Clean Harbors’ second quarter results were broadly in line with market expectations for profitability but fell short on revenue, as sales remained flat year over year. Management cited continued strength in Environmental Services, improved cost control, and margin gains despite fewer large emergency response projects. Co-CEO Eric Gerstenberg pointed to higher utilization and pricing in core disposal and recycling, while CFO Michael Battles noted that Safety-Kleen’s shift to charging for used oil collection supported margins. Management was cautious around industrial customer spending but highlighted stabilization in key business lines.
Is now the time to buy CLH? Find out in our full research report (it’s free).
Clean Harbors (CLH) Q2 CY2025 Highlights:
- Revenue: $1.55 billion vs analyst estimates of $1.60 billion (flat year on year, 3% miss)
- Adjusted EPS: $2.36 vs analyst expectations of $2.39 (1.2% miss)
- Adjusted EBITDA: $336.2 million vs analyst estimates of $332.9 million (21.7% margin, 1% beat)
- EBITDA guidance for the full year is $1.18 billion at the midpoint, in line with analyst expectations
- Operating Margin: 13.6%, in line with the same quarter last year
- Organic Revenue was flat year on year (5.2% in the same quarter last year)
- Market Capitalization: $12.77 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Clean Harbors’s Q2 Earnings Call
- Patrick Tyler Brown (Raymond James) asked whether Clean Harbors is gaining share in a slow industrial macro. Co-CEO Eric Gerstenberg responded that strong volumes and a broad customer base help offset sector slowdowns, and that the company’s diverse end markets provide resilience.
- David John Manthey (Baird) questioned the confidence behind SKSS’s second-half EBITDA guidance given seasonality. CFO Michael Battles explained that the shift to charging for oil and improved cost structure give management confidence in sequential profit growth.
- Lawrence Scott Solow (CJS Securities) inquired about the impact of tariffs and remediation project delays. Gerstenberg clarified that project growth is not tied to tariffs, and the pipeline remains strong with ongoing project execution.
- James Andrew Ricchiuti (Needham & Company) asked about the scale-up timeline and EBITDA contribution from the Kimball incinerator. Gerstenberg and CFO Eric Dugas said production is on track and incremental margins will rise as the facility ramps up to full capacity.
- Noah Duke Kaye (Oppenheimer) sought color on Environmental Services margin drivers amid tough comps. Gerstenberg highlighted improvement across all service lines, with price increases and cost controls driving margin expansion, and Battles noted that structural changes support continued gains.
Catalysts in Upcoming Quarters
The StockStory team will be watching (1) the pace of new project starts and volumes tied to U.S. manufacturing expansion and reshoring, (2) regulatory developments and customer adoption in PFAS remediation services, and (3) continued margin progression in Environmental Services and SKSS segments. Advancements in hub facility integration and execution on capital deployment will also be closely tracked.
Clean Harbors currently trades at $238.03, in line with $238.56 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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