CWST

This article first appeared on GuruFocus. Book Value Per Share: Grew to $96.60 as of March 31, 2026, up from $88.30 a year earlier, an increase of 10.5% including dividends paid. 10-Year Annualized Book Value Growth: Increased at an annualized rate of 14% after tax. Total Book Value: $1.3 billion, with 95% retained earnings. Cash, Treasury, and Market Securities: Over $468 million. Realized Investment Track Record: 50 realized investments turned $1.5 billion into $5.2 billion, representing a 3.5 times aggregate multiple of capital invested. F12.net Exit: Sold in December 2025, generating a 4.6 times multiple of capital and a 35% IRR over five years. Ashera Insurance Exit: Exited in February 2026 at a three times multiple of capital and a 42% IRR. Star Waste Systems Exit: Acquired by Casella Waste Systems in April 2026, generating a 2.6 times multiple of capital and a 31% IRR. New Investments: Added seven new platform investments to Fund 7, including Northfield Park (USD165 million), a luxury travel distributor (USD42 million), a Canadian waste management platform (CAD25 million), a specialty food retailer, and a physical therapy platform (USD31 million). Next Tech Solutions EBITDA: Grew to almost $32 million, nearly sevenfold since investment. Dividend: Paid a $96.60 per share dividend subsequent to year-end, representing 1% of book value per share. Cumulative Dividends: Paid cumulative dividends of $16.12 since going public in 1987. Warning! GuruFocus has detected 3 Warning Sign with TSX:CVG. Is TSX:CVG fairly valued? Test your thesis with our free DCF calculator. Release Date: August 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Clairvest Group Inc (TSX:CVG) reported a 10.5% increase in book value per share to $96.60, including dividends, reflecting strong portfolio value growth. The company achieved a top-quartile long-term performance with a 14% annualized after-tax book value growth over the past decade. Clairvest Group Inc (TSX:CVG) successfully completed three exits from Fund 6, generating strong returns, including a 4.6x multiple on F12.net and a 42% IRR on Ashera Insurance. The company added seven new platform investments to Fund 7, diversifying across gaming, travel, waste management, food retail, and physical therapy, with a strong pipeline. Clairvest Group Inc (TSX:CVG) maintains a strong balance sheet with over $468 million in cash and marketable securities, providing ample liquidity for future investments. The portfolio companies demonstrated robust operational performance, with examples like Next Tech Solutions growing EBITDA nearly sevenfold and Delaware Park achieving record results. Clairvest Group Inc (TSX:CVG) faced a significant setback with the Indian government's ban on real money online gaming, leading to the largest investment loss in its history for Head Digital Works. The company operates in an uncertain macroeconomic environment marked by renewed inflation, global conflicts, and trade uncertainty, which could impact future performance. Fund 7 is now more than halfway committed, potentially limiting future investment capacity in the near term. The company's high average cash balance of 39% may indicate underinvestment, potentially diluting returns in a strong market. The loss of a founder and board member, Lionel Schipper, represents a loss of valuable experience and guidance for the firm. Q: What was the company's book value per share at the end of fiscal 2026, and how does this reflect on long-term performance? A: Ken Rotman, CEO, reported that book value per share grew to $96.60, up from $88.30 a year earlier, an increase of 10.5% including dividends paid. Over the last 10 years, book value per share increased at an annualized rate of 14% after tax, despite maintaining average cash balances of 39%. The company's total book value stands at $1.3 billion, with over $468 million in cash, treasury, and market securities. Q: Can you provide details on the exits completed from Fund 6 during the past year? A: Michael Wagman, President, detailed three successful exits: F12.net was sold in December 2025, generating a 4.6x multiple of capital and a 35% IRR over five years. Ashera Insurance was exited in February 2026 at a 3x multiple and 42% IRR through a merger with Navicort. Star Waste Systems was acquired by Casella Waste Systems in April 2026, generating a 2.6x multiple and a 31% IRR, built through eight acquisitions and nearly 560% EBITDA growth. Q: What is the status of new investments in Fund 7, and what sectors are being targeted? A: Michael Wagman highlighted seven new platform investments added to Fund 7. Notable new deals include a USD165 million investment in Northfield Park, a leading regional racino in Ohio; a USD42 million investment in a luxury experiential travel distributor; a CAD25 million investment in a Canadian waste management platform; a partnership with a West Coast specialty food retailer; and a USD31 million investment in a Midwest physical therapy platform. These span gaming, environmental services, food ecosystem, and medical practice management sectors. Q: How did the company address the significant setback related to Head Digital Works? A: Ken Rotman acknowledged that the Indian government's ban on real money online gaming rendered Head Digital Works non-viable, resulting in the single largest investment loss in Clairvest's history. In response, the company has refocused its gaming strategy squarely on North American land-based gaming, where it has over 26 years of experience and a strong track record. The loss was absorbed by the strength and diversification of the rest of the portfolio. Q: What is the company's track record on realized investments, and how does it compare to the industry? A: Ken Rotman noted that Clairvest crossed a milestone with 50 realized investments. The aggregate track record on these investments, including both good and bad outcomes, turned $1.5 billion into $5.2 billion, representing a 3.5x aggregate multiple of capital invested. This performance remains top quartile in the private equity industry. Q: Can you provide an update on the performance of key portfolio companies? A: Michael Wagman highlighted several portfolio highlights: Delaware Park delivered record results driven by online gaming and the outdoor sports patio; Brunswick Beer Works is nearing capacity and has begun a second facility expansion; Next Tech Solutions has grown EBITDA to almost $32 million, nearly sevenfold since investment; and The Nash Casino in New Hampshire has become the number one property in the state by gross gaming revenue in its first year. Q: What is the current state of Fund 7's capital deployment? A: Ken Rotman stated that Fund 7 is now more than halfway committed and allocated. The team continues to evaluate target industries and has a strong pipeline of opportunities in various stages of development, indicating active sourcing for new investments. Q: How does the company's dividend policy reflect its financial strength? A: Ken Rotman mentioned that subsequent to year-end, Clairvest paid a $96.60 per share dividend, representing 1% of book value per share. Since going public in 1987 at $5 per share, the company has paid cumulative dividends of $16.12 and grown book value to $96.60, generating over 22 times the money for shareholders. Q: What changes were made to the investment team during the year? A: Ken Rotman announced the addition of four investment professionals during the year and the promotion of Ethan Wolfe and Rahil Manji to partner, and Justin Yu to senior associate. This reflects the company's strategy of building its investment team from the bottom up. Q: How does the company's ownership structure align with shareholder interests? A: Ken Rotman emphasized that since the management team and Board own a majority of Clairvest, they are primarily motivated by and fully aligned with shareholders' goals of long-term capital preservation and steady, sustainable growth. This alignment is a core principle of the firm's partnership-driven approach. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Casella Waste Systems delivered better-than-expected results in Q2, supported by robust pricing execution, higher landfill volumes, and ongoing acquisition activity. Management attributed revenue growth to higher prices in both collection and disposal segments, as well as an 8.4% increase in landfill volume. CEO Ned Coletta emphasized that the company’s operating model, use of dynamic fuel recovery fees, and continued focus on efficiency and customer service helped offset rising fuel costs. Investments in technology, route optimization, and fleet automation further contributed to operational stability during the quarter. Is now the time to buy CWST? Find out in our full research report (it’s free). Revenue: $543.7 million vs analyst estimates of $525.5 million (16.9% year-on-year growth, 3.5% beat) Adjusted EPS: $0.40 vs analyst estimates of $0.29 (36.1% beat) Adjusted EBITDA: $115.6 million vs analyst estimates of $122.9 million (21.3% margin, 5.9% miss) The company lifted its revenue guidance for the full year to $2.1 billion at the midpoint from $2.07 billion, a 1.4% increase EBITDA guidance for the full year is $478 million at the midpoint, in line with analyst expectations Operating Margin: 3.7%, in line with the same quarter last year Market Capitalization: $5.76 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Adam Bubes (Goldman Sachs) asked if underlying margin expansion excluded M&A dilution; CFO Brad Helgeson clarified that acquisitions were included, and the base business showed strong margin improvement. James Schumm (TD Cowen) questioned if lower stock price would impact M&A pace; CEO Ned Coletta responded they remain focused on extracting synergies and scale rather than slowing acquisitions. Tami Zakaria (JPMorgan) sought clarity on the composition of raised revenue guidance; Helgeson noted the majority of the increase was due to higher fuel recovery fees, with some contribution from recent M&A. Trevor Romeo (William Blair) inquired about integration progress of recent acquisitions; Coletta indicated early successes in safety and culture, with integration focus currently on the Mid-Atlantic before turning to other deals. Shlomo Rosenbaum (Stifel) asked about the landfill sales team’s ability to push pricing beyond current targets; Coletta said there is potential to reach higher third-party price growth as market dynamics evolve. In the coming quarters, the StockStory team will be monitoring (1) the pace and effectiveness of acquisition integration, particularly in the Mid-Atlantic and recent tuck-ins, (2) continued pricing strength and volume trends in landfill and collection segments amid regional capacity tightening, and (3) the realized benefits from technology investments and leadership changes. Progress in these areas will be key to sustaining growth and margin improvement. Casella Waste Systems currently trades at $90.62, in line with $90.46 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Friday, Aug. 7, 2026 at 11:00 a.m. ET President and Chief Executive Officer - Ned Coletta Chief Financial Officer - Bradford Helgeson Executive Vice President and Chief Operating Officer - Damian Ribar Senior Vice President of Finance and Treasurer - Jason Mead Vice President of Investor Relations and Finance - Henry Baby Operator: Hello, and welcome to the Casella Waste Systems, Inc. Second Quarter 2026 Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. It is now my pleasure to introduce Vice President of Investor Relations and Finance, [ Henry Baby ]. Unknown Executive: Good morning, and thank you for joining us on the call. Today, we'll be discussing our second quarter 2026 results, which were released yesterday afternoon. This morning, I'm joined by Ned Coletta, President and Chief Executive Officer of Casella Waste Systems; Brad