Casella Waste Systems (CWST) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $543.7 million, up 16.9% year-over-year, driven by acquisitions, pricing, and landfill volume growth.

• Adjusted EBITDA rose 12.5% to $123.2 million, with margin at 22.7%, impacted by higher fuel and resource solutions headwinds.

• Net income for Q2 2026 was $3.8 million, down from $5.2 million in Q2 2025, while Adjusted Net Income increased 4.6% to $25.3 million.

• Five acquisitions completed in 2026, adding $165 million in annualized revenue and expanding presence in key regions.

• Integration and efficiency initiatives in the Mid-Atlantic are progressing, targeting $5 million in cost reductions for 2026.

Financial highlights

• Revenue increased by $78.4 million year-over-year, with $46.2 million from acquisitions and $32.2 million from organic growth.

• Solid waste pricing up 5.5% overall; landfill volumes up 8.4% year-over-year.

• Adjusted net income was $25.3 million ($0.40 per diluted share), up $1.1 million year-over-year.

• Net cash from operating activities for the first six months was $161 million, up 15.3% year-over-year.

• Adjusted free cash flow for the first six months was $78.1 million, up 10.3%.

Outlook and guidance

• FY2026 revenue guidance raised to $2.09–$2.11 billion, reflecting acquisitions and higher fuel recovery fees.

• Adjusted EBITDA guidance reaffirmed at $473–$483 million and adjusted free cash flow at $200–$210 million.

• Net income guidance lowered to $0–$6 million due to higher amortization and tax provision.

• Expect margin headwinds of 40–50 basis points from fuel and acquisitions, with underlying business margins flat to up 40 basis points.

• Management expects existing cash, cash flows, and credit facility to be sufficient for ongoing operations and investments.