Clean Harbors Q2 revenue beats estimates on strong disposal and recycling demand 

Overview

• US environmental services firm's Q2 revenue rose 12%, beating analyst expectations

• Q2 adjusted EBITDA grew 22% and beat analyst expectations

• Company announced $600 mln ten-year disposal contract and $305 mln ESH acquisition

Outlook

• Clean Harbors raises 2026 guidance for adjusted EBITDA to $1.35 bln-$1.41 bln

• Company expects 2026 adjusted free cash flow of $520 mln-$580 mln

• Clean Harbors sees Q3 adjusted EBITDA growing 24%-28% year over year

Result Drivers

• DISPOSAL AND RECYCLING DEMAND - Co said Environmental Services segment benefited from healthy volumes in disposal and recycling, remediation projects, PFAS-related work, and strategic pricing to offset inflation and fuel costs

• RE-REFINED PRODUCTS PRICING - Co said SKSS segment profitability was driven by a sharp uptick in market pricing for re-refined products due to global supply disruptions

• WASTE OIL COLLECTION MANAGEMENT - Co said collections team actively managed waste oil collection volumes and costs, gathering 61 mln gallons and increasing revenues from used oil collection services

Company press release: ID:nBw1hqXhLa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the environmental services equipment peer group is "buy"

• Wall Street's median 12-month price target for Clean Harbors Inc is $330.00, about 8.7% above its July 28 closing price of $303.67

• The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 34 three months ago

Reuters Recommended Reads

• July 28 - Waste Management lowers 2026 revenue forecast amid pullback from residential business

• July 29 - Canada's Secure Waste Q2 revenue rises on new projects

• July 28 - Veralto Q2 results beat estimates on industrial water treatment demand; raises outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)