Helgeson, our Chief Financial Officer; Damian Ribar, our Chief Operating Officer; and Jason Mead, our Senior Vice President of Finance and Treasurer. After a review of these results and an update on the company's activities and business environment, we'll be happy to take your questions. But first, please note that various remarks we may make about the company's future expectations, plans, and prospects constitute forward-looking statements for the purpose of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by those forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of our most recent Form 10-K, which is on file with the SEC. In addition, any forward-looking statements represent views only as of today and should not be relied upon as representing our views on any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even if our views change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to today, August 7, 2026. Also during this call, we may be referring to non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures to the extent they are available without unreasonable effort are included in our press release filed on Form 8-K with the SEC. And with that, I'll turn it over to Ned Coletta to begin today's discussion. Ned Coletta: Good morning, and thank you for joining us. I would like to first welcome Damian Ribar, our new Executive Vice President and Chief Operating Officer. Damian is joining us on the call this morning. Damian brings over 30 years of solid waste industry operating and finance experience and is an excellent addition to our already strong senior management team. We are also joined by our new Vice President of Investor Relations and Finance, [ Henry Baby ]. Henry joins us after a 20-year career on the buy side, most recently as a small-cap generalist at William Blair. We are pleased with our performance in the second quarter. Our team executed well across the business, delivering solid financial performance while also advancing our key strategic initiatives. Our disciplined operating approach, strong pricing execution, higher landfill volumes, and continued acquisition activity drove positive results during the quarter. Our solid results in the quarter reflect the consistency of our operating model, the effectiveness of our dynamic fuel recovery fees, and the continued focus of our teams on safety, execution, and customer service. Revenue for the quarter was $543.7 million, up 16.9% year-over-year. Growth was driven by contributions from acquisition and the base business, with strong pricing across our collection and disposal lines, volume growth at the landfills, and continued growth in our Resource Solutions segment. Pricing continues to perform well and remains a core driver of our positive results. Solid waste pricing was up 5.5% overall, including 5.8% in the collection line of business and 4.7% in the disposal line of business. Equally as important, landfill tons were up 8.4% year-over-year in the quarter, reflecting the strength of our newly constituted post-collection sales team, internalization efforts, and our unique landfill asset positioning in the Northeast. From a volume perspective, the quarter played out largely as we expected, with higher disposal volumes mainly offsetting lower collection volumes as we continue to prioritize price and profitability in the collection line of business. Volume trends followed the normal seasonal uptick through July and into early August, and we are well positioned as we move through the back half of the year. On the cost side, our fuel recovery program worked effectively in the quarter, with floating fees fully offsetting the dollar increase in fuel costs across the business. This continues to be an important component of our ability to manage risk and produce stable and predictable operating results. As previously discussed, our fuel recovery program is designed to recover costs. And as such, we experienced roughly 40 basis points of margin headwind as recovery fees and fuel grossed up revenues and costs, respectively. As we have emphasized, our focus remains on disciplined execution at the operating level. Our teams continue to make progress with route optimization, fleet efficiency and automation, and we're seeing those efforts translate into results. Adjusted EBITDA of $123.2 million was up 12.5% year-over-year. Safety is our first core value at Casella, and we continue to invest in key initiatives across the business. These efforts have resulted in better safety performance with our key OSHA metric improving 34% year-over-year. A huge thank you to everyone on the team for their focus and discipline. We continue to deploy the Lytx in-cab AI technology across our fleet and it's helping to drive safer behavior through real-time coaching. Further, our expanded triage program continues to reduce workers' compensation costs and claims. In the Mid-Atlantic region, we made significant progress on our integration efforts during the second quarter. As guided, we are on track to cut $5 million of operating costs in 2026 and another $10 million over the next 2 years. We completed the migration of our customers to our new lead to cash system and integrated customer payment portal in early May. And our team quickly pivoted to driving operational synergies through route consolidations and automated truck conversions. With these early efforts, we have already eliminated 13 routes and the related trucks and labor from the business. From a technology and efficiency standpoint, we're making great progress. From a customer side, we continue to invest in key platforms to improve experience, including the launch of our new customer payment portal in April, the new Casella phone app in May, and the new casella.com website in July. Everyone should check out these in the iPhone store and online. These efforts are focused on improving customer experience through the development of robust e-commerce capabilities while also yielding cost efficiencies and enhancing our selling capabilities. We remain focused on reducing G&A costs, and we are on track with our previously identified $15 million in targeted savings over the next 3 years. We expect these savings will come in 3 phases. With the first phase yielded in the second half of 2026, as we roll out credit card convenience fees. The second phase will be yielded in 2027 as we eliminate the cost of redundant systems. And the last phase, as we further automate back-office functions. Across these initiatives, we are focusing on AI-enabled tools and investing in data infrastructure to support this capability. Over time, we expect these investments to generate additional leverage across our back office, yielding efficiency gains throughout the business. I would also like to provide an update on our Hakes Construction and Demolition Landfill in New York. We expect to receive a permit in the third quarter to expand our airspace at this site. With this permit expansion at our current run rates, we'll have roughly 20 years of valuable airspace at the site. In addition, we continue to make excellent progress on the expansion efforts at our Hyland, Juniper Ridge and Clinton landfills. Acquisitions remain an important component of our growth strategy, and we've had a strong start to the year. We have completed 5 acquisitions so far in 2026, representing approximately $165 million of annualized revenues. We closed on one acquisition in early January, 3 on April 1. And then one tuck-in, in Pennsylvania on July 1. These transactions continue to align well with our strategy of building density and adding key transfer stations and recycling facilities within our existing operating footprint. Our teams are making good progress on integration with an early focus on safety, onboarding our new team members, and executing integration plans. At the same time, our acquisition pipeline remains strong. And we have a number of tuck-in opportunities in later stages that fit well within our existing markets. Overall, we feel very good about our execution year-to-date and our outlook for the remainder of the year. We're executing well against our core priorities, including improving our safety profile, pricing in excess of cost inflation, operational efficiency programs, yielding acquisition synergies, and delivering on new acquisitions. At the same time, we're continuing to invest in the business in a disciplined way, particularly in technology and long-term efficiencies. I want to thank our employees for their continued focus on safety, service and customer execution. With that, I'll turn it over to Brad to walk through the financials in more detail. Bradford Helgeson: Thanks, Ned. Good morning, everyone. Revenues in the second quarter were $543.7 million, up $78.4 million or 16.9% year-over-year, with $46.2 million from acquisitions, including rollover, and $32.2 million from same-store growth or 6.9%. Solid waste revenues were up 18.4% year-over-year, with price up 5.5% and volume down 0.6%. Within solid waste, price in the collection line of business was up 5.8% in the quarter, led by 7% price in roll-off and 7% price in frontload commercial and volume was down 1.4%. Price in the disposal line of business was up 4.7%, including 4% third-party price at landfills and 5.1% at transfer stations. Landfill volumes overall were up 86,000 tons or 8.4% in the quarter, with internalized volume up 24,000 tons and third-party volume up 62,000 tons. Landfill activity was strong this spring, and we expect this to continue through the second half. In 2026, we anticipate improved year-over-year third-party landfill pricing of 4% to 5% consistent with our guidance expectation for 5% price growth overall in the solid waste business. Resource Solutions revenues were up 10.7% year-over-year, with recycling and other processing revenues up 5.5%, and national accounts up 17.1%, including 4.3% price and 6.4% volume growth. Overall, we generated $11.6 million in additional revenue in the quarter from higher cost recovery fees, including those tied to fuel prices. As Ned mentioned, we successfully offset all of the dollar increase in fuel costs in the quarter with higher related fees. Adjusted EBITDA was $123.2 million in the quarter, up $13.7 million or 12.5% year-over-year, with $7.5 million of contribution from acquisitions, including rollover and 5.7% organic growth. Adjusted EBITDA margin was 22.7% in the quarter, down 80 basis points year-over-year. Bridging the year-over-year change in adjusted EBITDA margin, fuel represented a 40 basis point negative impact as higher fee revenue offsetting higher fuel expense dilutive margins. And Resource Solutions with a 70 basis point headwind year-over-year against a strong EBITDA comparable in Q2 2025. With higher recycling volumes last year from a competitor undergoing a facility retrofit, the previously announced closure of the organic facility in Maine in Q3, and lower margins in national accounts. Excluding fuel and Resource Solutions, the business expanded margins by 30 basis points, driven by the benefits of higher landfill volumes and positive price cost spread across the collection business. In the Mid-Atlantic, we've completed our systems integrations and are well into route consolidations, as Ned discussed. We expect to begin to see the benefit of these cost reductions in margins in the second half of this year as the mid-Atlantic transitions to a long-term margin tailwind as we execute on our strategy with this increasingly integrated business. Cost of operations were $364.9 million in the quarter, up $56.9 million year-over-year, with $34.1 million of the increase from acquisitions and $22.8 million in the base business, including higher fuel costs, which we covered with our fuel recovery program. General and administrative costs were $63.2 million in the quarter, up $8.6 million year-over-year, but down 10 basis