CLH - Bullish On Improved M&A Start To 2026

Research evidence excerpt

CLH - Bullish On Improved M&A Start To 2026

Truist Securities

Equity Research Report May 14, 2026

IT SERVICES: Industrial Services Clean Harbors, Inc. (CLH)

CLH - Bullish On Improved M&A Start To 2026 Tobey Sommer

615-748-4435

Tobey.Sommer@truist.com

We are incrementally positive on Clean Harbors' (CLH, Buy) increased M&A activity to start

2026 after a dearth of activity in the last two years. We are adjusting our estimates for

Jasper Bibb CLH after the company announced the acquisition of Terra Nova Solutions. Our revenue 212-303-1742

Jasper.Bibb@truist.com estimates are increased by ~50 bps in '26 and ~80 bps in '27. We expect Terra Nova to grow

around mid-single-digits, similar to overall ES business. We forecast EBITDA contribution

of ~$6M for 2026 factoring in potential transition costs for the next several months. Tyler Barishaw

212-303-4177

Tyler.Barishaw@truist.com Overall, we like CLH's more aggressive start to M&A this year. In 2024/25, we believe

investors had grown concerned that CLH was losing out on ES deals such as Shamrock or

Henry Roberts Clean Earth. Between the Hepaco acquisition in early 2024 and the start of 2026, CLH had

212-326-3141 not completed any M&A. So far this year, in addition to Terra Nova, the company announced

Henry.Roberts@truist.com a $130M deal for Depot Connect International (Private) in February, with expected closing

in 1H26. While the Terra Nova deal is not on the highest margin part of the business (ES

disposal assets like incinerators), we are still encouraged by the M&A activity.

Stock Rating BUY We increase our CLH estimates by 50 bps-120 bps for '26 and '27. We increase our '26

Unchanged revenue and EBITDA each by ~50 bps. We increase our '27 revenue and EBITDA by ~80

Price Target $325.00 bps and ~120 bps, respectively.