Core Insights - Clean Harbors reported revenue of $1.55 billion for the quarter ended September 2025, reflecting a year-over-year increase of 1.3% and an EPS of $2.21 compared to $2.12 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $1.58 billion, resulting in a surprise of -1.72%, while the EPS also missed the consensus estimate of $2.37 by -6.75% [1] Revenue Breakdown - Direct Revenues from Safety-Kleen Sustainability Solutions amounted to $218.04 million, below the three-analyst average estimate of $229.75 million, representing a year-over-year decline of -6.1% [4] - Direct Revenues from Environmental Services reached $1.33 billion, slightly below the three-analyst average estimate of $1.35 billion, with a year-over-year increase of +2.6% [4] EBITDA Performance - Adjusted EBITDA for Environmental Services was reported at $357.23 million, compared to the average estimate of $374.51 million from three analysts [4] - Adjusted EBITDA for Corporate Items was -$78.01 million, better than the average estimate of -$81.65 million [4] - Adjusted EBITDA for Safety-Kleen Sustainability Solutions was $40.94 million, exceeding the average estimate of $39.83 million from three analysts [4] Stock Performance - Clean Harbors shares have returned +6% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - Total revenue for Q3 increased to $1.55 billion, reflecting growth in environmental services and a diversified customer base [20][21] - Adjusted EBITDA rose 6% to $320 million, with a consolidated Adjusted EBITDA margin expanding to 20.7%, driven by pricing initiatives and cost reduction efforts [20][21] - Net income grew modestly year over year, delivering earnings per share of $2.21 [22] Business Line Data and Key Metrics Changes - Environmental Services (ES) segment revenue increased by 3%, with Adjusted EBITDA margin growing for the 14th consecutive quarter [6][7] - Technical services within ES saw a 12% revenue growth, while landfill volumes increased by 40% year over year [7][8] - Safety-Kleen Sustainable Solutions (SKSS) segment delivered over $40 million in EBITDA, marking its strongest quarter in a year despite pricing headwinds [13][21] Market Data and Key Metrics Changes - Incineration utilization was high at 92%, with demand remaining strong due to diverse end markets [7] - Field services revenue declined by 11% due to the absence of medium to large response projects, while industrial services revenue decreased by 4% [8][9] - PFAS-related sales are expected to generate $100 million-$120 million in revenue this year, up 20%-25% from the previous year [10][11] Company Strategy and Development Direction - The company is focused on margin growth through pricing gains, productivity improvements, and cost-saving strategies [4][5] - Plans to construct a new processing plant (SDA unit) with an expected total spend of $210 million-$220 million, anticipated to generate annual EBITDA of $30 million-$40 million [15][16] - The company is actively evaluating M&A opportunities while maintaining a disciplined approach to capital allocation [16][82] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about future growth despite current macroeconomic challenges, anticipating a recovery in industrial services and field services as economic conditions improve [18][28] - The project pipeline remains substantial, with growing PFAS opportunities expected to contribute meaningfully to future activity [18][28] - Management expects to achieve profitability targets for SKSS in 2025, indicating stabilization in that segment [19][27] Other Important Information - The company reported record cash flows in Q3, ending with cash and short-term marketable securities of $850 million, providing substantial flexibility for capital allocation [22][23] - SG&A expenses as a percentage of revenue increased to 12.2%, reflecting higher healthcare costs and professional fees [21] Q&A Session Summary Question: What were the main factors behind the $15 million guidance reduction? - The reduction was primarily due to shortfalls in industrial services ($7 million) and field services ($4 million), along with elevated healthcare costs impacting the entire company [34][35] Question: What is the outlook for EBITDA growth in 2026? - Management targets a 5% EBITDA growth for next year, driven by cost-cutting initiatives and volume growth in waste businesses [39] Question: What is the company's M&A outlook? - The company is considering both larger and smaller deals, remaining prudent and disciplined in its approach to M&A [40][42] Question: Can you clarify the expected performance of the SKSS segment? - Management is confident in achieving the $140 million EBITDA target for SKSS, with a few million on either side as a potential range [73][74] Question: What is the current state of the incinerator pricing? - Incineration pricing is expected to grow at mid-single digits, consistent with prior quarters, while technical services saw double-digit growth [77][78]