points as a percentage of revenue. Depreciation and amortization costs were up $11.5 million year-over-year, with $9.9 million resulting from acquisition activity in the past 12 months, including the amortization of acquired intangibles. Adjusted net income was $25.3 million in the quarter, or $0.40 per diluted share, up $1.1 million and $0.02 per share. GAAP net income was lower by $1.4 million in the quarter on higher depreciation and amortization, interest, and the organics facility closure costs. Net cash provided by operating activities was $161 million in the first 6 months of the year, up $21.4 million year-over-year, or 15.3%, driven by EBITDA growth. Adjusted free cash flow was $78.1 million for the first 6 months of the year, up 10.3%. Capital expenditures were $122.3 million, with $20.6 million of upfront investment in recent acquisitions. Overall, capital expenditures were relatively flat year-over-year, but with a higher mix of recurring spend, which is reflected in adjusted free cash flow and less for acquisitions. As of June 30, we had $1.35 billion of debt and $25 million of cash, with our consolidated net leverage ratio for purposes of our bank covenants at 2.7x. We have approximately $500 million in available liquidity, which will enable us to be opportunistic in continuing to execute on our growth strategy and robust acquisition pipeline. As announced in our press release yesterday, we raised our revenue guidance to a range of $2.09 billion to $2.11 billion, an increase of $30 million, reflecting our acquisition activity to date and higher expected fuel recovery fees associated with elevated fuel costs. This updated revenue assumes that fuel remains elevated around current levels for the balance of the year. We reaffirmed our adjusted EBITDA guidance range of $473 million to $483 million, our adjusted free cash flow range of $200 million to $210 million, and our net cash provided by operating activities range of $370 million to $380 million, as the business is performing in line with our expectations, and we remain well positioned relative to our internal plan for the year. From an EBITDA margin standpoint, the impact of higher fuel recovery fees and costs, as well as a modest dilutive impact from the acquisitions closed to date, weighed on margins by approximately 40 to 50 basis points, implying flat to 40 basis points of margin improvement across the rest of the business, consistent with our outlook at the beginning of the year. We lowered our GAAP net income guidance to a range of $0 million to $6 million, reflecting higher forecasted amortization expense and income tax provision. If you recall, we currently do not pay federal cash taxes. And with advantaged tax structuring of our acquisition activity and benefits of the new tax law, we do not expect to be a cash taxpayer for several years into the future. With that, operator, would you please open the line for Q&A? Operator: [Operator Instructions] Our first question comes from the line of Adam Bubes with Goldman Sachs. Adam Bubes: Brad, I think you said underlying margins were 30 basis points in the business, excluding fuel and the national accounts headwind. Does that include M&A dilution? I think you normally target 50 basis points of underlying margin expansion just from price cost or just trying to get all the moving pieces on the underlying piece. Bradford Helgeson: Yes, it does include acquisitions netted within that. So if you pull that out, I mean, acquisitions were a bit of a dilutive impact as well. The base business performed well in excess of 50 basis points of margin expansion. Adam Bubes: Great. I appreciate the clarification there. And now that systems integration is complete in the Mid-Atlantic, can you just update us on how that business is performing on key metrics like volumes, price, margins? And how do you expect the Mid-Atlantic margin cadence to trend over the remainder of the year? Bradford Helgeson: Yes. Margins in the segment, and you'll see this in the 10-Q that we filed later, were relatively flat in the quarter year-over-year, we're up slightly year-over-year. We really do expect, though, for the margins to start to move in the positive direction in Q3, Q4, and then especially into next year. Pricing was actually pretty good in the Mid-Atlantic. We were just from the top of my head, a little over 4% price. So a touch below the rest of the business, but we are getting some price. I think an important achievement in the quarter was us getting our floating fuel fees in place to cover our fuel costs. Sometimes there's a little bit of a delay of us getting those fees in place for acquired customers, but we did a good job making sure that at least we are covered from that standpoint. Ned Coletta: Yes. And price looking at the quarter, Brad, is up 4.7% in the Mid-Atlantic. But one of the important things to note is the timing. So we got through our systems integration work in the second week of May, and a lot of training, a lot of work with our teams down there to really get everyone comfortable in the new system, ensuring that our trucks were routed, dispatched, we're giving the right level of service to our customers. And then, kind of in late June and coming into July, that's when we started to put routes together businesses together. And this is going to be a 5-plus month process. It doesn't all happen at once. There's a lot of people impacted, from our dispatchers, our drivers, our ops people, to our customers, our customer care reps. So there's a lot going on there and all the building blocks are there. We're just ticking through one market by market. So there's not a lot of that tailwind in the quarter, but it really is starting to show in July as we're getting those trucks off the road, as I talked about earlier. So a really exciting time down in that market. Another thing that you mentioned, and it is important, now that we're on the unified platform that has all of our legacy profitability tools and pricing tools, we really get a lot more visibility of our book of business, and we're starting a thoughtful approach to understand customer by customer, the profitability, and if any adjustments need to be made over time. Adam Bubes: Great. Appreciate the color. And last one for me. Just on landfill volumes. I mean, you touched on it briefly, but can you just expand on what's driving the performance there? Because really sharp acceleration, I think, 8% volumes. What are you seeing on that line item? And how should we think about it going forward? Bradford Helgeson: Yes. I mean we're seeing healthy volumes in the market generally, indicating a relatively healthy economy. And kind of taking a step back, I mean, the dynamic in the Northeast is that landfill capacity is coming out of the market, and you have more and more tons looking for less and less landfill capacity. Ned Coletta: Waste-to-energy capacity. I mean one of the most key facilities in the New York market, it has announced its closure at the end of 2026, the Hudson Falls Incinerator, owned by WIN. And it sits right in the middle of our market area, and part of the market where there are already some pretty tight constraints, just north of Albany. Albany has announced plans to close their landfill. They're starting to build out a transfer station, which will be another leg of tightening in that marketplace. So that blip, we'll call it a flip over the last couple of years with the 1 construction demo landfill closing on Long Island. We've had such great trends since that point in time. I mean our construction demo tons were up close to 17% in the quarter as we're getting flows back into mainly Hakes, but some of our other sites as well. But we had strong trends across MSW and special waste as well. And I really attribute both of those to two different things. One, our work -- our hard work by our team over the last 1.5 years to get internalization increased, to get the right transportation lanes in place, the right assets and waste flowing. But also the reconstitution of our landfill sales team. Liza Casella has done a great job. We've got Chris Rains now on the team as our Chief Revenue Officer. The 2 of them have partnered up and really rebuilt that effort from the ground up and are doing a great job. It's very organized. We're coming to market in an efficient way and really getting the flows back to sites. Operator: And our next question comes from the line of James Schumm with TD Cowen. James Schumm: So you guys aren't getting really much credit for your growth these days via the stock price. And just sort of wondering, does it give you pause? Or do you sort of reconsider the growth versus margin debate at this point? I recognize that fuel fees are diluted to margins and so the EBITDA margin guidance steps down a little bit. But just curious, if you guys contemplate if we're not going to get credit for all this growth, do we back off on M&A little bit and try to get the margins up? Or how are you guys thinking about that? Ned Coletta: Yes. I think you can look at it through an even different lens than that. We've gone through a transition period in the last, let's say, 2 years from a regional company to an enterprise. And we need to have scalable functions in this business that allow us to take on the growth while getting margin accretion, because these truly are accretive acquisitions that add density, add integration and vertical integration into the business. But as we've added revenues over the last couple of years, $1 revenue adds more people. And it really needs to be scalable systems, scalable process that allow us to get that leverage. And we've done just such great jobs behind the scenes, from our tech team to our business teams to our finance, across the board to really get the foundation in place. And we're on the cusp of unlocking a lot of that from automated processes, from sales to customer care to finance with our new systems processes. We've brought in some really talented leaders who have deep experience in larger organizations that understand the power of scale. So I think we look at it through that lens, like we don't need to tap the brakes, but we do need to unlock synergy value and scale from acquisitions faster. And that's our goal as a management team over the coming quarters, coming years. James Schumm: Okay. That makes sense. And then just if you could help me with some of the third quarter margin considerations, I think you said fuel was a 40 basis point headwind in the second quarter. How should we be thinking about that? I think Brad said maybe ex all the items, it would be 50 basis points underlying improvement in the second quarter. So could we think about something similar in the third quarter and then back out a similar 40 basis points for fuel? So I guess that's part one of the question. And then the other consideration that you guys mentioned was Resource Solutions sort of had that benefit last year, with the closure of, I guess, a MRF. So what was the benefit last year in 3 quarters? So what do you think the headwind is going to be from that this year? Bradford Helgeson: So a couple of questions in there. So I think the year-over-year comparison, taking Resource Solutions first should be easier in the third quarter. The volume that we benefited from last year won't be quite that comparable headwind in the third quarter that it was in the second quarter. We do -- we will still see the impact of having closed the organics processing facility in Maine in the third quarter last year. So that's going to be a year-over-year impact extending into the third quarter. And that was something we talked about at the beginning of the year with our overall guidance expectation. I think fuel, as we said -- I mean, fuel, we're assuming that the prices remain elevated. I mean who knows what it does? We don't have a crystal ball, but we thought it'd