A month has gone by since the last earnings report for Clean Harbors (CLH Quick QuoteCLH - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Clean Harbors due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Clean Harbors, Inc. before we dive into how investors and analysts have reacted as of late.

Clean Harbors' Q2 Earnings Beat Estimates

Clean Harbors, Inc. reported better-than-expected second-quarter 2026 results, with both earnings and revenues surpassing the Zacks Consensus Estimate.

CLH posted earnings of $3.22 per share, beating the consensus estimate of $2.74 by 17.5%. Revenues came in at $1.74 billion, exceeding the consensus mark of $1.63 billion by 6.8%.

Earnings increased 36.4% year over year, while revenues rose 12%. The strong results reflected healthy disposal and recycling volumes, remediation and PFAS-related projects, strategic pricing initiatives and favorable market prices for re-refined products.

CLH’s Profitability Improves on Broad-Based Growth

Clean Harbors generated net income of $170.5 million, up 34.3% from $126.9 million in the year-ago quarter.

Income from operations increased 27.9% year over year to $268.9 million. Gross profit rose 17.9% to $608.8 million, while the gross margin expanded to 35.1% from 33.3% a year earlier.

Adjusted EBITDA climbed 21.6% to $409 million. The adjusted EBITDA margin expanded 190 basis points to 23.6%, supported by stronger results across both operating segments. The company also maintained solid safety performance, with a year-to-date Total Recordable Incident Rate of 0.46.

Selling, general and administrative expenses increased to $214.6 million from $186.2 million. Higher incentive compensation, insurance expenses, acquisition-related costs and strategic investments contributed to the increase.

Clean Harbors’ ES Segment Gains From Disposal Demand

Environmental Services generated revenues of $1.46 billion, up 7.7% from the year-ago quarter. Segment adjusted EBITDA increased 8% to $406.1 million, while the adjusted EBITDA margin improved 10 basis points to 27.9%.

Technical Services revenues rose 18%, driven by healthy demand for disposal and recycling services, project activity and acquisitions. A large-scale event contributed approximately $30 million to Technical Services revenues during the quarter.

Incinerator utilization, including the new Kimball facility, increased to 91% from 86% a year earlier. The improvement reflected strength in the base business and project volumes. Landfill volumes jumped 7% on continued project wins.

Safety-Kleen Environmental Services revenues advanced 11%, aided by pricing and higher volumes in containerized waste collection and vacuum services. Field Services revenues rose 3% despite a difficult year-over-year comparison that included major emergency-response projects.

The segment has now delivered year-over-year adjusted EBITDA margin expansion for 17 consecutive quarters.

CLH’s SKSS Business Benefits From Higher Pricing

Safety-Kleen Sustainability Solutions revenues surged 40.8% year over year to $278.4 million. The increase primarily resulted from a sharp rise in market prices for base and blended products amid global supply disruptions, along with higher charge-for-oil revenues.

Segment adjusted EBITDA jumped 142.8% to $93 million, while its margin expanded to 33.4% from 19.4% in the prior-year period. The supply-constrained environment widened the company’s re-refining spread and significantly strengthened profitability.

Clean Harbors collected 61 million gallons of waste oil compared with 64 million gallons a year earlier. Although collection volume declined, the company maintained a charge-for-oil rate that was considerably higher year over year.

Blended products represented 21% of total volumes sold, up from 19% a year ago and 16% in the first quarter. Direct blended sales increased to 11% of total volumes from 9% in the year-ago quarter, reflecting new customer wins and closed-loop arrangements.

The result significantly exceeded management’s expectations from the first-quarter earnings call, when it anticipated SKSS’ second-quarter growth to exceed 10% because of improving base oil prices.

Clean Harbors’ Cash Flow Remains Healthy

Cash provided by operating activities was $239.2 million, up from $208 million in the prior-year quarter. Adjusted free cash flow increased to $135.7 million from $133.2 million.

Capital expenditures, net of asset-sale proceeds, were $124 million compared with $87.3 million a year ago. Clean Harbors also repurchased $27.1 million of shares during the quarter, up from $12 million in the year-ago period.

The company ended June with $408.4 million in cash and cash equivalents and $108.4 million in short-term marketable securities. Its current and long-term debt totaled approximately $2.77 billion.

CLH Raises 2026 Guidance

For the third quarter of 2026, Clean Harbors expects adjusted EBITDA to increase 24-28% year over year. Management anticipates continued strength across both operating segments, supported by emergency-response work, PFAS opportunities, reshoring activity and favorable demand for re-refined products.

Following the strong first-half performance, the company raised the midpoint of its full-year adjusted EBITDA guidance by $110 million. Clean Harbors now expects adjusted EBITDA of $1.35-$1.41 billion, with a midpoint of $1.38 billion.

The company also increased the midpoint of its adjusted free cash flow outlook by $30 million. Adjusted free cash flow is now projected between $520 million and $580 million, with a midpoint of $550 million.

The outlook includes anticipated GAAP net income of $481-$531 million and net cash from operating activities of $890 million to $1.01 billion.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 20.15% due to these changes.

VGM Scores

Currently, Clean Harbors has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Clean Harbors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Clean Harbors belongs to the Zacks Waste Removal Services industry. Another stock from the same industry, Veralto (VLTO Quick QuoteVLTO - Free Report) , has gained 3.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Veralto reported revenues of $1.47 billion in the last reported quarter, representing a year-over-year change of +7.5%. EPS of $1.11 for the same period compares with $0.93 a year ago.

Veralto is expected to post earnings of $1.09 per share for the current quarter, representing a year-over-year change of +10.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.8%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Veralto. Also, the stock has a VGM Score of C.