Casella Waste Systems (CWST) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 15.2% YoY to $559.2M and Adjusted EBITDA increased 11.4% to $133.5M; GAAP results included a $7.0M net loss.

• Adjusted EBITDA margin fell 80 bps to 23.9%, amid elevated fuel costs, Mid-Atlantic execution challenges, and lower initial margins from acquisitions.

• The “300 in three” initiative targets at least 300 bps of Adjusted EBITDA margin expansion and margins of at least 26% by year-end 2029.

• Six acquisitions closed in the first nine months, representing over $170M in annualized revenue.

Financial highlights

• Q3 revenue was $559.2M, up $73.9M YoY; nine-month revenue was $1.560B versus $1.368B.

• Q3 operating income was $15.6M versus $29.4M; net loss was $7.0M versus net income of $10.0M.

• Q3 Adjusted Net Income was $22.3M, down 18.7%; Adjusted Diluted EPS was $0.35 versus $0.43.

• Nine-month operating cash flow was $241.8M, up 3.7%; Adjusted Free Cash Flow was $111.1M, down 7.0%.

Outlook and guidance

• FY26 revenue guidance increased to $2.100B-$2.110B; Adjusted EBITDA guidance narrowed to $475M-$481M.

• FY26 guidance was revised to a $4M-$10M net loss; operating cash flow of $370M-$380M and Adjusted Free Cash Flow of $200M-$210M were reaffirmed.

• 2027 outlook assumes ~5% organic revenue growth, ~2% or ~$40M rollover acquisition revenue, and ~7% total revenue growth before future acquisitions.

• 2027 Adjusted EBITDA growth target is ~10% before acquisitions, with 50-100 bps of margin improvement; greater margin expansion benefits are expected in 2028-29.