Clean Harbors (CLH) risk factors, FY2025 10-K

Clean Harbors's FY2025 10-K, filed Feb 18, 2026, lists 25 risk factors in 5 groups. Against the prior year's 25: 1 new, 1 dropped, 10 substantially reworded.

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Risk factors listed
255 groups
New this year
1vs 25 last year
Dropped
1since the prior 10-K
Substantially reworded
10of those kept
Section length
7k wordsItem 1A

What the changes say

  • Debt cross-default exposure is newly emphasized, with a default potentially accelerating multiple borrowings and forcing asset sales or curtailed operations.
  • Parts-washer product-liability proceedings increased from 68 to 76, while transportation compliance and operational-control risks received more attention.
  • The company now reports 9% of revenue from Canada and 9% of employees in India, versus 9.1% and over 7%, respectively.
  • A parts-cleaning solvent environmental-regulation risk was removed, and no asset write-downs were reported for 2025, 2024, or 2023.

What changed since the prior 10-K

New

  • NewSTRATEGIC TRANSACTION RISKS

    repay in full those debts

    A default or acceleration under one debt instrument could trigger immediate repayment across other borrowings, forcing unfavorable financing, asset sales, or curtailed operations.

Dropped

  • DroppedLEGAL, ENVIRONMENTAL AND REGULATORY COMPLIANCE RISKS

    Environmental laws and regulations have adversely affected and may adversely affect parts cleaning and other solvent related services

Reworded

  • 62% rewrittenOPERATIONAL RISKS

    Our operations are increasingly dependent upon technology. Failure of these technologies, failure to upgrade or innovate these technologies, failure to property implement and maintain these technologies or failure to identify and develop new technologies could have an adverse impact on our results

    Adds reliance on operational technology and industrial control systems managing treatment, incineration, and transportation, while removing the prior discussion of artificial intelligence and technology-development spending.

    Was: Our operations are increasingly dependent upon technology. Failure of these technologies, failure to upgrade or innovate these technologies or failure to identify and develop new technologies could have an adverse impact on our results

  • 44% rewrittenSTRATEGIC TRANSACTION RISKS

    Failure to correctly identify and execute upon strategic acquisitions and divestitures or effectively execute large-scale capital projects could adversely impact our future results

    Adds risk from periodically undertaking significant large-scale capital projects and changes acquisition language from integrating and developing businesses to integrating and operating them.

    Was: Failure to correctly identify and execute upon strategic acquisitions and divestitures could adversely impact our future results

  • 37% rewrittenSTRATEGIC TRANSACTION RISKS

    Certain adverse conditions have required, and future conditions might require, us to make substantial write-downs in our assets, which have adversely affected or would adversely affect our balance sheet and results of operations

    Updates the impairment discussion to emphasize variability in estimated future cash flows and changes the no-write-down period to 2025, 2024, and 2023.

  • 36% rewrittenSTRATEGIC TRANSACTION RISKS

    The covenants in our debt agreements may restrict our ability to operate our business and might lead to a default under our debt agreements

    Makes only wording changes, replacing references to the Company with references to the company and its restricted subsidiaries.

  • 32% rewrittenLEGAL, ENVIRONMENTAL AND REGULATORY COMPLIANCE RISKS

    We are subject to existing and potential product liability lawsuits relating to our parts washer services

    The reported parts-washer product-liability proceedings rose from 68 at December 31, 2024 to 76 at December 31, 2025.

    Was: We are subject to existing and potential product liability lawsuits relating to parts washer services

  • 32% rewrittenLEGAL, ENVIRONMENTAL AND REGULATORY COMPLIANCE RISKS

    Our businesses are subject to numerous statutory and regulatory requirements, which may change in the future

    Adds transportation operating authority to required permits and highlights national, state, provincial, and local transportation regulations and related operating costs.

    Was: Our businesses are subject to numerous statutory and regulatory requirements, which may increase in the future

  • 31% rewrittenSTRATEGIC TRANSACTION RISKS

    Our insurance coverage and self-insurance reserves may be inadequate to cover all significant risk exposures, and increasing costs to maintain adequate coverage may significantly impact our financial condition and results of operations

    Adds vehicle liability insurance and a reference to the annual report’s insurance section, while removing discussion of insurers reducing coverage and raising prices after catastrophic events.

  • 22% rewrittenSTRATEGIC TRANSACTION RISKS

    Fluctuations in foreign currency exchange could affect our financial results

    Updates fiscal-year figures: Canada represented 9% of 2025 revenue versus 9.1% in 2024, and India employees rose to 9% from over 7%.