be as simple to assume that prices remain certainly where they are, and we haven't really seen any evidence that they're moving lower materially. So that will remain a headwind based on our guidance for the rest of the year. Overall, for the year, fuel is probably a 30 basis point headwind, '26 over '25. So you can kind of factor that into your model. In terms of the quarters, as you know, we don't get into specific quarterly guidance, but usually, the sequential trends historically can be a good starting point, a good guide. So I would look to the second to the third quarter last year, we've kind of a step down relative to the impact of fuel, but sequentially, a consistent improvement, plus or minus, this year compared to last year. James Schumm: And just on that resource solutions benefit last year, did that like persist? Did that go into the fourth quarter? Or how did that sort of -- how long was that? Ned Coletta: No. That competitor facility that was shut down in 1 of our markets came back online in the third quarter. Operator: Our next question comes from the line of Tami Zakaria with JPMorgan. . Tami Zakaria: I wanted to get clarity on the updated revenue guidance, you're raising it by $30 million. Could you parse out how much of that $30 million raise is fuel versus M&A versus price versus volume? . Bradford Helgeson: Sure. Yes. It's majority fuel, actually. So the acquisition that we closed on July 1, that Ned mentioned, that's about $15 million of annual revenue. So half of that, less than $10 million. The balance is fuel. We're assuming, again, that fuel does not decline over the course of the year, it just sort of stays relatively where it is. So based on that, and assuming our fuel fees continue to cover the higher fuel costs, that's a little over $20 million of the $30 million. We haven't really updated our guidance for anything else in the underlying base business. I mean, frankly, the business is performing pretty close to how we expect it going into the year. So not a lot of material changes that would move us out of our guidance range, at least year-to-date. Tami Zakaria: Understood. And then a similar question, but on the EBITDA margin. The full year EBITDA margin guidance is now, I think, 30 bps lower than before. How much of that is M&A versus fuel? . Bradford Helgeson: Most of it is fuel. A little bit of it is M&A. That's majority fuel. Operator: And our next question comes from the line of Trevor Romeo with William Blair. Trevor Romeo: I had a couple maybe to start on M&A. So maybe one, it looked like you made one more tuck-in the last quarter, about $15 million of revenue. Anything you'd call out on that business that you bought? And then just thinking about your integrations that are ongoing for Star Waste and Mountain Waste, it's still probably early days there, but are you kind of realizing results from all of the platform unification and efficiency efforts you put in place? Just maybe update on how those processes are going for those two deals. Ned Coletta: Yes. Thanks for the question. So early days on both of them, we've hit all the important marks from a safety, culture, training, people side, that's the early step. But frankly, we're probably a beat behind on integration because we've been so focused on putting Mid-Atlantic back together. It's just such a key initiative that unlocks so much value. So our tech team, our ops teams, are just in that marketplace working to get those pieces put back together, and then we'll kind of shift to both Mountain State Waste and Star. They're both well-run businesses, there was no urgency to change anything immediately. It's more of, what are the next steps to get those synergies out of the business? And when we looked at our business plan and our road map and frankly, our team, we're focused in the Mid-Atlantic right now, and then on to that. But we're happy, early days. All the important stuff's working right, and we're in a good position to add more value in the coming quarters. Trevor Romeo: Okay. I mean just, I guess, along those lines, if you're kind of more focused on the Mid-Atlantic at the moment, what does that kind of say about your maybe second half M&A pipeline? It sounds like, generally, you still have a lot of opportunities out there. But are you maybe going to -- yes, go ahead. Ned Coletta: Yes. What you'll see from us second half into early next year, a lot focus on very small tuck-ins that either overlay existing businesses or have a strategic asset like a transfer station that allows us to move waste and create more value. Nothing large coming. It's more of that typical kind of $10 million revenue type of $20 million revenue type of company that tucks in quite easily. As an example, the company we bought on July 1, we had it day 1 onto our systems and our processes. So getting to that point where we're doing additions, getting them into our system, our data, our processes, day 1 -- up to day 30, will start to yield synergy value much, much faster. So we'll get to that point, and that's really to my point earlier that we're talking about of how do we create more value? It's getting that scalability, getting those efficiencies faster. So we're doing that with these small deals day 1, and we're really focused there from an acquisition standpoint now through the end of the year. Trevor Romeo: Okay. That's helpful. And if I could maybe sneak 1 more quick one. kind of a big picture question on leadership. And I guess, welcome Damian to the call, first of all. But I think, Ned, you've made several key hires lately across the company, I think. And kind of feels like you've been very intentional about who you're hiring and where they're coming from and the kind of experience they have. So maybe you could talk a little more about how you're thinking about the leadership team and kind of what you and they are focused on for evolving the company going forward? Ned Coletta: Yes. Thank you for the question. This has been a period of change for Casella, where we've got some really talented team members, but we're growing very rapidly. And as we've moved from, say, $1 billion of revenues to $2 billion of revenues, we realized pretty quickly that a lot of the old ways of doing business internally didn't scale as effectively as they should or need to allow us to be successful into the future. So we've been looking to fill roles with both internal candidates and some really talented external candidates that have been in scale enterprises, but also bring with them a mindset where they're amazing cultural fits. They believe in our value system as a company, but also have been in a role where they've helped to scale businesses and put in process discipline technology help move to the next level. So we're really blessed as a team. We've got great balance right now. Our team is working well together. We're gelling around key initiatives. We've got great objectives in front of us. So it's an exciting time for us. We're -- energy is very, very good. And we came out of a Board meeting where we're able to showcase some of our great new team members and strategies coming from this year to next year. Operator: And our next question comes from the line of Shlomo Rosenbaum with Stifel. Shlomo Rosenbaum: Ned, could you talk a little bit about what you've seen with the reconstituted landfill sales team. The progress they've made over there, what looks different right now than it did 18 months ago? And is there a potential for them to move the pricing beyond kind of the 4% to 5% targeted range for a third party? Or how are you thinking about that? Ned Coletta: Yes. Right now, the team has come together. We've got great leadership from the team. As I mentioned earlier, it's slipped under Liza Casella, who's been our VP of Sales for years, and that responsibility is tucked under her. We've put a new director post collection sales in place. We've moved in a really talented sales lead from our hauling side of business. And we've just started from the bottom up from a process discipline standpoint, following best practice from a sales standpoint, building out pipelines, working the market for both price and volumes, and building out a pipeline that stretches out several years. Some of these jobs, they take a long time to get through permitting and execution, especially on the special waste contaminated soil side. So we're starting to fill back off that blank spot that existed in our pipeline, and we're working jobs. Now, from our vantage point, it's a balance, right? So we love to maximize price at the landfills. But many of these sites, the last ton in at the end of the day might have a 60% to 70% margin. So we're also balancing that as well with the special waste pipeline, where many of our landfills have needs for soils. And if you don't have to go dig that soil out of the ground, but you can get paid for it, that's a much better place to be. So getting that balance of meeting our needs while pushing price in the market, you'll continue to see us doing that. We're around 4% this quarter. Working that up a bit to 5-plus percent, would I think be a pretty comfortable spot for us in 1 of our goals. Shlomo Rosenbaum: And then does the $5 million savings in the Mid-Atlantic that you're looking for this year, does that include the better targeted pricing that you're hoping to get? Or would the targeted pricing be incremental to that? Bradford Helgeson: No, that's primarily a cost reduction. That's sort of the -- I hesitate to say low-hanging fruit because there's a lot of work, as Ned was describing. But that's the immediate opportunity for us taking cost out of the business by running the business with fewer routes after the integration. Pricing, I think, is a longer-term opportunity, the way we look at it. With the data that we now have in place, the analytical tools that we have in place going into the back half, we're looking to drive price in that market. But we haven't put a specific dollar number on that opportunity, and that will play out, I think, over a period of a couple of years. Shlomo Rosenbaum: Okay. So the pricing is something that hasn't been quantified, and it's really incremental to anything that you're talking about right now? I just want to get that clear. Bradford Helgeson: Correct. Yes, that's right. Shlomo Rosenbaum: Okay. And then just again, the pricing in the Mid-Atlantic, I think you said it was 4.7% in the quarter. Is that inclusive or exclusive of any fuel recovery fees? Ned Coletta: So that does not include fuel recovery fees runs through a line you'd see in our -- it's down below that in our tables in the press release. I think we'd call it Jason, what's the exact language we use? Fuel surcharge and other fees, maybe? Operator: Our next question comes from the line of Tyler Brown with Raymond James. Unknown Analyst: This is Ethan Rollins, on for Tyler. So I just wanted to ask, so the Northeastern market is clearly a longer haul market with a lot of transfer. Curious what you are seeing in the transportation markets, not only from a fuel, but for like core rate increases, given that market is very tight. How should we think about inflation in the context of the guide? Ned Coletta: Yes. So each of -- so we have a balance between our own trucks that are running long-haul and third-party trucks are running long haul. So we have both within our business model today. With our third-party contractors who haul for us, there are fuel surcharge formulas within those contracts, and they kick in above set fuel levels. So every one of those has kicked in with this 50% increase in fuel over the last 4, 5 months here. When we look at our fuel recovery program as a business, we are focused on recovering that cost of fuel to move our waste or recycling from transfer stations to end disposal sites. So that's included in what we're trying to accomplish within the cost