Cleanaway Waste Management (CWY) H1 2026 earnings summary

Executive summary

• Net revenue rose 13–13.7% year-over-year to between $1,875.3m and $2,205.8m, driven by Solid Waste Services and acquisitions of Contract Resources and Citywide Waste.

• Underlying EBIT increased 16.9% to $228.2m, with margin expansion and strong operational performance; statutory profit after tax fell 49.5% to $37.5m due to $91.0m in significant items.

• Interim dividend declared at 3.35 cents per share, up 19.6%, reflecting strong cash generation and confidence in future performance.

• Completed strategy refresh and integration of major acquisitions, focusing on cost base review, digital enablement, and network optimization for long-term value creation.

• Free cash flow was $74.2m, down 21.5% year-over-year due to catch-up tax, acquisition, and restructuring costs, but expected to strengthen in H2.

Financial highlights

• Underlying EBIT margin improved to 12.2%, up 40 bps year-over-year; underlying EBITDA reached $439.3m, up 14.6%.

• Underlying NPAT rose 17.8% to $109.7m; EPSA up 18.2% to 5.2c; ROCE at 9.4% (up 80 bps), ROIC at 6.3% (up 60 bps).

• Net debt rose to $2,307.6m, leverage ratio at 2.32x, interest cover at 8.48x, and gearing at 43.3%.

• Dividend payout ratio at 68.4% of underlying NPAT, at the upper end of the 60–75% range.

• Basic EPS: 1.7 cents, down from 3.3 cents year-over-year; net tangible assets per security: (19.5) cents.

Outlook and guidance

• Upgraded FY26 underlying EBIT guidance to $480m–$500m, implying 19% year-on-year growth, driven by organic growth, acquisition synergies, and cost review benefits.

• CapEx guidance unchanged at ~$415m for FY26, with capital intensity at a five-year low and focus on fleet renewal.

• Free cash flow expected to accelerate in H2 and FY27 as tax payments normalize and capital intensity falls.

• Recurring annualized cost savings of at least $35m expected from FY27.

• No material events or changes in outlook reported post-period end.