  • 22% rewrittenINDUSTRY RISKS

    The hazardous waste management business is subject to significant environmental liabilities

  • 21% rewrittenINDUSTRY RISKS

    Reductions in the demand for oil products and automotive services and volatility in oil prices in the markets we serve may negatively affect certain of our businesses

All 25 risk factors

Headings as the filing states them, in filing order.

OPERATIONAL RISKS

  1. 01Our businesses are subject to operational and safety risks. Failure to limit our exposure to such risks could have an adverse impact on our results
  2. 02Our operations are increasingly dependent upon technology. Failure of these technologies, failure to upgrade or innovate these technologies, failure to property implement and maintain these technologies or failure to identify and develop new technologies could have an adverse impact on our results62% rewritten
  3. 03A cybersecurity incident could negatively impact our business, operations and relationships with customers
  4. 04We maintain what we believe is sufficient insurance coverage that may (subject to certain policy terms and conditions, including deductibles) cover certain aspects of third-party security and cybersecurity risks and business interruption; however, our insurance coverage may not always cover all related costs or losses
  5. 05Natural disasters or other catastrophic events, as well as their residual macroeconomic effects, could negatively affect our business

INDUSTRY RISKS

  1. 06The hazardous waste management business is subject to significant environmental liabilities22% rewritten
  2. 07The hazardous waste management industry is subject to significant economic and business risks
  3. 08A significant portion of our business depends upon the demand for emergency response services at industrial facilities or on our roadways, railways or waterways, and other remedial projects and regulatory developments over which we have no control
  4. 09If our assumptions relating to expansion of our landfills should prove inaccurate, our results of operations and cash flow could be adversely affected
  5. 10Reductions in the demand for oil products and automotive services and volatility in oil prices in the markets we serve may negatively affect certain of our businesses21% rewritten

LEGAL, ENVIRONMENTAL AND REGULATORY COMPLIANCE RISKS

  1. 11Our businesses are subject to numerous statutory and regulatory requirements, which may change in the future32% rewritten
  2. 12Regulators, in addition to investors, customers and the public in general, have been increasingly focused on environmental, governance and cybersecurity practices of companies. We may be subject to additional regulations and disclosure requirements in the future arising from the increased focus in these areas
  3. 13The extensive environmental regulations to which we are subject, including potential climate change legislation and regulations, may increase our costs and potential liabilities and limit our ability to operate and expand our facilities
  4. 14We are subject to existing and potential product liability lawsuits relating to our parts washer services32% rewritten

STRATEGIC TRANSACTION RISKS

  1. 15Failure to correctly identify and execute upon strategic acquisitions and divestitures or effectively execute large-scale capital projects could adversely impact our future results44% rewritten
  2. 16Future acquisitions of companies may expose us to unknown liabilities
  3. 17If we become unable to obtain, at reasonable cost, the insurance, surety bonds, letters of credit and other forms of financial assurance required for our facilities and operations, our business and results of operations would be adversely affected
  4. 18Our insurance coverage and self-insurance reserves may be inadequate to cover all significant risk exposures, and increasing costs to maintain adequate coverage may significantly impact our financial condition and results of operations31% rewritten
  5. 19Tax interpretations and changes in tax regulations and legislation could adversely affect our results of operations
  6. 20Fluctuations in foreign currency exchange could affect our financial results22% rewritten
  7. 21Certain adverse conditions have required, and future conditions might require, us to make substantial write-downs in our assets, which have adversely affected or would adversely affect our balance sheet and results of operations37% rewritten
  8. 22Our levels of outstanding debt and letters of credit could adversely affect our financial condition and ability to fulfill our obligations
  9. 23The covenants in our debt agreements may restrict our ability to operate our business and might lead to a default under our debt agreements36% rewritten
  10. 24repay in full those debtsNew

COMMON STOCK RELATED RISKS

  1. 25The Massachusetts Business Corporation Act and our By-Laws contain certain anti-takeover provisions

Other Clean Harbors 10-Ks

  • FY2024 10-K risk factors
    25 risks

    Clean Harbors is dominated by environmental liabilities, hazardous waste management risks, and regulatory compliance obligations. Operations rely heavily on technology systems, cybersecurity measures, and acquisition strategies. Financial stability is tied to debt levels, used oil market volatility, and insurance availability.

    Filed Feb 19, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.