Clean Harbors: Record Q3 Revenue and Raised Guidance Signal Strong Buy

Clean Harbors (CLH) reported record third-quarter revenue of $1.87 billion, up 21% year-over-year, and raised its full-year guidance. The company's Environmental Services segment is benefiting from industrial reshoring and customer consolidation, including a 10-year, $600 million reshoring contract that began in Q4. Management is also investing in high-return projects, such as a $55 million Los Angeles property purchase to consolidate six facilities into a single hub, expected to save $5-$7 million annually. Additionally, the Safety-Kleen segment delivered record results, with production of higher-margin Group III base oil up 20% year-over-year. Overall, the company is expanding capacity and shifting to premium products to drive future growth.

The record results and raised guidance demonstrate Clean Harbors' ability to capitalize on favorable market trends, such as reshoring and tight supply in the oil rerefining market. The company's strategic investments in regional hubs and data center infrastructure are expected to yield significant cost savings and open new growth avenues. With low net debt leverage and expanding free cash flow, Clean Harbors has the financial flexibility to pursue acquisitions and fund high-return projects, enhancing shareholder value. As industrial production trends remain positive and the company maintains pricing discipline, CLH is well-positioned to deliver strong results in 2026 and beyond. This makes the stock an attractive option for long-term investors seeking exposure to the waste management and environmental services sector.