Cleanaway Waste Management (CWY) H1 2025 earnings summary

Executive summary

• Achieved double-digit EBIT growth and margin expansion, with net revenue up 4.6% to $1,659.4m and underlying EBIT up 12.2% to $195.2m for the first half of FY2025.

• Underlying NPAT increased 14.1% to $94.0m, and EPS rose 13.5% to 4.2cps; interim dividend increased 14.3% to 2.8cps, fully franked.

• Operational excellence, strategic initiatives, and infrastructure projects are driving sustainable value and margin expansion.

• Solid Waste and Health Services segments led growth, while Industrial & Waste Services was restructured and is on track for earnings recovery.

• Statutory profit after tax was stable at $73.3m; operating cash flows fell 28.4% to $164.5m due to resumed tax payments.

Financial highlights

• Net revenue reached $1.66bn, up 4.6% year-over-year, with gross revenue at $1.94bn; underlying EBIT grew 12.2% to $195.2m.

• Underlying NPAT at $94.0m, up 14.1%; underlying EPS at 4.2cps, up 13.5%.

• EBIT margin expanded by 80bps to 11.8%; EBITDA margin improved 60bps to 23.1%.

• Net operating cash flow before tax up 10.7%, but after-tax cash flow down 28.4% due to tax payments; cash conversion steady at 88.2%.

• CapEx for the half was $115.1m on property, plant, and equipment, and $15.5m on intangibles.

Outlook and guidance

• FY2025 underlying EBIT is tracking towards the midpoint of $395m–$425m guidance, excluding St Marys fire impact.

• FY2026 EBIT ambition remains over $450m, with continued operational efficiency and infrastructure growth.

• Second half EBIT step-up expected from solids growth, operational excellence, LMS JV contribution, and IWS recovery.

• CapEx guidance unchanged at ~$400m for the full year; net finance expense expected at $120m–$125m.

• Health Services segment on track for EBIT >$15m in FY25; IWS expected to return to 1H FY24 earnings run rate in Q4 FY25.