Capital expenditures were $87 million in Q2, down from prior year due to completion of Kimball construction; Phoenix site purchased for strategic hub development.
Cash and short-term marketable securities totaled nearly $700 million at quarter end; net debt-to-EBITDA ratio improved to approximately 2x.
Clean Harbors achieved its lowest ever quarterly TRIR of 0.40 in Q2, reflecting strong safety performance and operational excellence.
Consolidated adjusted EBITDA margin increased by 60 basis points to 21.7%, driven by strong demand for disposal and recycling assets and lower SG&A costs.
Depreciation and amortization increased to $116 million in Q2 due to Kimball and higher landfill amortization; full year expected between $440 million and $450 million.
Environmental Services segment showed 13 consecutive quarters of adjusted EBITDA margin growth, driven by increased volumes, pricing, and efficiency gains.
Net cash from operating activities was $208 million; adjusted free cash flow reached a Q2 record of $133 million, up nearly 60% from prior year.
Net income declined modestly year-over-year with earnings per share of $2.36, primarily due to higher depreciation and amortization.
Q2 adjusted EBITDA was $336 million, driven by higher earnings in Environmental Services and improved corporate costs, offsetting lower SKSS contribution.
Safety-Kleen Sustainability Solutions (SKSS) revenue decreased year-over-year due to lower market pricing and reduced volumes but exceeded expectations with $38 million EBITDA in Q2.
SG&A expense as a percentage of revenue decreased 70 basis points to 12%, with full year 2025 expected in the low to mid-12% range.
Capital spending increased with $295 million toward the Blue Ridge rebuild; free cash flow was lower year-to-date due to higher CapEx and lower net earnings.
Earnings per share decreased by 10% year-over-year but grew by 29% quarter-over-quarter.
Expenses increased by 2% year-over-year, including network disruption costs, inflation, and higher depreciation, partly offset by lower fuel prices.
Fuel costs decreased by $32 million year-over-year due to lower prices despite higher consumption from reroutes.
Labor and fringe expenses rose due to inflation and trucking business headcount increases, while rail headcount decreased year-over-year and sequentially.
Operating income increased $242 million from Q1, with margins improving by 550 basis points, ahead of normal seasonality.
Reported operating margin declined by 320 basis points year-over-year but increased by 550 basis points sequentially.
Total revenue was $3.6 billion for the quarter, down 3% year-over-year, largely due to lower coal and fuel prices.
Total volume was flat compared to last year, with a 4% sequential increase driven by merchandise and coal shipments.
Dafinchi