Let’s dig into the relative performance of Veralto (NYSE: VLTO) and its peers as we unravel the now-completed Q3 environmental and facilities services earnings season.

Many environmental and facility services are non-discretionary (sports stadiums need to be cleaned after events), recurring, and performed through longer-term contracts. This makes for more predictable and stickier revenue streams. Additionally, there has been an increasing focus on emissions and water conservation over the last decade, driving innovation in the sector and demand for new services. Despite these tailwinds, environmental and facility services companies are still at the whim of economic cycles. Interest rates, for example, can greatly impact commercial construction projects that drive incremental demand for these services.

The 12 environmental and facilities services stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 1.7% below.

Thankfully, share prices of the companies have been resilient as they are up 7.3% on average since the latest earnings results.

Veralto (NYSE: VLTO)

Spun off from Danaher in 2023, Veralto (NYSE: VLTO) provides water analytics and treatment solutions.

Veralto reported revenues of $1.40 billion, up 6.8% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with full-year EPS guidance slightly topping analysts’ expectations but revenue guidance for next quarter slightly missing analysts’ expectations.

Unsurprisingly, the stock is down 3.5% since reporting and currently trades at $98.99.

Is now the time to buy Veralto? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Perma-Fix (NASDAQ: PESI)

Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ: PESI) provides environmental waste treatment services.

Perma-Fix reported revenues of $17.45 million, up 3.8% year on year, outperforming analysts’ expectations by 7.1%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 9.4% since reporting. It currently trades at $11.67.

Is now the time to buy Perma-Fix? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: 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 $1.55 billion, up 1.3% year on year, falling short of analysts’ expectations by 1.6%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.

As expected, the stock is down 11.7% since the results and currently trades at $217.44.

Read our full analysis of Clean Harbors’s results here.

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 $224.9 million, up 25.9% year on year. This print beat analysts’ expectations by 10.9%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates.

Montrose achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 2.5% since reporting and currently trades at $25.19.

Read our full, actionable report on Montrose here, it’s free for active Edge members.

Quest Resource (NASDAQ: QRHC)

Recycling corporate waste to help companies be more sustainable, Quest Resource (NASDAQ: QRHC) is a provider of waste and recycling services.

Quest Resource reported revenues of $63.34 million, down 13% year on year. This number surpassed analysts’ expectations by 5.9%. It was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

Quest Resource had the slowest revenue growth among its peers. The stock is up 29.4% since reporting and currently trades at $1.80.

Read our full, actionable report on Quest Resource here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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