Cleanaway Waste Management (CWY) H1 2026 earnings summary

Executive summary

• Revenue rose 13.7% year-over-year to $2,205.8 million, driven by growth in Solid Waste Services and acquisitions of Contract Resources and Citywide Waste.

• Underlying EBIT increased 16.9% to $228.2 million, and underlying profit after tax rose 17.8% to $109.7 million, reflecting strong operational performance excluding significant items.

• Statutory profit after tax fell 49.5% to $37.5 million due to $91.0 million in significant and non-recurring items, including impairments, acquisition costs, and restructuring.

• Interim dividend of 3.35 cents per share, up 19.6%, supported by strong cash generation and balance sheet strength.

• Completed a comprehensive strategy refresh, targeting at least $35 million in annualised indirect cost savings from FY27, with $15 million expected in 2H FY26.

Financial highlights

• Gross revenue rose 13.7% year-over-year to $2,205.8 million; net revenue up 13.0% to $1,875.3 million.

• Underlying EBIT margin improved 40 bps to 12.2%; underlying EBITDA margin at 23.4%.

• EPSA increased 18.2% to 5.2 cents; underlying NPAT up 17.8% to $109.7 million.

• Free cash flow was $74.2 million, down 21.5% year-over-year, impacted by catch-up tax, integration, and restructuring costs.

• ROCE improved 80 bps to 9.4%; ROIC up 60 bps to 6.3%.

Outlook and guidance

• Upgraded FY26 underlying EBIT guidance to $480–500 million, with a midpoint implying 19% year-on-year EBIT growth.

• Second half expected to benefit from organic growth, Contract Resources synergies (~$3 million), and $15 million in indirect cost reductions.

• Capital intensity is declining, with FY26 CapEx guidance at $415 million, the lowest CapEx/revenue ratio in five years.

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

• Net finance expense expected at ~$155 million, with D&A between $420–440 million.