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1. Company Snapshot

1.a. Company Description

Clean Harbors, Inc.provides environmental and industrial services in North America.The company operates through two segments, Environmental Services and Safety-Kleen Sustainability Solutions.


The Environmental Services segment collects, transports, treats, and disposes hazardous and non-hazardous waste, such as resource recovery, physical treatment, fuel blending, incineration, landfill disposal, wastewater treatment, lab chemicals disposal, and explosives management services; and CleanPack services, including collection, identification, categorization, specialized packaging, transportation, and disposal of laboratory chemicals and household hazardous waste.This segment also provides industrial maintenance and specialty industrial services, and utilizes specialty equipment and resources that performs field services.The Safety-Kleen Sustainability Solutions segment offers specially designed parts washers; automotive and industrial cleaning products, such as antifreeze, windshield washer fluid, degreasers, glass and floor cleaners, hand cleaners, absorbents, mats, and spill kits; pickup and transportation services for hazardous and non-hazardous containerized waste for recycling or disposal; and vacuum services to remove solids, residual oily water and sludge, and other fluids from customers oil/water separators, sumps, and collection tanks, as well as remove and collect waste fluids found at metal fabricators, auto maintenance providers, and general manufacturers.


This segment also manufactures, formulates, packages, distributes, and markets lubricants; and provides containerized waste, vacuum services, used motor oil collection, and contract blending and packaging services.Clean Harbors, Inc.was incorporated in 1980 and is headquartered in Norwell, Massachusetts.

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1.b. Last Insights on CLH

Clean Harbors, Inc.'s recent performance was negatively impacted by its Q3 2025 earnings and revenue miss, with quarterly earnings of $2.21 per share, falling short of the Zacks Consensus Estimate of $2.37 per share. The company's revenue growth was modest, missing consensus analyst estimates. Despite this, analysts have a "Moderate Buy" rating on the stock, with seven assigning a buy rating and five a hold rating (MarketBeat Ratings). Institutional investors, including Bell Asset Management Ltd and Advisors Asset Management Inc., have reduced their positions in the company.

1.c. Company Highlights

2. Clean Harbors' Q3 2025 Earnings: A Mixed Bag

Clean Harbors reported total revenue of $1.55 billion, up from the previous year, and adjusted EBITDA of $320 million, representing a 6% increase. However, the company's EPS of $2.21 fell short of analyst estimates of $2.37. The adjusted EBITDA margin expanded to 20.7%, driven by a 120 basis point improvement in Environmental Services. The company's cash flow performance was exceptional, with operating cash flow of $302 million and a Q3 record adjusted free cash flow of $231 million.

Publication Date: Oct -31

📋 Highlights
  • ES Segment Growth:: Environmental Services (ES) revenue grew 3%, with adjusted EBITDA up 7%, driven by 12% growth in Technical Services and 92% incineration utilization.
  • SKSS Margin Improvement:: Safety-Kleen Sustainable Solutions improved margins by 100 basis points despite revenue decline, aided by cost reductions from the CFO program and re-refining spreads.
  • SDA Unit Investment:: $500M SDA Unit project expected to generate $30–40M incremental EBITDA annually post-2028, with a 6–7 year payback, excluding free cash flow guidance.
  • Strong Cash Flow:: Q3 operating cash flow reached $302M, and adjusted free cash flow hit a record $231M, with full-year guidance raised to $475M midpoint (30% growth vs. 2024).
  • Revised EBITDA Guidance:: 2025 adjusted EBITDA now projected at $1.155B–$1.175B midpoint ($1.165B), reflecting Q3 performance and PFAS project momentum.

Segment Performance

The Environmental Services (ES) segment grew 3% in revenue and 7% in adjusted EBITDA, driven by waste volumes, PFAS work, and remediation projects. Technical Services led the growth with a 12% increase, while incineration utilization remained high at 92%. The Safety-Kleen Sustainable Solutions (SKSS) segment delivered results in line with expectations, with revenue decreasing as expected, but adjusted EBITDA remaining essentially unchanged, and margin improving by 100 basis points.

Guidance and Outlook

Clean Harrows revised its 2025 adjusted EBITDA guidance to a range of $1.155 billion to $1.175 billion, and raised its full-year adjusted free cash flow guidance to a midpoint of $475 million, representing more than 30% growth from 2024. The company is targeting 5% EBITDA growth in 2026, with 40% free cash flow conversion to EBITDA. The investment in the SDA Unit is expected to generate incremental $30 million to $40 million of EBITDA once it starts up in 2028.

Valuation and Growth Prospects

With a P/E Ratio of 29.75 and an EV/EBITDA of 8.63, the market is pricing in a certain level of growth for Clean Harbors. Analysts estimate revenue growth at 4.3% next year. The company's strong cash flow generation and conservative capital structure provide a solid foundation for future growth. The ROIC of 7.55% and ROE of 14.61% indicate a reasonable return on investment. The Net Debt / EBITDA ratio of -0.39 suggests a healthy debt position.

