Clean Harbors Eyes 2026 Upside After Guidance Boost, PFAS Momentum

Key Points

• Clean Harbors raised its full-year outlook after a strong first quarter, now expecting about 9% EBITDA growth versus the 5% forecast given in February. Management said the market reaction was disappointing despite strength across most business lines.
• PFAS remediation is emerging as a major long-term growth driver, with management saying recent regulatory guidance supports incineration as a scalable disposal method. Clean Harbors sees PFAS revenue growth of 25% to 35% this year and believes it can help lift environmental services margins over time.
• The company also sees upside from base oil pricing, captive incinerator discussions, and share gains in field services, while industrial services remains weak. Management said potential improvement in turnaround activity could show up later in 2026 or early 2027.

Clean Harbors NYSE: CLH executives said the company remains optimistic about 2026 after a first-quarter guidance increase, despite what management described as a disappointing stock-market reaction to the results.

Speaking at Oppenheimer’s 21st Annual Industrial Growth Conference, Chief Financial Officer Eric Dugas said the company’s first-quarter performance showed strength across most business units, with the exception of continued difficult conditions in industrial services. Dugas said Clean Harbors raised its outlook after a “Q1 beat” and now expects consolidated EBITDA growth of about 9% for the full year, compared with the 5% growth outlook provided in February.

Jim Buckley, senior vice president of investor relations and communications, said the reaction was “a little bit of a head scratcher” given the company’s increased expectations. Buckley said the initial February guidance did not assume major upside from reshoring, faster PFAS growth, captive incinerator closures, a recovery in base oil prices, increased turnaround activity or large emergency responses.

Environmental Services Outlook Improves

Dugas said Clean Harbors raised its environmental services outlook by about $15 million and now expects year-over-year growth in that segment of approximately 6.5%. He cited strong performance in technical services, field services and the Safety-Kleen branch business.

In technical services, Dugas said the company continues to see good waste-stream volumes and a broader mix of waste moving through its disposal network. He also pointed to growth in retail waste, project work, remediation activity and PFAS-related opportunities.

Clean Harbors reported first-quarter incineration utilization of about 80%, including its new Kimball, Nebraska, incinerator that opened in December 2024. Dugas said the figure was somewhat below what the company had hoped but consistent with expectations, citing weather impacts and scheduled downtime. He said utilization is expected to move into the high-80% range, and potentially close to 90%, in the second and third quarters, with full-year utilization in the mid- to high-80% range.

Dugas said the new Kimball unit remains on track and is expected to handle more high-hazard waste in 2026 compared with 2025. He added that a recovery in chemical and manufacturing waste streams could improve mix and profitability.

PFAS Seen as Long-Term Growth Driver

Management spent a significant portion of the discussion on PFAS remediation and disposal, which Clean Harbors views as a major long-term opportunity. Buckley said recent guidance from regulators and government agencies validated incineration as a scalable and cost-effective PFAS disposal option, though he noted that the EPA guidance did not yet include more granular concentration thresholds.

Buckley said the company is seeing PFAS-related opportunities in contaminated water, emergency releases involving firefighting foam, airports, firehouses, industrial sites and drinking water systems. He said military-related work could unfold over “a decade plus,” with potential activity across hundreds of locations.

Dugas said PFAS growth of 25% to 35% is achievable this year, though he cautioned that timing remains difficult to predict. He said Clean Harbors has expanded work at Pearl Harbor under an existing relationship and is building relationships with military bases, private companies and communities that need PFAS cleanup.

On profitability, Dugas said PFAS projects should be margin-accretive to the environmental services segment, where the company is forecasting margins of about 27% this year. He said PFAS-related services could help Clean Harbors reach its longer-term goal of environmental services margins of 30% or higher.

Captive Incinerators and Landfill Volumes

Buckley said Clean Harbors continues to have discussions with operators of captive incinerators, which he described as major strategic decisions for those companies. He said the company is “dancing with three or four or five” potential captive operators out of 41 operating in the U.S., but emphasized that timing is hard to predict.

Dugas said some captive incinerators may operate at utilization rates as low as 30% or 40%, based on company estimates. He said upcoming regulatory requirements could prompt some operators to consider outsourcing waste management to a specialist.

Landfill volumes were also strong in the first quarter, supported by project and remediation work. Buckley said about half of annual landfill volumes typically come from projects and half from base business. He noted that landfill volumes grew 24% last year, but cautioned that project dependence makes that pace difficult to repeat every year.

Field Services Gains Share, Industrial Services Remains Soft

Dugas said Clean Harbors is taking market share in field services, helped by branch expansion, the HEPACO acquisition, improved employee retention and reduced reliance on third-party labor. He said the company has also invested in specialized equipment, including for marine responses, which improves its ability to respond to emergency response work.

Industrial services remains under pressure as refiners run at high production levels and defer turnaround work, Dugas said. He compared the current environment to the post-COVID period, when delayed maintenance eventually led to stronger activity. He said the company does not include a significant rebound in its current guidance but could see improvement in late 2026 or early 2027 if maintenance schedules normalize.

Base Oil, M&A and Buybacks

In the Safety-Kleen Sustainability Solutions business, Dugas said conflict in Iran has tightened base oil supply and lifted prices from depressed levels. He said demand from major oil customers for Group II and Group III base oils contributed to a $30 million guidance increase for that business. Additional upside could come if base oil prices remain higher for longer or if demand for Group III and direct sales expands, he said.

On capital allocation, Dugas said the acquisition pipeline is “super strong,” particularly in technical services, field services and other environmental services areas. He said valuations may have moved lower in some cases, increasing the likelihood of deals compared with a year ago.

Dugas also said Clean Harbors bought back $25 million of shares in the first quarter and will continue to evaluate repurchases alongside acquisitions and capital investments as it considers the most accretive use of capital.

About Clean Harbors NYSE: CLH

Clean Harbors, Inc is a leading provider of environmental, energy and industrial services in North America. The company specializes in the collection, transportation and disposal of hazardous and non-hazardous wastes, emergency spill response and remediation, industrial cleaning and on-site field services. Its comprehensive service offering also includes chemical neutralization, drum crushing, high-pressure water blasting, tank cleaning and vacuum services designed to help customers meet stringent environmental regulations.

Founded in 1980 by Alan S.

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