offset. However, as we've mentioned, our fuel recovery fees do not recover margin, so they have a headwind there. But we've done a great job of offsetting any of that inflation. To your second question of are we seeing inflationary pressures outside of fuel and long-haul trucking? Yes, a bit, but it's not outside of any other inflation in our book of business today. I mean, we've been through a multiyear cycle right now on inflationary pressures across all industries. And as you know, we're in a pretty unique spot. I mean as much as 70% of our collection line of business we can price at will, and we can really try to get inflation back to our customer base. I think like all companies this spring, we're laser focused on trying to make sure fuel got back to our customers, and that was job number one. As far as any other kind of price increases, we'll get that back to the market if we see anything outsized. Operator: And our next question comes from the line of Stephanie Moore with Jefferies. . Stephanie Benjamin Moore: I was hoping you could give us an update on McKean. I think it's always helpful to get a sense of how that's ramping and then how I think long term, you're thinking about leveraging McKean in your portfolio just as the supply shortage dynamics in the Northeast continue to progress. Ned Coletta: Thank you. So things at McKean are going well. As we've talked about over time, we haven't gone out and just made a big push from a third-party standpoint to ramp in significantly through the site. But the second quarter was actually kind of an exciting time into early July for McKean, where our new transfer station came online at McKean. So now we have capabilities to offload open gondolas on-site, whether they're filled with construction demo debris, contaminated soils, or even MSW that has Posi-Shell or Atmos on top of it to seal in the waste. Our first Casella railcars were delivered a couple of weeks ago. So if you see some blue railcars on the track with CWXX on them, those are ours. So they're traveling around the Northeast now. So that's an exciting moment for us as well. We started moving intercompany waste in July from Massachusetts to McKean. So great movement there. It's still a little bit slow, but this is long-term positioning for us. We'll start to see more and more waste flow from our facilities to McKean over time. We're also working on some specialty streams that we think could have some long-term value at the site. Much of the biosolids or sludges that were going through composting projects to land application now need to be placed in landfills and we're looking at strategies to get more of that to McKean over time, Stephanie. Operator: All right. Thank you. I'm showing no further questions. So with that, I would like to hand the call back over to President and CEO, Ned Coletta, for any closing remarks. Ned Coletta: Thank you, everyone, for joining us today. We appreciate the great questions on the call. And we look forward to speaking with everyone in early November to discuss our third quarter 2026 results. I hope everyone has a wonderful end to the summer, and thank you. Have a nice day. Operator: Ladies and gentlemen, thank you for participating. This does conclude today's program, and you may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Casella Waste Systems (CWST) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by disciplined pricing execution, higher landfill volumes, and the effective integration of recent acquisitions within the existing operating footprint. Landfill volume growth of 8.4% reflects the strategic positioning of unique assets in the Northeast, where capacity constraints are tightening due to planned facility closures. The company is transitioning from a regional player to a scale enterprise, necessitating the implementation of automated, AI-enabled back-office tools to ensure margin accretion as revenue grows. Pricing remains a primary lever, with solid waste pricing up 5.5% overall, supported by a dynamic fuel recovery program that fully offsets dollar-for-dollar increases in fuel costs. Operational efficiency gains were realized through the elimination of 13 routes and related equipment in the Mid-Atlantic region following the completion of systems integration. Safety performance improved significantly, with a 34% reduction in key OSHA metrics attributed to the deployment of Lytx in-cab AI technology and an expanded triage program. Strategic investments in customer-facing technology, including a new payment portal and mobile app, are designed to enhance e-commerce capabilities and yield long-term cost efficiencies. Revenue guidance was raised to $2.09 billion – $2.11 billion, primarily reflecting the impact of elevated fuel recovery fees and recent acquisition activity. Management expects to realize $5 million in operating cost savings in 2026, with an additional $10 million targeted over the next two years as Mid-Atlantic route consolidations continue. A three-phase G&A savings plan aims to capture $15 million over three years, starting with credit card convenience fees in late 2026, followed by the elimination of redundant systems in 2027. The M&A strategy for the remainder of the year will pivot toward smaller, high-margin tuck-in opportunities that build density or add strategic transfer station assets. Landfill capacity is expected to remain tight in the Northeast through 2026, positioning the company to capture displaced volumes from upcoming incinerator and landfill closures. The Hakes Construction and Demolition Landfill is expected to receive a permit expansion in Q3, securing approximately 20 years of airspace at current run rates. Fuel recovery fees, while effective at offsetting costs, created a 40 basis point headwind to adjusted EBITDA margins due to the revenue and cost 'gross-up' effect. The Resource Solutions segment faced a 70 basis point margin headwind due to a difficult year-over-year comparison involving a competitor's temporary facility retrofit in 2025. Management confirmed the company does not expect to be a federal cash taxpayer for several years due to advantaged tax structuring of acquisition activity. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Margins in the Mid-Atlantic were relatively flat in Q2, but management expects positive movement in Q3 and Q4 as route consolidations accelerate. The completion of systems integration in May now provides visibility into customer-level profitability, enabling more targeted pricing adjustments over the next two years. Growth was fueled by a 17% increase in construction and demolition tons and a reconstituted landfill sales team focused on filling the special waste pipeline. Market dynamics are shifting as regional incinerators and municipal landfills announce closures, driving more third-party volume to Casella's disposal sites. Management acknowledged the need to unlock synergy value faster by moving toward 'Day 1' systems integration for smaller acquisitions. The focus is on building a scalable enterprise platform that can absorb $2 billion-plus in revenue without linear increases in headcount. The new transfer station at McKean is now operational, and the company has begun moving intercompany waste from Massachusetts via its own railcars. Management is targeting specialty waste streams, such as biosolids and sludges, to leverage the site's long-term capacity as land application options decrease.

Interested in Casella Waste Systems, Inc.? Here are five stocks we like better. Strong Q2 performance: Revenue rose 16.9% to $543.7 million, driven by acquisitions, 5.5% pricing growth and an 8.4% increase in landfill volumes. Adjusted EBITDA increased 12.5% to $123.2 million, although margins faced pressure from fuel recovery fees and resource solutions. 2026 outlook raised: Casella increased full-year revenue guidance by $30 million to $2.09 billion–$2.11 billion, while reaffirming adjusted EBITDA of $473 million–$483 million and adjusted free cash flow of $200 million–$210 million. GAAP net income guidance was lowered to $0 million–$6 million because of higher amortization and taxes. Integration and expansion remain priorities: The company completed five acquisitions totaling about $165 million in annualized revenue, is targeting $15 million in Mid-Atlantic cost savings by 2028, and is advancing landfill expansions expected to support long-term capacity. 3 Waste Stocks Turning AI Investments Into Growth Casella Waste Systems (NASDAQ:CWST) reported second-quarter revenue growth of 16.9% as acquisitions, pricing gains and higher landfill volumes supported results, while the company raised its full-year revenue outlook and reaffirmed its adjusted EBITDA and cash-flow guidance. Revenue for the quarter totaled $543.7 million, an increase of $78.4 million from a year earlier. Acquisitions, including rollover activity, contributed $46.2 million of the increase, while same-store growth accounted for $32.2 million, or 6.9%, Chief Financial Officer Brad Helgeson said during the company’s earnings call. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Adjusted EBITDA rose 12.5% year over year to $123.2 million. Adjusted EBITDA margin was 22.7%, down 80 basis points from the prior-year quarter, reflecting the effect of fuel recovery fees and costs as well as headwinds in the resource solutions segment. Excluding fuel and resource solutions, Helgeson said the business expanded margins by 30 basis points, including the dilutive effect of acquisitions. He said the base business generated margin expansion of more than 50 basis points when acquisitions were excluded. President and Chief Executive Officer Ned Coletta said results reflected “strong pricing execution, higher landfill volumes, and continued acquisition activity.” Overall solid-waste pricing increased 5.5%, including a 5.8% gain in collection and a 4.7% increase in disposal. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Collection pricing was led by 7% increases in both roll-off and front-load commercial service, though collection volumes declined 1.4% as the company continued to prioritize pricing and profitability. Solid-waste volumes overall declined 0.6%. Landfill activity was a major offset. Landfill volumes rose 86,000 tons, or 8.4%, from the prior-year quarter. Internalized volume increased by 24,000 tons and third-party volume rose by 62,000 tons. Coletta attributed the growth to the company’s reconstituted post-collection sales team, internalization efforts and landfill positioning in the Northeast. