Overview

• US environmental services firm's Q1 revenue hit record but slightly missed analyst expectations

• Q1 adjusted EBITDA grew 6% yr/yr but missed analyst consensus

• Company raised 2026 guidance for adjusted EBITDA and adjusted free cash flow

Outlook

• Clean Harbors raises 2026 guidance for adjusted EBITDA to $1.24 bln-$1.30 bln

• Company lifts 2026 adjusted free cash flow forecast to $490 mln-$550 mln

• Clean Harbors expects Q2 adjusted EBITDA to grow 5%-9% year over year

Result Drivers

• SEGMENT GROWTH - ES segment delivered margin improvement and revenue growth in Technical Services, Safety-Kleen Environmental Services, and Field Services, offsetting softness in Industrial Services

• PRICING AND DEMAND - SKSS segment benefited from charge-for-oil pricing strategy and late-quarter base oil price increases, as well as profitability initiatives

• WEATHER IMPACT - Challenging weather conditions affected collection and services businesses, but were navigated successfully

Company press release: ID:nBwqqlLwa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 4 "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 $309.50, about 1.3% below its May 5 closing price of $313.70

• The stock recently traded at 36 times the next 12-month earnings vs. a P/E of 32 three months ago

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