Financial Data and Key Metrics Changes - Total revenue for Q3 increased to $1.55 billion, with adjusted EBITDA rising 6% to $320 million, reflecting the company's ability to drive profitable growth despite macroeconomic challenges [20][21][22] - Consolidated adjusted EBITDA margin expanded to 20.7%, with a 120 basis point improvement in environmental services [20][21] - Net income grew modestly year over year, delivering earnings per share of $2.21 [22] Business Line Data and Key Metrics Changes - Environmental Services (ES) segment revenue grew 3%, with adjusted EBITDA margin increasing for the 14th consecutive quarter [6][7] - Technical services within ES led with 12% growth, while Safety-Kleen Environmental services rose 8% [7][8] - Field services revenue declined 11% due to the absence of medium to large response projects, while industrial services saw a 4% revenue decrease [9][20] Market Data and Key Metrics Changes - Incineration utilization was high at 92%, with landfill volumes up 40% year over year [7] - PFAS-related sales are expected to generate $100 to $120 million in revenue for the year, up 20% to 25% from the previous year [10][11] Company Strategy and Development Direction - The company is focused on margin growth through pricing initiatives, cost reduction, and productivity gains [4][21] - Plans to construct a new processing plant (SDA unit) with an expected total spend of $210 million to $220 million, anticipated to generate annual EBITDA of $30 million to $40 million [15][17] - The company is evaluating both bolt-on transactions and larger acquisitions to enhance market position [16][80] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about future growth despite current macroeconomic challenges, anticipating a recovery in industrial services and field services spending [18][28] - The project pipeline remains substantial, with growing PFAS opportunities expected to contribute meaningfully to future activity [18][28] Other Important Information - The company reported record cash flows in Q3, with cash and short-term marketable securities totaling $850 million [22][23] - Share repurchases totaled $50 million in Q3, with approximately $380 million remaining under authorization [24] Q&A Session Summary Question: Impact of industrial malaise on guidance - Management indicated that the $15 million reduction in guidance was primarily due to shortfalls in industrial and field services, with healthcare costs also contributing [34][35] Question: Expectations for EBITDA growth in 2026 - Management expects to continue growing EBITDA across waste collection and service businesses, targeting 5% growth despite anticipated industrial service challenges [39][40] Question: Capital allocation and M&A outlook - Management is actively evaluating both larger and smaller M&A opportunities while remaining disciplined in capital allocation [40][42] Question: Clarification on SKSS guidance - Management expressed high confidence in achieving the $140 million EBITDA target for SKSS, with a potential range of a few million on either side [72][73] Question: Incinerator pricing and growth rates - Incineration pricing is expected to grow in the mid-single digits, with technical services showing double-digit growth [76][77]

Financial Data and Key Metrics Changes - Total revenue for Q3 increased to $1.55 billion, reflecting growth in environmental services and a diversified customer base [20][21] - Adjusted EBITDA rose 6% to $320 million, with a consolidated adjusted EBITDA margin expanding to 20.7%, driven by pricing initiatives and cost reduction efforts [20][21] - Net income grew modestly year over year, delivering earnings per share of $2.21 [23] Business Line Data and Key Metrics Changes - Environmental Services (ES) segment revenue increased by 3%, with adjusted EBITDA margin growing for the 14th consecutive quarter [5][6] - Technical services within ES saw a 12% revenue growth, while Safety-Kleen Environmental services rose 8% [8][20] - Field services revenue declined by 11% due to the absence of medium to large response projects [8][9] Market Data and Key Metrics Changes - Incineration utilization was high at 92%, with landfill volumes up 40% from a year ago [7][20] - PFAS-related sales are expected to generate $100 to $120 million in revenue this year, up 20% to 25% from the previous year [10][11] - The company anticipates that spending constraints in industrial services will loosen as economic conditions improve [18] Company Strategy and Development Direction - The company is focused on margin growth and productivity enhancements, with plans for significant internal investments exceeding $500 million over the next several years [16][17] - A new state-of-the-art processing plant (SDA unit) is planned, expected to generate annual EBITDA of $30 million to $40 million upon completion [15] - The company remains active in evaluating M&A opportunities while maintaining a disciplined approach to capital allocation [16][80] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong momentum in waste collection and disposal assets despite current macroeconomic challenges [5][18] - The company expects to navigate current economic turbulence and anticipates a recovery in industrial services and field services in the coming quarters [29] - Management highlighted the importance of ongoing cost management and operational efficiency to mitigate rising healthcare costs [33][40] Other Important Information - The company reported a record level of free cash flow in Q3, with cash and short-term marketable securities totaling $850 million [24][25] - SG&A expenses as a percentage of revenue increased to 12.2%, reflecting higher healthcare costs and professional fees [22] - The company has raised its full-year adjusted free cash flow guidance to a midpoint of $475 million, representing over 30% growth from 2024 [28] Q&A Session Summary Question: What were the main factors behind the $15 million guidance reduction? - The reduction was primarily due to shortfalls in industrial services ($7 million) and field services ($4 million), along with elevated healthcare costs impacting the overall company by about $6 million [33][34] Question: What is the outlook for EBITDA growth in 2026? - Management expects to target a 5% EBITDA growth based on cost-cutting initiatives and volume growth in waste businesses, despite not anticipating a rebound in industrial turnarounds until spring [41][42] Question: What is the company's M&A outlook? - The company is actively looking at both larger and smaller deals, maintaining a disciplined approach to ensure good returns on shareholder investments [44][80] Question: What is the expected range for SKSS EBITDA this year? - Management expressed high confidence in achieving the $140 million EBITDA mark for SKSS, with a potential range of a few million on either side [72][73] Question: How does the SDA unit investment relate to M&A strategy? - The SDA unit investment does not reflect a change in M&A appetite; it has been a planned investment for years, and the company remains open to various capital allocation opportunities [79][80]

