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CLH Stock Declines 15% Since Reporting Q3 Earnings Miss: Here's Why

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Key Takeaways

  • Clean Harbors' Q3 earnings and revenues missed estimates, sending its stock down 15.2%.
  • Environmental Services revenues rose 2.4% y/y, while Safety-Kleen fell 4.5%.
  • CLH raised its 2025 free cash flow outlook to $445-$495 million despite a narrowed EBITDA view.

Clean Harbors, Inc. (CLH - Free Report) reported dismal third-quarter 2025 results, wherein earnings and revenues missed the Zacks Consensus Estimate.

The stock price declined 15.2% since the company released results on Oct. 29, as investors were disappointed by the earnings miss.

CLH’s earnings of $2.21 per share missed the Zacks Consensus Estimate by 6.8% but increased 4.3% from the year-ago quarter. Total revenues of $1.5 billion missed the consensus estimate by 1.7% but moved up 1.3% on a year-over-year basis.

The stock has declined 6.3% in the past six months compared with the 9.8% fall of the industry it belongs to and against 23.3% growth of the Zacks S&P 500 composite.

Clean Harbors, Inc. Price, Consensus and EPS Surprise

 

Clean Harbors, Inc. Price, Consensus and EPS Surprise

Clean Harbors, Inc. price-consensus-eps-surprise-chart | Clean Harbors, Inc. Quote

CLH’s Segmental Revenues

Environmental Services (“ES”) revenues of $1.3 billion increased 2.4% from the year-ago quarter, meeting our estimateThis growth was achieved on the back of strong demand in the disposal network and collection businesses.

Revenues from Safety-Kleen Sustainability Solutions (“SKSS”) totaled $230.8 million, marking a 4.5% year-over-year decline and lagging our estimate of $243.6 million. Pricing headwinds in the base oil market drove this segment’s revenues.

Clean Harbors’ Profitability Performance

Adjusted EBITDA of $320.2 million grew 6.1% from the year-ago quarter and missed our estimation of $328.9 million. The adjusted EBITDA margin was 20.7%, up 100 basis points from the year-ago quarter.

Segment-wise, adjusted EBITDA for ES amounted to $357.2 million, increasing 7.4% year over year. The figure missed our estimate of $378 million. Adjusted EBITDA for SKSS was $40.9 million, down marginally from the year-ago quarter and surpassing our estimate of $38.4 million.

Balance Sheet & Cash Flow of CLH

Clean Harbors exited the quarter with cash and cash equivalents of $759.2 million compared with $600.2 million at the end of the preceding quarter. Inventories and supplies were $377.3 million compared with $383.4 million in the second quarter of 2025.

Long-term debt (less current portion) was $2.8 billion, flat with the previous quarter. CLH generated $302 million in net cash from operating activities. The capital expenditure amounted to $94.4 million. The adjusted free cash flow utilized was $230.6 million.

Clean Harbor’s 2025 Guidance

For 2025, CLH’s guidance for adjusted EBITDA is updated to $1.16-$1.18 billion compared with $1.16-$1.20 billion provided in the preceding quarter. The adjusted free cash flow is hiked to $445-$495 million compared with the preceding quarter’s view of $430-$490 million.

Clean Harbor currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Waste Connections, Inc. (WCN - Free Report) reported impressive third-quarter 2025 results.

Waste Connections’ adjusted earnings (excluding 33 cents from non-recurring items) of $1.44 per share surpassed the Zacks Consensus Estimate by 4.4% and increased 6.7% year over year. Revenues of $2.5 billion beat the consensus estimate marginally and grew 5.1% from the year-ago quarter.

Equifax Inc. (EFX - Free Report) reported impressive third-quarter 2025 results.EFX’s adjusted earnings were $2.04 per share, outpacing the Zacks Consensus Estimate by 5.7% and increasing 10.3% from the year-ago quarter. Total revenues of $1.5 billion surpassed the consensus estimate by 1.5% and grew 6.9% on a year-over-year basis.


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