Clean Harbors, Inc. (CLH) Cash Flow Statement

The conversion ratio is volatile because working capital swings of -$185.1M in 2026Q1 and +$125.2M in 2025Q4 dominate the operating cash line far more than reported profit does. Over the ten quarters shown, cumulative operating cash flow appears to track net income only loosely, which suggests accrual quality and receivable timing warrant closer monitoring than the headline earnings alone would imply. Investors should monitor whether the strong late-2025 and Q3 2026 conversion reflects durable collections or a timing reversal.

Free cash flow turned negative in several quarters, including -$151.9M in 2026Q2 and -$117.1M in 2025Q1, indicating that cash generation has been inconsistent across the period. The recovery to $246.4M in 2026Q3 coincides with a $72.5M working capital inflow and a capex-to-revenue ratio of 9.2%, which may suggest the latest quarter is flattered by timing. Further investigation into the sustainability of operating inflows would clarify whether this trajectory is structural.

Capital expenditures of $172.8M in 2026Q3 against depreciation and amortization of $122.7M suggest the company is spending above its depreciation base, which may reflect growth or capacity investment rather than pure maintenance. Because the data does not separate maintenance from growth capex, the split cannot be verified from the supplied figures. Investors should monitor whether capital intensity moderates as the company integrates recent investments.

Cash deployment has been directed primarily toward acquisitions rather than shareholder distributions, with no dividends paid across the ten quarters shown. Repurchases of $25M to $133M per quarter appear modest relative to acquisition spending, which suggests management is prioritizing growth through M&A. The returns generated by these acquisitions are not visible in the supplied data and warrant further investigation.