Core Viewpoint - Clean Harbors reported quarterly earnings of $2.21 per share, missing the Zacks Consensus Estimate of $2.37 per share, representing an earnings surprise of -6.75% [1][2] Financial Performance - The company posted revenues of $1.55 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.72%, compared to revenues of $1.53 billion a year ago [2] - Over the last four quarters, Clean Harbors has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Clean Harbors shares have increased by approximately 7% since the beginning of the year, while the S&P 500 has gained 17.2% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.63 on revenues of $1.49 billion, and for the current fiscal year, it is $7.44 on revenues of $6.04 billion [7] - The trend of estimate revisions for Clean Harbors was unfavorable prior to the earnings release, which may impact future stock movements [6][5] Industry Context - The Waste Removal Services industry, to which Clean Harbors belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Q3 2025 Performance Highlights - Revenue reached $1.55 billion, driven by growth in the Environmental Services (ES) segment[8] - Net income was $118.8 million, resulting in earnings per share (EPS) of $2.21[8] - Adjusted EBITDA was $320.2 million, with an adjusted EBITDA margin increase of 100 basis points to 20.7%[8] - Adjusted free cash flow reached a record $230.6 million[8] Environmental Services (ES) Segment - ES segment revenue increased to $1.3313 billion in Q3 2025, a 3% increase compared to $1.2972 billion in Q3 2024[10] - ES adjusted EBITDA increased to $357.2 million in Q3 2025, a 7% increase compared to $332.5 million in Q3 2024[10] - Adjusted EBITDA margin for ES increased by 120 bps due to pricing, network efficiency, and productivity gains[13] - SK Environmental Services revenue grew by 8% due to pricing and volume growth[13] Safety-Kleen Sustainability Solutions (SKSS) Segment - SKSS revenue decreased by 6% to $218.0 million in Q3 2025 from $232.1 million in Q3 2024, reflecting market pricing and lower volumes[18] - SKSS adjusted EBITDA was relatively flat at $40.9 million in Q3 2025 compared to $41.2 million in Q3 2024, but the margin increased by 100 bps[18, 21] - The company gathered 64 million gallons of waste oil, compared to 69 million gallons in Q3 2024[21] Capital Allocation and Future Investments - The company plans to build a Solvent De-Asphalting (SDA) Unit with a total project spend of $210 million to $220 million[24] - The SDA unit is expected to contribute $30 million to $40 million in annual EBITDA[24] - $12 million has been spent YTD on the SDA unit, with an anticipated total of $30 million in 2025[24] Full-Year 2025 Guidance - The company projects net income between $379 million and $400 million[35] - Adjusted EBITDA is projected to be between $1.155 billion and $1.175 billion[35] - Net cash from operating activities is expected to range from $795 million to $865 million[35] - Adjusted free cash flow is projected to be between $455 million and $495 million[35]

