Clean Harbors (CLH) Stock Forecast & Price Target

Clean Harbors Inc. demonstrated robust financial performance, with revenues rising 7% year-over-year to $1.43 billion, aligning with market consensus. The company reported an 11% increase in EBITDA to $311 million, notably surpassing analyst expectations, reflecting strong operational efficiency and growth in its Environmental Services segment. Additionally, free cash flow is projected in the range of $430 million to $490 million, showing a significant improvement from the previous year and underscoring the company's solid financial positioning and investment potential.

Clean Harbors Inc experienced a significant contraction in its EBITDA margin, decreasing 170 basis points quarter-over-quarter to 18.0%, and declining 100 basis points year-over-year, indicating pressure on profitability. Notably, the Safety-Kleen Sustainability Solutions (SKSS) segment reported a 5% year-over-year decline in revenues driven by lower pricing and weak demand, which significantly impacted EBITDA, which dropped 47% year-over-year. Additionally, while net debt leverage remained stable below 2x, the forecast of a 30% year-over-year decline in EBITDA, coupled with poor performance from blended product sales, highlights ongoing challenges that may hinder future growth prospects.