CLH Q4 Deep Dive: PFAS Growth and Operational Investments Underpin Steady Outlook

Environmental and industrial services company Clean Harbors (NYSE:CLH) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 4.8% year on year to $1.5 billion. Its non-GAAP profit of $1.73 per share was 8.6% above analysts’ consensus estimates.

Is now the time to buy CLH? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Clean Harbors’ fourth quarter drew a positive market response, supported by growth across core disposal, recycling, and emergency response services. Management credited strong volumes in its Environmental Services segment, which saw higher project activity, landfill volumes, and demand for per- and polyfluoroalkyl substances (PFAS) remediation. Co-CEO Eric Gerstenberg pointed to “profitable growth in both of our operating segments,” with disciplined pricing and operational efficiency driving margin expansion. The Safety-Kleen segment delivered improved profitability through cost controls and pricing actions, offsetting softer base oil prices. Senior executives also cited a record year for safety and highlighted the expansion of Field Services and the ramp-up of the new Kimball incinerator as important contributors to the quarter’s performance.

Looking forward, Clean Harbors’ guidance for the coming year is anchored by ongoing momentum in PFAS remediation, continued ramp-up of new assets, and targeted capital investments. Management expects Environmental Services growth to be supported by regulatory developments around PFAS and increased project volumes, with Co-CEO Michael Battles stating, “Our positive outlook is grounded on modest economic assumptions with additional upside potential.” The company plans to expand its vacuum truck fleet to meet rising demand and integrate newly acquired facilities. While base oil pricing is expected to remain soft, cost management and direct sales growth are key levers for the Safety-Kleen business. Management acknowledged cautious assumptions in its outlook, emphasizing discipline amid macro uncertainties and weather-related headwinds.

Key Insights from Management’s Remarks

Management attributed quarterly momentum to strong demand for specialty recycling, emergency response projects, and the expanding PFAS services pipeline, while emphasizing operational discipline and strategic asset investments.

• Environmental Services growth: The Environmental Services segment recorded its fifteenth consecutive quarter of adjusted EBITDA margin growth, driven by higher volumes in disposal, recycling, and project-based work, including a significant boost from PFAS remediation and emergency responses.
• PFAS opportunity expanding: Clean Harbors’ PFAS business benefited from a new three-year, $110 million contract at Pearl Harbor and ongoing regulatory activity. Management highlighted increased customer engagement following its EPA study release and expects regulatory momentum to drive further growth.
• Safety-Kleen margin resilience: Despite weaker base oil pricing, Safety-Kleen delivered a 22% year-over-year increase in segment EBITDA by raising collection charges and expanding direct lubricant sales. This offset market pressure and supported improved segment margins.
• Field Services network scaling: The company added 18 new Field Services branches during the year, enhancing its ability to respond to over 22,000 emergency events and solidifying its presence in key geographic markets for future growth.
• Strategic capital deployment: Investments included a $50 million expansion of the vacuum truck fleet and the acquisition of environmental assets from Depot Connect International. These moves are expected to increase capacity and drive incremental EBITDA over the next several years.

Drivers of Future Performance

Clean Harbors’ outlook is shaped by regulatory drivers in PFAS, asset ramp-ups, disciplined pricing, and targeted investments, balanced against cost inflation and market uncertainties.

• PFAS regulatory tailwinds: Management expects continued double-digit PFAS segment growth, driven by new EPA guidelines and Department of Defense directives, which should spur demand for soil, water, and waste remediation. However, the company is only assuming moderate growth in its outlook, as regulatory timing remains uncertain.
• Asset ramp-up and network efficiency: The ongoing ramp of the Kimball incinerator and integration of acquired facilities are expected to improve processing capacity and margins. The expansion of the vacuum truck fleet aims to support organic growth and reduce reliance on subcontractors, with incremental contribution expected to materialize by 2028.
• Cost and market headwinds: Clean Harbors anticipates persistent softness in base oil pricing affecting Safety-Kleen, as well as inflation in labor and insurance costs. Management is focused on offsetting these pressures through ongoing cost initiatives and higher-margin direct sales, but acknowledges weather and macroeconomic volatility as ongoing risks.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be watching (1) the pace of PFAS regulatory developments and contract wins, (2) the successful integration and performance of newly acquired facilities, and (3) margin trends as Clean Harbors ramps up its capital investments and manages inflationary pressures. Execution on asset ramp-ups and the expansion of direct sales in Safety-Kleen will also be important markers for tracking the company’s ability to offset external headwinds.

Clean Harbors currently trades at $276.42, up from $269.08 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).

Stocks That Trumped Tariffs

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.