As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the waste management industry, including Enviri (NYSE: NVRI) 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%.
Thankfully, share prices of the companies have been resilient as they are up 9.8% on average since the latest earnings results.
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 print fell short of analysts’ expectations by 2.1%, but it was still a strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
"We are pleased to have met our financial goals for the quarter, supported by consistent execution in our business units,” said Enviri Chairman and CEO Nick Grasberger.
Enviri delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 17.6% since reporting and currently trades at $8.07.
Is now the time to buy Enviri? 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 36.4% since reporting. It currently trades at $20.44.
Is now the time to buy Montrose? Access our full analysis of the earnings results here, it’s free.
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 26.1% since the results and currently trades at $11.16.
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 result was in line with analysts’ expectations. It was a very strong quarter as it also produced a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is flat since reporting and currently trades at $196.45.
Read our full, actionable report on Waste Connections here, it’s free.
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 number met analysts’ expectations. Aside from that, it was a satisfactory quarter as it also produced a solid beat of analysts’ organic revenue estimates but a miss of analysts’ adjusted operating income estimates.
The stock is up 7.3% since reporting and currently trades at $229.35.
Read our full, actionable report on Clean Harbors 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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