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Management also pointed to tightening regional disposal capacity. Coletta said the Hudson Falls incinerator in New York is scheduled to close at the end of 2026, while Albany has announced plans to close its landfill and develop a transfer station. Construction-and-demolition volumes rose nearly 17% during the quarter, with strength also reported in municipal solid waste and special-waste streams. Casella expects third-party landfill pricing to improve 4% to 5% in 2026, consistent with its expectation for 5% overall solid-waste pricing growth. Coletta said the company is targeting landfill pricing growth of 5% or more while balancing pricing with the need for soil at certain sites. Higher fuel costs added $11.6 million of revenue through cost-recovery fees during the quarter. The company said its floating fuel fees fully offset the dollar increase in fuel costs, although the gross-up of revenue and expenses created an approximately 40-basis-point margin headwind. For the full year, Helgeson said fuel is expected to represent roughly a 30-basis-point headwind compared with 2025, assuming prices remain at elevated levels. The company’s updated revenue guidance assumes fuel costs remain near current levels for the remainder of the year. Resource solutions revenue increased 10.7%, including 5.5% growth in recycling and other processing revenue and 17.1% growth in national accounts. However, the segment created a 70-basis-point year-over-year EBITDA margin headwind against a strong prior-year comparison. The comparison reflected higher recycling volumes last year when a competitor was retrofitting a facility, the closure of Casella’s Maine organics facility in the third quarter, and lower national-accounts margins. Casella said it completed the migration of Mid-Atlantic customers to its lead-to-cash system and payment portal in early May. The company has since shifted focus toward route consolidations and automated truck conversions, eliminating 13 routes along with associated trucks and labor. The company remains on track to remove $5 million of Mid-Atlantic operating costs in 2026 and an additional $10 million over the following two years. Helgeson said segment margins were relatively flat year over year in the second quarter but are expected to begin improving in the third and fourth quarters and especially in 2027. Mid-Atlantic pricing increased 4.7% during the quarter, excluding fuel recovery fees. Management said the unified operating platform is providing improved visibility into customer profitability and should support a more targeted pricing approach over time. The potential pricing benefit has not been quantified and is separate from the identified cost-reduction targets. Casella also said it remains on track to achieve $15 million in general and administrative savings over the next three years. The first phase is expected in the second half of 2026 through credit-card convenience fees, followed by the elimination of redundant systems in 2027 and further back-office automation thereafter. The company completed five acquisitions so far in 2026, representing approximately $165 million in annualized revenue. Coletta said future activity through early 2027 is expected to focus primarily on smaller tuck-in acquisitions, generally businesses with roughly $10 million to $20 million in revenue or strategically located transfer-station assets. Casella ended June with $1.35 billion of debt, $25 million of cash and a consolidated net leverage ratio of 2.7 times for bank-covenant purposes. The company said it had approximately $500 million of available liquidity. The company expects to receive a third-quarter permit to expand airspace at its Hakes construction-and-demolition landfill in New York. At current operating rates, Coletta said the expansion would provide about 20 years of airspace. Casella also cited progress on expansion work at its Hyland, Juniper Ridge and Clinton landfills. At McKean, Casella’s new transfer station came online during the second quarter, and the company began moving intercompany waste from Massachusetts to the site in July using its own rail cars. Management characterized the operation as a long-term positioning effort rather than an immediate push for higher third-party volumes. Casella raised 2026 revenue guidance by $30 million to a range of $2.09 billion to $2.11 billion. Helgeson said more than $20 million of the increase reflects higher anticipated fuel recovery fees, while less than $10 million is tied to the acquisition completed July 1. Adjusted EBITDA guidance was reaffirmed at $473 million to $483 million. Adjusted free cash flow guidance was reaffirmed at $200 million to $210 million. Net cash provided by operating activities guidance was reaffirmed at $370 million to $380 million. GAAP net income guidance was lowered to $0 million to $6 million, reflecting higher expected amortization expense and income-tax provision. For the second quarter, adjusted net income was $25.3 million, or $0.40 per diluted share, up $1.1 million, or $0.02 per share, from a year earlier. GAAP net income declined $1.4 million, which the company attributed to higher depreciation and amortization, interest expense and costs associated with the organics facility closure. Casella Waste Systems, Inc is a regional resource management company headquartered in Rutland, Vermont. Established in 1975, the company has grown from a single-truck operation into a multi-state provider of integrated waste management solutions. Casella offers a comprehensive range of services, including residential, commercial and industrial waste collection, transfer station operations, landfill disposal, recycling processing and organics management. Through a network of solid waste transfer stations, recycling facilities and landfills, Casella serves communities primarily across the northeastern United States and parts of the mid-Atlantic region. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Casella Waste Systems Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: $543.7 million, up 16.9% year over year. Adjusted EBITDA: $123.2 million, up 12.5% year over year. Adjusted EBITDA Margin: 22.7%, down 80 basis points year over year. Solid Waste Pricing: Up 5.5% overall, including 5.8% in collection and 4.7% in disposal. Landfill Volumes: Up 8.4% year over year, with internalized volume up 24,000 tons and third-party volume up 62,000 tons. Resource Solutions Revenue: Up 10.7% year over year, with recycling and other processing revenues up 5.5% and national accounts up 17.1%. Adjusted Net Income: $25.3 million, or $0.40 per diluted share, up $1.1 million and $0.02 per share year over year. Net Cash Provided by Operating Activities: $161 million for the first six months, up $21.4 million or 15.3% year over year. Adjusted Free Cash Flow: $78.1 million for the first six months, up 10.3%. Capital Expenditures: $122.3 million for the first six months. Debt: $1.35 billion as of June 30, with $25 million of cash and consolidated net leverage ratio at 2.7 times. Revenue Guidance: Raised to a range of $2.09 billion to $2.11 billion. Adjusted EBITDA Guidance: Reaffirmed at $473 million to $483 million. Adjusted Free Cash Flow Guidance: Reaffirmed at $200 million to $210 million. GAAP Net Income Guidance: Lowered to a range of $0 to $6 million. Warning! GuruFocus has detected 6 Warning Signs with CWST. Is CWST fairly valued? Test your thesis with our free DCF calculator. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Casella Waste Systems Inc (NASDAQ:CWST) delivered strong financial performance in Q2 2026, with revenue up 16.9% year-over-year to $543.7 million and adjusted EBITDA up 12.5% to $123.2 million. Solid waste pricing remained robust, increasing 5.5% overall, with collection pricing up 5.8% and disposal pricing up 4.7%, demonstrating strong pricing power. Landfill volumes surged 8.4% year-over-year, driven by a reconstituted sales team, internalization efforts, and favorable market dynamics in the Northeast, including the closure of competitor capacity. The company successfully offset all dollar increases in fuel costs through its dynamic fuel recovery program, mitigating a key cost pressure. Casella Waste Systems Inc (NASDAQ:CWST) completed five acquisitions in 2026, representing approximately $165 million in annualized revenues, and maintains a strong pipeline of tuck-in opportunities. Integration of the Mid-Atlantic business is progressing well, with the company on track to cut $5 million in operating costs in 2026 and an additional $10 million over the next two years, having already eliminated 13 routes. The company is making significant progress on technology and efficiency initiatives, including the launch of a new customer payment portal, mobile app, and website, which are expected to drive cost savings and improve customer experience. Safety performance improved significantly, with a key OSHA metric improving 34% year-over-year, reflecting the company's investment in initiatives like Lytx in-cab AI technology. Casella Waste Systems Inc (NASDAQ:CWST) expects to receive a permit in Q3 2026 to expand its Hakes landfill, adding roughly 20 years of valuable airspace at the site. The company raised its full-year revenue guidance to $2.09 billion to $2.11 billion, reflecting acquisition activity and higher expected fuel recovery fees. Adjusted EBITDA margin contracted by 80 basis points year-over-year to 22.7%, impacted by a 40 basis point headwind from fuel recovery fees and a 70 basis point headwind from the Resource Solutions segment. The Resource Solutions segment faced headwinds, including lower margins in national accounts and the closure of an organics facility in Maine, which negatively impacted year-over-year comparisons. Solid waste collection volumes declined 1.4% in the quarter, as the company prioritized price and profitability over volume growth. Higher fuel costs, while offset by recovery fees, created a margin dilution effect of approximately 40 basis points, as the fees gross up both revenues and costs. The company lowered its GAAP net income guidance to a range of $0 to $6 million, reflecting higher forecasted amortization expense and income tax provision. Integration of recent acquisitions, including Star Waste and Mountain Waste, is progressing slower than ideal, as the company's focus has been on the Mid-Atlantic integration. The company's stock price has not reflected its growth, raising questions about the market's recognition of its M&A and margin expansion strategy. The Mid-Atlantic business is still in the early stages of realizing margin improvements, with pricing slightly below the rest of the business at 4.7%. The company expects fuel to remain a headwind for the remainder of the year, assuming prices stay elevated, which will continue to pressure margins. The company's growth strategy relies heavily on acquisitions, which have a modest dilutive impact on margins in the near term. Q: Can you clarify whether the 30 basis points of underlying margin expansion, excluding fuel and national accounts headwinds, includes M&A dilution? A: Bradford Helgeson (CFO) confirmed that the 30 basis points includes acquisitions netted within that figure. If you pull out the dilutive impact of acquisitions, the base business performed well in excess of 50 basis points of margin expansion. Q: Now that systems integration is complete in the Mid-Atlantic, how is that business performing on key metrics like volumes, price, and margins, and how should we expect the margin cadence to trend over the remainder of the year? A: Bradford Helgeson (CFO) noted that margins in the segment were relatively flat year-over-year in Q2 but expects them to move in a positive direction in Q3 and Q4, especially into next year. Pricing was a little over 4% in the Mid-Atlantic, and the company successfully implemented floating fuel fees to cover fuel costs. Edmond Coletta (CEO) added that price was up 4.7% in the Mid-Atlantic, but the timing of systems integration (completed in the second week of May) delayed route consolidation efforts, which are now starting to show benefits in July as trucks are taken off the road. Q: Can you expand on what's driving the sharp acceleration in landfill volumes (up 8.4% year-over-year) and how should we think about that going forward? A: Bradford Helgeson (CFO) attributed the performance to healthy volumes in the market generally, indicating a relatively healthy economy, and the dynamic in the Northeast where landfill capacity is coming out of the market. Edmond Coletta (CEO) added that the Hudson Falls incinerator owned by Wynn has announced closure at the end of 2026, and Albany has announced plans to close its landfill, creating tighter constraints. Construction and demolition tons were up close to 17% in the quarter, with strong trends across MSW and special waste, driven by the reconstituted landfill sales team and increased internalization efforts. Q: Given that the stock price isn't reflecting the growth, does this give you pause or make you reconsider the growth versus margin debate? A: Edmond Coletta (CEO) stated that the company has gone through a transition from a regional company to an enterprise