Clean Harbors Stock Barely Moves Despite Q4 Earnings and Revenue Beat

Core Insights - Clean Harbors, Inc. (CLH) reported better-than-expected fourth-quarter 2025 results, with earnings and revenues surpassing the Zacks Consensus Estimate, yet the stock price remained stable post-earnings release on February 18 [1] Financial Performance - The company reported fourth-quarter 2025 earnings of $1.62 per share, beating the Zacks Consensus Estimate by $0.03 and increasing 4.5% year over year [2] - Revenues reached $1.49 billion, exceeding the consensus mark by 1.4% and rising 4.8% from the previous year [2] - Clean Harbors' stock has appreciated 15% over the past six months, contrasting with a 7.4% decline in the industry [2] Segment Performance - Environmental Services (ES) revenues were $1.29 billion, a 6.3% increase from the year-ago quarter, although it fell short of the estimate of $1.32 billion, driven by strong demand in disposal and collection businesses [3] - Safety-Kleen Sustainability Solutions (SKSS) revenues totaled $209 million, reflecting a 3.6% year-over-year decline but surpassing the estimate of $208.3 million, impacted by pricing headwinds in the base oil market [3] Profitability Metrics - Adjusted EBITDA for the quarter was $278.69 million, an 8.4% increase year over year, exceeding the estimate of $271.7 million [4] - The adjusted EBITDA margin improved to 18.6%, up 60 basis points from the previous year [4] - Adjusted EBITDA for ES was $335.77 million, an 8.1% year-over-year increase, but missed the estimate of $339 million [4] - Adjusted EBITDA for SKSS rose 21.7% year over year to $29.95 million, surpassing the estimate of $23.6 million [4] Balance Sheet and Cash Flow - Clean Harbors ended the quarter with cash and cash equivalents of $826.32 million, up from $759.2 million at the end of the previous quarter [5] - Inventories and supplies were $372.1 million, slightly down from $377.31 million in the third quarter of 2025 [5] - Long-term debt remained stable at $2.76 billion [5] - The company generated $355.1 million in net cash from operating activities during the quarter, with capital expenditures of $121.75 million and adjusted free cash flow utilized at $261.26 million [6] Guidance - For Q1 and 2026, Clean Harbors expects adjusted EBITDA growth of 4% to 7% year over year in the ES segment and 1% to 3% on a consolidated basis [7] - For 2026, the company anticipates GAAP net income between $410 million and $461 million, with adjusted EBITDA projected to be between $1.20 billion and $1.26 billion [8] - Expected net cash from operating activities is between $820 million and $940 million, with adjusted free cash flow estimated at $480 million to $540 million, and a midpoint of $510 million [8]