Clean Harbors (CLH) Stock Forecast & Price Target

Clean Harbors Inc reported a 7% year-over-year increase in revenues, reaching $1.43 billion, which aligned with market consensus expectations. The company's EBITDA, excluding corporate expenses, grew by 11% year-over-year, totaling $311 million, significantly surpassing previous estimates. Additionally, the projected free cash flow of $430 million to $490 million indicates a strong financial position as it expands operations, particularly with the upcoming facility in Phoenix aimed at serving the semiconductor sector.

Clean Harbors Inc experienced a contraction in its EBITDA margin, which decreased 170 basis points quarter-over-quarter and 100 basis points year-over-year, indicating deteriorating profitability in its operations. The Safety-Kleen Sustainability Solutions (SKSS) segment reported a year-over-year revenue decline of 5%, driven by lower pricing and weak demand, while EBITDA for this segment plummeted 47% year-over-year, suggesting significant challenges in its market. Furthermore, despite an adjustment in net debt leverage, the overall guidance indicates expectations of a continued decline in EBITDA for the current year, raising concerns about the company's growth trajectory and financial stability.