and needs scalable functions to take on growth while getting margin accretion. He emphasized that the acquisitions are accretive and add density, but the company needs scalable systems and processes to unlock leverage. The goal is not to tap the brakes on M&A but to unlock synergy value and scale from acquisitions faster. Q: Can you parse out how much of the $30 million revenue guidance raise is fuel versus M&A versus price versus volume? A: Bradford Helgeson (CFO) explained that the majority of the raise is fuel. The acquisition closed on July 1 represents about $15 million of annual revenue (less than $10 million for the remainder of the year), and the balance is fuel, assuming fuel prices remain elevated around current levels for the balance of the year. The company has not updated guidance for anything else in the underlying base business. Q: How much of the full-year EBITDA margin guidance reduction (30 basis points lower) is M&A versus fuel? A: Bradford Helgeson (CFO) stated that most of the reduction is fuel, with a little bit from M&A. The majority of the margin headwind is attributable to fuel. Q: Can you provide an update on the McKean landfill and how you're thinking about leveraging it long-term as supply shortage dynamics in the Northeast progress? A: Edmond Coletta (CEO) reported that things at McKean are going well. A new transfer station came online in Q2, allowing the company to offload open gondolas on site. The first Casella rail cars were delivered, and the company started moving intercompany waste from Massachusetts to McKean in July. While it's still slow, this is long-term positioning, and the company expects more waste flow to McKean over time, including specialty streams like biosolids and sludges that need to be placed in landfills. Q: What are you seeing in the transportation markets given the Northeast is a longer-haul market with a lot of transfer, and how should we think about inflation in the context of the guide? A: Edmond Coletta (CEO) explained that the company has a balance between its own trucks and third-party trucks running long haul. Fuel surcharge formulas in third-party contracts have clicked in with the 50% increase in fuel over the last four to five months. The fuel recovery program is focused on recovering the cost of fuel to move waste from transfer stations to end disposal sites, but it does not recover margin, creating a headwind. Outside of fuel, inflationary pressures are not outside of any other inflation in the book of business, and the company can price at will for up to 70% of its collection line of business. Q: Does the $5 million savings target in the Mid-Atlantic for 2026 include better targeted pricing, or would pricing be incremental to that? A: Bradford Helgeson (CFO) clarified that the $5 million savings is primarily a cost reduction opportunity from running the business with fewer routes after integration. Pricing is a longer-term opportunity that will play out over a couple of years, and the company has not put a specific dollar number on that opportunity. Q: Can you talk about what the reconstituted landfill sales team has accomplished and whether there's potential to move pricing beyond the 4% to 5% targeted range for third-party landfill pricing? A: Edmond Coletta (CEO) stated that the team has been rebuilt from the bottom up with process discipline, building out pipelines and working the market for both price and volumes. The company is balancing maximizing price at landfills with the need for soils at many sites, where getting paid for soil is a better place to be. The company is currently around 4% pricing and working toward 5%-plus, which would be a comfortable spot and one of their goals. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

RUTLAND, Vt., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (Nasdaq: CWST), a regional solid waste, recycling and resource management services company, today reported its financial results for the three and six month periods ended June 30, 2026. Key Highlights: Revenues were $543.7 million for the quarter, up $78.4 million, or up 16.9%, from the same period in 2025. Solid waste pricing for the quarter was up 5.5% from the same period in 2025, driven by 5.8% collection price growth and 4.7% disposal price growth. Net income was $3.8 million for the quarter, as compared to $5.2 million for the same period in 2025. Adjusted Net Income, a non-GAAP measure, was $25.3 million for the quarter, up $1.1 million, or up 4.6%, from the same period in 2025. Adjusted EBITDA, a non-GAAP measure, was $123.2 million for the quarter, up $13.7 million, or up 12.5%, from the same period in 2025. Net cash provided by operating activities was $161.0 million for the year-to-date period, up $21.4 million, or up 15.3%, from the same period in 2025. Adjusted Free Cash Flow, a non-GAAP measure, was $78.1 million for the year-to-date period, up $7.3 million, or up 10.3%, from the same period in 2025. Acquired five businesses thus far in 2026 with approximately $165 million in aggregate annualized revenues. “We delivered another quarter of solid financial and operating performance as our teams continued to execute at a high level across the business,” said Ned Coletta, President and CEO of Casella Waste Systems, Inc. “Our disciplined operating approach, strong pricing execution, healthy landfill volumes, and continued acquisition activity drove positive results during the quarter. The momentum we have built through the first half of the year, together with the strength of our operating platform, reinforces our confidence in our strategy and execution for the remainder of the year.” “Our core business continued to perform well during the quarter,” Coletta said. “Solid waste pricing remained strong, including disposal pricing of 4.7%, with municipal solid waste and construction & demolition pricing growth of 4.5% at the landfills. As we advanced pricing, landfill volumes also increased year-over-year with the growth related to both third party-sales and internalization efforts.” “Notably, as fuel prices rapidly increased this year and remained elevated through the second quarter, our floating fuel recovery fees offset this higher cost, although resulting in a headwind to Adjusted EBITDA margins of 40 basis points. At the same time, our teams remained focused on driving results through our key operating programs as well as acquisition integration, including continued progress within our Mid-Atlantic region, where we have completed our systems integration work, initiated various route optimization initiatives, and look to further execute against our plan in the second half of the year.” “Our acquisition pipeline remains very strong,” Coletta said. “We have closed on five acquisitions so far this year with total annualized revenues of approximately $165 million, and I would like to again welcome our new team members and customers.” Q2 2026 Results Revenues were $543.7 million for the quarter, up $78.4 million, or up 16.9%, from the same period in 2025, with revenue growth mainly driven by: the positive impact from acquisitions, including the rollover contribution from deals closed in prior periods; positive collection and disposal price; an increase in landfill volumes; and strong National Accounts growth in our Resource Solutions operating segment. Operating income was $20.0 million for the quarter, up $0.7 million, or up 3.6%, from the same period in 2025, reflecting improved operating performance; partially offset by higher depreciation and amortization expense mainly related to acquisition growth. Net income was $3.8 million for the quarter, down $(1.4) million, or down (27.6)%, as compared to $5.2 million for the same period in 2025, largely driven by the same factors impacting operating income in addition to higher interest expense, net. Adjusted Net Income was $25.3 million for the quarter, up $1.1 million, or up 4.6%, from the same period in 2025. Adjusted EBITDA was $123.2 million for the quarter, up $13.7 million, or up 12.5%, from the same period in 2025, driven by both acquisition contribution and organic growth. Please refer to "Non-GAAP Performance Measures" included in "Unaudited Reconciliation of Certain Non-GAAP Measures" below for additional information and reconciliations of Adjusted Net Income, Adjusted EBITDA and other non-GAAP performance measures to their most directly comparable generally accepted accounting principles (“GAAP”) measures. Net cash provided by operating activities was $161.0 million for the six months ended June 30, 2026, up $21.4 million from the same period in 2025. Adjusted Free Cash Flow was $78.1 million for the six months ended June 30, 2026, up $7.3 million from the same period in 2025. Please refer to "Non-GAAP Liquidity Measures" included in "Unaudited Reconciliation of Certain Non-GAAP Measures" below for additional information and reconciliation of Adjusted Free Cash Flow to its most directly comparable GAAP measure. Fiscal Year 2026 Outlook “We are increasing our revenue guidance reflecting our acquisition activity and expectation of higher floating fuel recovery fees associated with offsetting elevated fuel costs,” Coletta said. “The business is performing in line with plan and our outlook for the year has not materially changed.” The Company updated guidance for the fiscal year ending December 31, 2026 (“fiscal year 2026”) for the following ranges: Revenues between $2.090 billion and $2.110 billion (raised from a range of $2.060 billion to $2.080 billion); and Net income between $0 and $6 million (lowered from a range of $4 million to $10 million). The Company reaffirmed guidance for fiscal year 2026 by estimating results in the following ranges: Adjusted EBITDA between $473 million and $483 million; Net cash provided by operating activities between $370 million and $380 million; and Adjusted Free Cash Flow between $200 million and $210 million. The guidance ranges do not include the impact of any acquisitions that have not been completed. Adjusted EBITDA and Adjusted Free Cash Flow related to fiscal year 2026 are described in the Unaudited Reconciliation of Fiscal Year 2026 Outlook Non-GAAP Measures section of this press release. Net income and Net cash provided by operating activities are provided as the most directly comparable GAAP measures to Adjusted EBITDA and Adjusted Free Cash Flow, respectively, however these forward-looking estimates for fiscal year 2026 do not contemplate any unanticipated impacts. Conference Call to Discuss Quarter The Company will host a conference call to discuss these results on Friday, August 7, 2026 at 10:00 a.m. Eastern Time. Individuals interested in participating in the call should register for the call by clicking here to obtain a dial in number and unique passcode. Alternatively, upon registration, the website linked above provides an option for the conference provider to call the registrant's phone line, enabling participation on the call. The call will also be webcast; to listen, participants should visit the Company’s website at http://ir.casella.com and follow the appropriate link to the webcast. A replay of the call will be available on the Company's website and accessible using the same link. About Casella Waste Systems, Inc. Casella Waste Systems, Inc., headquartered in Rutland, Vermont, provides resource management expertise and services to residential, commercial, municipal, institutional and industrial customers, primarily in the areas of solid waste collection and disposal, transfer, recycling and organics services in the eastern United States. For further information, investors may visit the Company’s website at http://www.casella.com. Safe Harbor Statement Certain matters discussed in this press release, including, but not limited to, the statements regarding our intentions, beliefs or current expectations concerning, among other things, our financial performance; financial condition; operations and services; prospects; growth; strategies; anticipated impacts from future or completed acquisitions; and guidance for fiscal year 2026, are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such by the context of the statements, including words such as “believe,” “expect,” “anticipate,” “plan,” “may,” “would,” “intend,” “estimate”, “projects,” “will,” “guidance” and other similar expressions, whether in the negative or affirmative. