Should Clean Harbors' (CLH) Aggressive Buybacks and Acquisitions Reshape Its Capital Allocation Narrative?

• In the third quarter of 2025, Clean Harbors announced earnings with revenue of US$1,549.34 million and net income of US$118.8 million, while also pursuing both large and small acquisitions to enhance its market position and shareholder returns.
• An interesting aspect is that the company emphasized ongoing buybacks and disciplined M&A activity, signaling a strong focus on capital allocation and growth despite challenges in certain business areas.
• We’ll now examine how Clean Harbors’ acquisition ambitions and capital allocation approach could influence its current investment narrative.

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Clean Harbors Investment Narrative Recap

To own shares of Clean Harbors, investors need to believe in the long-term demand for hazardous waste treatment, especially given tightening regulations and increased focus on PFAS destruction. The recent Q3 2025 results and continued acquisition strategy do not materially change the most important near-term catalyst, expanding regulatory requirements on PFAS and hazardous materials, nor do they substantially alter the biggest current risk, which remains rising costs and operational headwinds in certain segments.

Among recent announcements, Clean Harbors’ active pursuit of both small and large acquisitions stands out, as it supports their stated goal of riding sector growth and maintaining leadership in hazardous waste management. These acquisition efforts align closely with the catalyst of regulatory-driven demand for specialized disposal solutions, which could create additional opportunities if integration is well managed.

However, what investors should also be aware of is that, despite headline growth opportunities, increasing regulatory scrutiny and permitting challenges may still...

Read the full narrative on Clean Harbors (it's free!)

Clean Harbors' narrative projects $7.0 billion revenue and $605.1 million earnings by 2028. This requires 5.7% yearly revenue growth and a $220 million earnings increase from $384.8 million today.

Uncover how Clean Harbors' forecasts yield a $256.60 fair value, a 23% upside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community range from US$256.60 to US$310.90 across two opinions, hinting at wide splits among retail investors. Meanwhile, regulatory and permitting risks still have potential to affect Clean Harbors’ operational flexibility and future returns, encouraging investors to compare alternative viewpoints before making decisions.

Explore 2 other fair value estimates on Clean Harbors - why the stock might be worth as much as 50% more than the current price!

Build Your Own Clean Harbors Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Clean Harbors research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Clean Harbors research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Clean Harbors' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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