Key Points
- Clean Harbors posted record third-quarter margins of 24.4% and raised its full-year adjusted EBITDA and free cash flow guidance.
- GFL Environmental is growing earnings strongly but faces rising debt leverage and uncertainty from unsolicited take-private buyout proposals.
- Casella Waste Systems is expanding through acquisitions and cost cuts, though its shares remain volatile despite analysts' bullish outlook.
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When it comes to flashy stocks, investors have many options—but environmental services companies will likely never be on the list. Nonetheless, companies providing essential services to businesses and communities have remarkable stability and staying power in the face of inflation and other macroeconomic pressures.
The companies below all represent the environmental services industry in different ways. Each makes a compelling case for investor attention through a combination of earnings and revenue performance, cash flow, and tenacity during a period of economic turbulence. Each also has the potential for future growth—a unique quality in an industry not traditionally known for its growth prospects.
CLH: Compelling Earnings, Improving Cash Flow, and Record Margins
Clean Harbors Inc. (NYSE: CLH) offers a range of waste collection, transportation, disposal, recycling, wastewater, and other services to clients across industrial, government, and utilities sectors. With a market capitalization above $16 billion, it has established itself as a go-to vendor for customers dealing with complicated regulatory and operational considerations.
Its Q3 2026 earnings, released Oct. 28, 2026, demonstrate the financial results a position like this one affords. Clean Harbors had its best-ever third-quarter period this year, with revenue surging by 21% year over year (YOY) and a 42% boost to adjusted EBITDA over the same period. Consolidated margins remained extremely strong, reaching a record high of 24.4%.
Further, the company raised its full-year adjusted EBITDA and adjusted free cash flow guidance, another sign of strong operating momentum that could continue in the coming months. These results show why Clean Harbors stands out from other environmental services firms: a combination of improving margins and cash generation, specialty services that remain in high demand, and lower competition relative to other firms in the space. To top it off, the company has a predicted 21% upside, on top of year-to-date (YTD) returns already at 29%.
GFL: Strong Growth, But Debt and Buyout Uncertainty Raise Risks
Combining recycling, solid waste collection, and other services, GFL Environmental Inc. (NYSE: GFL) is a Canadian peer of Clean Harbors, roughly the same size by market cap. A key distinction for this company is that it has taken an aggressive position regarding acquisitions, which has impacted GFL's debt: management expects the firm's year-end net leverage to be in the mid-3x range.
Investors will want to keep an eye on GFL's future acquisition and debt management plans. Meanwhile, the company posted strong earnings for Q3 2026. Both earnings and revenue came in above predictions, with the bottom line increasing by 27% YOY. Adjusted EBITDA margin has been growing despite higher costs associated with fuel and landfills.
These headwinds have not been sufficient to slow down GFL's anticipated growth: the company boosted its 2026 guidance once again, even as elevated diesel prices should depress margins by 75 basis points.
GFL's profile as a potential growth stock is attractive, but there have also been unsolicited proposals to take the company private. This will be another important factor for investors to keep an eye on.
CWST: Volatility May Not Reflect the Company's Strong Financial Position
Casella Waste Systems Inc. (NASDAQ: CWST) is just over a third the size of either of the two companies above, and it stands out for its growth potential. Casella's environmental services business lies primarily within the northeastern United States, a setup that provides opportunities for expansion outside the region.
The company is experiencing significant growth, including a 17% YOY revenue improvement last quarter and rising adjusted EBITDA. Landfill tons are climbing thanks in part to higher construction and demolition volumes.
The company is currently consolidating its operations to eliminate excess routes and reduce costs. Management has predicted $5 million in operating cost reductions by the end of the year. At the same time, Casella already has the financial footing to begin expanding its operations through acquisitions.
In the second quarter, for instance, the firm completed five different acquisitions totaling about $165 million in annualized revenue.
CWST shares have lacked the stability to withstand broader turbulence this year, falling about 5% YTD. Still, analysts remain very optimistic, giving CWST a Moderate Buy rating overall and predicting about 13% upside going forward. This makes Casella an attractive smaller player in the environmental services industry, but one some investors may approach with caution because of its history of volatility.
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