Revenue Performance - Third-quarter 2025 revenues were $1.55 billion, a 1.3% increase from $1.53 billion in the same period of 2024[4]. - Revenues for Q3 2025 were $1,549,337, an increase of 1.8% compared to $1,529,422 in Q3 2024[26]. - For the nine months ended September 30, 2025, total revenue reached $4,531,141,000, compared to $4,458,836,000 in 2024, indicating a year-over-year increase of 1.6%[32]. - The Environmental Services segment generated $3,855,677,000 in revenue for the nine months ended September 30, 2025, compared to $3,746,227,000 in 2024, marking an increase of 2.9%[32]. - Safety-Kleen Sustainability Solutions reported revenue of $675,278,000 for the nine months ended September 30, 2025, down from $712,312,000 in 2024, a decline of 5.2%[32]. Net Income and Earnings - Net income for Q3 2025 was $118.8 million, or $2.21 per diluted share, compared to $115.2 million, or $2.12 per diluted share, in Q3 2024[4]. - Basic earnings per share for Q3 2025 were $2.22, up from $2.14 in Q3 2024, reflecting a growth of 3.7%[26]. - Net income for the nine months ended September 30, 2025, was $304,384, a decrease of 4.4% from $318,325 in the same period of 2024[30]. Adjusted EBITDA - Adjusted EBITDA increased by 6% to $320.2 million, with an Adjusted EBITDA margin of 20.7%, up 100 basis points from the prior year[4][5]. - The Environmental Services segment achieved a 14th consecutive quarter of year-over-year improvement in Adjusted EBITDA margin, increasing by 120 basis points to 26.8%[5]. - Adjusted EBITDA for Environmental Services was $357,229,000 for the three months ended September 30, 2025, up from $332,502,000 in 2024, reflecting a growth of 7.4%[32]. - Total adjusted EBITDA for the nine months ended September 30, 2025, was $891,250,000, an increase from $859,725,000 in 2024, representing a growth of 3.7%[33]. - The total adjusted EBITDA for the Environmental Services segment for the nine months ended September 30, 2025, was $1,008,014,000, compared to $956,892,000 in 2024, reflecting an increase of 5.4%[32]. Cash Flow and Investments - Adjusted free cash flow for 2025 is projected to be between $455 million and $495 million, indicating over a 30% increase from the prior year[12]. - The company reported a net cash from operating activities of $511,632 for the nine months ended September 30, 2025, compared to $473,833 in the same period of 2024, marking an increase of 8.0%[30]. - Cash flows used in investing activities for the nine months ended September 30, 2025, were $(276,587), a significant decrease from $(812,940) in the same period of 2024[30]. - Clean Harbors plans to invest $210 million to $220 million in a new processing plant utilizing solvent de-asphalting technology, expected to launch in 2028[7]. Assets and Equity - Total current assets increased to $2,608,261 as of September 30, 2025, compared to $2,433,796 at the end of 2024, representing a growth of 7.2%[28]. - Cash and cash equivalents rose to $759,197 as of September 30, 2025, compared to $687,192 at the end of 2024, indicating an increase of 10.5%[28]. - Total assets reached $7,540,299 as of September 30, 2025, up from $7,377,278 at the end of 2024, reflecting a growth of 2.2%[28]. - The total stockholders' equity increased to $2,775,840 as of September 30, 2025, compared to $2,573,529 at the end of 2024, representing a growth of 7.8%[28]. Future Outlook - Projected full-year 2025 Adjusted EBITDA is revised to a range of $1.155 billion to $1.175 billion, representing 4% growth year-over-year[12]. - The company anticipates a strong fourth-quarter performance with Adjusted EBITDA growth in the 6% to 8% range compared to the previous year[10]. - Clean Harbors expects to achieve a record level of annual Adjusted EBITDA and adjusted free cash flow in 2025, supported by a substantial project pipeline and growing PFAS opportunities[10].

Core Viewpoint - Clean Harbors (CLH) is expected to report a year-over-year increase in earnings and revenues for the quarter ended September 2025, with the consensus outlook being crucial for assessing the company's earnings picture [1][3]. Earnings Expectations - The consensus EPS estimate for Clean Harbors is $2.37 per share, reflecting an 11.8% increase year-over-year [3]. - Revenues are anticipated to reach $1.58 billion, marking a 3.1% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 0.46%, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Clean Harbors is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.96% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [9][10]. - Clean Harbors currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Clean Harbors had an earnings surprise of +1.29%, with actual earnings of $2.36 per share compared to an expected $2.33 [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Industry Context - Another company in the Waste Removal Services industry, Xylem (XYL), is expected to report earnings of $1.24 per share, reflecting an 11.7% year-over-year increase, with revenues projected at $2.22 billion, up 5.7% [18][19]. - Xylem's consensus EPS estimate has been revised up by 1.2% over the last 30 days, but it also has a negative Earnings ESP of -0.13% [19][20].

Core Viewpoint - Clean Harbors, Inc. is set to host its third-quarter 2025 financial results conference call on October 29, 2025, at 9:00 a.m. ET, where key executives will discuss the company's financial performance [1]. Company Information - Clean Harbors, Inc. is recognized as the leading provider of environmental and industrial services across North America [1]. - The conference call will feature Co-Chief Executive Officers Michael L. Battles and Eric W. Gerstenberg, Chief Financial Officer Eric J. Dugas, and Senior Vice President of Investor Relations Jim Buckley [1].

Core Insights - Clean Harbors Inc. (NYSE:CLH) shares are currently trading at $237.87, reflecting a 0.38% increase in the current session, a 1.04% increase over the past month, but a 7.87% decrease over the past year [1] - The company's P/E ratio is lower than the aggregate P/E of 211.76 for the Commercial Services & Supplies industry, suggesting potential undervaluation [6] Company Performance - The stock has shown a slight increase in the short term but has experienced a decline over the past year, raising questions about its valuation [1] - The lower P/E ratio may indicate that shareholders do not expect the stock to outperform in the future, or it could suggest that the stock is undervalued [5][6] Industry Comparison - Clean Harbors' P/E ratio being lower than the industry average could imply that the stock may perform worse than its peers, but it also raises the possibility of undervaluation [6] - Investors should consider the P/E ratio in conjunction with other financial metrics and industry trends to assess the company's overall financial health [8]