Clean Harbors, Inc. CLH is benefiting from strong demand for its hazardous waste disposal expertise and long-term service contracts, which ensure recurring revenues and stability. The company’s strategic acquisitions further support its long-term growth. Its shareholder-friendly policies are an added advantage.
However, currency-related headwinds and stiff competition dampen profitability, scalability and overall financial performance. The company’s non-dividend plans make the stock less attractive to cash dividend-seeking investors.
How Is CLH Faring?
Clean Harbors operates North America’s largest number of hazardous waste incinerators, landfills and treatment, storage and disposal facilities. Growing industrial activity, stricter environmental laws and rising corporate sustainability demand are collectively driving CLH’s long-term growth. As businesses place greater emphasis on environmental compliance and waste management solutions, the company’s expertise in hazardous waste disposal and environmental cleanup continues to gain traction across manufacturing, healthcare and energy sectors.
Clean Harbors, Inc. Revenue (TTM)
Clean Harbors, Inc. revenue-ttm | Clean Harbors, Inc. Quote
CLH pursues acquisitions as a key tool to enhance its service portfolio and geographic footprint. In 2024, the company acquired HEPACO, enhancing the field services capabilities in the Environmental Services segment. In the same year, the acquisition of Noble Oil Services and its subsidiaries expanded the Safety-Kleen Sustainability Solutions segment's oil collection operations across the southeastern United States.
The company consistently maintains solid cash reserves. CLH's current ratio (a measure of liquidity) at the end of the first quarter of 2026 was 2.34, higher than the industry average of 1.08. A current ratio of more than 1 often indicates that the company will be able to easily pay off its short-term obligations.
CLH has showcased a strong commitment to returning value to shareholders through its share repurchase programs. Over the past year, the company repurchased shares worth $250 million compared with $55.2 million in repurchases in 2024. Such moves instill shareholder confidence in its stock and generate growth.
Meanwhile, CLH faces intense competition from both large national players and smaller regional firms. This competition can limit pricing power, increase operational expenses and potentially reduce market share. As a result, the company must balance competitive pricing strategies with the need to maintain healthy profit margins.
The company faces foreign exchange rate risk due to its operations in Canada, where a substantial portion of the expenses and assets are denominated in Canadian dollars. This makes the company susceptible to fluctuations in exchange rates between the U.S. dollar and the Canadian dollar, which could directly hurt its financial performance.
CLH does not offer dividends, making share price appreciation the primary source of returns for its shareholders. This makes the stock less attractive to investors seeking cash dividend returns.
CLH reported mixed first-quarter 2026 results. It earned an adjusted profit of $1.19 per share, which topped the Zacks Consensus Estimate by 3.5% and increased 9.2% from the year-ago quarter’s level. However, revenues of $1.46 billion marginally missed the consensus estimate but rose 1.9% year over year.
Clean Harbors currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Rollins, Inc. ROL reported impressive first-quarter 2026 results. ROL’s adjusted earnings of 24 cents per share matched the consensus mark and rose 9.1% from the year-ago quarter. Rollins’ total revenues of $906.4 million surpassed the consensus mark by 1.3% and increased 10.2% year over year.
Waste Connections, Inc. WCN posted impressive first-quarter 2026 results. WCN’s adjusted earnings of $1.23 per share outpaced the consensus mark by 3.4% and rose 8.9% from the year-ago quarter. Waste Connections’ total revenues of $2.37 billion beat the consensus mark by 0.7% and increased 6.4% year over year.
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Clean Harbors, Inc. (CLH): Free Stock Analysis Report
Waste Connections, Inc. (WCN): Free Stock Analysis Report
Rollins, Inc. (ROL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).