The waste removal services sector is undergoing a quiet but pivotal transformation, driven by regulatory pressure, technological innovation and the persistent challenge of rising operational costs. While the global market is projected to expand at a 6.6% compound annual growth rate through 2031—fueled by better collection methods and surging waste volumes in emerging economies—the industry is also grappling with the financial strain of modernizing infrastructure. The latest commentary from Zacks Equity Research highlights how three leading players—Clean Harbors, Veolia Environnement and Zurn Elkay Water Solutions—are navigating this dual reality of growth and constraint, each staking a claim on different facets of the evolving waste ecosystem.
Clean Harbors has positioned itself at the nexus of industrial responsibility and regulatory opportunity. In the first quarter of 2026, the company reported strong momentum in its Environmental Services segment, driven by high-volume project work, landfill operations and emergency response engagements—including a single $10-million event that underscored the volatility and scale of modern waste challenges. But it’s not just volume that’s lifting performance. Regulatory tailwinds around PFAS, or “forever chemicals,” have strengthened Clean Harbors’ management pipeline, while endorsements from the EPA and Pentagon for high-temperature incineration have reinforced its role in critical infrastructure. “The Kimball incinerator is outpacing tonnage targets and supporting positive EBITDA growth,” the company stated, a rare bright spot in an industry often criticized for its environmental footprint. Behind the scenes, Clean Harbors is embedding AI into sorting and processing workflows, aiming to claw back efficiency in a labor-intensive sector. All the while, it maintains a conservative balance sheet—low leverage, strong cash flow—ready to deploy capital through strategic acquisitions. With a Zacks Rank #2 (Buy) and a 2026 earnings estimate revised upward to $8.38, the market is recognizing that operational discipline can coexist with aggressive growth.
Veolia Environnement, by contrast, is weaving together geography and sector diversification to offset geopolitical and economic headwinds. In Q1 2026, the company delivered 2.1% organic revenue growth and a 5.1% organic uplift in EBITDA, even as broader macro pressures weighed on peers. Its strategy hinges on geographic expansion beyond Europe, with a notable 7.5% growth in the U.S. and targeted investments in high-margin segments like data centers and microelectronics—sectors where water and energy resilience are non-negotiable. “Essential environmental services witnessed strong, consistent demand,” Veolia noted, and it appears to be turning that demand into margin expansion through operational efficiency gains. The company’s recent acquisition of Enviropacific in Australia and a minority stake in Water Technology have not only broadened its geographic footprint but also deepened its technical capabilities in advanced water and waste treatment. The result is a business that’s increasingly insulated from regional downturns while positioning itself at the center of critical infrastructure needs. With a 2026 earnings estimate of $1.39 and shares up 21.9% year-over-year, Veolia is proving that scale and specialization can coexist—even in a fragmented market.
Zurn Elkay Water Solutions remains the quiet consolidator in this narrative, operating at the intersection of water management and waste infrastructure. While the broader waste removal industry commands headlines for incineration and landfill innovation, Zurn Elkay’s focus on water-related solutions—pipes, fixtures and treatment systems—positions it to benefit from the same secular trends: urbanization, regulatory tightening on effluent discharge and the rising cost of water scarcity. Though not detailed in the Zacks report, industry observers note that Zurn Elkay’s product lines are increasingly specified in sustainable building codes and municipal retrofits, where water efficiency and contaminant control are becoming legal prerequisites, not optional upgrades. The company’s integration into the broader waste ecosystem—where water and solids converge—could make it a beneficiary of the same efficiency drives that are pushing Clean Harbors and Veolia toward higher margins.
What binds these companies together is more than growth projections. They are all responding to a fundamental rebalancing: the need to reduce environmental harm while absorbing the cost of doing so. Technology—AI in sorting, advanced incineration, water reuse systems—is the great equalizer, promising to turn waste from a liability into a resource. But technology demands capital, and capital is scarce when interest rates remain stubbornly high and municipalities face budget constraints. The industry’s EV-to-EBITDA multiple of 11.59x—higher than the sector average but below the S&P 500—suggests investors are pricing in both growth potential and execution risk. Clean Harbors’ operational discipline, Veolia