Company: CLH
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000822818-25-000030
Chunk: 141

Company: CLEAN HARBORS INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 2
Chunk 141
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 Flow

Management considers adjusted free cash flow, a non-GAAP measure, to be a measure of liquidity which provides useful information to management, creditors and investors about our financial strength and our ability to generate cash. Additionally, adjusted free cash flow is a metric on which a portion of management incentive compensation is based. We define adjusted free cash flow as net cash from operating activities, less additions to property, plant and equipment, plus proceeds from sales or disposals of fixed assets. When necessary, management adjusts for the cash impact of items derived from non-operating activities. Additionally, adjusted free cash flow excludes significant one-time growth investments, as they are not indicative of free cash flow generation for the current period. For 2025, these significant one-time growth investments include the build out of a hub facility in Phoenix Arizona which is expected to cost approximately $15 million in 2025 and, from which we expect to realize future long-term benefits. Adjusted free cash flow should not be considered an alternative to net cash from operating activities or other measurements under GAAP. Adjusted free cash flow is not calculated identically by all companies, and therefore our measurements of adjusted free cash flow may not be comparable to similarly titled measures reported by other companies. 

The following is a reconciliation of net cash from operating activities to adjusted free cash flow for the following periods: 

For the Six Months Ended June 30,(in thousands)20252024Net cash from operating activities$209,645 $234,594 Additions to property, plant and equipment(208,724)(273,023)Cash investment in Phoenix Hub12,436 — Proceeds from sale and disposal of fixed assets4,063 4,295 Adjusted free cash flow$17,420 $(34,134)

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Table of Contents

Summary of Capital Resources

At June 30, 2025, cash and cash equivalents and marketable securities totaled $699.1 million, compared to $789.8 million at December 31, 2024. At June 30, 2025, cash and cash equivalents held by our Canadian subsidiaries totaled $91.6 million. The cash and cash equivalents and marketable securities balance for our U.S. operations was $607.5 million at June 30, 2025. Our U.S. operations had net operating cash inflows of $223.1 million for the six months ended June 30, 2025.

We maintain a $600.0 million revolving credit facility of which