Clean Harbors beats third-quarter estimates and raises 2026 guidance

Revenue reached $1.87 billion, against $1.74 billion expected, and the company lifted both its profit and cash flow forecasts.

Clean Harbors reported third-quarter earnings of $3.93 per share on a GAAP basis, $0.64 above expectations. Revenue came in at $1.87 billion, against $1.74 billion expected.

The company raised its full-year 2026 Adjusted EBITDA guidance to a range of $1.44 billion to $1.48 billion. The midpoint of $1.46 billion is $80 million higher than its prior outlook. It also raised its adjusted free cash flow guidance to $600 million to $660 million, with a midpoint of $630 million, which is also $80 million higher than before. For the fourth quarter, Clean Harbors expects Adjusted EBITDA to grow 23% to 26% from a year earlier.

Eric Gerstenberg, co-chief executive, said Environmental Services delivered better-than-expected results. He pointed to a sizeable emergency response event, growth in work tied to PFAS, a group of persistent chemicals known as per- and polyfluoroalkyl substances, strong waste volumes, and pricing moves meant to offset inflation and higher fuel costs.

Gerstenberg becomes sole chief executive on January 1, 2027. Mike Battles will retire as co-chief executive and leave the board at the end of 2026.

Clean Harbors closed deals in September and October worth $775 million in total, and the company took on more debt to fund them. The debt carries a 6.250% coupon and runs through 2034. The $80 million lift to both EBITDA and free cash flow guidance suggests the acquired businesses, EnviroServe and ES&H, or core demand in Environmental Services, are adding to results faster than the company assumed when the notes priced. The financing cost is fixed, so the added leverage now depends on whether performance keeps pace. The leadership change at year-end comes while the company works to show that the expected gains from these deals will materialise.