Clean Harbors 2025 Q2 Earnings Revenue Matches Expectations Despite Net Income Decline

Clean Harbors (CLH) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. The company's revenue met analyst expectations, maintaining stability at $1.55 billion, with a strong performance in the Environmental Services segment. However, Clean Harbors faced a decline in net income, which fell by 4.8% compared to the same quarter last year. Despite these challenges, the company reaffirmed its full-year guidance, projecting robust growth driven by a solid project pipeline and operational efficiencies. The leadership expressed optimism about market conditions and continued execution of pricing strategies to enhance margins.

Revenue

Clean Harbors reported a slight decline in total revenue, recording $1.55 billion for 2025 Q2, a 0.2% decrease from the previous year's $1.55 billion. The Environmental Services segment contributed significantly with $1.35 billion, while the Safety-Kleen Sustainability Solutions added $197.73 million. Corporate items accounted for $89,000, culminating in the overall revenue figure.

Earnings/Net Income

The company's EPS dropped by 4.0% to $2.37 in Q2 2025 from $2.47 in the same quarter of 2024. Net income also decreased by 4.8% to $126.91 million, down from $133.28 million in the previous year. The decline in EPS indicates a challenging quarter for Clean Harbors.

Price Action

The stock price of Clean Harbors climbed 3.54% during the latest trading day, edged up 0.44% over the most recent full trading week, and saw a slight decrease of 0.05% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing Clean Harbors (CLH) shares following a quarter-over-quarter revenue increase on the financial report release date and holding for 30 days has yielded substantial returns over the past three years. This approach generated an impressive 301.79% return, significantly outperforming the benchmark return of 87.61%. The excess return of 214.18% underscores the strategy's strong profitability. With a compound annual growth rate of 32.30% and a maximum drawdown of 0.00%, the strategy demonstrated robust risk-adjusted returns and minimal downside risk. This is reflected in a Sharpe ratio of 1.11 and a volatility of 29.04%.

CEO Commentary

“Our second-quarter results reflect the consistent profitable growth of our Environmental Services (ES) segment, where we experienced strong demand for our disposal assets,” said Mike Battles, Co-Chief Executive Officer. He noted a 3% revenue growth in the ES segment and emphasized improved Adjusted EBITDA margins through cost controls. Eric Gerstenberg, Co-Chief Executive Officer, highlighted successful performance in Safety-Kleen Environmental Services with a 9% revenue increase and strong incineration utilization. Both leaders expressed optimism about achieving annual targets and maintaining momentum despite short-term tariff uncertainties affecting some customers.

Guidance

Clean Harbors expects Adjusted EBITDA to grow by 9-12% in the third quarter of 2025 compared to the same period last year. The company reaffirms its full-year 2025 guidance, anticipating strong performance driven by a robust project pipeline and ongoing operational efficiencies. The leadership remains optimistic about market conditions and plans to continue executing pricing strategies to enhance margins.

Additional News

Recently, Clean Harbors has been focusing on strategic mergers and acquisitions to enhance its market position. The company is exploring potential acquisitions to accelerate growth and expand its service offerings. Furthermore, Clean Harbors announced a stock buyback program, reflecting its confidence in future performance. This move aims to return value to shareholders and optimize the capital structure. Additionally, there have been no significant changes in the C-level executive team, ensuring stability in leadership during this period of strategic focus.