Clean Harbors to Acquire DCI Environmental Businesses for $130M

Why It Matters

The results demonstrate Clean Harbors’ ability to grow revenue and margins while expanding high‑growth PFAS remediation services, positioning it for stronger cash generation and shareholder returns. The low leverage and active share buybacks give the firm flexibility for further acquisitions and capital allocation.

Key Takeaways

• Record $6B revenue, highest ever
• Adjusted EBITDA margin reached 18.6% in Q4
• PFAS contract $110M boosts growth pipeline
• DCI acquisition adds $40M revenue, $11M EBITDA
• Share repurchases $133M Q4, $600M capacity

Pulse Analysis

Clean Harbors’ fiscal 2025 performance underscores the resilience of the waste‑management sector amid tightening environmental regulations. By delivering a record $6 billion in revenue and expanding adjusted EBITDA margins to 18.6% in Q4, the company proved its pricing power and operational efficiency across both Environmental Services and Safety‑Kleen Sustainability Solutions. The surge in PFAS remediation contracts, highlighted by a three‑year $110 million deal at Pearl Harbor, reflects a broader industry shift toward specialized chemical‑cleanup services, a market expected to accelerate as EPA and Pentagon regulations tighten.

Strategic capital allocation further differentiates Clean Harbors from peers. The $130 million acquisition of DCI’s environmental businesses adds roughly $40 million of annual revenue and $11 million of adjusted EBITDA, enhancing geographic reach in the Midwest and Gulf Coast. Simultaneously, a $50 million vacuum‑truck fleet expansion targets high‑margin SK brand growth, with projected incremental EBITDA of $12‑$14 million by 2028. Coupled with a record $133 million share repurchase program and a net‑debt‑to‑EBITDA ratio of 1.8x—the lowest in 15 years—the firm maintains ample financial flexibility for future M&A and shareholder returns.

Looking ahead, Clean Harbors’ 2026 guidance signals modest yet sustainable growth, forecasting adjusted EBITDA between $1.2 billion and $1.26 billion and free cash flow conversion near 41% of EBITDA. The company’s focus on high‑utilization incineration assets, expanding PFAS service lines, and disciplined cost management positions it to capture upside from both regulatory developments and industrial demand for hazardous‑waste solutions. Investors should monitor the execution of the DCI integration and the ramp‑up of the Kimball incinerator, as these initiatives are key catalysts for margin expansion and long‑term value creation.

Deal Summary

Clean Harbors Inc announced the acquisition of DCI environmental businesses for $130 million, disclosed during its Q4 2025 earnings call on Feb. 18, 2026. The deal is expected to generate $40 million in annual revenue and $11 million in adjusted EBITDA, expanding Clean Harbors' geographic footprint in waste handling, tank and railcar cleaning, and wastewater treatment services.