Clean Harbors Inc (NYSE:CLH) Misses Q3 2025 Revenue and EPS Estimates, Stock Tumbles

Environmental services provider Clean Harbors Inc (NYSE:CLH) reported financial results for the third quarter of 2025, delivering a performance that fell short of analyst expectations on the top and bottom lines, leading to a notable pre-market sell-off.

Earnings Snapshot vs. Estimates

The company's results for the quarter ended September 30, 2025, came in below the consensus forecasts held by market analysts.

• Revenue: Reported $1.55 billion, compared to an analyst estimate of $1.59 billion.
• Earnings Per Share (EPS): Reported $2.21 per diluted share, compared to an estimated $2.43.

This miss on both key financial metrics is the primary driver behind the stock's negative price reaction in pre-market trading, where it was down approximately 6.2%.

Third-Quarter 2025 Financial and Operational Overview

Despite the earnings miss, Clean Harbors demonstrated resilience in several areas. The company grew its net income to $118.8 million, up from $115.2 million in the same period last year. A key profitability metric, Adjusted EBITDA, increased by 6% to $320.2 million, with the margin expanding to 20.7% from 19.7% a year ago.

Operationally, the quarter was mixed. The Environmental Services segment saw strength in Technical Services and Safety-Kleen Environmental Services, but this was offset by softness in the chemical and refining verticals, a lack of large emergency response projects, and increased healthcare costs. The company's Safety-Kleen Sustainability Solutions segment performed in line with internal expectations, successfully managing weaker base oil pricing through cost reductions and a shift in product mix.

A significant announcement from the quarter was a planned capital investment of $210 to $220 million in a new Solvent De-Asphalting (SDA) unit. This facility, expected to launch in 2028, is designed to convert a re-refining byproduct into a high-value base oil, with projected annual EBITDA of $30 to $40 million.

Updated Business Outlook and Market Reaction

Looking ahead, management characterized the current market challenges as "temporary" and expressed confidence in a rebound for key customer verticals. The company provided revised guidance for the full year 2025.

• Adjusted EBITDA: Projected in the range of $1.155 billion to $1.175 billion.
• Adjusted Free Cash Flow: Expected to be between $455 million and $495 million, representing a more than 30% increase from the prior year.

This guidance appears to be a factor in the market's reaction. While the company anticipates a strong fourth quarter, its full-year Adjusted EBITDA midpoint of $1.165 billion implies a growth rate that may not have met the market's more optimistic expectations, especially when viewed alongside the third-quarter earnings miss. The company's outlook for the fourth quarter includes Adjusted EBITDA growth in the six to eight percent range compared to the previous year.

Conclusion

Clean Harbors' third-quarter results paint a picture of a company navigating a complex economic environment. While it continues to grow profitability and execute on strategic investments for the long term, its failure to meet quarterly revenue and earnings estimates has prompted a negative reassessment from investors in the near term. The market will be watching closely to see if the anticipated improvement in key industrial verticals materializes in the coming quarters, allowing the company to capitalize on its operational efficiencies and strategic initiatives.

For a detailed breakdown of historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investors should conduct their own research before making any investment decisions.