Cleanaway Waste Management (CWY) H1 2026 earnings summary

Executive summary

• Revenue rose 13.7% year-over-year to $2,205.8 million, with net revenue at $1,875.3 million and underlying EBIT up 16.9% to $228.2 million, driven by Solid Waste Services and Contract Resources acquisitions.

• Underlying NPAT increased 17.8% to $109.7 million, while statutory profit after tax fell 49.5% to $37.5 million due to $91.0 million in significant and non-recurring items.

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

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

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

Financial highlights

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

• EPSA increased 18.2% to 5.2 cents; basic EPS was 1.7 cents, down from 3.3 cents year-over-year.

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

• Net debt rose to $2,307.6 million, leverage ratio at 2.32x, and gearing ratio at 43.3%.

• Interim dividend payout ratio was 68.4% of underlying NPAT, at the top end of the 60–75% range.

Outlook and guidance

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

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

• CapEx guidance for FY26 unchanged at ~$415 million, with capital intensity at a five-year low.

• Free cash flow growth to accelerate into FY27 as tax payments normalize and capital intensity falls.

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