Challenges and Opportunities

The Industrial Services segment is experiencing a slowdown due to deferred maintenance and projects, but the company remains confident in its prospects. The company is actively pursuing M&A opportunities and is well-positioned to provide synergies and generate strong returns on a post-synergy basis. As Eric Gerstenberg noted, "We're seeing strong activity in the market, with a 15-20% quarter-over-quarter growth in the pipeline" for PFAS work, indicating a promising growth opportunity.

3. NewsRoom

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Clean Harbors, Inc. (CLH) Presents at Goldman Sachs Industrials and Materials Conference 2025 Transcript

Dec -04

Source: seekingalpha.com

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Groupe la Francaise Increases Position in Clean Harbors, Inc. $CLH

Dec -04

Source: defenseworld.net

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Why Clean Harbors Stock Triumphed on Tuesday

Dec -02

Source: fool.com

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Advisors Asset Management Inc. Has $4.17 Million Position in Clean Harbors, Inc. $CLH

Nov -28

Source: defenseworld.net

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Bell Asset Management Ltd Has $6.02 Million Stock Holdings in Clean Harbors, Inc. $CLH

Nov -27

Source: defenseworld.net

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Clean Harbors, Inc. (NYSE:CLH) Receives Average Rating of “Moderate Buy” from Analysts

Nov -22

Source: defenseworld.net

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Critical Analysis: GFL Environmental (NYSE:GFL) vs. Clean Harbors (NYSE:CLH)

Nov -15

Source: defenseworld.net

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Oracle Corp Sees Significant Reduction in Jeremy Grantham's Portfolio

Nov -13

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.40%)

6. Segments

Environmental Services

Expected Growth: 6.0%

The Environmental Services segment is expected to grow at a rate higher than the global average due to increasing demand for environmental cleanup and remediation services, driven by regulatory requirements and a growing focus on sustainability. The segment's diverse service offerings and strong customer relationships are also expected to drive growth.

Safety-Kleen Sustainability Solutions

Expected Growth: 5.8%

The Safety-Kleen Sustainability Solutions segment is expected to grow at a rate slightly higher than the global average due to increasing demand for environmental services, including parts cleaning and hazardous waste disposal. The segment's focus on innovation and customer service is also expected to drive growth.

Corporate Items

Expected Growth: 5.4%

The Corporate Items segment is expected to grow at the global average rate, as it is not directly related to the company's core operations. The segment's expenses are expected to be managed tightly to support the company's overall growth strategy, with a focus on maintaining a lean and efficient corporate structure.

7. Detailed Products

Environmental Services

Clean Harbors provides a range of environmental services, including hazardous waste disposal, industrial cleaning, and emergency response.

Industrial Services

Clean Harbors offers industrial services, including industrial cleaning, tank cleaning, and decontamination.

Oil and Gas Field Services

Clean Harbors provides oil and gas field services, including exploration, production, and transportation services.

Waste Disposal and Recycling

Clean Harbors offers waste disposal and recycling services, including landfill management and recycling facilities.

Emergency Response

Clean Harbors provides emergency response services, including spill response, fire response, and natural disaster response.

Industrial Cleaning and Maintenance

Clean Harbors offers industrial cleaning and maintenance services, including tank cleaning, pipe cleaning, and facility maintenance.

Specialized Services

Clean Harbors provides specialized services, including asbestos abatement, lead abatement, and mold remediation.

8. Clean Harbors, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Clean Harbors, Inc. has a low threat of substitutes due to its unique services and specialized equipment, making it difficult for customers to find alternative solutions.

Bargaining Power Of Customers

Clean Harbors, Inc. has a medium bargaining power of customers, as customers have some negotiating power due to the availability of alternative service providers, but the company's strong brand reputation and quality of service mitigate this power.

Bargaining Power Of Suppliers

Clean Harbors, Inc. has a low bargaining power of suppliers, as the company has a diverse supplier base and is not heavily dependent on a single supplier, reducing the suppliers' negotiating power.

Threat Of New Entrants

Clean Harbors, Inc. has a medium threat of new entrants, as the industry has moderate barriers to entry, and new entrants may be deterred by the company's established brand reputation and regulatory requirements.

Intensity Of Rivalry

Clean Harbors, Inc. operates in a highly competitive industry, with several established players, leading to a high intensity of rivalry among competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.56%
Debt Cost 6.45%
Equity Weight 47.44%
Equity Cost 10.16%
WACC 8.21%
Leverage 110.78%

11. Quality Control: Clean Harbors, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Ryder System

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Growth: 6.8

Quality: 3.1

Yield: 5.0

Momentum: 8.0

Volatility: 7.3

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Fortress Transportation

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Clean Harbors

A-Score: 4.9/10

Value: 3.8

Growth: 7.6

Quality: 6.6

Yield: 0.0

Momentum: 3.0

Volatility: 8.3

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Quality: 5.2

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Stericycle

A-Score: 3.0/10

Value: 3.9

Growth: 3.4

Quality: 2.8

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

235.11$

Current Price

235.12$

Potential

-0.00%

Expected Cash-Flows