Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Clean Harbors (NYSE:CLH) and its peers.
Waste management companies can possess licenses permitting them to handle hazardous materials. Furthermore, many services are performed through contracts and statutorily mandated, non-discretionary, or recurring, leading to more predictable revenue streams. However, regulation can be a headwind, rendering existing services obsolete or forcing companies to invest precious capital to comply with new, more environmentally-friendly rules. Lastly, waste management companies are at the whim of economic cycles. Interest rates, for example, can greatly impact industrial production or commercial projects that create waste and byproducts.
The 9 waste management stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 1%.
Luckily, waste management stocks have performed well with share prices up 11.4% on average since the latest earnings results.
Clean Harbors (NYSE:CLH)
Established in 1980, Clean Harbors (NYSE:CLH) provides environmental and industrial services like hazardous and non-hazardous waste disposal and emergency spill cleanups.
Clean Harbors reported revenues of $1.43 billion, up 4% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with a solid beat of analysts’ organic revenue estimates but a miss of analysts’ adjusted operating income estimates.
“We began 2025 with a solid, first-quarter performance as our Environmental Services (ES) segment closed Q1 with a strong March helping to overcome unfavorable weather impacts early in the quarter and results in our Safety-Kleen Sustainability Solutions (SKSS) segment exceeded our expectations,” said Mike Battles, Co-Chief Executive Officer.
Interestingly, the stock is up 8.9% since reporting and currently trades at $232.88.
Is now the time to buy Clean Harbors? Access our full analysis of the earnings results here, it’s free.
Best Q1: Montrose (NYSE:MEG)
Founded to protect a tree-lined two-lane road, Montrose (NYSE:MEG) provides air quality monitoring, environmental laboratory testing, compliance, and environmental consulting services.
Montrose reported revenues of $177.8 million, up 14.5% year on year, outperforming analysts’ expectations by 6%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EPS estimates.
Montrose delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 57.6% since reporting. It currently trades at $23.63.
Is now the time to buy Montrose? Access our full analysis of the earnings results here, it’s free.
Slowest Q1: Perma-Fix (NASDAQ:PESI)
Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ:PESI) provides environmental waste treatment services.
Perma-Fix reported revenues of $13.92 million, up 2.2% year on year, falling short of analysts’ expectations by 9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Perma-Fix delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 28.8% since the results and currently trades at $11.40.
Read our full analysis of Perma-Fix’s results here.
Waste Connections (NYSE:WCN)
Operating a network of municipal solid waste landfills in the U.S. and Canada, Waste Connections (NYSE:WCN) is North America's third-largest waste management company providing collection, disposal, and recycling services.
Waste Connections reported revenues of $2.23 billion, up 7.5% year on year. This print met analysts’ expectations. It was a very strong quarter as it also put up a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 6.1% since reporting and currently trades at $183.38.
Read our full, actionable report on Waste Connections here, it’s free.
Enviri (NYSE:NVRI)
Cooling America’s first indoor ice rink in the 19th century, Enviri (NYSE:NVRI) offers steel and waste handling services.
Enviri reported revenues of $548.3 million, down 8.7% year on year. This result lagged analysts' expectations by 2.1%. Zooming out, it was actually a strong quarter as it logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Enviri had the slowest revenue growth among its peers. The stock is up 38.2% since reporting and currently trades at $9.48.
Read our full, actionable report on Enviri here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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