Cleanaway Waste Management (CWY) H1 2025 earnings summary

Executive summary

• Delivered double-digit EBIT growth and margin expansion in 1H FY25, with underlying EBIT up 12.2% to $195.2 million and underlying NPAT and EPS both increasing over 13%.

• Net revenue rose 4.6% to $1.66 billion, driven by volume growth, price increases, and new projects.

• Operational excellence and strategic initiatives, including infrastructure projects and cultural transformation, are supporting sustainable value and margin expansion.

• Interim dividend increased 14.3% to 2.80 cents per share, fully franked, with a payout ratio of 67.1% of underlying NPAT.

• FY25 underlying EBIT is tracking toward the midpoint of $395–$425 million guidance, with FY26 ambition set at over $450 million.

Financial highlights

• Gross revenue rose 3.7% to $1,940.2 million and net revenue increased 4.6% to $1,659.4 million year-over-year.

• Underlying EBIT grew 12.2% to $195.2 million; underlying NPAT up 13.7% to $94.0 million; underlying EPS up 13.5% to 4.2 cents.

• EBIT margin expanded by 80 basis points to 11.8%; ROIC improved to 5.7% (up 40bps year-over-year).

• Net operating cash flow before tax up 10.7%; after-tax cash flow down 28.4% due to resumed tax payments.

• CapEx for the half was $157.8 million, down 31.9% year-over-year, reflecting disciplined capital management.

Outlook and guidance

• FY25 underlying EBIT is tracking toward the midpoint of $395–$425 million, excluding St Marys fire impact.

• FY26 EBIT ambition remains over $450 million, 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 ~$400 million for the full year; net finance costs expected at $120–$125 million.

• Health Services EBIT expected to exceed $15 million for FY25; IWS to return to prior earnings run rate in Q4.