CLH Stock Stays Flat Post-Q2 Earnings Beat: The Reason Revealed

Overview of Clean Harbors, Inc.'s Second-Quarter 2025 Performance

Clean Harbors, Inc. (CLH) released its second-quarter 2025 financial results, which showed a mix of positive and negative outcomes. The company exceeded the Zacks Consensus Estimate for earnings but fell short on revenue expectations. Despite this, the stock price did not experience significant movement following the release of the results on July 30.

The company reported earnings per share of $2.36, which was 1.3% higher than the Zacks Consensus Estimate. However, this figure represented a 4.1% decline compared to the same quarter in the previous year. Total revenues came in at $1.5 billion, missing the consensus estimate by 2%. On a year-over-year basis, revenues saw only a slight decrease.

In terms of performance relative to the broader market, CLH has gained 5.1% year-to-date. This is slightly lower than the 10.8% increase seen in its industry and the 7.3% growth of the Zacks S&P 500 composite.

Segmental Revenue Analysis

The Environmental Services (ES) segment contributed $1.3 billion in revenues, marking a 2.5% increase from the year-ago quarter. This segment met the estimated figures, driven by continued strength from the HEPACO buyout, growth in pricing, and higher incineration utilization.

On the other hand, the Safety-Kleen Sustainability Solutions (SKSS) segment reported revenues of $219.7 million, representing a 13.9% year-over-year decline. This was below the forecasted $259.5 million. The drop was attributed to lower base oil prices, which were influenced by weak demand.

Profitability Performance

Adjusted EBITDA for the quarter reached $336.2 million, reflecting a 2.6% increase from the previous year. This surpassed the estimated $331.4 million. The adjusted EBITDA margin stood at 21.7%, an improvement of 60 basis points compared to the same period last year.

Looking at the segments, ES generated $376.2 million in adjusted EBITDA, a 4.5% increase from the prior year. However, this figure missed the forecast of $379.2 million. SKSS, on the other hand, reported $38.3 million in adjusted EBITDA, a 25.6% decline from the previous year and below the expected $42.2 million.

Balance Sheet and Cash Flow

At the end of the quarter, Clean Harbors held $600.2 million in cash and cash equivalents, up from $489.4 million in the previous quarter. Inventories and supplies increased to $383.4 million from $376 million.

Long-term debt (less current portion) remained flat at $2.8 billion. The company generated $208 million in net cash from operating activities, with capital expenditures amounting to $90 million. Adjusted free cash flow used was $133.2 million.

2025 Guidance and Market Outlook

For 2025, Clean Harbors updated its guidance for adjusted EBITDA to a range of $1.16 to $1.20 billion, compared to the previous guidance of $1.15 to $1.21 billion. The company also expects adjusted free cash flow to be between $430 and $490 million.

Currently, Clean Harbors holds a Zacks Rank of #3 (Hold). Investors interested in high-performing stocks can explore the complete list of today’s Zacks #1 Rank (Strong Buy) stocks.

Additional Company Highlights

The Interpublic Group of Companies, Inc. (IPG) delivered impressive second-quarter 2025 results. Its adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and rose 23% from the previous year. Net revenues of $2.2 billion beat the consensus estimate by a small margin but declined 19.8% year over year. Total revenues of $2.5 billion fell 7.2% from the previous year.

TransUnion (TRU) also posted strong second-quarter 2025 results. The company's quarterly adjusted earnings, excluding non-recurring items, reached $1.08 per share, exceeding the consensus mark by 9.1% and matching the year-over-year growth rate. Total revenues of $1.1 billion outpaced the consensus estimate by 3.7% and rose 9.5% from the same quarter in the previous year.