as recommended methods of treatment and disposal. The market is still developing, but having both the Pentagon and the EPA issued permanent incineration, and our other PFAS offerings is critical. Those endorsements of our proven capabilities add to the momentum we are already seeing in our PFAS sales pipeline. As PFAS remediation accelerates nationwide, our integrated framework provides a practical and scalable model for industry and government partners. Today, we continue to believe that Clean Harvest remains the only company that can offer a cost-effective, end-to-end, single-source solution that is commercially scalable for any PFAS need. With that, let me turn things over to Mike to discuss SKSF, a reference related to AI, and our capital allocation strategy. Mike?