CLH Stock Barely Moves Since Reporting Q2 Earnings Beat: Here's Why

Core Insights - Clean Harbors, Inc. (CLH) reported mixed second-quarter 2025 results, with earnings exceeding the Zacks Consensus Estimate but revenues falling short [1][8] - The stock price remained relatively stable despite the earnings beat, indicating limited market reaction [1][8] Financial Performance - CLH's earnings per share (EPS) were $2.36, surpassing the Zacks Consensus Estimate by 1.3% but down 4.1% year-over-year [2][8] - Total revenues reached $1.5 billion, missing the consensus estimate by 2% and showing a slight year-over-year decline [2][8] Segment Analysis - Environmental Services (ES) revenues were $1.3 billion, reflecting a 2.5% increase from the previous year, driven by the HEPACO acquisition and higher pricing [3] - Safety-Kleen Sustainability Solutions (SKSS) revenues totaled $219.7 million, a decline of 13.9% year-over-year, attributed to lower base oil prices due to weak demand [3] Profitability Metrics - Adjusted EBITDA was $336.2 million, a 2.6% increase from the prior year, exceeding estimates [4] - The adjusted EBITDA margin improved to 21.7%, up 60 basis points year-over-year [4] - Segment-wise, adjusted EBITDA for ES was $376.2 million, a 4.5% year-over-year increase, while SKSS saw a 25.6% decline to $38.3 million [4] Balance Sheet and Cash Flow - At the end of the quarter, CLH had cash and cash equivalents of $600.2 million, up from $489.4 million in the previous quarter [5] - Long-term debt remained stable at $2.8 billion, with net cash from operating activities at $208 million and capital expenditures of $90 million [6] 2025 Guidance - For 2025, CLH updated its adjusted EBITDA guidance to a range of $1.16-$1.20 billion, while adjusted free cash flow is expected to be between $430-$490 million [7]