Company: CLH
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000822818-25-000019
Chunk: 92

Company: CLEAN HARBORS INC
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 8
Chunk 92
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 energy related costs. We are also subject to uncertainties and cost increases due to the changing regulatory landscape including trade restrictions and tariffs. We aim to manage these increases through constant cost monitoring and a focus on cost savings areas, including lowering employee turnover, as well as our overall customer pricing strategies designed to offset the inflationary impacts on our margins.

We continue to upgrade the quality and efficiency of our services through the development of new technology and continued modifications and expansion at our facilities while also leveraging certain fixed costs of our operating infrastructure. We invest in 

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new business opportunities and aggressively implement strategic sourcing and logistics solutions, while also continuing to optimize our management and operating structure in an effort to manage our operating margins.

Environmental ServicesThree Months EndedMarch 31,2025 over 2024(in thousands, except percentages)20252024Change% ChangeCost of revenues$839,942$812,898$27,0443.3 %As a % of Direct revenues69.5 %69.3 %0.2 %

Environmental Services cost of revenues for the three months ended March 31, 2025 increased $27.0 million from the comparable period in 2024, and remained relatively consistent as percentage of revenues. Commensurate with the revenue growth in the business and recent acquisitions discussed above, labor and benefit related costs increased $25.1 million and equipment and supply costs increased $6.5 million for the three months ended March 31, 2025 when compared to the three months ended March 31, 2024. The remaining increase was spread across various cost categories and was driven by acquisitions. Partially offsetting these cost increases were decreases in third-party labor costs of $7.9 million and external transportation, vehicle and fuel related costs of $2.1 million for the three months ended March 31, 2025 when compared to the three months ended March 31, 2024. 

Safety-Kleen Sustainability Solutions

Three Months EndedMarch 31,2025 over 2024(in thousands, except percentages)20252024Change% ChangeCost of revenues$177,438$154,887$22,55114.6 %As a % of Direct revenues79.7 %75.9 %3.8 %

SKSS cost of revenues for the three months ended March 31, 2025 increased $22.6 million from the comparable period in 2024 and increased 3.8% as a percentage of revenues. The cost increase is