Environmental and industrial services company Clean Harbors (NYSE:CLH) missed Wall Street’s revenue expectations in Q1 CY2026 as sales only rose 1.9% year on year to $1.46 billion. Its GAAP profit of $1.19 per share was 4.8% above analysts’ consensus estimates.
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Clean Harbors (CLH) Q1 CY2026 Highlights:
- Revenue: $1.46 billion vs analyst estimates of $1.47 billion (1.9% year-on-year growth, 0.7% miss)
- EPS (GAAP): $1.19 vs analyst estimates of $1.14 (4.8% beat)
- Adjusted EBITDA: $247.9 million vs analyst estimates of $242.5 million (17% margin, 2.2% beat)
- EBITDA guidance for the full year is $1.27 billion at the midpoint, above analyst estimates of $1.25 billion
- Operating Margin: 8.1%, in line with the same quarter last year
- Free Cash Flow was -$92.15 million compared to -$115.7 million in the same quarter last year
- Market Capitalization: $16.72 billion
“We began 2026 with better-than-expected first-quarter results, including higher profitability in both of our operating segments,” said Eric Gerstenberg, Co-Chief Executive Officer.
Company Overview
Established in 1980, Clean Harbors (NYSE:CLH) provides environmental and industrial services like hazardous and non-hazardous waste disposal and emergency spill cleanups.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, Clean Harbors’s sales grew at an exceptional 14.4% compounded annual growth rate over the last five years. Its growth beat the average industrials company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Clean Harbors’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 5.2% over the last two years was well below its five-year trend. 
This quarter, Clean Harbors’s revenue grew by 1.9% year on year to $1.46 billion, falling short of Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 4.8% over the next 12 months, similar to its two-year rate. This projection is underwhelming and indicates its newer products and services will not lead to better top-line performance yet.
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Operating Margin
Clean Harbors has managed its cost base well over the last five years. It demonstrated solid profitability for an industrials business, producing an average operating margin of 11.2%.
Looking at the trend in its profitability, Clean Harbors’s operating margin rose by 2 percentage points over the last five years, as its sales growth gave it operating leverage.
In Q1, Clean Harbors generated an operating margin profit margin of 8.1%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Clean Harbors’s EPS grew at 23.1% compounded annual growth rate over the last five years, higher than its 14.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
We can take a deeper look into Clean Harbors’s earnings quality to better understand the drivers of its performance. As we mentioned earlier, Clean Harbors’s operating margin was flat this quarter but expanded by 2 percentage points over the last five years. On top of that, its share count shrank by 3.7%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. 
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For Clean Harbors, its two-year annual EPS growth of 3.4% was lower than its five-year trend. We hope its growth can accelerate in the future.
In Q1, Clean Harbors reported EPS of $1.19, up from $1.09 in the same quarter last year. This print beat analysts’ estimates by 4.8%. Over the next 12 months, Wall Street expects Clean Harbors’s full-year EPS of $7.38 to grow 17.1%.
Key Takeaways from Clean Harbors’s Q1 Results
We enjoyed seeing Clean Harbors beat analysts’ EBITDA and EPS expectations this quarter. We were also glad its full-year EBITDA guidance slightly exceeded Wall Street’s estimates. On the other hand, its revenue slightly missed. Overall, this print had some key positives. The stock remained flat at $313.70 immediately after reporting.
Is Clean Harbors an attractive investment opportunity right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).