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which the Company operates and management’s beliefs and assumptions. The Company cannot guarantee that it will achieve the financial results, plans, intentions, expectations or guidance disclosed in the forward-looking statements made. Such forward-looking statements, and all phases of the Company's operations, involve a number of risks and uncertainties, any one or more of which could cause actual results to differ materially from those described in its forward-looking statements. Such risks and uncertainties include or relate to, among other things, the following: the Company may be unable to adequately increase prices or drive operating efficiencies to adequately offset increased costs and inflationary pressures, including increased fuel prices, wages, and tariffs; it is difficult to determine the timing or future impact of a sustained economic slowdown that could negatively affect our operations and financial results; the increasing focus on per - and polyfluoroalkyl substances (“PFAS”) and other emerging contaminants, including the recent designation by the U.S. Environmental Protection Agency of two PFAS chemicals as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act, will likely lead to increased compliance and remediation costs and litigation risks; adverse weather conditions may negatively impact the Company's revenues and its operating margin; the Company may be unable to increase volumes at its landfills or improve its route profitability; the Company may be unable to reduce costs or increase pricing or volumes sufficiently to achieve estimated Adjusted EBITDA and other targets; landfill operations and permit status may be affected by factors outside the Company's control; the Company may be required to incur capital expenditures in excess of its estimates; the Company's insurance coverage and self-insurance reserves may be inadequate to cover all of its risk exposures; fluctuations in energy pricing or the commodity pricing of its recyclables may make it more difficult for the Company to predict its results of operations or meet its estimates; disruptions or limited access to domestic and global transportation or the imposition of tariffs could impact the Company's ability to sell recyclables into end markets; the Company may be unable to achieve its acquisition or development targets on favorable pricing or at all, including due to the failure to satisfy all closing conditions and to receive required regulatory approvals that may prevent closing of any announced transaction; the Company may not be able to successfully integrate and recognize the expected financial benefits from acquired businesses; and the Company may incur environmental charges or asset impairments in the future. There are a number of other important risks and uncertainties that could cause the Company's actual results to differ materially from those indicated by such forward-looking statements. These additional risks and uncertainties include, without limitation, those detailed in Item 1A. “Risk Factors” in the Company's most recently filed Form 10-K and in other filings that the Company may make with the Securities and Exchange Commission in the future. The Company undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. Investors: Henry Baby, CFAVice President of Investor Relations & Finance(802) 417-3841 Media: Jeff WeldVice President of Communications(802) 772-2234http://www.casella.com CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIESUNAUDITED RECONCILIATION OF CERTAIN NON-GAAP MEASURES(In thousands) Non-GAAP Performance Measures In addition to disclosing financial results prepared in accordance with GAAP, the Company also presents non-GAAP performance measures such as Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, Adjusted Operating Income, Adjusted Operating Income as a percentage of revenues, Adjusted Net Income and Adjusted Diluted Earnings Per Common Share that provide an understanding of operational performance because it considers them important supplemental measures of the Company's performance that are frequently used by securities analysts, investors and other interested parties in the evaluation of the Company's results. The Company also believes that identifying the impact of certain items as adjustments provides more transparency and comparability across periods. Management uses these non-GAAP performance measures to further understand its “core operating performance” and believes its “core operating performance” is helpful in understanding its ongoing performance in the ordinary course of operations. The Company believes that providing such non-GAAP performance measures to investors, in addition to corresponding income statement measures, affords investors the benefit of viewing the Company’s performance using the same financial metrics that the management team uses in making many key decisions and understanding how the core business and its results of operations has performed. The tables below set forth such performance measures on an adjusted basis to exclude such items: Non-GAAP Liquidity Measures In addition to disclosing financial results prepared in accordance with GAAP, the Company also presents non-GAAP liquidity measures, such as Adjusted Free Cash Flow, that provide an understanding of the Company's liquidity because it considers them important supplemental measures of its liquidity that are frequently used by securities analysts, investors and other interested parties in the evaluation of the Company's cash flow generation from its core operations that are then available to be deployed for strategic acquisitions, growth investments, development projects, unusual landfill closures, site improvement and remediation, and strengthening the Company’s balance sheet through paying down debt. The Company also believes that showing the impact of certain items as adjustments provides more transparency and comparability across periods. Management uses non-GAAP liquidity measures to understand the Company’s cash flow provided by operating activities after certain expenditures along with its consolidated net leverage and believes that these measures demonstrate the Company’s ability to execute on its strategic initiatives. The Company believes that providing such non-GAAP liquidity measures to investors, in addition to corresponding cash flow statement measures, affords investors the benefit of viewing the Company’s liquidity using the same financial metrics that the management team uses in making many key decisions and understanding how the core business and cash flow generation has performed. The table below, on an adjusted basis to exclude certain items, sets forth such liquidity measures: Non-GAAP financial measures are not in accordance with or an alternative for GAAP. Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, Adjusted Operating Income, Adjusted Operating Income as a percentage of revenues, Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, and Adjusted Free Cash Flow should not be considered in isolation from or as a substitute for financial information presented in accordance with GAAP, and may be different from Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, Adjusted Operating Income, Adjusted Operating Income as a percentage of revenues, Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, and Adjusted Free Cash Flow presented by other companies. CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIESUNAUDITED RECONCILIATION OF FISCAL YEAR 2026 OUTLOOK NON-GAAP MEASURES(In thousands) Following is a reconciliation of the Company's estimated Adjusted EBITDA(i) from estimated Net income for fiscal year 2026: Following is a reconciliation of the Company's estimated Adjusted Free Cash Flow(i) from estimated Net cash provided by operating activities for fiscal year 2026: CASELLA WASTE SYSTEMS, INC. AND SUBSIDIARIESUNAUDITED SUPPLEMENTAL DATA TABLES(In thousands) Amounts of total revenues attributable to services provided for the three months ended June 30, 2026 and 2025 are as follows: Components of consolidated revenues growth for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 are as follows: Components of capital expenditures(i) for the three and six months ended June 30, 2026 and 2025 are as follows:

Casella (CWST) came out with quarterly earnings of $0.4 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +48.15%. A quarter ago, it was expected that this provider of garbage-disposal and recycling services would post earnings of $0.1 per share when it actually produced earnings of $0.2, delivering a surprise of +100%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Casella, which belongs to the Zacks Waste Removal Services industry, posted revenues of $543.75 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.57%. This compares to year-ago revenues of $465.33 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Casella shares have lost about 8.1% since the beginning of the year versus the S&P 500's gain of 12.8%. While Casella has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Casella was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.39 on $551.2 million in revenues for the coming quarter and $1.06 on $2.08 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Waste Removal Services is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. LanzaTech Global, Inc. (LNZA), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 14. This company is expected to post quarterly loss of $0.76 per share in its upcoming report, which represents a year-over-year change of +94.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. LanzaTech Global, Inc.'s revenues are expected to be $13.1 million, up 44.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Casella Waste Systems, Inc. (CWST) : Free Stock Analysis Report LanzaTech Global, Inc. (LNZA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Casella (CWST) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This provider of garbage-disposal and recycling services is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of -25%. Revenues are expected to be $535.37 million, up 15.1% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 2.09% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Casella, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -8.38%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Casella will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Casella would post earnings of $0.1 per share when it actually produced earnings of $0.20, delivering a surprise of +100.00%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Casella doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Waste Removal Services industry, Select Water Solutions, Inc. (WTTR), is soon expected to post earnings of $0.11 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +10%. This quarter's revenue is expected to be $365.9 million, up 0.5% from the year-ago quarter. The consensus EPS estimate for Select Water Solutions, Inc. has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -11.11%. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Select Water Solutions, Inc. will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Casella Waste Systems, Inc. (CWST) : Free Stock Analysis Report Select Water Solutions, Inc. (WTTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research