Clean Harbors Stock Price Increases 5.9% on Q1 Earnings Beat

Clean Harbors, Inc. CLH has reported impressive first-quarter 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

Better-than-expected earnings impressed investors and the CLH stock has gained 5.9% since the release of results on April 30.

CLH’s earnings of $1.09 per share outpaced the Zacks Consensus Estimate by 6.9% but decreased 15.5% from the year-ago quarter. Total revenues of $1.4 billion surpassed the consensus estimate by a slight margin and increased 4% on a year-over-year basis.

The stock has gained 7.3% in a year compared with the 9.8% rise of the industry it belongs to and 7.8% growth of the Zacks S&P 500 composite.

Clean Harbors, Inc. Price, Consensus and EPS Surprise

CLH’s Segmental Revenues

Environmental Services (ES) revenues of $1.2 billion grew 3.9% from the year-ago quarter, meeting our projection. The HEPACO buyout, increasing pricing and higher incineration utilization drove this segment’s revenues.

Revenues from Safety-Kleen Sustainability Solutions (SKSS) amounted to $224.8 million, increasing 4.4% year over year but missing our estimate of $230.1 million. CLH’s pricing initiatives, record containerized waste services and new products, including aqueous part washers, fueled this segment’s revenue growth.

Clean Harbors’ Profitability Performance

Adjusted EBITDA of $234.9 million grew marginally from the year-ago quarter and beat our projection of $253.2 million. The adjusted EBITDA margin was 16.4%, down 30 basis points from the year-ago quarter.

Segment-wise, adjusted EBITDA for ES amounted to $274.6 million, increasing 3.8% year over year. The figure outpaced our estimate of $281.2 million. Adjusted EBITDA for SKSS was $28.3 million, down 4.9% from the year-ago quarter and missing our projection of $38.4 million.

Balance Sheet & Cash Flow of CLH

Clean Harbors exited the quarter with cash and cash equivalents of $489.4 million compared with $687.2 million at the end of the preceding quarter. Inventories and supplies were $376 million compared with $384.7 million in the fourth quarter of 2024.

Long-term debt (less current portion) was $2.8 billion, flat with the previous quarter. CLH generated $1.6 billion in net cash from operating activities. The capital expenditure amounted to $118.7 million. The adjusted free cash flow utilized was $115.7 million.

Clean Harbor’s Q2 & 2025 Guidance

For the second quarter of 2025, CLH lowers its adjusted EBITDA growth guidance to 1-3% from the preceding quarter’s view of 4-6%.

For 2025, Clean Harbor’s guidance for adjusted EBITDA is $1.15-$1.21 billion. The adjusted free cash flow is expected to be $430-$490 million.

CLH currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

S&P Global Inc. SPGI reported impressive first-quarter 2025 results.

SPGI’s adjusted EPS of $4.37 surpassed the Zacks Consensus Estimate by 3.6% and gained 9% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Revenues of $3.8 billion beat the consensus estimate by 2% and grew 8.3% year over year.

Verisk VRSK posted impressive first-quarter fiscal 2025 results.

VRSK’s adjusted earnings were $1.73 per share, surpassing the Zacks Consensus Estimate by 3.6% and increasing 6.1% from the year-ago quarter. Total revenues of $753 million beat the consensus estimate marginally and increased 7% on a year-over-year basis.

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