Clean Harbors, Inc. CLH stock has gained 10.4% over the past six months against the industry’s 5.7% decline. The Zacks S&P 500 Composite rose 16% during that period.
Six-Month Share Price Performance
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Let us delve deeper into the factors that have contributed to the company’s strong performance.
PFAS Demand Broadens the Growth Base
Clean Harbors’ per- and polyfluoroalkyl substances (PFAS)-related demand continues to expand across industrial, government and municipal customers. The company generated more than $120 million in PFAS-related revenues in 2025. Management initially projected 25-35% growth in 2026, while PFAS revenues were tracking more than 30% year-over-year growth by the second quarter. Clean Harbors’ integrated capabilities across filtration, remediation, incineration and hazardous-waste disposal enable it to address multiple stages of the PFAS treatment cycle. The expanding pipeline and breadth of its service offering should support sustained PFAS-related growth beyond 2026.
Rising Cash Generation Supports Shareholder Returns
Clean Harbors’ cash generation improved notably in the first half of 2026. Adjusted free cash flow rose from negative $76 million in the seasonally weaker first quarter to $136 million in the second quarter, while operating cash flow increased 15% year over year to $239 million during the same period. The company repurchased shares worth $25 million and $27.1 million in the first and second quarters of 2026, respectively, with nearly $550 million remaining under its authorization as of June 30. Management raised its 2026 adjusted free cash flow outlook to $520-$580 million, with a midpoint of $550 million. Higher cash generation should enhance flexibility to continue returning capital through share repurchases.
Raised Outlook Promises Stronger Earnings & Cash Generation
Clean Harbors raised its 2026 financial outlook following a better-than-expected first half. For the third quarter, management expects adjusted EBITDA to increase 24-28% year over year, supported by emergency-response activity, PFAS opportunities, reshoring-related demand and favorable conditions for re-refined products.
For full-year 2026, the company increased the midpoint of its adjusted EBITDA guidance by $110 million to $1.38 billion and expects adjusted EBITDA of $1.35-$1.41 billion. CLH also raised the midpoint of its adjusted free cash flow outlook by $30 million to $550 million, with guidance of $520-$580 million. The higher outlook points to stronger earnings momentum and cash generation in the second half, providing additional capacity to fund organic growth initiatives, acquisitions and other capital-allocation priorities.
CLH’s Zacks Rank & Stocks to Consider
Clean Harbors has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A couple of better-ranked stocks in the broader Business Services sector are Veralto Corporation VLTO and CBIZ, Inc. CBZ.
Veralto Corporation currently carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 8%.
VLTO delivered a trailing four-quarter earnings surprise of 6.6%, on average.
CBIZ also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 10%.
CBZ beat earnings estimates in three of the last four quarters and missed once, with an average earnings surprise of 8.9%.
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This article originally published on Zacks Investment Research (zacks.com).