Clean Harbors (CLH) Stock Forecast & Price Target

Clean Harbors Inc. has demonstrated robust financial performance with a revenue increase of 7% year-over-year, reaching $1.43 billion, and an EBITDA rise of 11% to $311 million, which exceeded consensus estimates. The company's free cash flow is projected to be significantly higher, ranging between $430 million and $490 million, which highlights its strong cash-generating capabilities, despite ongoing capital expenditures for facility expansion. Additionally, positive forward guidance suggests an expected EBITDA growth of 4%-6% year-over-year in the first quarter of 2025, enhancing the optimistic outlook for the company's financial sustainability and growth potential.

Clean Harbors Inc has experienced significant financial pressures, evidenced by a contraction in the EBITDA margin by 170 basis points quarter-over-quarter and a 100 basis point decline year-over-year, resulting in an EBITDA margin of 18.0%. The Safety-Kleen Sustainability Solutions (SKSS) segment reported a 5% year-over-year decline in revenues to $205.3 million, largely attributed to lower pricing and weak demand for base oil and blended products, despite the contribution from the recently acquired Noble Oil business. Furthermore, a stark year-over-year drop of 47% in EBITDA for the SKSS segment, along with negative trends in blended product sales, raises concerns about the company's overall profitability and market position.