Clean Harbors Beats Earnings, Guides Higher EBITDA as PFAS Momentum Builds

Clean Harbors (CLH) reported fiscal 2025 Q4 earnings on Feb 18, 2026, delivering results that exceeded expectations. The company’s GAAP EPS of $1.62 beat estimates by $0.01, while revenue of $1.50 billion surpassed forecasts by $40 million. Guidance for 2026 adjusted EBITDA remains in line with the $1.20 billion to $1.26 billion range, reflecting confidence in operational momentum.

Revenue

The total revenue of Clean Harbors increased by 4.8% to $1.50 billion in 2025 Q4, up from $1.43 billion in 2024 Q4.

Earnings/Net Income

Clean Harbors's EPS rose 3.9% to $1.62 in 2025 Q4 from $1.56 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $86.59 million in 2025 Q4, marking 3.1% growth from $83.97 million in 2024 Q4. The EPS and net income growth underscore the company’s ability to maintain earnings momentum.

Price Action

The stock price of Clean Harbors has edged down 0.39% during the latest trading day, has climbed 3.08% during the most recent full trading week, and has climbed 3.46% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Clean Harbors (CLH) shares after a revenue drop quarter-over-quarter on the financial report release date and holding for 30 days delivered strong returns over the past three years. The strategy achieved a 145.49% return, significantly outperforming the benchmark return of 56.13%. The excess return was 89.36%, indicating the strategy's effectiveness. With a CAGR of 25.43% and a maximum drawdown of 32.82%, the strategy also demonstrated reasonable risk-adjusted returns and a moderate maximum loss.

CEO Commentary

Eric Gerstenberg (Co-CEO) highlighted Clean Harbors’ 2025 performance, noting record safety metrics (0.49 total recordable incident rate), $6 billion in revenue, and 5% adjusted EBITDA growth. He emphasized PFAS as a strategic priority, citing the EPA study, military contracts, and regulatory momentum. Michael Battles (Co-CEO) underscored SKSS margin improvements despite weak base oil pricing, driven by pricing discipline and cost controls. Both CEOs expressed optimism about 2026, citing Kimball incinerator ramp-up, PFAS growth, and strategic investments like the $130 million DCI acquisition and $50 million SKSS fleet expansion. They emphasized capital allocation flexibility, including $600 million share repurchase authorization, and confidence in margin expansion through operational efficiency and pricing.

Guidance

Clean Harbors guided to 2026 adjusted EBITDA of $1.20 billion to $1.26 billion (5% growth vs. 2025), with midpoint $1.23 billion. Free cash flow is expected at $480 million to $540 million (41% of EBITDA). Environmental Services growth will drive results, supported by Kimball ramp-up, PFAS (20% growth assumed), and field services expansion. SKSS EBITDA is projected at $135 million, flat with 2025. Corporate expenses are expected to rise 2-4% due to inflation and insurance costs. CapEx is estimated at $340 million to $400 million, excluding fleet and SDA Unit spending. The guidance assumes modest economic conditions, with upside potential if industrial demand recovers.

Additional News

Clean Harbors executed a $130 million acquisition of DCI environmental businesses, expected to generate $40 million in annual revenue and $11 million in adjusted EBITDA. The company also announced a $50 million SKSS fleet expansion to bolster service capacity. Shareholder returns were prioritized through a $350 million share repurchase authorization increase, bringing the total buyback capacity to $600 million. These moves align with CEO commentary on capital allocation flexibility and margin expansion.