Casella Waste Systems (CWST) Q1 2025 earnings summary

Executive summary

• Revenue grew 22.3% year-over-year to $417.1 million, driven by acquisitions and strong pricing across segments.

• Adjusted EBITDA increased 21.7% to $86.4 million, reflecting both acquisition and organic growth.

• Net loss widened to $4.8 million from $4.1 million year-over-year, mainly due to higher depreciation, amortization, and acquisition-related expenses.

• Four acquisitions completed year-to-date, adding approximately $50 million in annualized revenue and expanding presence in the Northeast, Mid-Atlantic, and Eastern regions.

• Operating cash flow increased significantly to $50.1 million, up from $7.7 million year-over-year.

Financial highlights

• Revenues reached $417.1 million, up from $341.0 million year-over-year, with $57.3 million from acquisitions and $18.4 million from organic growth.

• Adjusted EBITDA was $86.4 million, up 21.7% year-over-year; margin at 20.7%.

• Adjusted net income was $12.2 million ($0.19 per diluted share), up from $8.7 million ($0.15 per share) year-over-year.

• Adjusted free cash flow was $29.1 million, a first-quarter record, up from negative $2.4 million year-over-year.

• Operating income fell to $3.1 million, impacted by higher depreciation and amortization.

Outlook and guidance

• Fiscal 2025 revenue guidance reaffirmed at $1.775–$1.805 billion, with organic revenue growth expected at 3–5%.

• Net income expected between $10–$25 million; Adjusted EBITDA $410–$425 million.

• Net cash from operating activities projected at $320–$335 million; Adjusted Free Cash Flow $165–$180 million.

• Pricing guidance for the year is approximately 5%, with most increases implemented early.

• Management remains confident in the full-year outlook but sees it as premature to raise guidance due to macroeconomic uncertainty.