Clean Harbors Q1 Earnings Beat on SKSS Gains, Revenues Fall Short

Clean Harbors, Inc. CLH reported mixed first-quarter 2026 results. Earnings per share (EPS) beat the Zacks Consensus Estimate, while revenues missed the same.

The earnings beat failed to impress the market, as the stock has dipped 6.9% since the release of results on May 6.

CLH posted first-quarter of 2026 earnings of $1.19 per share, beating the Zacks Consensus Estimate of $1.15 by 3.5%. Revenues came in at $1.46 billion, missing the consensus mark of $1.47 billion by 0.4%.

Earnings grew 9.2% year over year, while revenues increased 1.9%. Management highlighted stronger profitability in both operating segments, supported by disciplined pricing and a late-quarter lift in base oil pricing, alongside a record-low Total Recordable Incident Rate (TRIR) of 0.39.

Clean Harbors, Inc. Price, Consensus and EPS Surprise

Clean Harbors, Inc. price-consensus-eps-surprise-chart | Clean Harbors, Inc. Quote

CLH Starts 2026 Strong With Profitability Improvement

Clean Harbors described the quarter as better than expected, with higher profitability across both operating segments despite weather-related disruptions that weighed on parts of the collection and services business in February.

Management also pointed to continued momentum exiting the quarter, framing the operating backdrop as supportive for its disposal and recycling network, with added tailwinds from project services and PFAS-related opportunities.

Clean Harbors’ ES Business Benefits From Project Activity

Environmental Services generated first-quarter revenues of $1.24 billion, up 2.9% from the year-ago quarter. The company attributed growth to project services, including PFAS-related work and emergency response activity, while citing healthy demand for disposal and recycling services.

Operationally, the company reported Technical Services revenue growth of 5% and Safety-Kleen Environmental Services revenue growth of 7%, aided by pricing and higher volumes. Incineration utilization, including the Kimball incinerator, was 80% versus 81% a year ago, reflecting planned maintenance days and weather impacts. Landfill volumes increased 34% and Field Services revenues rose 7%, including a large-scale emergency event that generated approximately $10 million in revenues.

CLH’s SKSS Results Improve as Pricing Trends Turn

Safety-Kleen Sustainability Solutions posted revenues of $217.1 million, down 3.4% year over year, as lower market pricing for base and blended products outweighed other benefits. Management said that the revenue decline was expected, and noted that base oil prices strengthened late in the quarter.

Even with the softer revenue base, the segment delivered a sharp improvement in profitability. Management credited progress in its charge-for-oil strategy for waste oil collection services and cost actions taken over the past year. The company also said that it collected 53 million gallons of waste oil to keep its re-refinery running efficiently, while growing premium mix through higher direct lubricant gallons and Group III gallons sold compared with the prior-year quarter.

Clean Harbors Expands Margins on Pricing & Efficiency

On the consolidated income statement, income from operations increased 7% year over year to $118.9 million. Selling, general and administrative expenses rose to $207.1 million, with management attributing the higher SG&A rate to incentive compensation and insurance costs.

Adjusted EBITDA increased 5.5% to $247.9 million, with the adjusted EBITDA margin expanding 60 basis points to 17%. Management linked the margin expansion to disciplined pricing, leveraging volume growth, labor cost controls, cost internalization, and network and transportation efficiencies. Net income rose 7.7% to $63.2 million.

CLH Raises 2026 Targets on Stronger Segment Outlook

For the second quarter of 2026, Clean Harbors expects year-over-year adjusted EBITDA growth of 5-9%. Based on the first-quarter performance and market conditions, the company raised the midpoint of its full-year adjusted EBITDA guidance by $40 million and lifted the midpoint of adjusted free cash flow guidance by $10 million.

For 2026, CLH expects adjusted EBITDA of $1.24 billion to $1.30 billion (midpoint: $1.27 billion), alongside an adjusted free cash flow of $490 million to $550 million (midpoint: $520 million). The company’s outlook also includes anticipated GAAP net income of $421 million to $472 million, and net cash from operating activities of $840 million to $960 million.

Clean Harbors Maintains Flexibility for Buybacks & Deals

CLH ended the first quarter of 2026 with cash and cash equivalents of $548 million, and short-term marketable securities of $121 million. Management cited a net debt-to-EBITDA ratio of approximately 2X and a blended debt interest rate of 5.2%, positioning the company to fund internal investments and pursue acquisitions.

Cash provided by operations was $6.3 million in the quarter, while the adjusted free cash flow was negative $75.8 million, consistent with the company’s typical first-quarter seasonality. CLH also repurchased about 87,000 shares for $25 million at an average price of roughly $287 per share, ending March 2026 with approximately $575 million remaining under its repurchase authorization. Management noted it closed the DCI acquisition at the end of the quarter and continues to evaluate additional tuck-in opportunities largely tied to Environmental Services.

CLH carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Republic Services, Inc. RSG delivered solid first-quarter 2026 results, with earnings per share of $1.70 beating the Zacks Consensus Estimate of $1.64 by 3.7%. Earnings increased 7.6% from $1.58 in the year-ago quarter.

Revenues rose 2.6% year over year to $4.11 billion and edged past the consensus mark of $4.10 billion.

IQVIA Holdings Inc. IQV posted first-quarter 2026 adjusted earnings of $2.90 per share, beating the Zacks Consensus Estimate of $2.83 by 2.5%. Revenues came in at $4.15 billion, topping the consensus mark of $4.08 billion by 1.6%.

Results improved year over year, with adjusted diluted earnings per share up 7.4% and revenues rising 8.4%.

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