Key Takeaways:
Clean Harbors Inc. (NYSE: CLH) boosted its full-year adjusted EBITDA forecast by $40 million after reporting first-quarter profits that beat analyst estimates, driven by strong growth in its environmental services and sustainable solutions segments.
"We kicked off 2026 with better-than-expected Q1 results, including higher profitability in both of our segments," Co-Chief Executive Officer Eric Gerstenberg said on the company’s earnings call. "We exited the quarter with considerable momentum."
The environmental and industrial services provider reported adjusted earnings of $1.19 per share on $1.46 billion in revenue. The profit figure surpassed the consensus estimate of $1.16, though revenue came in just below the $1.47 billion forecast. Despite the earnings beat, shares fell 7.06% in the previous session amid broader market volatility.
The company raised its full-year 2026 adjusted EBITDA guidance to a range of $1.24 billion to $1.30 billion, up from its previous forecast. The new midpoint of $1.27 billion implies approximately 9 percent growth over 2025. Management also increased its 2026 adjusted free cash flow guidance to a midpoint of $520 million.
Clean Harbors’ Environmental Services segment saw revenue increase by more than $40 million from a year ago, a gain of about 4 percent. The growth was fueled by demand for project services, particularly in PFAS-related remediation, and a large-scale emergency response event that generated approximately $10 million. Landfill volumes, a key indicator, rose 34 percent, showing robust demand for disposal services.
The Safety-Kleen Sustainable Solutions (SKSS) segment delivered a 17 percent year-over-year increase in adjusted EBITDA to $33 million, with margins expanding by 320 basis points. The performance was lifted by higher base oil pricing toward the end of the quarter and an increase in charges for collecting waste oil.
Management highlighted the growing momentum in its PFAS-related business, noting that the pipeline for these "forever chemical" cleanup services is accelerating at a 25 to 35 percent rate entering 2026, up from 20 percent growth in 2025. The company sees recent guidance from the EPA and Department of Defense, which endorses incineration and other methods offered by Clean Harbors, as a critical tailwind.
Co-Chief Executive Officer Michael Battles also touched on the role of artificial intelligence in driving efficiency. "We have implemented AI-type functionality for years," Battles said, citing applications in waste classification, invoice automation, and logistics. "We expect our AI efforts to keep delivering meaningful financial returns for us in the years ahead."
The updated guidance signals management’s confidence that demand for its specialized environmental services will continue to grow. Investors will watch the company's ability to capitalize on the expanding PFAS remediation market and maintain margin strength when it reports second-quarter results.
This article is for informational purposes only and does not constitute investment advice.
