Clean Harbors 2025 Q3 Earnings Misses Estimates with 1.3% Revenue Growth and 3.7% EPS Increase

Clean Harbors (CLH) reported fiscal 2025 Q3 earnings on October 30, 2025, with revenue and EPS falling short of Wall Street estimates. The company revised its full-year 2025 adjusted EBITDA guidance upward, signaling confidence in its long-term growth trajectory despite near-term challenges.

Revenue

Clean Harbors generated $1.55 billion in revenue for Q3 2025, a 1.3% increase from $1.53 billion in the prior-year period. The Environmental Services segment led the performance with $1.33 billion in revenue, driven by growth in Technical Services and Safety-Kleen Environmental Services. Safety-Kleen Sustainability Solutions contributed $218.04 million, reflecting steady demand for disposal services. Corporate Items reported $0 in revenue. While the Environmental Services segment benefited from improved waste volumes and pricing strategies, the Safety-Kleen segment faced weaker base oil pricing, partially offset by cost reductions and product mix improvements.

Earnings/Net Income

The company’s earnings per share (EPS) rose 3.7% to $2.22 in Q3 2025 from $2.14 in Q3 2024, supported by a 3.1% year-over-year increase in net income to $118.80 million. While the EPS growth is positive, the 7.8% miss against estimates highlights the need for further performance improvements.

Post-Earnings Price Action Review

Clean Harbors’ stock edged up 2.08% during the latest trading day but faced downward pressure in the following weeks, dropping 7.83% during the most recent full trading week and 6.66% month-to-date. The mixed post-earnings performance reflects investor caution amid unmet expectations and macroeconomic uncertainties.

CEO Commentary

Co-CEO Eric Gerstenberg emphasized the company’s focus on cost management and operational efficiencies, noting a 100-basis-point improvement in consolidated Adjusted EBITDA margins. He highlighted resilience in Technical Services and Safety-Kleen Environmental Services, despite challenges in chemical and refining verticals. Co-CEO Mike Battles outlined strategic shifts, including higher charge-for-oil pricing and investments in SDA technology to unlock value from re-refinery byproducts.

Guidance

Clean Harbors raised its full-year 2025 guidance, projecting adjusted EBITDA between $1.155 billion and $1.175 billion (midpoint of $1.165 billion, representing 4% year-over-year growth). Adjusted free cash flow is now expected to range between $455 million and $495 million, a 30% increase from the prior year. The company anticipates 6-8% Adjusted EBITDA growth in Q4 2025.

Additional News

1. Capital Investment: Clean Harbors announced a $210-220 million investment in a new facility utilizing solvent de-asphalting (SDA) technology to convert re-refinery byproducts into high-value base oil. The project, expected to launch in 2028, aims to generate $30-40 million in annual EBITDA.

2. Strategic Pricing Shift: The company is transitioning to higher charge-for-oil (CFO) pricing for collection services to address base oil market conditions, improving margin stability in the Safety-Kleen Sustainability Solutions segment.

3. Safety Performance: Clean Harbors reported a Total Recordable Incident Rate (TRIR) of 0.49 year-to-date, underscoring its commitment to operational safety and positioning for a record year in safety metrics.

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