Clean Harbors, Inc.

Greetings and welcome to the Clean Harbor Second 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 the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tim Rodenberger, General Counsel for Clean Harbor. Mr. Rodenberger, you may begin.

Thank you, Christine, and 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. 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 are cautioned not to place undue reliance on these statements, which reflect management's opinions only as of today, July 29, 2026. Information on potential factors and risks that could affect our results is included in our SEC filing. The company undertakes no obligation to revise or publicly release the results of any revisions of statements made today other than through filings made concerning this reporting period. Today's discussion includes references to non-GAAP measures. Clean Harbors 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 IR website in the appendix of today's presentation. Let me turn the call over to Eric Gerstenberg to start. Eric?

Thanks, Jim. Good morning, everyone, and thank you for joining us. Turning to a summary of Q2 results on slide three, I'll start, as we always do, with safety, which remains at the core of our success. In Q2, Our team continued to focus on protecting themselves and their colleagues, resulting in a year-to-date total recordable incident rate of 0.46. This performance keeps us on track to reach our 2026 goal, while continuing to outperform industry benchmarks and peer results. Safety remains a meaningful, competitive differentiator for us. We exceeded our guidance for the quarter on the strength of both of our operating sectors. Strong performances in environmental services and safety clean sustainability solutions contributed to record revenue, adjusted EBITDA, and adjusted EBITDA margins. While SKSS clearly exceeded Q2 expectations, what gives us conviction in our outlook is that environmental services continues to deliver strong utilization rates Expanding margins and a growing pipeline of long-term opportunities. With NES, demand for our disposal assets and vast collection network remains strong, reflecting the scarcity of disposal capacity across the industry. Within our services business, growth was driven by another strong performance from SK Environmental Services and increased revenue in field services. a variety of factors, including the environment created by global lubricant shortages. Turning to our segment performance, beginning with ES on slide four, Q2 revenue in this segment increased by more than $100 million. Technical services revenue grew by 18% on strong demand for disposal and recycling services. We won both base business and sizable projects, including a large PFAS-related filtration project that directly resulted from previous emergency response work. That project accounted for more than $30 million of Q2 revenue. Safety clean environmental services revenue increased 11%, driven by pricing and growth in its core offerings, including containerized waste collection and vacuum services. Incineration utilization in Q2 was 91% versus 86% a year ago. with the new Kimbell Incinerator included in both periods. Landfill volumes were also up, rising 7% this quarter. Field services revenue grew 3% despite a difficult con with Q2 2025. Our industrial services revenue was comparable to Q2 a year ago as growth in specialty and other services offset the impact of North American refineries continue to operate with very limited downtime and turnaround activity. Adjusted EBITDA was up 8% in the quarter, with the ES segment margin up 10 basis points to 27.9%. We continue to demonstrate the earnings power of this segment, delivering our 17th consecutive quarter of year-over-year improvement in adjusted EBITDA margin and our 19th straight quarter of EBITDA growth. Overall, it was another outstanding quarter for ES, as we continue to capitalize on favorable market trends that are showing no signs of slowing. We continue to successfully execute on our growth strategies as we head into the back half of the year. Turning to slide five, we announced today that we recently won a significant long-term disposal contract with a manufacturing customer that is expanding its U.S. operations. This 10-year agreement which centers on incineration waste and complex wastewater volumes, carries an estimated value of $600 million with options to expand in scope and extend duration. The contract will commence in the fourth quarter and will likely generate about $10 million in revenue this year. Based on the customer's plans to open and ramp up multiple U.S. sites, it is expected to reach full capacity in 2030. This contract provides a decade-long growth run rate tied to the expansion of U.S. manufacturing. We believe it validates our substantial capabilities and versatility to safely process large volumes of variable waste streams at our multiple locations. We are proud that this customer selected Clean Harbors as a long-term partner to grow its U.S. operations. We know that the scale and redundancy of our recycling and disposal network and our service locations were key factors in winning this contract. There are two trends we are seeing in the market today. First, the expansion of U.S. manufacturing related to reshoring, and second, customers are seeking to utilize a common service provider for all of their regulated waste and recycling needs. Given the unique capabilities of our assets, we expect to pursue opportunities for new contracts, both large and small, while expanding our relationships with customers that are growing their North American presence. Turning to slide six, data centers is a market that we have been eyeing for some time, and I know that some of you have been asking about it. We are in the process of introducing an integrated data center solution, as many of our services align with customer needs. Our solution consists of eight separate lines of business. that will address multiple phases of the data center market. Our initial focus is on the construction phase, where our industrial services, mechanical flushing, chemical passivation, and water filtration services are in high demand. Our specialty services group has had some early successes in meeting with hyperscalers and data center owners. We've already won work on 10 sites to date and are bidding on a dozen more. We see an opportunity to cross-sell and grow, particularly as that market continues to evolve. In addition to shifting to a variety of data center cooling approaches that impact customer needs, the market is expected to move from the current heavy construction phase to more of a maintenance phase. We see that as an attractive opportunity to introduce additional lines of business into our integrated offering, including fluid recovery and recycling, Debris and Waste Removal, ER Events, and Lubricant Delivery. Our long-term plans for this market opportunity remain relatively modest as we are targeting growth to $200 million in annual revenue by the end of 2028. In order to hit that mark, we will be investing an additional $50 million in kept assets. Over the next three years, to increase the specialty equipment, tankage, and vehicles, we will need to service customers. The data center market is expected to grow at a CAGR of approximately 20% annually through 2030. With the services we provide, particularly within our specialty industrial services group, we estimate our TAM by 2030 could be as large as $8 to $10 billion. With that, let me turn things over to Mike to discuss our planned acquisition of ES&H, SKSS, and our capital allocation strategy.